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    (800) 611-8488
Wednesday, July 28, 2010		bob.lougee@usamobility.com

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

Subscriber Trends Continue to Improve;
Operating Expenses Again Reduced;
Cash Flow Margins Remain Strong

Springfield, VA (July 28, 2010) — USA Mobility, Inc. (Nasdaq: USMO), a leading provider ofwireless messaging and communications services, today announced operating results for the second quarter ended June 30, 2010.

In addition, the Company’s Board of Directors declared a regular quarterly cash distribution of $0.25 per share, payable on September 10, 2010 to stockholders of record on August 19, 2010. Of the $0.25 cash distribution, the Company expects $0.23 will be a return of capital and $0.02 will be a dividend distribution.

Total revenue for the second quarter was $59.1 million, compared to $62.8 million in the first quarter of 2010 and $75.1 million in the year-earlier quarter. Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $20.4 million, compared to $22.0 million in the first quarter and $24.0 million in the second quarter of 2009.

Net income for the second quarter was $13.1 million, or $0.58 per fully diluted share, compared to $8.9 million, or $0.39 per fully diluted share, in the first quarter, and $44.7 million, or $1.93 per fully diluted share, in the year-earlier quarter. The second quarter of 2009 net income included a one-time income tax benefit of $37.0 million due to the settlement of uncertain tax positions and tax refund claims and a litigation settlement expense of $4.0 million. Excluding those two items, net income in the year-earlier quarter would have been $10.1 million, or $0.43 per fully diluted share. In the second quarter of 2010, the Company reassessed the expected level of the Company’s 2010 taxable income, which allowed the Company to reduce the deferred tax asset valuation allowance by $4.7 million with a corresponding reduction in income tax expense. Absent the reduction in income tax expense, net income would have been $8.4 million or $0.37 per fully diluted share.

Second quarter results included:

• Net unit loss was 72,000 in the second quarter, compared to 83,000 in the prior quarter and 158,000 in the second quarter of 2009. Units in service totaled 2,027,000 at June 30, 2010, compared to 2,449,000 a year earlier.

• The quarterly rate of subscriber loss improved to 3.5 percent, compared to 3.8 percent in the first quarter and 6.0 percent in the second quarter of 2009. The annual rate of subscriber erosion also improved to 17.2 percent in the second quarter from 19.5 percent in the first quarter and 22.9 percent in the year-earlier quarter.

• Total paging ARPU (average revenue per unit) was $8.87 in the second quarter, compared to $9.00 in the first quarter and $8.96 in the year-earlier quarter.

• The quarterly rate of revenue erosion was 5.8 percent, compared to 4.0 percent in the prior quarter and 5.7 percent in the second quarter of 2009. The annual rate of revenue erosion was 21.3 percent, compared to 21.2 percent in the first quarter and 18.4 percent in the year-earlier quarter.

• Operating expenses (excluding depreciation, amortization and accretion) totaled $38.7 million in the second quarter, a reduction of $12.5 million, or 24.4 percent, from $51.2 million in the second quarter of 2009. Operating expenses declined 5.3 percent from the prior quarter.

• EBITDA margin (or EBITDA as a percentage of revenue) was 34.6 percent, compared to 31.9 percent in the second quarter of 2009.

• Capital expenses were $0.6 million in the quarter, compared to $4.4 million in the year-earlier quarter, due to fewer paging device purchases.

• The Company repurchased 176,839 shares of common stock during the quarter under its buy back program, and approximately $18.1 million remains available for purchases under the currently approved plan.

• The Company’s cash balance at June 30, 2010 was $129.1 million.

Vincent D. Kelly, president and chief executive officer, said: “USA Mobility reported another quarter of solid operating results, meeting or exceeding the majority of our key performance objectives. We were particularly pleased to see continued improvement in the pace of subscriber erosion, which slowed for the third consecutive quarter. At the same time, revenue, ARPU, and operating margins remained at high levels while our expense reduction efforts continued on track, all consistent with the financial guidance we provided earlier this year. In addition, we again generated sufficient cash flow during the quarter to return significant capital to stockholders in the form of cash distributions and share repurchases.”

Thomas L. Schilling, chief operating officer and chief financial officer, said the Company continued to pursue various cost reduction initiatives during the quarter. “Operating expenses (excluding depreciation, amortization and accretion) decreased 5.3 percent from the first quarter and 24.4 percent over the past 12 months,” Schilling noted, “including significant reductions in payroll expense and site rent expense. Operating expense as a percentage of

revenue was 65.4 percent in the quarter, compared to 68.1 percent in the year-earlier quarter, with the lower expenses contributing to an EBITDA margin of 34.6 percent versus 31.9 percent in the same quarter of 2009.”

Based on current trends, the Company is revising its financial guidance for 2010. Revenues are now expected to be between $230 million to $235 million, operating expenses (excluding depreciation, amortization and accretion) between $156 million to $159 million, and capital expenses between $7 million to $9 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 29, 2010. The dial-in number for the call is 888-551-9020 (toll-free) or 719-325-2348 (toll). The pass code for the call is 4546380. A replay of the call will be available from 2:30 p.m. ET on July 29 until 11:59 p.m. on Thursday, August 12. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 4546380.

* * * * * * * * *

About USA Mobility

USA Mobility, Inc., headquartered in Springfield, 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 organizations nationwide. 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 through Sprint Nextel and T-Mobile, including BlackBerry^® 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 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 RESULTS OF OPERATIONS (a)
(unaudited and in thousands, except share and per share amounts)

	For the three months ended
	3/31/09			6/30/09			9/30/09			12/31/09			3/31/10			6/30/10
Revenues:
Paging service	$	72,021		$	67,972		$	63,308		$	59,657		$	57,832		$	54,875
Cellular		991			775			980			795			708			624
Product sales		5,271			5,269			4,354			3,927			3,358			2,732
Other		1,408			1,129			856			993			886			881
Total revenues		79,691			75,145			69,498			65,372			62,784			59,112
Operating expenses:
Cost of products sold		1,669			1,421			1,593			1,513			1,209			1,134
Service, rental and maintenance		22,955			21,290			20,950			20,115			18,941			17,175
Selling and marketing		6,062			5,600			5,198			4,955			4,557			4,394
General and administrative		20,186			22,801			16,050			15,289			15,812			15,924
Severance and restructuring		190			52			15			2,480			314			41
Depreciation, amortization and accretion		11,270			11,174			10,689			8,781			7,304			6,698
Total operating expenses		62,332			62,338			54,495			53,133			48,137			45,366
% of total revenues		78.2	%		83.0	%		78.4	%		81.3	%		76.7	%		76.7	%
Operating income		17,359			12,807			15,003			12,239			14,647			13,746
% of total revenues		21.8	%		17.0	%		21.6	%		18.7	%		23.3	%		23.3	%
Interest income (expense), net		26			28			16			(1	)		3			4
Other income (expense), net		112			(42	)		185			275			78			180
Income before income tax expense (benefit)		17,497			12,793			15,204			12,513			14,728			13,930
Income tax expense (benefit)		7,516			(31,953	)		6,003			8,883			5,843			841
Net income	$	9,981		$	44,746		$	9,201		$	3,630		$	8,885		$	13,089
Basic net income per common share	$	0.43		$	1.96		$	0.40		$	0.16		$	0.39		$	0.59
Diluted net income per common share	$	0.43		$	1.93		$	0.40		$	0.16		$	0.39		$	0.58
Basic weighted average common shares outstanding		23,134,072			22,858,573			22,856,951			22,830,040			22,654,240			22,307,488
Diluted weighted average common shares outstanding		23,479,796			23,200,736			23,194,360			23,167,729			22,967,192			22,620,707
Reconciliation of operating income to EBITDA (b):
Operating income	$	17,359		$	12,807		$	15,003		$	12,239		$	14,647		$	13,746
Add back: depreciation, amortization and accretion		11,270			11,174			10,689			8,781			7,304			6,698
EBITDA	$	28,629		$	23,981		$	25,692		$	21,020		$	21,951		$	20,444
% of total revenues		35.9	%		31.9	%		37.0	%		32.2	%		35.0	%		34.6	%

(a)	Slight variations in totals are due to rounding.
(b)	EBITDA or earnings before interest, taxes, depreciation, amortization and accretion 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
	3/31/09			6/30/09			9/30/09			12/31/09			3/31/10			6/30/10
Units in service
Beginning units in service
Direct one-way		2,349			2,198			2,079			1,969			1,881			1,804
Direct two-way		171			157			147			141			133			126
Total direct		2,520			2,355			2,226			2,110			2,014			1,930
Indirect one-way		196			161			139			116			101			90
Indirect two-way		99			91			84			71			67			79
Total indirect		295			252			223			187			168			169
Total beginning units in service		2,815			2,607			2,449			2,297			2,182			2,099
Gross placements
Direct one-way		67			74			64			55			53			62
Direct two-way		6			7			9			5			5			6
Total direct		73			81			73			60			58			68
Indirect one-way		8			9			7			6			3			3
Indirect two-way		4			2			1			2			15			1
Total indirect		12			11			8			8			18			4
Total gross placements		85			92			81			68			76			72
Gross disconnects
Direct one-way		(218	)		(193	)		(174	)		(143	)		(130	)		(117	)
Direct two-way		(20	)		(17	)		(15	)		(13	)		(12	)		(11	)
Total direct		(238	)		(210	)		(189	)		(156	)		(142	)		(128	)
																��
Indirect one-way		(43	)		(31	)		(30	)		(21	)		(14	)		(11	)
Indirect two-way		(12	)		(9	)		(14	)		(6	)		(3	)		(5	)
Total indirect		(55	)		(40	)		(44	)		(27	)		(17	)		(16	)
Total gross disconnects		(293	)		(250	)		(233	)		(183	)		(159	)		(144	)
Net (loss) gain
Direct one-way		(151	)		(119	)		(110	)		(88	)		(77	)		(55	)
Direct two-way		(14	)		(10	)		(6	)		(8	)		(7	)		(5	)
Total direct		(165	)		(129	)		(116	)		(96	)		(84	)		(60	)
Indirect one-way		(35	)		(22	)		(23	)		(15	)		(11	)		(8	)
Indirect two-way		(8	)		(7	)		(13	)		(4	)		12			(4	)
Total indirect		(43	)		(29	)		(36	)		(19	)		1			(12	)
Total net change		(208	)		(158	)		(152	)		(115	)		(83	)		(72	)
Ending units in service
Direct one-way		2,198			2,079			1,969			1,881			1,804			1,749
Direct two-way		157			147			141			133			126			121
Total direct		2,355			2,226			2,110			2,014			1,930			1,870
Indirect one-way		161			139			116			101			90			82
Indirect two-way		91			84			71			67			79			75
Total indirect		252			223			187			168			169			157
Total ending units in service		2,607			2,449			2,297			2,182			2,099			2,027

(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
	3/31/09			6/30/09			9/30/09			12/31/09			3/31/10			6/30/10
ARPU
Direct one-way	$	8.11		$	8.18		$	8.08		$	8.04		$	8.16		$	8.05
Direct two-way		23.68			23.62			23.42			23.59			23.61			23.55
Total direct		9.15			9.21			9.10			9.06			9.17			9.06
Indirect one-way		7.05			7.43			7.51			7.77			8.78			8.87
Indirect two-way		4.58			5.19			5.49			5.14			4.84			4.25
Total indirect		6.19			6.60			6.74			6.73			7.04			6.65
Total one-way		8.03			8.14			8.05			8.02			8.19			8.09
Total two-way		16.66			16.86			17.09			17.32			16.76			16.06
Total paging ARPU	$	8.86		$	8.96		$	8.89		$	8.88		$	9.00		$	8.87
Gross disconnect rate (b)
Direct one-way		-9.3	%		-8.8	%		-8.4	%		-7.2	%		-6.9	%		-6.5	%
Direct two-way		-11.8	%		-11.0	%		-10.2	%		-8.9	%		-9.1	%		-8.5	%
Total direct		-9.5	%		-8.9	%		-8.5	%		-7.3	%		-7.1	%		-6.6	%
Indirect one-way		-22.0	%		-19.4	%		-21.9	%		-18.9	%		-13.7	%		-12.8	%
Indirect two-way		-11.6	%		-9.1	%		-16.4	%		-8.5	%		-4.9	%		-6.8	%
Total indirect		-18.5	%		-15.6	%		-19.8	%		-14.9	%		-10.1	%		-9.9	%
Total one-way		-10.3	%		-9.5	%		-9.2	%		-7.9	%		-7.3	%		-6.8	%
Total two-way		-11.7	%		-10.3	%		-12.5	%		-8.8	%		-7.7	%		-7.9	%
Total paging gross disconnect rate		-10.4	%		-9.6	%		-9.5	%		-8.0	%		-7.3	%		-6.9	%
Net (loss) gain rate (c)
Direct one-way		-6.4	%		-5.4	%		-5.3	%		-4.4	%		-4.1	%		-3.1	%
Direct two-way		-8.5	%		-6.4	%		-4.4	%		-5.5	%		-5.0	%		-4.2	%
Total direct		-6.6	%		-5.5	%		-5.2	%		-4.5	%		-4.2	%		-3.1	%
Indirect one-way		-17.8	%		-13.7	%		-16.9	%		-13.6	%		-10.5	%		-9.8	%
Indirect two-way		-8.2	%		-7.2	%		-14.9	%		-5.2	%		17.1	%		-4.7	%
Total indirect		-14.6	%		-11.3	%		-16.1	%		-10.4	%		0.7	%		-7.4	%
Total one-way		-7.3	%		-6.0	%		-6.0	%		-5.0	%		-4.4	%		-3.4	%
Total two-way		-8.4	%		-6.7	%		-8.2	%		-5.4	%		2.5	%		-4.4	%
Total paging net (loss) gain rate		-7.4	%		-6.0	%		-6.2	%		-5.0	%		-3.8	%		-3.5	%

(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 (loss) gain 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
	3/31/09			6/30/09			9/30/09			12/31/09			3/31/10			6/30/10
Gross placement rate (b)
Healthcare		3.7	%		4.4	%		3.8	%		3.4	%		3.5	%		4.4	%
Government		1.7	%		2.4	%		2.4	%		1.9	%		1.8	%		1.9	%
Large enterprise		2.4	%		2.2	%		3.3	%		2.2	%		2.1	%		2.6	%
Other		2.4	%		2.5	%		2.3	%		2.2	%		2.4	%		2.0	%
Total direct		2.9	%		3.4	%		3.3	%		2.8	%		2.9	%		3.5	%
Total indirect		3.9	%		4.3	%		3.7	%		4.5	%		10.9	%		2.5	%
Total		3.0	%		3.5	%		3.3	%		3.0	%		3.5	%		3.4	%
Gross disconnect rate (b)
Healthcare		-6.8	%		-6.2	%		-6.7	%		-5.5	%		-4.9	%		-5.2	%
Government		-9.9	%		-10.7	%		-10.7	%		-9.4	%		-9.1	%		-8.3	%
Large enterprise		-13.3	%		-13.0	%		-10.7	%		-9.4	%		-10.3	%		-8.3	%
Other		-13.0	%		-12.4	%		-10.6	%		-10.1	%		-11.0	%		-9.6	%
Total direct		-9.5	%		-8.9	%		-8.5	%		-7.3	%		-7.1	%		-6.6	%
Total indirect		-18.5	%		-15.6	%		-19.8	%		-14.9	%		-10.1	%		-9.9	%
Total		-10.4	%		-9.6	%		-9.5	%		-8.0	%		-7.3	%		-6.9	%
Net (loss) gain rate (b)
Healthcare		-3.1	%		-1.8	%		-2.9	%		-2.1	%		-1.4	%		-0.8	%
Government		-8.2	%		-8.4	%		-8.3	%		-7.5	%		-7.4	%		-6.4	%
Large enterprise		-10.9	%		-10.9	%		-7.4	%		-7.2	%		-8.1	%		-5.7	%
Other		-10.6	%		-10.0	%		-8.3	%		-7.9	%		-8.6	%		-7.6	%
Total direct		-6.6	%		-5.5	%		-5.2	%		-4.5	%		-4.2	%		-3.1	%
Total indirect		-14.6	%		-11.3	%		-16.1	%		-10.4	%		0.7	%		-7.4	%
Total		-7.4	%		-6.0	%		-6.2	%		-5.0	%		-3.8	%		-3.5	%
End of period units in service % of total (b)
Healthcare		44.9	%		49.8	%		51.5	%		53.2	%		54.5	%		56.1	%
Government		17.2	%		15.6	%		15.3	%		14.9	%		14.4	%		14.1	%
Large enterprise		12.0	%		11.8	%		11.8	%		11.4	%		10.9	%		10.7	%
Other		16.2	%		13.7	%		13.2	%		12.8	%		12.1	%		11.4	%
Total direct		90.3	%		90.9	%		91.8	%		92.3	%		91.9	%		92.3	%
Total indirect		9.7	%		9.1	%		8.2	%		7.7	%		8.1	%		7.7	%
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) gain rates.

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

	For the three months ended
	3/31/09			6/30/09			9/30/09			12/31/09			3/31/10			6/30/10
Account size ending units in service (000’s)
1 to 3 units		137			126			118			109			101			95
4 to 10 units		82			75			70			66			62			58
11 to 50 units		199			183			168			158			149			140
51 to 100 units		125			112			104			97			92			86
101 to 1,000 units		626			580			546			519			499			483
>1,000 units		1,186			1,150			1,104			1,065			1,027			1,008
Total		2,355			2,226			2,110			2,014			1,930			1,870
End of period units in service % of total direct
1 to 3 units		5.8	%		5.7	%		5.6	%		5.4	%		5.2	%		5.1	%
4 to 10 units		3.5	%		3.4	%		3.3	%		3.3	%		3.2	%		3.1	%
11 to 50 units		8.4	%		8.2	%		8.0	%		7.8	%		7.7	%		7.5	%
51 to 100 units		5.3	%		5.0	%		4.9	%		4.8	%		4.8	%		4.6	%
101 to 1,000 units		26.6	%		26.0	%		25.9	%		25.8	%		25.9	%		25.8	%
>1,000 units		50.4	%		51.7	%		52.3	%		52.9	%		53.2	%		53.9	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Account size net loss rate
1 to 3 units		-7.8	%		-7.9	%		-6.9	%		-7.4	%		-7.6	%		-5.8	%
4 to 10 units		-8.8	%		-7.9	%		-6.7	%		-6.1	%		-5.3	%		-6.0	%
11 to 50 units		-8.9	%		-8.2	%		-7.7	%		-5.9	%		-5.8	%		-6.1	%
51 to 100 units		-6.2	%		-10.1	%		-7.6	%		-6.8	%		-4.4	%		-6.5	%
101 to 1,000 units		-8.0	%		-7.4	%		-5.9	%		-4.9	%		-3.7	%		-3.3	%
>1,000 units		-5.1	%		-3.1	%		-4.0	%		-3.5	%		-3.7	%		-1.9	%
Total		-6.6	%		-5.5	%		-5.2	%		-4.5	%		-4.2	%		-3.1	%
Account size ARPU
1 to 3 units	$	14.73		$	15.07		$	14.98		$	15.03		$	15.28		$	15.37
4 to 10 units		14.00			14.30			14.24			14.21			14.37			14.35
11 to 50 units		11.41			11.65			11.54			11.45			11.86			12.01
51 to 100 units		10.30			10.13			10.06			10.06			10.67			10.76
101 to 1,000 units		8.94			9.04			8.89			8.82			9.00			8.93
>1,000 units		7.77			7.80			7.76			7.79			7.80			7.63
Total	$	9.15		$	9.21		$	9.10		$	9.06		$	9.17		$	9.06
Cellular revenue
Number of activations		2,389			2,207			2,633			2,253			2,354			1,885
Revenue from cellular services (000’s)	$	991		$	775		$	980		$	795		$	708		$	624

(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
	3/31/09		6/30/09		9/30/09			12/31/09		3/31/10		6/30/10
Cost of products sold	$	1,669	$	1,421	$	1,593		$	1,513	$	1,209	$	1,134
Service, rental and maintenance
Site rent		11,218		10,223		10,422			9,871		9,079		8,283
Telecommunications		4,485		4,284		3,945			3,885		3,831		3,467
Payroll and related		5,631		5,286		4,988			4,725		4,586		4,444
Stock based compensation		49		7		13			12		6		7
Other		1,572		1,490		1,582			1,622		1,439		974
Total service, rental and maintenance		22,955		21,290		20,950			20,115		18,941		17,175
Selling and marketing
Payroll and related		4,175		3,711		3,366			3,199		2,964		2,814
Commissions		1,201		1,422		1,328			1,131		1,164		1,367
Stock based compensation		109		26		26			26		17		22
Other		577		441		478			599		412		191
Total selling and marketing		6,062		5,600		5,198			4,955		4,557		4,394
General and administrative
Payroll and related		9,075		7,754		7,213			7,089		6,912		6,621
Stock based compensation		569		241		241			241		240		242
Bad debt		850		750		699			654		713		594
Facility rent		1,628		1,446		1,457			1,411		1,354		1,326
Telecommunications		771		721		720			702		657		603
Outside services		4,514		4,063		3,269			3,051		3,267		3,185
Taxes, licenses and permits		1,101		1,695		(680	)		660		1,591		1,836
Other		1,678		6,131		3,131			1,481		1,078		1,517
Total general and administrative		20,186		22,801		16,050			15,289		15,812		15,924
Severance and restructuring		190		52		15			2,480		314		41
Depreciation, amortization and accretion		11,270		11,174		10,689			8,781		7,304		6,698
Operating expenses	$	62,332	$	62,338	$	54,495		$	53,133	$	48,137	$	45,366
Capital expenditures	$	6,054	$	4,355	$	1,806		$	5,014	$	1,725	$	563

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

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

	12/31/09		6/30/10
			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	109,591	$	129,123
Accounts receivable, net		19,051		14,655
Prepaid expenses and other		3,016		3,878
Tax receivables		5,117		—
Deferred income tax assets, net		1,068		760
Total current assets		137,843		148,416
Property and equipment, net		41,295		30,984
Intangible assets, net		226		278
Tax receivables		—		5,155
Deferred income tax assets, net		32,123		25,854
Other assets		2,061		407
Total assets	$	213,548	$	211,094
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities	$	35,214	$	27,946
Customer deposits		888		797
Deferred revenue		7,422		6,681
Total current liabilities		43,524	$	35,424
Other long-term liabilities		11,228		12,104
Total liabilities		54,752		47,528
Stockholders’ equity:
Preferred stock		—		—
Common stock		2		2
Additional paid-in capital		137,378		131,420
Retained earnings		21,416		32,144
Total stockholders’ equity		158,796		163,566
Total liabilities and stockholders’ equity	$	213,548	$	211,094

(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
	6/30/09			6/30/10
Cash flows from operating activities:
Net income	$	54,727		$	21,974
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		22,444			14,002
Deferred income tax expense		17,012			6,577
Amortization of stock based compensation		1,001			534
Provisions for doubtful accounts, service credits and other		2,507			2,400
Non-cash transaction tax accrual adjustments		(1,949	)		(667	)
Loss on disposals of property and equipment		153			22
Changes in assets and liabilities:
Accounts receivable		1,692			1,996
Prepaid expenses, intangibles and other assets		(3,065	)		(17	)
Accounts payable and accrued liabilities		(2,261	)		(6,188	)
Customer deposits and deferred revenue		(1,964	)		(833	)
Other long-term liabilities		(37,654	)		—
Net cash provided by operating activities		52,643			39,800
Cash flows from investing activities:
Purchases of property and equipment		(10,409	)		(2,288	)
Proceeds from disposals of property and equipment		23			58
Net cash used in investing activities		(10,386	)		(2,230	)
Cash flows from financing activities:
Cash distributions to stockholders		(34,182	)		(11,151	)
Purchase of common stock		(3,537	)		(6,887	)
Net cash used in financing activities		(37,719	)		(18,038	)
Net increase in cash and cash equivalents		4,538			19,532
Cash and cash equivalents, beginning of period		75,032			109,591
Cash and cash equivalents, end of period	$	79,570		$	129,123
Supplemental disclosure:
Interest paid	$	—		$	—
Income taxes paid (state and local)	$	385		$	362

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