Spok (SPOK) 8-K USA Mobility Reports Fourth Quarter and 2006 Operating Results

Exhibit 99.1

News Release

For Immediate Release	Contact: Bob Lougee (703) 721-3080
Wednesday, March 7, 2007

USA Mobility Reports Fourth Quarter and 2006 Operating Results

Subscriber Trends Improve, Expenses Reduced and Capital Returned to Shareholders;
Key Verticals of Healthcare, Government and Large Enterprise Targeted

Alexandria, VA (March 7, 2007) — USA Mobility, Inc. (Nasdaq: USMO), a leading provider of wireless messaging and communications services, today announced operating results for the fourth quarter and year ended December 31, 2006.

Reported revenue was $497.7 million for 2006, compared to $618.6 million in 2005. EBITDA (Earnings before interest, tax, depreciation, amortization and accretion) for 2006 was $140.4 million, or 28.2 percent of revenue, while operating income was $67.1 million. Net income for 2006 was $40.2 million, or $1.46 per fully diluted share, compared to $12.9 million, or $0.47 per fully diluted share, for 2005.

For the fourth quarter, reported revenues totaled $116.0 million, compared to $119.6 million in the third quarter of 2006 and $143.4 million in the fourth quarter of 2005. EBITDA for the fourth quarter of 2006 was $30.8 million, or 26.6 percent of revenue, and operating income was $13.6 million. Net income for the fourth quarter was $8.3 million, or $0.30 per fully diluted share, compared to $7.9 million, or $0.29 per fully diluted share, in the year-earlier quarter.

Key results in 2006 included:

• Quarterly net unit losses slowed significantly during the year to 154,000 in the fourth quarter from 252,000 in the first quarter, while the quarterly rate of unit erosion improved to 3.6 percent in the fourth quarter from 5.2 percent in the first quarter of 2006. The annual rate of unit erosion declined to 16.0 percent in 2006 from 18.1 percent in 2005. Total units in service at year-end 2006 were 4,105,000, compared to 4,886,000 at year-end 2005.

• The rate of revenue decline continued to show improvement during 2006. The quarterly rate of revenue erosion narrowed to 2.9 percent in the fourth quarter, compared to 5.9 percent in the first quarter of 2006. The year-over-year rate of revenue decline improved to 19.5 percent in 2006 from 21.6 percent in 2005.

• Operating expenses, excluding depreciation, amortization and accretion, were $85.2 million for the fourth quarter, a reduction of $16.4 million, or 16.1 percent, from $101.6 million in the fourth quarter of 2005. For 2006, operating expenses were $357.3 million, a decrease of $102.8 million, or 22.3 percent, from 2005. Lower expenses were largely the result of the Company’s ongoing network rationalization initiative, coupled with staff reductions and numerous other company-wide cost efficiency initiatives.

• Average revenue per unit (ARPU) was $8.57 for the fourth quarter of 2006, compared to $8.60 in the third quarter and $8.90 in the fourth quarter of 2005.

• EBITDA as a percentage of revenue was 26.6 percent in the fourth quarter, compared to 27.8 percent in the third quarter and 29.2 percent in the fourth quarter of 2005.

• Capital expenses totaled $21.0 million in 2006, compared to $13.5 million in 2005, with the increase due largely to replenishing of pager equipment inventories.

• The Company generated $127.9 million in cash during the year from operating and investing activities and had a cash balance of $66.5 million at December 31, 2006.

• The Company paid a special distribution of $3.00 per share of common stock in July and its first quarterly cash distribution of $0.65 per share in December. Combined, the cash distributions represented a return of capital to shareholders totaling $99.8 million.

• In 2006 the Company made substantial progress in rationalizing its paging network by eliminating redundant locations, consolidating equipment within each site and removing excess capacity. These efforts yielded a net reduction of 1,980 transmitters, or 12.8 percent since December 31, 2005.

• Consolidation and related expense control efforts reduced the number of equivalent employees from 1,617 at the beginning of the year to 1,235 at year end. As a result, workforce productivity increased 7.6 percent to $369,000 of annualized revenue per employee in the fourth quarter of 2006 from $343,000 in the fourth quarter of 2005.

“We made significant progress during 2006 toward reducing costs and enhancing operating efficiencies despite continued competitive challenges,” said Vincent D. Kelly, president and chief executive officer. “In addition, we continued to see improvement in subscriber trends – including quarterly increases in gross pager placements — and generated a sufficient level of cash flow to return capital to shareholders in the form of cash distributions.”

Kelly said USA Mobility redefined its sales and marketing strategy during the year to highlight its capabilities as a provider of multiple wireless services. “We reorganized and began to enhance our sales and marketing organizations while launching a corporate re-branding program to more effectively communicate the scope and depth of our service offerings beyond basic paging and two-way messaging,” he noted. “Under our new corporate logo and tagline, ‘One Source for Wireless,’ we’ve successfully created greater awareness of the Company’s expanded services within our customer base as well as generated considerable visibility among a wider set of potential enterprise customers.”

The Company also refocused its sales and marketing strategy around its core business segments of healthcare, government and large enterprises during 2006. “By concentrating on these key vertical markets,” Kelly said, “we hope to solidify our existing customer relationships and leverage our accumulated knowledge of these industries to broaden our presence and create new sales and service opportunities.”

Thomas L. Schilling, chief financial officer, said: “We continued to strengthen our financial position in 2006, principally through numerous cost reduction initiatives including our network rationalization program. In addition, we paid out $99.8 million in cash distributions during 2006 and ended the year with $66.5 million in cash.”

Schilling added: “We are pleased the financial guidance we provided for 2006 was on target. Revenue of $497.7 million was within the guidance range of $495 million to $500 million; operating expenses (excluding depreciation, amortization and accretion) of $357.3 million were slightly above the revised guidance range of $354 million to $356 million but well below the original guidance range of $370 million to $380 million; and capital expenditures of $21.0 million were within the guidance range of $20 million to $22 million. With respect to financial guidance for 2007, the Company expects revenue to be in a range from $400 million to $410 million, operating expenses, excluding depreciation, amortization and accretion, to be in a range from $295 million to $300 million, and capital expenses in a range from $18 million to $20 million.”

* * * * * * * * *

USA Mobility plans to host a conference call for investors on its fourth quarter and 2006 results at 11:00 a.m. Eastern Time on Thursday, March 8, 2007. The call-in number is 866-409-1555 (toll-free) or 913-312-1235 (toll). The pass code for the call is 2684172. A replay of the call will be available from 3:00 p.m. on March 8 until 11:59 p.m. on Thursday, March 22, 2007. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 2684172.

* * * * * * * * *

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 more than 80 percent 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 devices 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, 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
	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06
Revenue:
Paging service	$	156,588		$	148,399		$	141,832		$	133,582		$	125,673		$	118,872		$	112,129		$	107,520
Cellular		1,507			2,122			1,877			2,336			2,026			2,096			1,728			1,877
Product sales		6,527			6,054			6,940			6,361			6,131			5,180			4,851			5,393
Other		1,055			962			1,305			1,125			1,063			1,057			846			1,253
Total revenue		165,677			157,537			151,954			143,404			134,892			127,205			119,553			116,044
Operating expenses:
Cost of products sold		1,279			929			945			1,330			786			1,169			1,184			698
Service, rental and maintenance		56,450			56,156			53,782			49,460			48,092			44,769			42,489			41,770
Selling and marketing		10,462			11,182			11,328			10,399			11,059			11,118			10,929			10,797
General and administrative		49,655			47,010			43,437			39,682			36,142			32,208			30,994			28,533
Depreciation, amortization and accretion		40,595			35,224			28,876			26,633			18,794			18,900			18,361			17,243
Severance and restructuring		5,137			9,904			855			713			170			321			682			3,413
Total operating expenses		163,578			160,405			139,223			128,217			115,043			108,485			104,639			102,454
% of total revenue		98.7	%		101.8	%		91.6	%		89.4	%		85.3	%		85.3	%		87.5	%		88.3	%
Operating income (loss)		2,099			(2,868	)		12,731			15,187			19,849			18,720			14,914			13,590
% of total revenue		1.3	%		-1.8	%		8.4	%		10.6	%		14.7	%		14.7	%		12.5	%		11.7	%
Interest income (expense), net		(1,214	)		(499	)		(18	)		408			549			1,023			717			1,579
Loss on extinguishment of long-term debt		(594	)		(432	)		(312	)		0			0			0			0			0
Other income (expense), net		137			(73	)		76			(1,144	)		62			988			103			(353	)
Income (loss) before income tax expense		428			(3,872	)		12,477			14,451			20,460			20,731			15,734			14,816
Income tax benefit (expense)		(291	)		61			(3,750	)		(6,598	)		(8,195	)		(9,779	)		(7,075	)		(6,511	)
Net income (loss)	$	137		$	(3,811	)	$	8,727		$	7,853		$	12,265		$	10,952		$	8,659		$	8,305
Basic net income (loss) per common share	$	0.01		$	(0.14	)	$	0.32		$	0.29		$	0.45		$	0.40		$	0.32		$	0.30
Diluted net income (loss) per common share	$	0.01		$	(0.14	)	$	0.32		$	0.29		$	0.45		$	0.40		$	0.31		$	0.30
Basic weighted average common shares outstanding		27,108,034			27,226,076			27,365,701			27,396,187			27,397,307			27,399,533			27,400,853			27,401,492
Diluted weighted average common shares outstanding		27,320,212			27,226,076			27,465,990			27,459,261			27,503,230			27,587,958			27,575,039			27,597,919
Reconciliation of operating income to EBITDA (b):
Operating income (loss)	$	2,099		$	(2,868	)	$	12,731		$	15,187		$	19,849		$	18,720		$	14,914		$	13,590
Add back: Depreciation, amortization and accretion		40,595			35,224			28,876			26,633			18,794			18,900			18,361			17,243
EBITDA	$	42,694		$	32,356		$	41,607		$	41,820		$	38,643		$	37,620		$	33,275		$	30,833
% of total revenue		25.8	%		20.5	%		27.4	%		29.2	%		28.6	%		29.6	%		27.8	%		26.6	%

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

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

	For the three months ended
	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06
Units in service
Beginning units in service
Direct one-way		4,464			4,272			4,114			3,977			3,835			3,678			3,547			3,429
Direct two-way		422			398			382			365			348			324			307			292
Total direct		4,886			4,670			4,496			4,342			4,183			4,002			3,854			3,721
Indirect one-way		987			859			762			685			603			535			483			449
Indirect two-way		94			91			90			89			100			96			94			89
Total indirect		1,081			951			852			774			703			631			577			538
Total beginning units in service		5,967			5,621			5,348			5,116			4,886			4,634			4,431			4,259
Gross placements
Direct one-way		142			134			125			125			108			119			120			112
Direct two-way		23			29			17			17			15			15			15			15
Total direct		165			163			142			142			123			134			135			127
Indirect one-way		108			92			26			24			24			18			24			36
Indirect two-way		7			7			5			17			4			5			6			6
Total indirect		115			99			31			41			28			23			29			42
Total gross placements		280			262			173			183			151			157			165			169
Gross disconnects
Direct one-way		(334	)		(292	)		(262	)		(267	)		(265	)		(250	)		(239	)		(222	)
Direct two-way		(48	)		(44	)		(34	)		(34	)		(39	)		(32	)		(30	)		(28	)
Total direct		(381	)		(337	)		(296	)		(301	)		(304	)		(282	)		(269	)		(250	)
Indirect one-way		(235	)		(189	)		(104	)		(105	)		(92	)		(70	)		(58	)		(68	)
Indirect two-way		(10	)		(9	)		(6	)		(6	)		(7	)		(8	)		(10	)		(5	)
Total indirect		(245	)		(198	)		(109	)		(111	)		(100	)		(78	)		(68	)		(73	)
Total gross disconnects		(626	)		(535	)		(405	)		(413	)		(404	)		(360	)		(337	)		(323	)
Net gain (loss)
Direct one-way		(192	)		(159	)		(137	)		(142	)		(157	)		(131	)		(118	)		(111	)
Direct two-way		(24	)		(15	)		(17	)		(17	)		(24	)		(17	)		(15	)		(13	)
Total direct		(216	)		(174	)		(154	)		(159	)		(181	)		(148	)		(133	)		(123	)
Indirect one-way		(128	)		(97	)		(77	)		(82	)		(68	)		(52	)		(34	)		(32	)
Indirect two-way		(2	)		(1	)		(1	)		11			(4	)		(2	)		(4	)		1
Total indirect		(130	)		(99	)		(78	)		(71	)		(72	)		(55	)		(39	)		(31	)
Total net change		(346	)		(273	)		(233	)		(230	)		(252	)		(203	)		(172	)		(154	)
Ending units in service
Direct one-way		4,272			4,114			3,977			3,835			3,678			3,547			3,429			3,318
Direct two-way		398			382			365			348			324			307			292			279
Total direct		4,670			4,496			4,342			4,183			4,002			3,854			3,721			3,598
Indirect one-way		859			762			685			603			535			483			449			417
Indirect two-way		91			90			89			100			96			94			89			90
Total indirect		951			852			774			703			631			577			538			507
Total ending units in service		5,621			5,348			5,116			4,886			4,634			4,431			4,259			4,105

(a)	The third quarter 2005 unit in service adjustment has been reflected in the first quarter 2005 beginning units in service balance.
(b)	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
	3/31/05			6/30/05			9/30/05			12/31/05			3/31/06			6/30/06			9/30/06			12/31/06
ARPU
Direct one-way	$	8.65		$	8.61		$	8.48		$	8.27		$	8.17		$	8.06		$	7.95		$	7.86
Direct two-way		23.98			23.65			24.28			23.76			23.61			23.75			23.27			23.61
Total direct		9.96			9.89			9.81			9.57			9.44			9.32			9.16			9.09
Indirect one-way		4.07			4.11			4.36			4.66			4.53			4.59			4.49			4.56
Indirect two-way		9.16			8.71			8.42			7.80			6.93			6.99			6.53			6.63
Total indirect		4.53			4.57			4.81			5.06			4.89			4.97			4.82			4.92
Total one-way		7.85			7.88			7.85			7.76			7.69			7.63			7.54			7.49
Total two-way		21.25			20.83			21.22			20.42			19.85			19.87			19.35			19.55
Total paging ARPU	$	9.01		$	9.02		$	9.04		$	8.90		$	8.80		$	8.74		$	8.60		$	8.57
Gross disconnect rate (b)
Direct one-way		-7.5	%		-6.8	%		-6.4	%		-6.7	%		-6.9	%		-6.8	%		-6.7	%		-6.5	%
Direct two-way		-11.4	%		-11.1	%		-8.9	%		-9.4	%		-11.1	%		-9.8	%		-9.8	%		-9.5	%
Total direct		-7.8	%		-7.2	%		-6.6	%		-6.9	%		-7.3	%		-7.0	%		-7.0	%		-6.7	%
Indirect one-way		-23.8	%		-22.0	%		-13.6	%		-15.3	%		-15.3	%		-13.1	%		-12.0	%		-15.1	%
Indirect two-way		-10.2	%		-9.7	%		-6.4	%		-7.2	%		-7.1	%		-8.2	%		-10.6	%		-5.8	%
Total indirect		-22.6	%		-20.8	%		-12.8	%		-14.4	%		-14.2	%		-12.4	%		-11.8	%		-13.5	%
Total one-way		-10.4	%		-9.4	%		-7.5	%		-8.0	%		-8.1	%		-7.6	%		-7.4	%		-7.5	%
Total two-way		-11.1	%		-10.8	%		-8.4	%		-9.0	%		-10.2	%		-9.5	%		-10.0	%		-8.6	%
Total paging gross disconnect rate		-10.5	%		-9.5	%		-7.6	%		-8.1	%		-8.3	%		-7.8	%		-7.6	%		-7.6	%
Net gain / loss rate (c)
Direct one-way		-4.3	%		-3.7	%		-3.3	%		-3.6	%		-4.1	%		-3.6	%		-3.3	%		-3.2	%
Direct two-way		-5.8	%		-3.8	%		-4.5	%		-4.8	%		-6.8	%		-5.2	%		-4.9	%		-4.4	%
Total direct		-4.4	%		-3.7	%		-3.4	%		-3.7	%		-4.3	%		-3.7	%		-3.5	%		-3.3	%
Indirect one-way		-12.9	%		-11.3	%		-10.2	%		-11.9	%		-11.3	%		-9.8	%		-7.1	%		-7.1	%
Indirect two-way		-2.6	%		-1.5	%		-1.2	%		12.2	%		-3.5	%		-2.6	%		-4.5	%		1.0	%
Total indirect		-12.0	%		-10.4	%		-9.2	%		-9.1	%		-10.2	%		-8.7	%		-6.7	%		-5.7	%
Total one-way		-5.9	%		-5.0	%		-4.4	%		-4.8	%		-5.1	%		-4.3	%		-3.8	%		-3.7	%
Total two-way		-5.2	%		-3.4	%		-3.9	%		-1.4	%		-6.1	%		-4.6	%		-4.8	%		-3.1	%
Total paging net gain / loss rate		-5.8	%		-4.9	%		-4.3	%		-4.5	%		-5.2	%		-4.4	%		-3.9	%		-3.6	%

(a)	The third quarter 2005 unit in service adjustment has been reflected in the first quarter 2005 beginning units in service balance.
(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 CUSTOMER SEGMENT (a)
(unaudited)

	For the three months ended
	3/31/06			6/30/06			9/30/06			12/31/06
Gross placement rate
Healthcare		3.8	%		4.5	%		4.1	%		4.2	%
Government		2.2	%		2.3	%		2.6	%		2.1	%
Large enterprise		2.6	%		3.0	%		3.8	%		3.9	%
Other		2.7	%		3.0	%		3.3	%		3.1	%
Total direct		2.9	%		3.3	%		3.5	%		3.4	%
Total indirect		4.0	%		3.7	%		5.1	%		7.8	%
Total		3.1	%		3.4	%		3.7	%		4.0	%
Gross disconnect rate
Healthcare		-4.6	%		-4.7	%		-5.3	%		-4.6	%
Government		-5.7	%		-6.3	%		-5.9	%		-5.8	%
Large enterprise		-7.7	%		-7.4	%		-6.9	%		-6.8	%
Other		-10.3	%		-9.5	%		-9.3	%		-9.5	%
Total direct		-7.3	%		-7.0	%		-7.0	%		-6.7	%
Total indirect		-14.2	%		-12.4	%		-11.8	%		-13.5	%
Total		-8.3	%		-7.8	%		-7.6	%		-7.6	%
							��
Net loss rate
Healthcare		-0.7	%		-0.2	%		-1.1	%		-0.4	%
Government		-3.5	%		-4.1	%		-3.3	%		-3.6	%
Large enterprise		-5.1	%		-4.3	%		-3.0	%		-2.9	%
Other		-7.5	%		-6.6	%		-6.1	%		-6.4	%
Total direct		-4.3	%		-3.7	%		-3.5	%		-3.3	%
Total indirect		-10.2	%		-8.7	%		-6.7	%		-5.7	%
Total		-5.2	%		-4.4	%		-3.9	%		-3.6	%
End of period units in service % of total
Healthcare		29.0	%		30.5	%		31.5	%		32.5	%
Government		16.4	%		16.4	%		16.6	%		16.5	%
Large enterprise		10.2	%		10.2	%		10.1	%		10.3	%
Other		30.8	%		29.9	%		29.2	%		28.4	%
Total direct		86.4	%		87.0	%		87.4	%		87.6	%
Total indirect		13.6	%		13.0	%		12.6	%		12.4	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

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

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

	For the three months ended
	12/31/05			3/31/06			6/30/06			9/30/06			12/31/06
Account size ending units in service (000’s)
1 to 3 units		388			358			327			300			275
4 to 10 units		221			203			188			175			163
11 to 50 units		527			489			456			426			398
51 to 100 units		285			265			249			238			226
101 to 1,000 units		1,134			1,068			1,027			999			967
>1,000 units		1,628			1,619			1,608			1,582			1,568
Total		4,183			4,002			3,854			3,721			3,598
End of period units in service % of total direct
1 to 3 units		9.3	%		8.9	%		8.5	%		8.1	%		7.7	%
4 to 10 units		5.3	%		5.1	%		4.9	%		4.7	%		4.5	%
11 to 50 units		12.6	%		12.2	%		11.8	%		11.4	%		11.1	%
51 to 100 units		6.8	%		6.6	%		6.5	%		6.4	%		6.3	%
101 to 1,000 units		27.1	%		26.7	%		26.7	%		26.9	%		26.9	%
>1,000 units		38.9	%		40.4	%		41.7	%		42.5	%		43.6	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Account size net loss rate
1 to 3 units					-7.8	%		-8.7	%		-8.0	%		-8.3	%
4 to 10 units					-8.2	%		-7.5	%		-6.9	%		-6.6	%
11 to 50 units					-7.2	%		-6.8	%		-6.5	%		-6.6	%
51 to 100 units					-7.0	%		-6.2	%		-4.2	%		-5.2	%
101 to 1,000 units					-5.8	%		-3.8	%		-2.7	%		-3.2	%
>1,000 units					-0.5	%		-0.7	%		-1.6	%		-0.9	%
Total					-4.3	%		-3.7	%		-3.5	%		-3.3	%
Account size ARPU
1 to 3 units	$	14.30		$	14.02		$	14.14		$	14.07		$	14.16
4 to 10 units		13.11			13.02			13.08			12.99			13.03
11 to 50 units		10.89			10.88			10.81			10.72			10.73
51 to 100 units		9.71			9.59			9.53			9.39			9.27
101 to 1,000 units		8.44			8.34			8.29			8.21			8.15
>1,000 units		8.19			8.18			8.05			7.89			7.88
Total	$	9.57		$	9.44		$	9.32		$	9.16		$	9.09
Cellular revenue
Number of activations		8,682			6,829			6,969			6,374			5,818
Revenue from cellular services (000’s)	$	2,336		$	2,026		$	2,096		$	1,728		$	1,877

(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
	3/31/05		6/30/05		9/30/05		12/31/05		3/31/06		6/30/06		9/30/06		12/31/06
Cost of products sold	$	1,279	$	929	$	945	$	1,330	$	786	$	1,169	$	1,184	$	698
Service, rental and maintenance
Lease payments for transmitter locations		33,041		32,067		30,347		29,118		26,099		25,021		24,314		24,204
Telecommunications related expenses		10,286		11,821		10,585		9,614		9,099		8,481		7,343		7,184
Payroll and related expenses		8,915		7,600		7,488		7,127		7,046		6,578		6,517		6,136
Stock based compensation		97		52		43		68		81		83		78		78
Other		4,111		4,617		5,319		3,530		5,767		4,606		4,237		4,167
Total service, rental and maintenance		56,450		56,156		53,782		49,460		48,092		44,769		42,489		41,770
Selling and marketing
Payroll and related expenses		7,736		7,363		7,626		6,704		7,709		7,317		6,996		6,902
Commissions		2,261		3,058		2,731		2,266		2,226		2,373		2,407		2,577
Stock based compensation		60		25		52		89		171		166		178		56
Other		405		736		919		1,341		953		1,263		1,348		1,262
Total selling and marketing		10,462		11,182		11,328		10,399		11,059		11,118		10,929		10,797
General and administrative
Payroll and related expenses		18,677		17,926		14,796		12,046		12,330		11,412		9,517		9,286
Stock based compensation		1,228		519		176		423		431		462		484		461
Bad debt		1,527		963		2,440		3,899		1,790		1,705		2,035		1,975
Facility expenses		6,111		5,288		5,160		4,601		4,104		3,973		3,467		3,408
Telecommunications		2,898		2,416		2,495		2,292		2,248		1,982		1,857		1,714
Outside services		6,768		7,988		5,391		7,962		6,419		5,631		6,162		7,123
Taxes, licenses and permits		5,309		4,855		6,169		2,871		4,149		2,708		3,035		(501	)
Other		7,137		7,055		6,810		5,590		4,670		4,335		4,436		5,068
Total general and administrative		49,655		47,010		43,437		39,682		36,142		32,208		30,994		28,533
Depreciation, amortization and accretion		40,595		35,224		28,876		26,633		18,794		18,900		18,361		17,243
Severance and restructuring		5,137		9,904		855		713		170		321		682		3,413
Operating expenses	$	163,578	$	160,405	$	139,223	$	128,217	$	115,043	$	108,485	$	104,639	$	102,454
Capital expenditures		2,565		2,818		3,944		4,172		4,424		4,595		5,153		6,819

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

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

	12/31/05		12/31/06
Assets
Current assets:
Cash and cash equivalents	$	37,547	$	66,507
Accounts receivable, net		38,177		26,364
Prepaid expenses and other		10,660		12,294
Deferred income tax assets		18,895		18,399
Total current assets	$	105,279	$	123,564
Property and equipment, net		127,802		91,562
Goodwill		149,478		159,438
Intangible assets, net		40,654		26,339
Deferred income tax assets		207,150		180,244
Other assets		3,430		7,067
Total assets	$	633,793	$	588,214
Liabilities and stockholders’ equity
Current liabilities:
Current maturities of long-term debt	$	13	$	—
Accounts payable and accrued liabilities		65,719		63,979
Distributions payable		—		435
Customer deposits		3,104		2,250
Deferred revenue		17,924		16,194
Total current liabilities	$	86,760	$	82,858
Other long-term liabilities		14,040		29,384
Total liabilities	$	100,800	$	112,242
Stockholders’ equity:
Preferred stock	$	—	$	—
Common stock		3		3
Additional paid-in capital		521,298		475,969
Retained earnings		11,692		—
Total stockholders’ equity		532,993		475,972
Total liabilities and stockholders’ equity	$	633,793	$	588,214

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

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

	For the year ended
	December 31,
	2005			2006
Cash flows from operating activities:
Net income	$	12,907		$	40,181
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		131,328			73,299
Deferred income tax expense		7,461			16,197
Loss on extinguishment of long-term debt		1,338			—
Amortization of deferred financing costs		714			—
Amortization of stock based compensation		2,832			2,728
Provisions for doubtful accounts and service credits		25,055			17,204
(Gain) loss on disposals of property and equipment		1,287			601
Changes in assets and liabilities:
Accounts receivable		(23,439	)		(6,816	)
Prepaid expenses and other		5,109			(395	)
Intangibles and other long-term assets		7,978			(2,746	)
Accounts payable and accrued expenses		(21,276	)		(2,651	)
Customer deposits and deferred revenue		(6,911	)		(2,584	)
Other long-term liabilities		(5,129	)		12,224
Net cash provided by operating activities	$	139,254		$	147,242
Cash flows from investing activities:
Purchases of property and equipment		(13,499	)		(20,990	)
Proceeds from disposals of property and equipment		168			200
Receipts from long-term notes receivable		285			1,425
Net cash used in investing activities	$	(13,046	)	$	(19,365	)
Cash flows from financing activities:
Repayment of long-term debt		(95,045	)		(13	)
Cash distributions		(40,691	)		(98,904	)
Exercise of options		80			—
Net cash used in financing activities	$	(135,656	)	$	(98,917	)
Net increase (decrease) in cash and cash equivalents		(9,448	)		28,960
Cash and cash equivalents, beginning of period		46,995			37,547
Cash and cash equivalents, end of period	$	37,547		$	66,507
Supplemental disclosure:
Interest paid	$	2,245		$	34

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

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

	For the year ended
	December 31,
	2005			2006
Revenue:
Service, rental and maintenance revenues	$	592,690		$	476,138
Product sales		25,882			21,556
Total revenues		618,572			497,694
Operating expenses:
Cost of products sold		4,483			3,837
Service, rental and maintenance		215,848			177,120
Selling and marketing		43,371			43,902
General and administrative		179,784			127,877
Depreciation, amortization and accretion		131,328			73,299
Severance and restructuring		16,609			4,586
Total operating expenses		591,423			430,621
Operating income		27,149			67,073
Interest expense		(2,412	)		(34	)
Interest income		1,089			3,902
Loss on extinguishment of long-term debt		(1,338	)		—
Other income (expense), net		(1,004	)		800
Income before income tax expense		23,484			71,741
Income tax expense		(10,577	)		(31,560	)
Net income	$	12,907		$	40,181
Basic net income per common share	$	0.47		$	1.47
Diluted net income per common share	$	0.47		$	1.46
Basic weighted average common shares outstanding		27,275,040			27,399,811
Diluted weighted average common shares outstanding		27,427,120			27,582,377
Reconciliation of operating income to EBITDA (b):
Operating income	$	27,149		$	67,073
Add back: Depreciation, amortization and accretion		131,328			73,299
EBITDA	$	158,477		$	140,372

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