Spok (SPOK) 8-K USA Mobility Reports Second Quarter Operating Results; Board Declares Quarterly Cash Distribution

Exhibit 99.1

News Release

For Immediate Release	Contact:	Bob Lougee (703) 721-3080
Wednesday, July 29, 2009		bob.lougee@usamobility.com

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

Average Revenue Per Unit, Recurring Cash Flow Margins Reach New Highs;
Company Continues to Reduce Operating Expenses

Alexandria, VA (July 29, 2009) —USA Mobility, Inc. (Nasdaq: USMO), a leading provider ofwireless messaging and communications services, today announced operating results for the second quarter ended June 30, 2009.

In addition, the Company’s Board of Directors declared a regular quarterly cash distribution of $0.25 per share, payable on September 10, 2009 to stockholders of record on August 14, 2009. The Company expects the entire distribution to be paid as a return of capital.

Total revenue was $75.1 million for the second quarter, compared to $79.7 million in the first quarter and $92.1 million in the second quarter of 2008. Operating income was $12.8 million for the second quarter, while EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $24.0 million, compared to $28.6 million in the first quarter and $30.6 million in the year-earlier quarter. Second quarter results were negatively impacted by a one-time settlement expense of $4.0 million in connection with patent litigation. Absent the one-time litigation settlement expense, operating income would have been $16.8 million and EBITDA $28.0 million.

Net income for the second quarter was $44.7 million, or $1.93 per fully diluted share, compared to net income of $10.3 million, or $0.37 per fully diluted share, in the second quarter of 2008. The significant increase in net income in the second quarter was largely the result of a one-time income tax benefit of $37.0 million due to the effective settlement of uncertain tax positions, and tax refund claims. Excluding the one-time tax adjustment and $4.0 million litigation settlement expense, net income in the second quarter would have been $10.1 million, or $0.43 per fully diluted share.

Second quarter results included:

• Total paging ARPU (average revenue per unit) increased to $8.96 in the second quarter, its highest level since the third quarter of 2005, from $8.86 in the first quarter and $8.54 in the year-earlier quarter.

• The quarterly rate of revenue erosion was 5.7 percent, compared to 5.4 percent in the first quarter and 2.8 percent in the second quarter of 2008. The annual rate of revenue erosion was 18.4 percent, compared to 15.9 percent in the first quarter and 14.3 percent in the year-earlier quarter.

• Net unit loss in the second quarter was 158,000, compared to 208,000 in the first quarter and 157,000 in the second quarter of 2008. Total units in service were 2,449,000 at June 30, 2009, compared to 2,607,000 at March 31, 2009.

• The quarterly rate of subscriber loss was 6.0 percent in the second quarter, compared to 7.4 percent in the first quarter and 4.7 percent in the second quarter of 2008. The annual rate of subscriber erosion was 22.9 percent in the second quarter, compared to 21.8 percent in the first quarter and 15.5 percent in the year-earlier quarter.

• Operating expenses (excluding depreciation, amortization and accretion) totaled $51.2 million, compared to $51.1 million in the first quarter of 2009. Absent the one-time litigation settlement expense of $4.0 million, operating expenses in the second quarter would have been $47.2 million, a reduction of $14.3 million, or 23.3 percent, from $61.5 million in the second quarter of 2008.

• EBITDA margin (or EBITDA as a percentage of revenue) was 31.9 percent, compared to 35.9 percent in the first quarter and 33.2 percent in the year-earlier quarter. Excluding the one-time litigation settlement expense of $4.0 million, EBITDA margin in the second quarter would have been 37.2 percent, the highest level since the Company’s merger in 2004.

• Based on the completion of the IRS income tax audits for 2005 and 2006 and certain refund claims, the Company recorded a $37.0 million reduction to income tax expense in the quarter.

• Capital expenses were $4.4 million, compared to $6.1 million in the first quarter of 2009.

• The Company’s cash balance at June 30, 2009 was $79.6 million.

“We continued to make excellent progress during the second quarter,” said Vincent D. Kelly, president and chief executive officer, “as operating results met or exceeded the majority of our performance objectives and were consistent with the financial guidance we provided earlier this year. ARPU and recurring cash flow margins rose to their highest levels in years, recurring operating expenses were further reduced, and we continued to provide cost effective and reliable wireless communications services to our customers on a profitable basis.” Kelly added: “While subscriber cancellations were higher than anticipated, due in large part to a weak economy nationwide, we continued to see lower net unit losses in our Healthcare market segment, which now represents approximately 50 percent of our customer base.”

Kelly said USA Mobility again returned capital to stockholders in the second quarter in the form of cash distributions, consistent with its goal of generating sufficient free cash flow to regularly return capital to stockholders. “We

produced $25.3 million in cash from operations in the quarter, allowing us to pay a regular quarterly cash distribution of $0.25 per share on June 18, 2009, representing a return of capital to our stockholders of approximately $5.7 million. Including the second quarter distribution, we have now returned $311.1 million to stockholders over the past four years.”

Thomas L. Schilling, chief operating officer and chief financial officer, said the Company continued to reduce operating expenses during the second quarter through a combination of internal consolidations and company-wide cost control initiatives. “Absent the one-time litigation settlement expense of $4.0 million, operating expenses (excluding depreciation, amortization and accretion) decreased 23.3 percent from the year-earlier quarter, once again outpacing the year-over-year decline in revenue of 18.4 percent. In addition,” Schilling noted, “excluding the one-time litigation settlement expense, second quarter operating expenses as a percentage of revenue were at their lowest level in more than four years.”

Commenting on the Company’s financial expectations for the balance of the year, Schilling said, “Based on our performance through the first half of the year, we are revising our financial guidance for 2009 to revenue between $286 million to $291 million, operating expenses (excluding depreciation, amortization and accretion) between $194 million to $197 million, and capital expenses between $16 million to $18 million.

* * * * * * * * *

USA Mobility plans to host a conference call for investors on its second quarter results at 10:00 a.m. Eastern Time on Thursday, July 30, 2009. The dial-in number for the call is 888-801-6494 (toll-free) or 913-312-0970 (toll). The pass code for the call is 8045078. A replay of the call will be available from 3:00 p.m. ET on July 30 until 11:59 p.m. on Thursday, August 13. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 8045078.

* * * * * * * * *

About USA Mobility

USA Mobility, Inc., headquartered in Alexandria, Virginia, is a comprehensive provider of reliable and affordable wireless communications solutions to thehealthcare,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 the largest one-way paging and advanced two-way paging networks in the United States. In addition, USA Mobility offers mobile voice and data services throughSprint Nextel, includingBlackBerry® 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 offersM2M (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 visitwww.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 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, the ability to continue to reduce operating expenses, future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, 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.

Tables to Follow

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

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09				6/30/09
Revenues:
Paging service	$	86,773		$	83,360		$	80,533		$	75,989		$	72,021			$	67,972
Cellular		1,859			1,547			1,494			993			991				775
Product sales		4,871			5,741			5,014			5,863			5,271				5,269
Other		1,255			1,427			1,316			1,413			1,408				1,129
Total revenues		94,758			92,075			88,357			84,258			79,691				75,145
Operating expenses:
Cost of products sold		1,081			1,408			1,291			1,812			1,669				1,421
Service, rental and maintenance		33,969			31,583			29,069			28,199			22,955				21,290
Selling and marketing		7,836			7,549			6,756			6,144			6,062				5,600
General and administrative		21,808			20,782			20,631			18,289			20,186				22,801
Severance and restructuring		145			153			5,063			(35	)		190				52
Depreciation, amortization and accretion		12,513			11,674			11,075			11,750			11,270				11,174
Goodwill impairment		188,170			—			—			—			—				—
Total operating expenses		265,522			73,149			73,885			66,159			62,332				62,338
% of total revenues		280.2	%		79.4	%		83.6	%		78.5	%		78.2	%			83.0	%
Operating (loss) income		(170,764	)		18,926			14,472			18,099			17,359				12,807
% of total revenues		-180.2	%		20.6	%		16.4	%		21.5	%		21.8	%			17.0	%
Interest income, net		578			672			471			79			26				28
Other income (expense), net		125			202			205			90			112				(42	)
(Loss) income before income tax expense (benefit)		(170,061	)		19,800			15,148			18,268			17,497				12,793
Income tax expense (benefit)		7,739			9,528			12,730			10,235			7,516				(31,953	)
Net (loss) income	$	(177,800	)	$	10,272		$	2,418		$	8,033		$	9,981			$	44,746
																��
Basic net (loss) income per common share	$	(6.48	)	$	0.37		$	0.09		$	0.32		$	0.43			$	1.96
Diluted net (loss) income per common share	$	(6.48	)	$	0.37		$	0.09		$	0.32		$	0.43			$	1.93
Basic weighted average common shares outstanding		27,459,068			27,474,156			27,474,156			25,348,440			23,134,072				22,858,573
Diluted weighted average common shares outstanding		27,459,068			27,600,976			27,602,296			25,444,277			23,479,796				23,200,736
Reconciliation of operating (loss) income to EBITDA (b):
Operating (loss) income	$	(170,764	)	$	18,926		$	14,472		$	18,099		$	17,359			$	12,807
Add back: depreciation, amortization and accretion		12,513			11,674			11,075			11,750			11,270				11,174
Add back: goodwill impairment		188,170			—			—			—			—				—
EBITDA	$	29,919		$	30,600		$	25,547		$	29,849		$	28,629			$	23,981
% of total revenues		31.6	%		33.2	%		28.9	%		35.4	%		35.9	%			31.9	%

(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.

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

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09
Units in service
Beginning units in service
Direct one-way		2,854			2,733			2,614			2,490			2,349			2,198
Direct two-way		221			206			196			184			171			157
Total direct		3,075			2,939			2,810			2,674			2,520			2,355
Indirect one-way		312			286			261			227			196			161
Indirect two-way		98			108			105			101			99			91
Total indirect		410			394			366			328			295			252
Total beginning units in service		3,485			3,333			3,176			3,002			2,815			2,607
Gross placements
Direct one-way		77			90			76			61			67			74
Direct two-way		8			11			8			7			6			7
Total direct		85			101			84			68			73			81
Indirect one-way		17			22			12			8			8			9
Indirect two-way		16			7			7			6			4			2
Total indirect		33			29			19			14			12			11
Total gross placements		118			130			103			82			85			92
Gross disconnects
Direct one-way		(199	)		(209	)		(199	)		(202	)		(218	)		(193	)
Direct two-way		(22	)		(21	)		(20	)		(20	)		(20	)		(17	)
Total direct		(221	)		(230	)		(219	)		(222	)		(238	)		(210	)
Indirect one-way		(44	)		(47	)		(47	)		(39	)		(43	)		(31	)
Indirect two-way		(5	)		(10	)		(11	)		(8	)		(12	)		(9	)
Total indirect		(49	)		(57	)		(58	)		(47	)		(55	)		(40	)
Total gross disconnects		(270	)		(287	)		(277	)		(269	)		(293	)		(250	)
Net gain (loss)
Direct one-way		(122	)		(119	)		(123	)		(142	)		(151	)		(119	)
Direct two-way		(14	)		(10	)		(12	)		(12	)		(14	)		(10	)
Total direct		(136	)		(129	)		(135	)		(154	)		(165	)		(129	)
Indirect one-way		(27	)		(25	)		(35	)		(31	)		(35	)		(22	)
Indirect two-way		11			(3	)		(4	)		(2	)		(8	)		(7	)
Total indirect		(16	)		(28	)		(39	)		(33	)		(43	)		(29	)
Total net change		(152	)		(157	)		(174	)		(187	)		(208	)		(158	)
Ending units in service
Direct one-way		2,732			2,614			2,491			2,349			2,198			2,079
Direct two-way		207			196			184			171			157			147
Total direct		2,939			2,810			2,675			2,520			2,355			2,226
Indirect one-way		285			261			226			196			161			139
Indirect two-way		109			105			101			99			91			84
Total indirect		394			366			327			295			252			223
Total ending units in service		3,333			3,176			3,002			2,815			2,607			2,449

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

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

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09
ARPU
Direct one-way	$	7.83		$	7.85		$	8.08		$	8.09		$	8.11		$	8.18
Direct two-way		23.68			23.90			23.78			23.77			23.68			23.62
Total direct		8.95			8.97			9.16			9.16			9.15			9.21
Indirect one-way		4.10			4.57			4.79			5.12			7.05			7.43
Indirect two-way		7.52			7.08			5.35			4.53			4.58			5.19
Total indirect		4.97			5.28			4.96			4.93			6.19			6.60
Total one-way		7.47			7.54			7.79			7.85			8.03			8.14
Total two-way		18.44			18.07			17.29			16.84			16.66			16.86
Total paging ARPU	$	8.49		$	8.54		$	8.69		$	8.71		$	8.86		$	8.96
Gross disconnect rate (b)
Direct one-way		-7.0	%		-7.6	%		-7.6	%		-8.1	%		-9.3	%		-8.8	%
Direct two-way		-10.2	%		-10.4	%		-10.2	%		-10.6	%		-11.8	%		-11.0	%
Total direct		-7.2	%		-7.8	%		-7.8	%		-8.3	%		-9.5	%		-8.9	%
Indirect one-way		-13.9	%		-16.4	%		-17.9	%		-17.3	%		-22.0	%		-19.4	%
Indirect two-way		-5.3	%		-8.8	%		-10.3	%		-7.7	%		-11.6	%		-9.1	%
Total indirect		-11.8	%		-14.3	%		-15.7	%		-14.3	%		-18.5	%		-15.6	%
Total one-way		-7.7	%		-8.5	%		-8.6	%		-8.9	%		-10.3	%		-9.5	%
Total two-way		-8.7	%		-9.8	%		-10.2	%		-9.6	%		-11.7	%		-10.3	%
Total paging gross disconnect rate		-7.7	%		-8.6	%		-8.7	%		-9.0	%		-10.4	%		-9.6	%
Net gain (loss) rate (c)
Direct one-way		-4.3	%		-4.3	%		-4.7	%		-5.7	%		-6.4	%		-5.4	%
Direct two-way		-6.4	%		-5.2	%		-6.1	%		-6.8	%		-8.5	%		-6.4	%
Total direct		-4.4	%		-4.4	%		-4.8	%		-5.8	%		-6.6	%		-5.5	%
Indirect one-way		-8.5	%		-8.6	%		-13.2	%		-13.7	%		-17.8	%		-13.7	%
Indirect two-way		11.0	%		-2.4	%		-4.1	%		-1.5	%		-8.2	%		-7.2	%
Total indirect		-3.9	%		-6.9	%		-10.6	%		-10.0	%		-14.6	%		-11.3	%
Total one-way		-4.7	%		-4.8	%		-5.5	%		-6.4	%		-7.3	%		-6.0	%
Total two-way		-1.1	%		-4.2	%		-5.4	%		-4.9	%		-8.4	%		-6.7	%
Total paging net gain (loss) rate		-4.4	%		-4.7	%		-5.5	%		-6.2	%		-7.4	%		-6.0	%

(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.

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

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09
Gross placement rate (b)
Healthcare		3.3	%		4.8	%		3.8	%		3.0	%		3.7	%		4.4	%
Government		2.2	%		2.1	%		2.2	%		2.1	%		1.7	%		2.4	%
Large enterprise		2.4	%		2.3	%		2.2	%		2.1	%		2.4	%		2.2	%
Other		2.5	%		2.6	%		2.4	%		2.2	%		2.4	%		2.5	%
Total direct		2.8	%		3.4	%		3.0	%		2.5	%		2.9	%		3.4	%
Total indirect		8.0	%		7.4	%		5.1	%		4.4	%		3.9	%		4.3	%
Total		3.4	%		3.9	%		3.2	%		2.7	%		3.0	%		3.5	%
Gross disconnect rate (b)
Healthcare		-5.1	%		-5.8	%		-6.0	%		-6.4	%		-6.8	%		-6.2	%
Government		-6.7	%		-8.5	%		-8.5	%		-9.3	%		-9.9	%		-10.7	%
Large enterprise		-8.6	%		-9.2	%		-9.2	%		-8.9	%		-13.3	%		-13.0	%
Other		-10.7	%		-10.5	%		-10.1	%		-11.4	%		-13.0	%		-12.4	%
Total direct		-7.2	%		-7.8	%		-7.8	%		-8.3	%		-9.5	%		-8.9	%
Total indirect		-11.8	%		-14.3	%		-15.7	%		-14.3	%		-18.5	%		-15.6	%
Total		-7.7	%		-8.6	%		-8.7	%		-9.0	%		-10.4	%		-9.6	%
Net loss rate (b)
Healthcare		-1.7	%		-0.9	%		-2.1	%		-3.4	%		-3.1	%		-1.8	%
Government		-4.5	%		-6.4	%		-6.3	%		-7.1	%		-8.2	%		-8.4	%
Large enterprise		-6.2	%		-6.9	%		-7.0	%		-6.8	%		-10.9	%		-10.9	%
Other		-8.2	%		-7.9	%		-7.8	%		-9.2	%		-10.6	%		-10.0	%
Total direct		-4.4	%		-4.4	%		-4.8	%		-5.8	%		-6.6	%		-5.5	%
Total indirect		-3.9	%		-6.9	%		-10.6	%		-10.0	%		-14.6	%		-11.3	%
Total		-4.4	%		-4.7	%		-5.5	%		-6.2	%		-7.4	%		-6.0	%
End of period units in service % of total (b)
Healthcare		38.3	%		40.0	%		41.5	%		42.8	%		44.9	%		49.8	%
Government		17.9	%		17.7	%		17.6	%		17.4	%		17.2	%		15.6	%
Large enterprise		13.1	%		12.8	%		12.6	%		12.5	%		12.0	%		11.8	%
Other		18.9	%		18.0	%		17.4	%		16.8	%		16.2	%		13.7	%
Total direct		88.2	%		88.5	%		89.1	%		89.5	%		90.3	%		90.9	%
Total indirect		11.8	%		11.5	%		10.9	%		10.5	%		9.7	%		9.1	%
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.

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

	For the three months ended
	3/31/08			6/30/08			9/30/08			12/31/08			3/31/09			6/30/09
Account size ending units in service (000’s)
1 to 3 units		184			172			159			149			137			126
4 to 10 units		112			104			97			89			82			75
11 to 50 units		276			255			236			218			199			183
51 to 100 units		164			155			144			133			125			112
101 to 1,000 units		784			750			716			681			626			580
>1,000 units		1,419			1,374			1,323			1,250			1,186			1,150
Total		2,939			2,810			2,675			2,520			2,355			2,226
End of period units in service % of total direct
1 to 3 units		6.2	%		6.1	%		5.9	%		5.9	%		5.8	%		5.7	%
4 to 10 units		3.8	%		3.7	%		3.6	%		3.5	%		3.5	%		3.4	%
11 to 50 units		9.4	%		9.1	%		8.8	%		8.7	%		8.4	%		8.2	%
51 to 100 units		5.6	%		5.5	%		5.4	%		5.3	%		5.3	%		5.0	%
101 to 1,000 units		26.7	%		26.7	%		26.8	%		27.0	%		26.6	%		26.0	%
>1,000 units		48.3	%		48.9	%		49.5	%		49.6	%		50.4	%		51.7	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Account size net loss rate
1 to 3 units		-7.8	%		-6.9	%		-7.0	%		-6.9	%		-7.8	%		-7.9	%
4 to 10 units		-6.5	%		-7.2	%		-6.7	%		-7.8	%		-8.8	%		-7.9	%
11 to 50 units		-7.6	%		-7.4	%		-7.4	%		-7.6	%		-8.9	%		-8.2	%
51 to 100 units		-6.9	%		-5.5	%		-7.5	%		-7.2	%		-6.2	%		-10.1	%
101 to 1,000 units		-5.2	%		-4.3	%		-4.6	%		-4.9	%		-8.0	%		-7.4	%
>1,000 units		-2.4	%		-3.2	%		-3.7	%		-5.5	%		-5.1	%		-3.1	%
Total		-4.4	%		-4.4	%		-4.8	%		-5.8	%		-6.6	%		-5.5	%
Account size ARPU
1 to 3 units	$	14.66		$	14.62		$	14.72		$	14.68		$	14.73		$	15.07
4 to 10 units		13.56			13.56			13.92			13.89			14.00			14.30
11 to 50 units		10.99			11.03			11.40			11.35			11.41			11.65
51 to 100 units		9.57			9.76			10.36			10.25			10.30			10.13
101 to 1,000 units		8.23			8.45			8.91			8.98			8.94			9.04
>1,000 units		7.75			7.70			7.72			7.75			7.77			7.80
Total	$	8.95		$	8.97		$	9.16		$	9.16		$	9.15		$	9.21
Cellular revenue
Number of activations		4,509			3,970			3,779			2,287			2,389			2,207
Revenue from cellular services (000’s)	$	1,859		$	1,547		$	1,494		$	993		$	991		$	775

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

USA MOBILITY, INC.
CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a)
(unaudited and in thousands)

	For the three months ended
	3/31/08		6/30/08		9/30/08		12/31/08			3/31/09		6/30/09
Cost of products sold	$	1,081	$	1,408	$	1,291	$	1,812		$	1,669	$	1,421
Service, rental and maintenance
Site rent		17,792		16,756		15,463		14,785			11,218		10,223
Telecommunications		6,204		5,503		5,072		5,307			4,485		4,284
Payroll and related		6,683		6,504		5,827		5,490			5,631		5,286
Stock based compensation		17		19		19		18			49		7
Other		3,273		2,801		2,688		2,599			1,572		1,490
Total service, rental and maintenance		33,969		31,583		29,069		28,199			22,955		21,290
Selling and marketing
Payroll and related		5,164		4,797		4,317		4,145			4,175		3,711
Commissions		1,724		2,037		1,742		1,213			1,201		1,422
Stock based compensation		39		50		49		60			109		26
Other		909		665		648		726			577		441
Total selling and marketing		7,836		7,549		6,756		6,144			6,062		5,600
General and administrative
Payroll and related		8,682		8,129		7,847		7,992			9,075		7,754
Stock based compensation		190		247		253		298			569		241
Bad debt		711		691		680		618			850		750
Facility rent		2,073		2,199		1,937		1,689			1,628		1,446
Telecommunications		1,048		983		936		834			771		721
Outside services		5,359		4,584		4,632		4,519			4,514		4,063
Taxes, licenses and permits		1,958		2,055		2,216		372			1,101		1,695
Other		1,787		1,894		2,130		1,967			1,678		6,131
Total general and administrative		21,808		20,782		20,631		18,289			20,186		22,801
Severance and restructuring		145		153		5,063		(35	)		190		52
Depreciation, amortization and accretion		12,513		11,674		11,075		11,750			11,270		11,174
Goodwill impairment		188,170		—		—		—			—		—
Operating expenses	$	265,522	$	73,149	$	73,885	$	66,159		$	62,332	$	62,338
Capital expenditures	$	3,988	$	3,892	$	6,214	$	4,242		$	6,054	$	4,355

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

USA MOBILITY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (a)
(in thousands)

	12/31/08		6/30/09
			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	75,032	$	79,570
Accounts receivable, net		25,118		20,919
Tax receivable		—		4,424
Prepaid expenses and other		6,226		4,656
Deferred income tax assets, net		6,025		1,805
Total current assets		112,401		111,374
Property and equipment, net		57,867		50,482
Intangible assets, net		6,520		3,577
Deferred income tax assets, net		59,599		46,802
Other assets		4,973		3,823
Total assets	$	241,360	$	216,058
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities	$	40,983	$	37,659
Customer deposits		1,203		1,028
Deferred revenue		9,958		8,169
Total current liabilities		52,144		46,856
Other long-term liabilities		48,478		11,128
Total liabilities		100,622		57,984
Stockholders’ equity:
Preferred stock		—		—
Common stock		2		2
Additional paid-in capital		140,736		138,020
Retained earnings		—		20,052
Total stockholders’ equity		140,738		158,074
Total liabilities and stockholders’ equity	$	241,360	$	216,058

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

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

	For the six months ended
	6/30/08			6/30/09
Cash flows from operating activities:
Net (loss) income	$	(167,528	)	$	54,727
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, amortization and accretion		24,187			22,444
Goodwill impairment		188,170			—
Deferred income tax expense		15,759			17,012
Amortization of stock based compensation		562			1,001
Provisions for doubtful accounts, service credits and other		3,022			2,507
Non-cash transaction tax accrual adjustments		(1,228	)		(1,949	)
Loss on disposals of property and equipment		24			153
Changes in assets and liabilities:
Accounts receivable		(1,633	)		1,692
Prepaid expenses and other		1,617			(2,922	)
Intangibles and other long-term assets		1,490			(143	)
Accounts payable and accrued liabilities		(9,798	)		(2,261	)
Customer deposits and deferred revenue		(1,154	)		(1,964	)
Other long-term liabilities		—			(37,654	)
Net cash provided by operating activities	$	53,490		$	52,643
Cash flows from investing activities:
Purchases of property and equipment		(7,880	)		(10,409	)
Proceeds from disposals of property and equipment		169			23
Net cash used in investing activities	$	(7,711	)	$	(10,386	)
Cash flows from financing activities:
Cash distributions to stockholders		(24,565	)		(34,182	)
Purchase of common stock		—			(3,537	)
Net cash used in financing activities	$	(24,565	)	$	(37,719	)
Net increase in cash and cash equivalents		21,214			4,538
Cash and cash equivalents, beginning of period		64,542			75,032
Cash and cash equivalents, end of period	$	85,756		$	79,570
Supplemental disclosure:
Interest paid	$	3		$	—
Income taxes paid (state and local)	$	420		$	385

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