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ALLTEL, NISSHO IWAI MAKE EQUITY INVESTMENTS IN GO IN BID TO BE PCS CARRIER

ALEXANDRIA, Va.-GO Communications Corp. signed on two new strategic investors, Alltel Corp. and Nissho Iwai, a Japanese trading company.

The new partnerships, along with previously announced investments, bring GO’s financial strength to more than $100 million in equity investments and more than $700 million in low-cost senior debt.

When the new investment transactions are final, Alltel will hold about 20 percent equity in GO and Nissho Iwai will hold 10 percent to 12 percent interest in the company.

GO said capital from these investments will be used to win personal communications services licenses in the upcoming PCS auction as well as build and operate a nationwide network through an alliance of other PCS licensees.

Alltel said its investment in GO gives Alltel a chance to expand its role in wireless.

Alltel and GO also have signed a definitive 10-year development and outsourcing agreement for Alltel Information Services to develop, integrate and manage all of GO’s information systems. Alltel will develop an enterprise-wide operational support system.

GO also announced it received a definitive commitment from Northern Telecom for low-cost senior debt to purchase Nortel equipment and services under a 10-year supply contract. GO also will purchase equipment from Nokia Telecommunications Inc., which will be financed through a credit facility.

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