First Avenue Networks signs letter of intent to acquire Teligent's 24GHz spectrum licenses, fixed wireless broadband operations, and radio assets for $99 million

July 8, 2004

2 Min Read

CHARLOTTESVILLE, Va. -- First Avenue Networks (BULLETIN BOARD: FRNS), the industry leader in leasing millimeter wave spectrum, today announced that it has signed a letter of intent with Teligent, Inc. to acquire Teligent's 24 GHz spectrum licenses, fixed wireless broadband operations and radio assets in a stock transaction valued at approximately $99 million. It also announced that Rajendra "Raj" Singh, Ph.D., is expected to join First Avenue Networks' board of directors at the consummation of the transaction.

Following the acquisition, First Avenue will hold over 700 MHz of spectrum at 24 GHz and 39 GHz in the top 75 U.S. markets. This combination represents an unparalleled collection of millimeter wave spectrum assets with ubiquitous coverage in the United States.

"Acquiring Teligent's assets and operations will enable us to expand our high-speed broadband wireless access service offerings. We anticipate extending these networking advantages to Teligent's customers," said Dean Johnson, president and CEO, First Avenue Networks. "We look forward to Dr. Singh joining our board of directors. His expertise in the telecom industry is well established and his guidance will be an invaluable asset as we commercialize our new holdings."

An industry-renowned pioneer, Singh's contributions to the academic and professional development of the telecommunications industry span over 20 years. He is the founder of LCC International and Telcom Ventures, and a principal early investor in XM Satellite Radio and Aether Systems. He co-developed the predecessor concept for Teligent, which was the basis of the company's formation in 1997.

"We launched our 39 GHz leasing products to help catalyze the broadband wireless market by facilitating fast and cost-effective access to licensed spectrum. Wireless carriers large and small have endorsed the First Avenue Networks business model, as evidenced by our successful leasing track record. Building upon this momentum, we foresee significant business opportunities with Teligent's asset portfolio," concluded Johnson.

In consideration for the assets, First Avenue will issue approximately 25.2 million common shares and warrants to purchase an additional approximately 2.5 million common shares, or approximately 49.9% of its fully diluted shares after giving effect to this transaction. On July 7, 2004, First Avenue common stock last bid price was $3.60 per share, which would value the transaction at approximately $99 million. The terms and conditions of the acquisition agreement are subject to, among other conditions, due diligence, FCC approval and negotiation and execution of final documentation. The transaction is expected to close in the fourth quarter of 2004.

First Avenue Networks

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