USA Mobility Reports Second Quarter Operating Results; Board Declares Quarterly Cash...

USA Mobility Reports Second Quarter Operating Results; Board Declares Quarterly Cash Distribution; $50 Million Stock Repurchase Program Announced

Revenue and Expense Trends Continue to Improve; Operating Cash
Flow Margins Reach New Highs
ALEXANDRIA, Va.--(Business Wire)--
USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless
messaging and communications services, today announced operating
results for the second quarter ended June 30, 2008.

Total revenue for the second quarter was $92.1 million, compared
to $94.8 in the first quarter and $107.5 million in the second quarter
of 2007. EBITDA (earnings before interest, taxes, depreciation,
amortization, accretion and goodwill impairment) in the second quarter
totaled $30.6 million, compared to $29.9 million in the first quarter
and $33.3 million in the second quarter of 2007. Net income in the
second quarter was $10.3 million, or $0.37 per fully diluted share,
compared to net income of $13.0 million, or $0.47 per fully diluted
share, in the year-earlier quarter.

Second quarter results included:

-- EBITDA margin (or EBITDA as a percentage of revenue) increased
to 33.2 percent in the second quarter, compared to 31.6
percent in the first quarter and 31.0 percent in the second
quarter of 2007, reaching its highest level since USA Mobility
was formed in 2004.

-- The quarterly rate of revenue erosion improved to 2.8 percent,
compared to 5.4 percent in the first quarter and 3.7 percent
in the year-earlier quarter. The annual rate of revenue
erosion improved to 14.3 percent from 15.0 percent in the
first quarter and 15.5 percent in the second quarter of 2007.

-- Total paging ARPU (average revenue per unit) was $8.54 in the
second quarter, an increase from $8.49 in the first quarter
and equal to $8.54 in the year-earlier quarter.

-- Units in service totaled 3,176,000 at June 30, 2008, compared
to 3,333,000 at March 31, 2008. Net unit loss in the second
quarter was 157,000, compared to 152,000 in the first quarter
and 155,000 in the second quarter of 2007.

-- The annual rate of subscriber erosion was 15.5 percent,
compared to 14.8 percent in the first quarter and 15.2 percent
in the year-earlier quarter. The quarterly rate of subscriber
loss was 4.7 percent, compared to 4.4 percent in first quarter
and 4.0 percent in the second quarter of 2007.

-- Operating expenses (excluding depreciation, amortization,
accretion and goodwill impairment) totaled $61.5 million in
the second quarter, a reduction of 17.1 percent from $74.1
million in the second quarter of 2007. Operating expenses
declined $12.7 million since the second quarter of 2007 and,
as a percentage of revenue, were at their lowest level since
2004.

-- Capital expenses were $3.9 million, compared to $4.0 million
in the first quarter.

-- The Company's cash balance at June 30, 2008 was $85.8 million.

"We continued to make excellent progress during the second
quarter," said Vincent D. Kelly, president and chief executive
officer, "as the Company's results met or exceeded the majority of our
performance objectives and were largely consistent with the financial
guidance we provided earlier this year. Our annual rate of revenue
erosion showed further improvement, average revenue per unit (ARPU)
increased in the quarter, operating expenses declined and our cash
flow margins reached record highs. Although overall subscriber
cancellations remained higher than expected," Kelly added, "we
continued to see lower net unit loss rates in our core market segment
of Healthcare, which now represents 40.0 percent of our customer
base."

The Company's Board of Directors declared a regular cash
distribution of $0.25 per share, payable on September 11, 2008 to
stockholders of record on August 14, 2008. The Company expects the
September cash distribution, a total of approximately $6.8 million, to
be paid as a return of capital. The Company's Board of Directors also
adopted a stock repurchase plan to buy back up to $50 million of USA
Mobility common stock. The repurchase plan will commence on or about
August 5, 2008 and will continue for up to twelve months. Credit
Suisse Securities (USA) LLC will administer the stock repurchase
program.

Commenting on the Company's capital distribution policy going
forward, Kelly stated: "While we revised our cash distribution rate in
the second quarter to better reflect projected cash flow over the next
several years, our commitment to return cash to our stockholders has
not changed. We recognize that notwithstanding our excellent current
results, continued levels of subscriber erosion will continue to put
pressure on our future operating margins and our revised cash
distribution rate takes that potential into effect."

Kelly said the Company decided to move forward with a stock
repurchase program at this time after a ruling on July 8, 2008 by the
United States Court of Appeals for the DC Circuit delayed a final
decision on its appeal of the Federal Communications Commission's
Back-Up Power Order (Order). The Court held the appeal in abeyance
pending approval by the Office of Management and Budget (OMB) of new
paperwork requirements associated with the Order, a process that is
expected to postpone a final ruling in the case for at least several
months. "Although we were disappointed the Court did not vacate the
Order at this time," Kelly said, "we believe it ultimately will do so
based on the merits of our appeal. In the meantime, the delay serves
to reduce the potential cost of compliance as we continue to eliminate
transmitters in connection with our long-term network rationalization
program."

Thomas L. Schilling, chief operating officer and chief financial
officer, said the Company reported solid financial and operating
results for the quarter. "The improved rate of revenue erosion was
largely the result of retail price adjustments we made during the
quarter," he said, "while a continued emphasis on cost reduction
contributed to our higher EBITDA and cash flow margins. Operating
expenses (excluding depreciation, amortization, accretion and goodwill
impairment) continued to decline due to numerous cost savings
programs," Schilling noted, "and are down 17.1 percent from the second
quarter of 2007 and well ahead of the 14.3 percent annual rate of
revenue erosion."

The Company also revised upward its previously announced financial
guidance for 2008 as follows: revenues are now expected to be between
$355 million to $360 million, up from the previous guidance of $345
million to $355 million; operating expenses (excluding depreciation,
amortization, accretion and goodwill impairment) are now expected to
be between $245 million to $250 million, a decrease from the previous
range of $250 million to $255 million; while guidance for capital
expenses for 2008 remains unchanged at $18 million to $20 million.

USA Mobility plans to host a conference call for investors on its
second quarter results at 10:00 a.m. Eastern Time on Friday, August 1,
2008. The dial-in number for the call is 888-600-4885 (toll-free) or
913-312-6685 (toll). The pass code for the call is 9967444. A replay
of the call will be available from 2:00 p.m. ET on August 1 until
11:59 p.m. on Friday, August 15. The replay number is 888-203-1112
(toll-free) or 719-457-0820 (toll). The pass code for the replay is
9967444.

About USA Mobility

USA Mobility, Inc., headquartered in Alexandria, Virginia, is a
comprehensive provider of reliable and affordable wireless
communications solutions to the healthcare, government, large
enterprise and emergency response sectors. As a single-source
provider, USA Mobility's focus is on the business-to-business
marketplace and supplying wireless connectivity solutions to a
majority of the Fortune 1000 companies. The Company operates
nationwide networks for both one-way paging and advanced two-way
messaging services. In addition, USA Mobility offers mobile voice and
data services through Sprint Nextel, including BlackBerry(R)
smartphones and GPS location applications. The Company's product
offerings include customized wireless connectivity systems for the
healthcare, government and other campus environments. USA Mobility
also offers M2M (machine-to-machine) telemetry solutions for numerous
applications that include asset tracking, utility meter reading and
other remote device monitoring applications on a national scale. For
further information visit www.usamobility.com.

Safe Harbor Statement under the Private Securities Litigation
Reform Act: Statements contained herein or in prior press releases
which are not historical fact, such as statements regarding USA
Mobility's expectations for future operating and financial
performance, are forward-looking statements for purposes of the safe
harbor provisions under the Private Securities Litigation Reform Act
of 1995. These forward-looking statements involve risks and
uncertainties that may cause USA Mobility's actual results to be
materially different from the future results expressed or implied by
such forward-looking statements. Factors that could cause actual
results to differ materially from those expectations include, but are
not limited to, declining demand for paging products and services, our
ability to continue to reduce operating expenses and to generate cash
from operations, our future capital needs, competitive pricing
pressures, competition from both traditional paging services and other
wireless communications services, technological improvements in
hand-held devices and transmission services offered by our
competitors, government regulation, reliance upon third-party
providers for certain equipment and services, as well as other risks
described from time to time in periodic reports and registration
statements filed with the Securities and Exchange Commission. Although
USA Mobility believes the expectations reflected in the
forward-looking statements are based on reasonable assumptions, it can
give no assurance that its expectations will be attained. USA Mobility
disclaims any intent or obligation to update any forward-looking
statements.

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*T
USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a)
(unaudited and in thousands, except share and per share amounts)

For the three months ended
----------------------------------------
3/31/07 6/30/07 9/30/07
----------------------------------------
(restated)
Revenues:
Paging service $ 104,003 $ 98,248 $ 95,393
Cellular 2,087 2,497 2,035
Product sales 4,400 5,335 6,851
Other 1,052 1,390 1,145
----------------------------------------
Total revenues 111,542 107,470 105,424
----------------------------------------

Operating expenses:
Cost of products sold 687 1,508 2,435
Service, rental and
maintenance 39,033 39,356 36,746
Selling and marketing 10,242 9,975 9,891
General and administrative 26,448 23,297 23,606
Severance and restructuring 17 - 1,177
Depreciation, amortization
and accretion 13,318 12,450 12,048
Goodwill impairment - - -
----------------------------------------
Total operating expenses 89,745 86,586 85,903
----------------------------------------
% of total revenues 80.5% 80.6% 81.5%

----------------------------------------
Operating income (loss) 21,797 20,884 19,521
----------------------------------------
% of total revenues 19.5% 19.4% 18.5%

Interest income, net 951 932 856
Other (expense) income, net (516) 826 1,038
----------------------------------------
Income (loss) before income
tax expense 22,232 22,642 21,415
Income tax expense 9,206 9,676 5,947
----------------------------------------
Net income (loss) $ 13,026 $ 12,966 $ 15,468
========================================

Basic net income (loss) per
common share $ 0.47 $ 0.47 $ 0.56
========================================
Diluted net income (loss) per
common share $ 0.47 $ 0.47 $ 0.56
========================================

Basic weighted average common
shares outstanding 27,434,418 27,440,094 27,445,028
========================================
Diluted weighted average
common shares outstanding 27,578,066 27,570,346 27,594,513
========================================

Reconciliation of operating income (loss) to EBITDA (b):
Operating income (loss) $ 21,797 $ 20,884 $ 19,521
Add back: depreciation,
amortization and accretion 13,318 12,450 12,048
Add back: goodwill impairment - - -
----------------------------------------
EBITDA $ 35,115 $ 33,334 $ 31,569
========================================
% of total revenues 31.5% 31.0% 29.9%

For the three months ended
---------------------------------------
12/31/07 3/31/08 6/30/08
---------------------------------------

Revenues:
Paging service $ 91,825 $ 86,773 $ 83,360
Cellular 1,705 1,859 1,547
Product sales 5,618 4,871 5,741
Other 1,040 1,255 1,427
---------------------------------------
Total revenues 100,188 94,758 92,075
---------------------------------------

Operating expenses:
Cost of products sold 1,603 1,081 1,408
Service, rental and
maintenance 36,795 33,969 31,583
Selling and marketing 8,720 7,836 7,549
General and administrative 23,316 21,808 20,782
Severance and restructuring 5,235 145 153
Depreciation, amortization
and accretion 10,872 12,513 11,674
Goodwill impairment - 188,170 -
---------------------------------------
Total operating expenses 86,541 265,522 73,149
---------------------------------------
% of total revenues 86.4% 280.2% 79.4%

---------------------------------------
Operating income (loss) 13,647 (170,764) 18,926
---------------------------------------
% of total revenues 13.6% -180.2% 20.6%

Interest income, net 709 578 672
Other (expense) income, net 802 125 202
---------------------------------------
Income (loss) before income tax
expense 15,158 (170,061) 19,800
Income tax expense 61,816 7,739 9,528
---------------------------------------
Net income (loss) $ (46,658) $ (177,800) $ 10,272
=======================================

Basic net income (loss) per
common share $ (1.70) $ (6.48) $ 0.37
=======================================
Diluted net income (loss) per
common share $ (1.70) $ (6.48) $ 0.37
=======================================

Basic weighted average common
shares outstanding 27,450,035 27,459,068 27,474,156
=======================================
Diluted weighted average common
shares outstanding 27,450,035 27,459,068 27,600,976
=======================================

Reconciliation of operating income (loss) to EBITDA (b):
Operating income (loss) $ 13,647 $ (170,764) $ 18,926
Add back: depreciation,
amortization and accretion 10,872 12,513 11,674
Add back: goodwill impairment - 188,170 -
---------------------------------------
EBITDA $ 24,519 $ 29,919 $ 30,600
=======================================
% of total revenues 24.5% 31.6% 33.2%

(a) Slight variations in totals are due to rounding.
(b) EBITDA or earnings before interest, taxes, depreciation,
amortization, accretion and goodwill impairment is a non-GAAP measure
and is presented for analytical purposes only.
*T

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*T
USA MOBILITY, INC.
UNITS IN SERVICE ACTIVITY (a)
(unaudited and in thousands)

For the three months ended
------------------------------------------------------
3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08
------------------------------------------------------
Units in
service
---------------

Beginning units in service
Direct one-
way 3,318 3,179 3,071 2,961 2,854 2,733
Direct two-
way 280 263 245 232 221 206
------------------------------------------------------
Total direct 3,598 3,442 3,316 3,193 3,075 2,939
------------------------------------------------------
Indirect
one-way 417 378 346 330 312 286
Indirect
two-way 90 92 95 97 98 108
------------------------------------------------------
Total
indirect 507 470 441 427 410 394
------------------------------------------------------
Total beginning
units in
service 4,105 3,912 3,757 3,620 3,485 3,333
======================================================

Gross
placements
Direct one-
way 91 112 107 81 77 90
Direct two-
way 12 14 13 10 8 11
------------------------------------------------------
Total direct 103 126 120 91 85 101
------------------------------------------------------
Indirect
one-way 19 25 35 29 17 22
Indirect
two-way 8 8 7 7 16 7
------------------------------------------------------
Total
indirect 27 33 42 36 33 29
------------------------------------------------------
Total gross
placements 130 159 162 127 118 130
======================================================

Gross
disconnects
Direct one-
way (230) (220) (217) (188) (199) (209)
Direct two-
way (29) (32) (26) (21) (22) (21)
------------------------------------------------------
Total direct (259) (252) (243) (209) (221) (230)
------------------------------------------------------
Indirect
one-way (58) (57) (51) (47) (44) (47)
------------------------------------------------------
Indirect
two-way (6) (5) (5) (6) (5) (10)
------------------------------------------------------
Total
indirect (64) (62) (56) (53) (49) (57)
------------------------------------------------------
Total gross
disconnects (323) (314) (299) (262) (270) (287)
======================================================

Net gain (loss)
Direct one-
way (139) (108) (110) (107) (122) (119)
Direct two-
way (17) (18) (13) (11) (14) (10)
------------------------------------------------------
Total direct (156) (126) (123) (118) (136) (129)
------------------------------------------------------
Indirect
one-way (39) (32) (16) (18) (27) (25)
------------------------------------------------------
Indirect
two-way 2 3 2 1 11 (3)
------------------------------------------------------
Total
indirect (37) (29) (14) (17) (16) (28)
------------------------------------------------------
Total net
change (193) (155) (137) (135) (152) (157)
======================================================

Ending units in
service
Direct one-
way 3,179 3,071 2,961 2,854 2,732 2,614
Direct two-
way 263 245 232 221 207 196
------------------------------------------------------
Total direct 3,442 3,316 3,193 3,075 2,939 2,810
------------------------------------------------------
Indirect
one-way 378 346 330 312 285 261
------------------------------------------------------
Indirect
two-way 92 95 97 98 109 105
------------------------------------------------------
Total
indirect 470 441 427 410 394 366
------------------------------------------------------
Total ending
units in
service 3,912 3,757 3,620 3,485 3,333 3,176
======================================================

(a) Slight variations in totals are due to rounding.
*T

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*T
USA MOBILITY, INC.
AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a)
(unaudited)

For the three months ended
------------------------------------------------
3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08
------------------------------------------------
ARPU
----------------------------------------------------------------------
Direct one-way $7.96 $7.87 $7.98 $7.93 $7.83 $7.85
Direct two-way 23.91 24.02 24.17 24.06 23.68 23.90
------------------------------------------------
Total direct 9.18 9.08 9.16 9.09 8.95 8.97

Indirect one-way 4.45 4.12 4.35 4.11 4.10 4.57
Indirect two-way 6.30 6.10 5.30 8.20 7.52 7.08
------------------------------------------------
Total indirect 4.79 4.53 4.56 5.06 4.97 5.28

Total one-way 7.57 7.48 7.61 7.55 7.47 7.54
Total two-way 19.46 19.18 18.74 19.30 18.44 18.07
------------------------------------------------
Total paging ARPU $8.65 $8.54 $8.62 $8.62 $8.49 $8.54
------------------------------------------------

Gross disconnect rate (b)
----------------------------------------------------------------------
Direct one-way -6.9% -6.9% -7.1% -6.4% -7.0% -7.6%
Direct two-way -10.4% -12.2% -10.5% -9.1% -10.2% -10.4%
------------------------------------------------
Total direct -7.2% -7.3% -7.3% -6.6% -7.2% -7.8%

Indirect one-way -14.0% -15.0% -14.7% -14.1% -13.9% -16.4%
Indirect two-way -6.2% -5.9% -5.7% -6.7% -5.3% -8.8%
------------------------------------------------
Total indirect -12.6% -13.2% -12.8% -12.5% -11.8% -14.3%

Total one-way -7.7% -7.8% -7.8% -7.1% -7.7% -8.5%
Total two-way -9.4% -10.4% -9.2% -8.4% -8.7% -9.8%
------------------------------------------------
Total paging gross
disconnect rate -7.9% -8.0% -8.0% -7.2% -7.7% -8.6%
------------------------------------------------

Net gain (loss) rate (c)
----------------------------------------------------------------------
Direct one-way -4.2% -3.4% -3.6% -3.6% -4.3% -4.3%
Direct two-way -5.9% -6.9% -5.3% -4.6% -6.4% -5.2%
------------------------------------------------
Total direct -4.3% -3.6% -3.7% -3.7% -4.4% -4.4%

Indirect one-way -9.5% -8.5% -4.6% -5.4% -8.5% -8.6%
Indirect two-way 2.5% 3.2% 2.1% 0.8% 11.0% -2.4%
------------------------------------------------
Total indirect -7.3% -6.2% -3.2% -4.0% -3.9% -6.9%

Total one-way -4.8% -3.9% -3.7% -3.8% -4.7% -4.8%
Total two-way -3.9% -4.2% -3.3% -3.0% -1.1% -4.2%
------------------------------------------------
Total paging net gain
(loss) rate -4.7% -4.0% -3.7% -3.7% -4.4% -4.7%
------------------------------------------------

(a) Slight variations in totals are due to rounding.
(b) Gross disconnect rate is current period disconnected units divided
by prior period ending units in service.
(c) Net gain (loss) rate is net current period placements and
disconnected units in service divided by prior period ending units in
service.
*T

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*T
USA MOBILITY, INC.
SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a)
(unaudited)

For the three months ended
--------------------------------------------------
3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08
--------------------------------------------------

Gross placement
rate (b)
Healthcare 3.6% 4.8% 4.5% 3.6% 3.3% 4.8%
Government 2.2% 2.5% 2.5% 2.0% 2.2% 2.1%
Large enterprise 2.7% 3.0% 2.9% 2.7% 2.4% 2.3%
Other 2.6% 3.2% 3.4% 2.4% 2.5% 2.6%
--------------------------------------------------
Total direct 2.9% 3.7% 3.6% 2.8% 2.8% 3.4%
Total indirect 5.3% 6.9% 9.6% 8.5% 8.0% 7.4%
--------------------------------------------------
Total 3.2% 4.1% 4.3% 3.5% 3.4% 3.9%
==================================================

Gross disconnect
rate (b)
Healthcare -4.6% -5.0% -5.6% -5.0% -5.1% -5.8%
Government -5.8% -6.4% -6.8% -6.0% -6.7% -8.5%
Large enterprise -8.4% -9.3% -7.6% -6.9% -8.6% -9.2%
Other -10.9% -10.5% -10.5% -9.5% -10.7% -10.5%
--------------------------------------------------
Total direct -7.2% -7.3% -7.3% -6.6% -7.2% -7.8%
Total indirect -12.6% -13.2% -12.8% -12.5% -11.8% -14.3%
--------------------------------------------------
Total -7.9% -8.0% -8.0% -7.2% -7.7% -8.6%
==================================================

Net loss rate (b)
Healthcare -1.1% -0.2% -1.0% -1.3% -1.7% -0.9%
Government -3.6% -3.8% -4.3% -4.0% -4.5% -6.4%
Large enterprise -5.7% -6.2% -4.6% -4.3% -6.2% -6.9%
Other -8.3% -7.2% -7.2% -7.1% -8.2% -7.9%
--------------------------------------------------
Total direct -4.3% -3.6% -3.7% -3.7% -4.4% -4.4%
Total indirect -7.3% -6.2% -3.2% -4.0% -3.9% -6.9%
--------------------------------------------------
Total -4.7% -4.0% -3.7% -3.7% -4.4% -4.7%
==================================================

End of period units
in service % of
total (b)
Healthcare 33.6% 35.0% 36.2% 37.1% 38.3% 40.0%
Government 17.9% 18.0% 17.8% 17.8% 17.9% 17.7%
Large enterprise 13.8% 13.6% 13.5% 13.5% 13.1% 12.8%
Other 22.6% 21.7% 20.7% 19.8% 18.9% 18.0%
--------------------------------------------------
Total direct 88.0% 88.3% 88.2% 88.2% 88.2% 88.5%
Total indirect 12.0% 11.7% 11.8% 11.8% 11.8% 11.5%
--------------------------------------------------
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
==================================================

(a) Slight variations in totals are due to rounding.
(b) Changes in the classification of units in service are reflected in
the quarter when such changes are identified. Such changes are then
appropriately reflected in calculating the gross placement, gross
disconnect and net loss rates.
*T

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*T
USA MOBILITY, INC.
SUPPLEMENTAL INFORMATION - DIRECT UNITS IN SERVICE AND CELLULAR
ACTIVATIONS (a)
(unaudited)

For the three months ended
-------------------------------
3/31/07 6/30/07 9/30/07
-------------------------------

Account size ending units in service (000's)
1 to 3 units 251 232 216
4 to 10 units 150 139 129
11 to 50 units 368 344 319
51 to 100 units 215 200 189
101 to 1,000 units 924 898 856
>1,000 units 1,534 1,503 1,483
-------------------------------
Total 3,442 3,316 3,193
===============================

End of period units in service % of total direct
1 to 3 units 7.2% 7.0% 6.7%
4 to 10 units 4.4% 4.2% 4.1%
11 to 50 units 10.7% 10.4% 10.0%
51 to 100 units 6.2% 6.0% 5.9%
101 to 1,000 units 26.9% 27.1% 26.8%
>1,000 units 44.6% 45.3% 46.5%
-------------------------------
Total 100.0% 100.0% 100.0%
===============================

Account size net loss rate
1 to 3 units -9.0% -7.6% -6.6%
4 to 10 units -7.9% -7.6% -7.0%
11 to 50 units -7.5% -6.4% -7.3%
51 to 100 units -4.9% -6.9% -5.7%
101 to 1,000 units -4.4% -2.8% -4.7%
>1,000 units -2.2% -2.0% -1.3%
-------------------------------
Total -4.3% -3.6% -3.7%
===============================

Account size ARPU
1 to 3 units $ 14.68 $ 14.67 $ 14.90
4 to 10 units 13.41 13.40 13.68
11 to 50 units 10.95 10.93 11.15
51 to 100 units 9.44 9.48 9.74
101 to 1,000 units 8.24 8.24 8.35
>1,000 units 7.93 7.80 7.86
-------------------------------
Total $ 9.18 $ 9.08 $ 9.16
===============================

Cellular revenue
Number of activations 5,450 8,046 5,579
===============================
Revenue from cellular services (000's) $ 2,087 $ 2,497 $ 2,035
===============================

For the three months ended
-------------------------------
12/31/07 3/31/08 6/30/08
-------------------------------

Account size ending units in service (000's)
1 to 3 units 200 184 172
4 to 10 units 120 112 104
11 to 50 units 298 276 255
51 to 100 units 176 164 155
101 to 1,000 units 827 784 750
>1,000 units 1,454 1,419 1,374
-------------------------------
Total 3,075 2,939 2,810
===============================

End of period units in service % of total direct
1 to 3 units 6.5% 6.2% 6.1%
4 to 10 units 3.9% 3.8% 3.7%
11 to 50 units 9.7% 9.4% 9.1%
51 to 100 units 5.7% 5.6% 5.5%
101 to 1,000 units 26.9% 26.7% 26.7%
>1,000 units 47.3% 48.3% 48.9%
-------------------------------
Total 100.0% 100.0% 100.0%
===============================

Account size net loss rate
1 to 3 units -7.6% -7.8% -6.9%
4 to 10 units -7.5% -6.5% -7.2%
11 to 50 units -6.6% -7.6% -7.4%
51 to 100 units -6.4% -6.9% -5.5%
101 to 1,000 units -3.3% -5.2% -4.3%
>1,000 units -2.0% -2.4% -3.2%
-------------------------------
Total -3.7% -4.4% -4.4%
===============================

Account size ARPU
1 to 3 units $ 14.83 $ 14.66 $ 14.62
4 to 10 units 13.62 13.56 13.56
11 to 50 units 11.07 10.99 11.03
51 to 100 units 9.74 9.57 9.76
101 to 1,000 units 8.38 8.23 8.45
>1,000 units 7.81 7.75 7.70
-------------------------------
Total $ 9.09 $ 8.95 $ 8.97
===============================

Cellular revenue
Number of activations 5,070 4,509 3,970
===============================
Revenue from cellular services (000's) $ 1,705 $ 1,859 $ 1,547
===============================

(a) Slight variations in totals are due to rounding.
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USA MOBILITY, INC.
CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
(unaudited and in thousands)

For the three months ended
-----------------------------
3/31/07 6/30/07 9/30/07
-----------------------------

Cost of products sold $ 687 $ 1,508 $ 2,435
-----------------------------

Service, rental and maintenance
Site rent 22,284 22,115 20,705
Telecommunications 7,058 6,622 5,289
Payroll and related 6,488 6,657 6,871
Stock based compensation 31 30 26
Other 3,172 3,932 3,855
-----------------------------
Total service, rental and maintenance 39,033 39,356 36,746
-----------------------------

Selling and marketing
Payroll and related 6,740 6,259 5,984
Commissions 2,170 2,386 2,140
Stock based compensation 93 91 67
Other 1,239 1,239 1,700
-----------------------------
Total selling and marketing 10,242 9,975 9,891
-----------------------------

General and administrative
Payroll and related 9,560 9,343 9,487
Stock based compensation 304 299 214
Bad debt 1,402 1,075 854
Facility rent 2,947 3,066 2,614
Telecommunications 1,764 1,526 1,402
Outside services 5,504 5,222 5,136
Taxes, licenses and permits 2,316 (20) 1,815
Other 2,651 2,786 2,084
-----------------------------
Total general and administrative 26,448 23,297 23,606
-----------------------------

Severance and restructuring 17 - 1,177
Depreciation, amortization and accretion 13,318 12,450 12,048
Goodwill impairment - - -

-----------------------------
Operating expenses $ 89,745 $ 86,586 $ 85,903
=============================

Capital expenditures $ 5,086 $ 3,525 $ 4,528

For the three months ended
-----------------------------
12/31/07 3/31/08 6/30/08
-----------------------------

Cost of products sold $ 1,603 $ 1,081 $ 1,408
-----------------------------

Service, rental and maintenance
Site rent 19,602 17,792 16,756
Telecommunications 6,356 6,204 5,503
Payroll and related 6,878 6,683 6,504
Stock based compensation 25 17 19
Other 3,934 3,273 2,801
-----------------------------
Total service, rental and maintenance 36,795 33,969 31,583
-----------------------------

Selling and marketing
Payroll and related 5,517 5,164 4,797
Commissions 2,056 1,724 2,037
Stock based compensation 52 39 50
Other 1,095 909 665
-----------------------------
Total selling and marketing 8,720 7,836 7,549
-----------------------------

General and administrative
Payroll and related 8,744 8,682 8,129
Stock based compensation 180 190 247
Bad debt 1,015 711 691
Facility rent 2,177 2,073 2,199
Telecommunications 1,366 1,048 983
Outside services 4,854 5,359 4,584
Taxes, licenses and permits 2,218 1,958 2,055
Other 2,762 1,787 1,894
-----------------------------
Total general and administrative 23,316 21,808 20,782
-----------------------------

Severance and restructuring 5,235 145 153
Depreciation, amortization and accretion 10,872 12,513 11,674
Goodwill impairment - 188,170 -

-----------------------------
Operating expenses $ 86,541 $265,522 $ 73,149
=============================

Capital expenditures $ 5,184 $ 3,988 $ 3,892

(a) Slight variations in totals are due to rounding.
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USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(in thousands)

12/31/07 6/30/08
--------- -----------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 64,542 $ 85,756
Accounts receivable, net 28,044 26,655
Prepaid expenses and other 8,608 7,094
Deferred income tax assets, net 8,267 6,178
--------- -----------
Total current assets 109,461 125,683
Property and equipment, net 75,669 65,154
Goodwill 188,170 -
Intangible assets, net 16,929 12,437
Deferred income tax assets, net 86,219 72,548
Other assets 7,634 6,144
--------- -----------
Total assets $ 484,082 $ 281,966
========= ===========

Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued liabilities $ 53,418 $ 43,988
Distributions payable 93 1,068
Customer deposits 1,592 1,384
Deferred revenue 12,059 11,113
--------- -----------
Total current liabilities 67,162 57,553
Other long-term liabilities 43,352 42,459
--------- -----------
Total liabilities 110,514 100,012
--------- -----------
Stockholders' equity:
Preferred stock - -
Common stock 3 3
Additional paid-in capital 373,565 349,927
Accumulated deficit - (167,976)
--------- -----------
Total stockholders' equity 373,568 181,954
--------- -----------
Total liabilities and stockholders' equity $ 484,082 $ 281,966
========= ===========

(a) Slight variations in totals are due to rounding.
*T

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USA MOBILITY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a)
(unaudited and in thousands)

For the six months
ended
--------------------
6/30/07 6/30/08
--------- ----------

Cash flows from operating activities:
Net income (loss) $ 25,992 $(167,528)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation, amortization and accretion 25,768 24,187
Goodwill impairment - 188,170
Deferred income tax expense 15,230 15,759
Amortization of stock based compensation 848 562
Provisions for doubtful accounts, service
credits and other 6,069 3,022
Non-cash transaction tax accrual adjustments (1,754) (1,228)
Loss on disposals of property and equipment 634 24
Changes in assets and liabilities:
Accounts receivable (7,376) (1,633)
Prepaid expenses and other 1,667 1,617
Other long-term assets (46) 1,490
Accounts payable and accrued liabilities (3,686) (9,798)
Customer deposits and deferred revenue (919) (1,154)
--------- ----------
Net cash provided by operating activities $ 62,427 $ 53,490
--------- ----------

Cash flows from investing activities:
Purchases of property and equipment (8,611) (7,880)
Proceeds from disposals of property and
equipment 129 169
--------- ----------
Net cash used in investing activities $ (8,482) $ (7,711)
--------- ----------

Cash flows from financing activities:
Cash distributions to stockholders (62,816) (24,565)
--------- ----------
Net cash used in financing activities $(62,816) $ (24,565)
--------- ----------

Net (decrease) increase in cash and cash
equivalents (8,871) 21,214
Cash and cash equivalents, beginning of period 66,507 64,542
--------- ----------
Cash and cash equivalents, end of period $ 57,636 $ 85,756
========= ==========

Supplemental disclosure:
Interest paid $ 7 $ 3
========= ==========
Income taxes paid (state and local) $ - $ 420
========= ==========

(a) Slight variations in totals are due to rounding.
*T

USA Mobility, Inc.
Bob Lougee, 703-721-3080
bob.lougee@usamobility.com

Copyright Business Wire 2008