Sprint Nextel Announces Tower Sale to TowerCo for Approximately $670 Million in Cash

OVERLAND PARK, Kan.--(Business Wire)--
Sprint Nextel (NYSE:S) today announced an agreement to sell
approximately 3,300 towers to TowerCo for approximately $670 million
in cash. Additionally, the two companies have entered into a long term
leasing agreement where TowerCo will provide Sprint Nextel with
wireless communications towers to support the company's CDMA, iDEN and
WiMAX networks.

"By leasing rather than owning these network facilities, we can
better focus on our core business of providing communications services
to consumers, businesses and government customers," said Bob Azzi,
senior vice president, Field Engineering and Operations, Sprint
Nextel. "Significantly, this transaction provides Sprint Nextel with
additional liquidity which gives us greater flexibility in managing
our company."

"These are great towers concentrated in large metropolitan markets
throughout the U.S. and will benefit as wireless communications
continue to grow," said Richard Byrne, TowerCo's CEO.

The specific number of towers and final purchase price will be
determined at closing. The transaction, subject to customary closing
conditions, is expected to close in 90 days.

Equity financing for this transaction will be provided by Tailwind
Capital, Soros Strategic Partners II LP, Stone Tower Equity Partners
and Vulcan Capital.

In this transaction, Sprint Nextel was advised by Wachovia Capital
Markets, LLC, Citi and the law firm of Jones Day. TowerCo was advised
by UBS Investment Bank and the law firm of Paul, Weiss, Rifkind,
Wharton and Garrison LLP.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and
wireline communications services bringing the freedom of mobility to
consumers, businesses and government users. Sprint Nextel is widely
recognized for developing, engineering and deploying innovative
technologies, including two wireless networks serving nearly 53
million customers at the end of the first quarter 2008;
industry-leading mobile data services; instant national and
international push-to-talk capabilities; and a global Tier 1 Internet
backbone. For more information, visit www.sprint.com.

About TowerCo

TowerCo was founded in 2004 by Tailwind Capital and industry
veterans Richard Byrne, Chief Executive Officer, and Scot Lloyd, Chief
Operating Officer, to meet the infrastructure needs of wireless
service providers by developing, owning and leasing communication
towers. Soros Strategic Partners invested in TowerCo in December 2005.
Currently TowerCo has exclusive contracts to build towers directly for
carriers throughout the U.S. TowerCo is based in Cary, N.C. For
additional information please visit www.towerco.com.

Safe Harbor Statement

This news release includes "forward-looking statements" within the
meaning of the securities laws. The statements in this news release
regarding the business outlook and performance, new products and
services, future network capabilities and performance, expected
investments, as well as other statements that are not historical
facts, are forward-looking statements. The words "estimate,"
"project," "forecast," "intend," "expect," "believe," "target,"
"providing guidance" and similar expressions are intended to identify
forward-looking statements. Forward-looking statements are estimates
and projections reflecting management's judgment based on currently
available information and involve a number of risks and uncertainties
that could cause actual results to differ materially from those
suggested by the forward-looking statements. With respect to these
forward-looking statements, management has made assumptions regarding,
among other things, customer and network usage, customer growth and
retention, pricing, development, deployment and operating costs,
availability of devices, the timing of various events and the economic
environment.

Sprint Nextel believes these forward-looking statements are
reasonable; however, you should not place undue reliance on
forward-looking statements, which are based on current expectations
and speak only as of the date of this release. Sprint is not obligated
to publicly release any revisions to forward-looking statements to
reflect events after the date of this release. Sprint Nextel provides
a detailed discussion of risk factors in periodic SEC filings,
including its annual report on Form 10-K for the year ended December
31, 2007.

Sprint Media
James Fisher, 703-433-8677
james.w.fisher@Sprint.com
or
Sprint Investor Relations
Steve Virostek, 800-259-3755
Investor.Relations@Sprint.com
or
TowerCo
E. Peter Wolf, 973-857-3233
pwolf@towerco.com

Copyright Business Wire 2008