ALEXANDRIA, Va., Jan. 29 /PRNewswire/ -- Metrocall, Inc. (Nasdaq: MCLL), today announced that it has signed an amendment to its credit facility that modifies Metrocall's interest coverage covenant applicable to its results for the fourth quarter of 2000 and first quarter of 2001 while the Company focuses on growing its advanced messaging business.

The amendment reduces the operating cash flow to net cash interest expense ratio requirement for the quarters ended December 31, 2000 and March 31, 2001 to 1.65 times and 1.75 times, respectively, down from 1.75 times and 2.0 times under the prior agreement. Vincent D. Kelly, Metrocall's Chief Financial Officer, stated, "We are pleased with the vote of confidence and support we continue to receive from our senior bank group. This amendment is an important step in our rollout of advanced wireless and messaging services. It reduces the level of operating cash flow (EBITDA) the Company needs to achieve for two consecutive quarters in order to maintain compliance with the interest coverage covenant. We currently have adequate cash on hand and product on the shelf with no immediate plan to borrow. At the end of the fourth quarter, we had over 100,000 advanced messaging products in service, having more than doubled our level of production from the third quarter."

The amendment also modifies Metrocall's availability under its credit facility. Under the agreement, as amended, the maximum amount of borrowings under the facility will be $153 million for the six-month period ending June 30, 2001 and $173 million for the six-month period ending December 31, 2001. Metrocall's outstanding debt under the facility is currently $133 million. Metrocall's ability to draw on the facility is subject to compliance with the other financial covenants in the facility.

About Metrocall, Inc.

Metrocall, Inc. headquartered in Alexandria, Virginia, is one of the largest wireless data and messaging companies in the United States providing both products and services to more than six million business and individual subscribers. Metrocall was founded in 1965, became a publicly traded company in 1993 and currently employs approximately 3,500 professionals coast to coast. The Company offers two-way interactive messaging, wireless e-mail and Internet connectivity, cellular and digital PCS phones, as well as one-way messaging services. Metrocall operates on many nationwide, regional and local networks, including a new Two-Way Interactive Network (TWIN), and can supply a wide variety of customizable Internet-based information content services. Also, Metrocall offers totally integrated resource management systems and communications solutions for business and campus environments. Metrocall's wireless networks operate in the top 1,000 markets all across the nation and the Company has offices and retail locations in more than forty states. Metrocall is the largest equity-owner of Inciscent, an independent business-to-business enterprise, that is a national full-service "wired-to-wireless" Application Service Provider (ASP). For more information on Metrocall please visit our Web site and On-line store at www.metrocall.com .

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

The statements set forth above that are not historical facts, such as those concerning Metrocall's liquidity and borrowing plans and its advanced wireless data and messaging strategies, are forward-looking statements that are subject to risks and uncertainties. A number of risks and uncertainties could cause actual results, events or developments to differ from expectations. Among the factors that could cause actual results to differ are 1) application of financial covenants in Metrocall's credit facility, such as the ratio of total leverage to annualized operating cash flow, will restrict and may prevent Metrocall's ability to borrow under the facility; 2) Metrocall's future ability to access its credit facility will depend on its ability to generate sufficient operating cash flow, and its liquidity needs could be increased if operating cash flow does not increase; 3) Metrocall's operating results may be affected by the speed and extent to which markets for advanced messaging data and messaging services develop and grow; 4) the impact of competition from other companies in the wireless data and Internet business; 4) the need to respond to rapid technological developments that could affect the commercial viability of Metrocall's and Inciscent's products and services. You should refer to our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and our other SEC filings for a complete discussion of these and other factors that could cause actual results to differ materially from those projected in these forward-looking statements.

SOURCE Metrocall, Inc.