Creditors OK WebLink Reorg

DALLAS -- WebLink Wireless, Inc. (BULLETIN BOARD: WLNKQ) announced today it has reached an agreement with creditors to restructure the Company's debt. As a result, the Company has filed an amended plan of reorganization and disclosure statement in its chapter 11 proceedings in the United States Bankruptcy Court for the Northern District of Texas. The court has approved the adequacy of the disclosure statement. The Company's secured lenders and the Official Committee of Unsecured Creditors (the Committee) have announced their support of the plan of reorganization and intention to vote in favor of the plan. Under the plan of reorganization, the Company will emerge from bankruptcy with $40 million in debt. Interest on $20 million will be payable in cash and on the other $20 million will be payable in kind (PIK) by the issuance of additional notes. All of the cash pay notes, 89% of the PIK notes, 2,403,000 shares of common stock of the reorganized Company and an estimated $7 million of cash will be distributed to the Company's secured creditors. The remaining 11% of the PIK notes, 297,000 shares of common stock of the Company and warrants to purchase 12 million shares of common stock will be distributed to the Company's unsecured creditors. The warrants are expected to have an initial exercise price of $13.64 per share, which will be increased by 9% each year. An additional 300,000 shares of common stock of the Company will be issued or reserved for issuance pursuant to a management stock incentive program. The current equity holders of the Company will receive no distributions under the plan of reorganization. "We are happy to reach this agreement with our creditors," said N. Ross Buckenham, President and CEO of WebLink Wireless. "WebLink has successfully positioned itself as a leader in the wireless data market with strong positive cash flow. This agreement strengthens our balance sheet and supports our commitment to being "best in class" and a leading network operator and supplier to strategic and business wireless data customers. We believe there will be a great demand for wireless data applications and services running over ReFLEX networks, and WebLink is pleased to continue to lead the industry as it evolves." WebLink Wireless Inc.