Inphonic (NASDAQ:INPC)
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InPhonic, Inc. (Nasdaq: INPC), a leading online seller
of wireless phones and service plans, today announced that it has
signed a letter of intent to sell certain assets of its MVNO, Liberty
Wireless to Vaya. The sale of Liberty Wireless will enable InPhonic to
streamline and simplify its businesses, and improve operational
efficiencies across the Company. The transaction, which is subject to
the signing of a definitive agreement and customary closing
conditions, is expected to close in the fourth quarter of 2005.
Under the operational terms of the agreement, Vaya would acquire
the popular Liberty Wireless brand, the Hispanic-targeted, Spanish
language Viva Liberty(SM) brand, and the active customers in Liberty's
subscriber base. The customers would not experience any change in
service, billing or coverage, as Vaya would continue to utilize
InPhonic's MVNE platform on a per unit software license basis.
InPhonic would continue to deliver the systems platform for
procurement, activation, billing, and customer care, as well as
self-service platforms based on web and speech recognition technology.
InPhonic has a strong history of successful MVNE and mobile carrier
deployments that includes AT&T and Hawaiian Telcom.
"The sale of Liberty Wireless combined with the new software
licensing relationship would mark a significant milestone for
InPhonic, as we transition our MVNO business unit from a subscriber to
a software-based business," said David A. Steinberg, InPhonic's
Chairman and CEO. "Vaya's acquisition of Liberty would allow InPhonic
to focus on and grow both its core Wireless and Activations Services,
and MVNE business units while dramatically simplifying group
management and improving operational efficiencies across the Company.
In addition, we believe this transaction would improve our overall
gross margins."
Launched in 2002, Liberty Wireless (www.libertywireless.com) is
one of America's leading MVNOs and provides pay-as-you-go nationwide
cell phone service, delivering affordable, flexible and reliable
all-digital network coverage. Liberty Wireless combines the best
features of a major national wireless service provider -- nationwide,
digital coverage and low-cost talk time -- with the flexibility,
simplicity, and built-in cost controls of prepaid service. In its
history, Liberty Wireless has received critical acclaim and awards for
its customer management and subscriber-friendly technologies.
Financial terms related to the sale of Liberty Wireless will be
provided upon the closing of the transaction.
About InPhonic
Headquartered in Washington, D.C., InPhonic, Inc. (NASDAQ: INPC)
is a leading online seller of wireless services and products. InPhonic
sells these services and devices, and provides world-class customer
service through websites that it creates and manages for online
businesses, national retailers, member-based organizations and
associations under their own brands. InPhonic also operates Wirefly
(www.wirefly.com), a leading mobile phones and wireless plans
comparison site that was awarded "Best of the Web" by Forbes magazine
in 2004. InPhonic also delivers a full range of mobility solutions to
enterprise clients through its Mobile Virtual Network Enablement
(MVNE) platform. In 2004, InPhonic was selected #1 company of the year
on the Inc. 500 - Inc. Magazine's list of the fastest-growing
privately held companies in the United States. More recently, InPhonic
was named T-Mobile's Internet Partner of the Year for 2004. For more
information on the company, its products and services, visit the
InPhonic Corporate Web site at www.inphonic.com.
"Safe Harbor" Statement - Under the Private Securities Litigation
Reform Act of 1995, this press release may contain forward-looking
statements that involve risks and uncertainties, including uncertainty
as to whether or when the definitive agreement relating to the sale of
Liberty Wireless will be signed and closed. Important factors, which
could cause actual operating results to differ materially from those
in the forward-looking statements, are detailed in filings with the
Securities and Exchange Commission made from time to time by the
Company. This press release and statements are current as of the date
of the individual announcements and the Company undertakes no
obligation to publicly release any revisions to any forward-looking
statement to reflect events or circumstances after the date thereof or
to reflect the occurrence of unanticipated events.