Spok (SPOK) 8-K USA Mobility Reports Third Quarter Operating Results; Board Declares Regular Quarterly and Special Cash Distribution

Exhibit 99.1

News Release

For Immediate Release	Contact:	Bob Lougee (800) 611-8488
Wednesday, October 27, 2010		bob.lougee@usamobility.com

USA Mobility Reports Third Quarter Operating Results;
Board Declares Regular Quarterly and Special Cash Distribution

Subscriber and Revenue Trends Improve;
Operating Expenses Again Reduced;
Cash Flow Margins Remain High

Springfield, VA (October 27, 2010) —USA Mobility, Inc. (Nasdaq: USMO), a leading provider ofwireless messaging and communications services, today announced operating results for the third quarter ended September 30, 2010.

In addition, the Company’s Board of Directors declared a regular quarterly cash distribution of $0.25 per share and a special cash distribution of $1.00 per share. The cash distributions will be paid on December 10, 2010 to stockholders of record on November 18, 2010. Of the $0.25 cash distribution, the Company expects $0.24 will be a return of capital and $0.01 will be a dividend distribution. With respect to the special cash distribution, the Company expects $0.97 will be a return of capital and $0.03 will be a dividend distribution.

Total revenue for the third quarter was $56.7 million, compared to $59.1 million in the second quarter of 2010 and $69.5 million in the year-earlier quarter. Third quarter EBITDA (earnings before interest, taxes, depreciation, amortization and accretion) totaled $22.0 million, compared to $20.4 million in the second quarter and $25.7 million in the third quarter of 2009.

Net income for the third quarter was $15.4 million, or $0.69 per fully diluted share, compared to $13.9 million, or $0.58 per fully diluted share, in the second quarter, and $9.2 million, or $0.40 per fully diluted share, in the year-earlier quarter. Net income for the third quarter of 2010 included a one-time benefit of $0.8 million to operating expenses associated with the departure of the Company’s former chief operating officer and chief financial officer (COO/CFO) and the one-time receipt of $2.0 million for the completion of the sale of a narrowband personal communications service license. Excluding these one-time items, net income for the third quarter of 2010 would have been $13.2 million, or $0.59 per fully diluted share.

Third quarter results included:

• EBITDA margin (or EBITDA as a percentage of revenue) increased to 38.8 percent from 34.6 percent in the prior quarter and 37.0 percent in the third quarter of 2009. These results included a one-time benefit of $0.8 million to operating expenses associated with the departure of the Company’s former COO/CFO. Absent the one-time benefit, EBITDA margin would have been approximately 37.4 percent.

• The quarterly rate of revenue erosion improved to 4.1 percent in the third quarter, compared to 5.8 percent in the prior quarter, and 7.5 percent in the third quarter of 2009. The annual rate of revenue erosion was 18.4 percent, compared to 21.3 percent in both the second quarter and year-earlier quarter.

• Total paging ARPU (average revenue per unit) was $8.85 in the third quarter, compared to $8.87 in the second quarter and $8.89 in the year-earlier quarter.

• Net unit losses were 77,000 in the third quarter, compared to 72,000 in the prior quarter and 152,000 in the third quarter of 2009. Units in service totaled 1,950,000 at September 30, 2010, compared to 2,297,000 a year earlier.

• The quarterly rate of subscriber loss was 3.8 percent, compared to 3.5 percent in the second quarter and 6.2 percent in the third quarter of 2009. The annual rate of subscriber erosion improved to 15.1 percent in the quarter from 17.2 percent in the prior quarter and 23.5 percent in the year-earlier quarter.

• Operating expenses (excluding depreciation, amortization and accretion) totaled $34.7 million in the third quarter, a reduction of $9.1 million, or 20.8 percent, from $43.8 million in the third quarter of 2009. Operating expenses declined 10.3 percent from the prior quarter.

• Capital expenses were $1.7 million in the quarter, compared to $1.8 million in the year-earlier quarter.

• The Company repurchased 156,522 shares of common stock during the quarter under its buy back program, and approximately $16.1 million remains available for purchases under the currently approved plan which runs through December 31^st of this year.

• The Company’s cash balance at September 30, 2010 was $141.8 million.

“USA Mobility reported another quarter of outstanding operating results, continuing the positive trends we experienced in the first half of 2010,” said Vincent D. Kelly, president and chief executive officer. “During the quarter we met or exceeded the majority of our key performance targets, including continued improvement in subscriber and revenue trends. In addition, both cash flow margins and ARPU levels remained strong and cost management efforts continued on track, all consistent with the financial guidance we provided earlier this year. As a result, we again were able to generate sufficient cash flow to return significant capital to stockholders in the form of cash distributions and share repurchases.”

Shawn E. Endsley, chief financial officer, said the Company continued to make steady progress in reducing operating expenses during the quarter. “Excluding depreciation, amortization and accretion, operating expenses decreased 10.3 percent from the second quarter and 20.8 percent over the past 12 months,” he noted, “with

significant reductions in payroll and related expenses and site rent expenses.” Endsley added: “Operating expense as a percentage of revenue was 61.2 percent in the quarter, the lowest level in the Company’s history, compared to 63.0 percent in the year-earlier quarter, while lower expenses contributed to an EBITDA margin of 38.8 percent versus 37.0 percent in the same quarter of 2009. After excluding the one-time benefit associated with the departure of the Company’s former COO/CFO, operating expenses would have been 62.6 percent of revenue and the EBITDA margin would have been 37.4 percent.”

Based on current trends, the Company maintained its previous financial guidance for 2010, with revenues expected to be between $230 million and $235 million, operating expenses (excluding depreciation, amortization and accretion) between $156 million and $159 million, and capital expenses between $7 million and $9 million.

* * * * * * * * *

USA Mobility plans to host a conference call forinvestors on its third quarter results at 10:00 a.m. Eastern Time on Thursday, October 28, 2010. The dial-in number for the call is 888-204-4517 (toll-free) or 913-312-0979 (toll). The pass code for the call is 4774094. A replay of the call will be available from 2:00 p.m. ET on October 28 until 11:59 p.m. on Thursday, November 11. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 4774094.

* * * * * * * * *

About USA Mobility

USA Mobility, Inc., headquartered in Springfield, Virginia, is a comprehensive provider of reliable and affordablewireless communications solutions to thehealthcare,government,large enterprise andemergency 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 throughSprint Nextel andT-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 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 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			9/30/10
Revenues:
Paging service	$	72,021		$	67,972		$	63,308		$	59,657		$	57,832		$	54,875		$	52,778
Cellular		991			775			980			795			708			624			532
Product sales		5,271			5,269			4,354			3,927			3,358			2,732			2,805
Other		1,408			1,129			856			993			886			881			595
Total revenues		79,691			75,145			69,498			65,372			62,784			59,112			56,710
Operating expenses:
Cost of products sold		1,669			1,421			1,593			1,513			1,209			1,134			819
Service, rental and maintenance		22,955			21,290			20,950			20,115			18,941			17,175			16,821
Selling and marketing		6,062			5,600			5,198			4,955			4,557			4,394			4,060
General and administrative		20,186			22,801			16,050			15,289			15,812			15,924			12,907
Severance and restructuring		190			52			15			2,480			314			41			86
Depreciation, amortization and accretion		11,270			11,174			10,689			8,781			7,304			6,698			5,899
Total operating expenses		62,332			62,338			54,495			53,133			48,137			45,366			40,592
% of total revenues		78.2	%		83.0	%		78.4	%		81.3	%		76.7	%		76.7	%		71.6	%
Operating income		17,359			12,807			15,003			12,239			14,647			13,746			16,118
% of total revenues		21.8	%		17.0	%		21.6	%		18.7	%		23.3	%		23.3	%		28.4	%
Interest income (expense), net		26			28			16			(1	)		3			4			6
Other income (expense), net		112			(42	)		185			275			78			180			2,320
Income before income tax expense (benefit)		17,497			12,793			15,204			12,513			14,728			13,930			18,444
Income tax expense (benefit)		7,516			(31,953	)		6,003			8,883			5,843			841			3,060
Net income	$	9,981		$	44,746		$	9,201		$	3,630		$	8,885		$	13,089		$	15,384
Basic net income per common share	$	0.43		$	1.96		$	0.40		$	0.16		$	0.39		$	0.59		$	0.70
Diluted net income per common share	$	0.43		$	1.93		$	0.40		$	0.16		$	0.39		$	0.58		$	0.69
Basic weighted average common shares outstanding		23,134,072			22,858,573			22,856,951			22,830,040			22,654,240			22,307,488			22,060,636
Diluted weighted average common shares outstanding		23,479,796			23,200,736			23,194,360			23,167,729			22,967,192			22,620,707			22,372,786
Reconciliation of operating income to EBITDA (b):
Operating income	$	17,359		$	12,807		$	15,003		$	12,239		$	14,647		$	13,746		$	16,118
Add back: depreciation, amortization and accretion		11,270			11,174			10,689			8,781			7,304			6,698			5,899
EBITDA	$	28,629		$	23,981		$	25,692		$	21,020		$	21,951		$	20,444		$	22,017
% of total revenues		35.9	%		31.9	%		37.0	%		32.2	%		35.0	%		34.6	%		38.8	%

(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			9/30/10
Units in service
Beginning units in service
Direct one-way		2,349			2,198			2,079			1,969			1,881			1,804			1,749
Direct two-way		171			157			147			141			133			126			121
Total direct		2,520			2,355			2,226			2,110			2,014			1,930			1,870
Indirect one-way		196			161			139			116			101			90			82
Indirect two-way		99			91			84			71			67			79			75
Total indirect		295			252			223			187			168			169			157
Total beginning units in service		2,815			2,607			2,449			2,297			2,182			2,099			2,027
Gross placements
Direct one-way		67			74			64			55			53			62			58
Direct two-way		6			7			9			5			5			6			4
Total direct		73			81			73			60			58			68			62
Indirect one-way		8			9			7			6			3			3			3
Indirect two-way		4			2			1			2			15			1			1
Total indirect		12			11			8			8			18			4			4
Total gross placements		85			92			81			68			76			72			66
Gross disconnects
Direct one-way		(218	)		(193	)		(174	)		(143	)		(130	)		(117	)		(115	)
Direct two-way		(20	)		(17	)		(15	)		(13	)		(12	)		(11	)		(16	)
Total direct		(238	)		(210	)		(189	)		(156	)		(142	)		(128	)		(131	)
Indirect one-way		(43	)		(31	)		(30	)		(21	)		(14	)		(11	)		(10	)
Indirect two-way		(12	)		(9	)		(14	)		(6	)		(3	)		(5	)		(2	)
Total indirect		(55	)		(40	)		(44	)		(27	)		(17	)		(16	)		(12	)
Total gross disconnects		(293	)		(250	)		(233	)		(183	)		(159	)		(144	)		(143	)
Net gain (loss)
Direct one-way		(151	)		(119	)		(110	)		(88	)		(77	)		(55	)		(57	)
Direct two-way		(14	)		(10	)		(6	)		(8	)		(7	)		(5	)		(12	)
Total direct		(165	)		(129	)		(116	)		(96	)		(84	)		(60	)		(69	)
Indirect one-way		(35	)		(22	)		(23	)		(15	)		(11	)		(8	)		(7	)
Indirect two-way		(8	)		(7	)		(13	)		(4	)		12			(4	)		(1	)
Total indirect		(43	)		(29	)		(36	)		(19	)		1			(12	)		(8	)
Total net change		(208	)		(158	)		(152	)		(115	)		(83	)		(72	)		(77	)
Ending units in service
Direct one-way		2,198			2,079			1,969			1,881			1,804			1,749			1,692
Direct two-way		157			147			141			133			126			121			109
Total direct		2,355			2,226			2,110			2,014			1,930			1,870			1,801
Indirect one-way		161			139			116			101			90			82			75
Indirect two-way		91			84			71			67			79			75			74
Total indirect		252			223			187			168			169			157			149
Total ending units in service		2,607			2,449			2,297			2,182			2,099			2,027			1,950

(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			9/30/10
ARPU
Direct one-way	$	8.11		$	8.18		$	8.08		$	8.04		$	8.16		$	8.05		$	8.07
Direct two-way		23.68			23.62			23.42			23.59			23.61			23.55			23.11
Total direct		9.15			9.21			9.10			9.06			9.17			9.06			9.01
Indirect one-way		7.05			7.43			7.51			7.77			8.78			8.87			9.60
Indirect two-way		4.58			5.19			5.49			5.14			4.84			4.25			4.09
Total indirect		6.19			6.60			6.74			6.73			7.04			6.65			6.86
Total one-way		8.03			8.14			8.05			8.02			8.19			8.09			8.14
Total two-way		16.66			16.86			17.09			17.32			16.76			16.06			15.54
Total paging ARPU	$	8.86		$	8.96		$	8.89		$	8.88		$	9.00		$	8.87		$	8.85
Gross disconnect rate (b)
Direct one-way		-9.3	%		-8.8	%		-8.4	%		-7.2	%		-6.9	%		-6.5	%		-6.6	%
Direct two-way		-11.8	%		-11.0	%		-10.2	%		-8.9	%		-9.1	%		-8.5	%		-13.0	%
Total direct		-9.5	%		-8.9	%		-8.5	%		-7.3	%		-7.1	%		-6.6	%		-7.0	%
Indirect one-way		-22.0	%		-19.4	%		-21.9	%		-18.9	%		-13.7	%		-12.8	%		-12.5	%
Indirect two-way		-11.6	%		-9.1	%		-16.4	%		-8.5	%		-4.9	%		-6.8	%		-2.6	%
Total indirect		-18.5	%		-15.6	%		-19.8	%		-14.9	%		-10.1	%		-9.9	%		-7.7	%
Total one-way		-10.3	%		-9.5	%		-9.2	%		-7.9	%		-7.3	%		-6.8	%		-6.8	%
Total two-way		-11.7	%		-10.3	%		-12.5	%		-8.8	%		-7.7	%		-7.9	%		-9.0	%
Total paging gross disconnect rate		-10.4	%		-9.6	%		-9.5	%		-8.0	%		-7.3	%		-6.9	%		-7.0	%
Net gain / loss rate (c)
Direct one-way		-6.4	%		-5.4	%		-5.3	%		-4.4	%		-4.1	%		-3.1	%		-3.2	%
Direct two-way		-8.5	%		-6.4	%		-4.4	%		-5.5	%		-5.0	%		-4.2	%		-9.5	%
Total direct		-6.6	%		-5.5	%		-5.2	%		-4.5	%		-4.2	%		-3.1	%		-3.6	%
Indirect one-way		-17.8	%		-13.7	%		-16.9	%		-13.6	%		-10.5	%		-9.8	%		-9.2	%
Indirect two-way		-8.2	%		-7.2	%		-14.9	%		-5.2	%		17.1	%		-4.7	%		-0.9	%
Total indirect		-14.6	%		-11.3	%		-16.1	%		-10.4	%		0.7	%		-7.4	%		-5.1	%
Total one-way		-7.3	%		-6.0	%		-6.0	%		-5.0	%		-4.4	%		-3.4	%		-3.5	%
Total two-way		-8.4	%		-6.7	%		-8.2	%		-5.4	%		2.5	%		-4.4	%		-6.1	%
Total paging net gain / loss rate		-7.4	%		-6.0	%		-6.2	%		-5.0	%		-3.8	%		-3.5	%		-3.8	%

(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
	3/31/09			6/30/09			9/30/09			12/31/09			3/31/10			6/30/10			9/30/10
Gross placement rate (b)
Healthcare		3.7	%		4.4	%		3.8	%		3.4	%		3.5	%		4.4	%		3.9	%
Government		1.7	%		2.4	%		2.4	%		1.9	%		1.8	%		1.9	%		3.1	%
Large enterprise		2.4	%		2.2	%		3.3	%		2.2	%		2.1	%		2.6	%		1.9	%
Other		2.4	%		2.5	%		2.3	%		2.2	%		2.4	%		2.0	%		2.5	%
Total direct		2.9	%		3.4	%		3.3	%		2.8	%		2.9	%		3.5	%		3.4	%
Total indirect		3.9	%		4.3	%		3.7	%		4.5	%		10.9	%		2.5	%		2.6	%
Total		3.0	%		3.5	%		3.3	%		3.0	%		3.5	%		3.4	%		3.3	%
Gross disconnect rate (b)
Healthcare		-6.8	%		-6.2	%		-6.7	%		-5.5	%		-4.9	%		-5.2	%		-5.7	%
Government		-9.9	%		-10.7	%		-10.7	%		-9.4	%		-9.1	%		-8.3	%		-8.3	%
Large enterprise		-13.3	%		-13.0	%		-10.7	%		-9.4	%		-10.3	%		-8.3	%		-9.7	%
Other		-13.0	%		-12.4	%		-10.6	%		-10.1	%		-11.0	%		-9.6	%		-9.3	%
Total direct		-9.5	%		-8.9	%		-8.5	%		-7.3	%		-7.1	%		-6.6	%		-7.0	%
Total indirect		-18.5	%		-15.6	%		-19.8	%		-14.9	%		-10.1	%		-9.9	%		-7.7	%
Total		-10.4	%		-9.6	%		-9.5	%		-8.0	%		-7.3	%		-6.9	%		-7.0	%
Net loss rate (b)
Healthcare		-3.1	%		-1.8	%		-2.9	%		-2.1	%		-1.4	%		-0.8	%		-1.8	%
Government		-8.2	%		-8.4	%		-8.3	%		-7.5	%		-7.4	%		-6.4	%		-5.2	%
Large enterprise		-10.9	%		-10.9	%		-7.4	%		-7.2	%		-8.1	%		-5.7	%		-7.8	%
Other		-10.6	%		-10.0	%		-8.3	%		-7.9	%		-8.6	%		-7.6	%		-6.8	%
Total direct		-6.6	%		-5.5	%		-5.2	%		-4.5	%		-4.2	%		-3.1	%		-3.6	%
Total indirect		-14.6	%		-11.3	%		-16.1	%		-10.4	%		0.7	%		-7.4	%		-5.1	%
Total		-7.4	%		-6.0	%		-6.2	%		-5.0	%		-3.8	%		-3.5	%		-3.8	%
End of period units in service % of total (b)
Healthcare		44.9	%		49.8	%		51.5	%		53.2	%		54.5	%		56.1	%		57.1	%
Government		17.2	%		15.6	%		15.3	%		14.9	%		14.4	%		14.1	%		13.9	%
Large enterprise		12.0	%		11.8	%		11.8	%		11.4	%		10.9	%		10.7	%		10.2	%
Other		16.2	%		13.7	%		13.2	%		12.8	%		12.1	%		11.4	%		11.2	%
Total direct		90.3	%		90.9	%		91.8	%		92.3	%		91.9	%		92.3	%		92.4	%
Total indirect		9.7	%		9.1	%		8.2	%		7.7	%		8.1	%		7.7	%		7.6	%
Total		100.0	%		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
	3/31/09			6/30/09			9/30/09			12/31/09			3/31/10			6/30/10			9/30/10
Account size ending units in service (000’s)
1 to 3 units		137			126			118			109			101			95			88
4 to 10 units		82			75			70			66			62			58			54
11 to 50 units		199			183			168			158			149			140			130
51 to 100 units		125			112			104			97			92			86			79
101 to 1,000 units		626			580			546			519			499			483			456
>1,000 units		1,186			1,150			1,104			1,065			1,027			1,008			994
Total		2,355			2,226			2,110			2,014			1,930			1,870			1,801
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	%		4.9	%
4 to 10 units		3.5	%		3.4	%		3.3	%		3.3	%		3.2	%		3.1	%		3.0	%
11 to 50 units		8.4	%		8.2	%		8.0	%		7.8	%		7.7	%		7.5	%		7.2	%
51 to 100 units		5.3	%		5.0	%		4.9	%		4.8	%		4.8	%		4.6	%		4.4	%
101 to 1,000 units		26.6	%		26.0	%		25.9	%		25.8	%		25.9	%		25.8	%		25.3	%
>1,000 units		50.4	%		51.7	%		52.3	%		52.9	%		53.2	%		53.9	%		55.2	%
Total		100.0	%		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	%		-7.0	%
4 to 10 units		-8.8	%		-7.9	%		-6.7	%		-6.1	%		-5.3	%		-6.0	%		-7.5	%
11 to 50 units		-8.9	%		-8.2	%		-7.7	%		-5.9	%		-5.8	%		-6.1	%		-7.3	%
51 to 100 units		-6.2	%		-10.1	%		-7.6	%		-6.8	%		-4.4	%		-6.5	%		-7.9	%
101 to 1,000 units		-8.0	%		-7.4	%		-5.9	%		-4.9	%		-3.7	%		-3.3	%		-5.6	%
>1,000 units		-5.1	%		-3.1	%		-4.0	%		-3.5	%		-3.7	%		-1.9	%		-1.3	%
Total		-6.6	%		-5.5	%		-5.2	%		-4.5	%		-4.2	%		-3.1	%		-3.6	%
Account size ARPU
1 to 3 units	$	14.73		$	15.07		$	14.98		$	15.03		$	15.28		$	15.37		$	15.48
4 to 10 units		14.00			14.30			14.24			14.21			14.37			14.35			14.51
11 to 50 units		11.41			11.65			11.54			11.45			11.86			12.01			12.18
51 to 100 units		10.30			10.13			10.06			10.06			10.67			10.76			10.69
101 to 1,000 units		8.94			9.04			8.89			8.82			9.00			8.93			8.82
>1,000 units		7.77			7.80			7.76			7.79			7.80			7.63			7.64
Total	$	9.15		$	9.21		$	9.10		$	9.06		$	9.17		$	9.06		$	9.01
Cellular revenue
Number of activations		2,389			2,207			2,633			2,253			2,354			1,885			1,885
Revenue from cellular services (000’s)	$	991		$	775		$	980		$	795		$	708		$	624		$	532

(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		9/30/10
Cost of products sold	$	1,669	$	1,421	$	1,593		$	1,513	$	1,209	$	1,134	$	819
Service, rental and maintenance
Site rent		11,218		10,223		10,422			9,871		9,079		8,283		8,042
Telecommunications		4,485		4,284		3,945			3,885		3,831		3,467		3,341
Payroll and related		5,631		5,286		4,988			4,725		4,586		4,444		4,199
Stock based compensation		49		7		13			12		6		7		5
Other		1,572		1,490		1,582			1,622		1,439		974		1,234
Total service, rental and maintenance		22,955		21,290		20,950			20,115		18,941		17,175		16,821
Selling and marketing
Payroll and related		4,175		3,711		3,366			3,199		2,964		2,814		2,659
Commissions		1,201		1,422		1,328			1,131		1,164		1,367		1,163
Stock based compensation		109		26		26			26		17		22		17
Other		577		441		478			599		412		191		221
Total selling and marketing		6,062		5,600		5,198			4,955		4,557		4,394		4,060
General and administrative
Payroll and related		9,075		7,754		7,213			7,089		6,912		6,621		5,719
Stock based compensation		569		241		241			241		240		242		15
Bad debt		850		750		699			654		713		594		571
Facility rent		1,628		1,446		1,457			1,411		1,354		1,326		992
Telecommunications		771		721		720			702		657		603		518
Outside services		4,514		4,063		3,269			3,051		3,267		3,185		2,463
Taxes, licenses and permits		1,101		1,695		(680	)		660		1,591		1,836		1,276
Other		1,678		6,131		3,131			1,481		1,078		1,517		1,353
Total general and administrative		20,186		22,801		16,050			15,289		15,812		15,924		12,907
Severance and restructuring		190		52		15			2,480		314		41		86
Depreciation, amortization and accretion		11,270		11,174		10,689			8,781		7,304		6,698		5,899
Operating expenses	$	62,332	$	62,338	$	54,495		$	53,133	$	48,137	$	45,366	$	40,592
Capital expenditures	$	6,054	$	4,355	$	1,806		$	5,014	$	1,725	$	563	$	1,730

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

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

(in thousands)

	12/31/09		9/30/10
			(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	109,591	$	141,813
Accounts receivable, net		19,051		14,282
Prepaid expenses and other		3,016		2,890
Tax receivables		5,117		—
Deferred income tax assets, net		1,068		831
Total current assets		137,843		159,816
Property and equipment, net		41,295		26,550
Intangible assets, net		226		443
Tax receivables		—		5,175
Deferred income tax assets, net		32,123		22,738
Other assets		2,061		402
Total assets	$	213,548	$	215,124
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued liabilities	$	35,214	$	23,131
Customer deposits		888		753
Deferred revenue		7,422		7,095
Total current liabilities		43,524		30,979
Other long-term liabilities		11,228		12,631
Total liabilities		54,752		43,610
Commitments and contingencies
Stockholders’ equity:
Preferred stock		—		—
Common stock		2		2
Additional paid-in capital		137,378		129,451
Retained earnings		21,416		42,061
Total stockholders’ equity		158,796		171,514
Total liabilities and stockholders’ equity	$	213,548	$	215,124

(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 nine months ended
	9/30/09			9/30/10
Cash flows from operating activities:
Net income	$	63,928		$	37,358
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		33,133			19,901
Deferred income tax expense		22,889			9,622
Amortization of stock based compensation		1,281			571
Provisions for doubtful accounts, service credits and other		3,559			3,504
Non-cash transaction tax accrual adjustments		(4,879	)		(927	)
Loss (gain) on disposals of property and equipment		138			(3	)
Changes in assets and liabilities:
Accounts receivable		1,203			1,265
Prepaid expenses, intangible assets and other assets		(913	)		643
Accounts payable and accrued liabilities		(4,403	)		(9,744	)
Customer deposits and deferred revenue		(2,057	)		(462	)
Other long-term liabilities		(37,654	)		—
Net cash provided by operating activities	$	76,225		$	61,728
Cash flows from investing activities:
Purchases of property and equipment		(12,215	)		(4,018	)
Proceeds from disposals of property and equipment		30			72
Net cash used in investing activities	$	(12,185	)	$	(3,946	)
Cash flows from financing activities:
Cash distributions to stockholders		(39,843	)		(16,667	)
Purchase of common stock		(3,537	)		(8,893	)
Net cash used in financing activities	$	(43,380	)	$	(25,560	)
Net increase in cash and cash equivalents		20,660			32,222
Cash and cash equivalents, beginning of period		75,032			109,591
Cash and cash equivalents, end of period	$	95,692		$	141,813
Supplemental disclosure:
Interest paid	$	1		$	—
Income taxes paid (state and local)	$	437		$	340

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