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ALEXANDRIA, VIRGINIA, May 11, 2001Metrocall, Inc. (OTC Bulletin
Board: MCLLQ), announced today that it will seek to renegotiate
its pending restructuring and merger agreement with WebLink Wireless,
Inc.
"Metrocall continues to believe strongly that a combination
of the businesses of Metrocall and WebLink is the best alternative
for both companies," said William L. Collins, III, MetrocallŐs
Chairman and CEO. "However, we believe that events since we
signed our agreement on April 1 have changed the economics of the
transaction and we have offered to renegotiate the terms with WebLink.
We stand ready to begin these discussions immediately and to work
toward a new transaction acceptable to both parties and their respective
constituencies."
Metrocall announced that it has exercised its right
to terminate the April 1 restructuring and merger agreement with
WebLink, which otherwise would have required Metrocall to commence
a chapter 11 proceeding on May 15, 2001. MetrocallŐs action was
based on recent developments affecting WebLink, including its announcement
of personnel reductions and elimination of sales distribution channels.
Metrocall does not intend to commence proceedings under chapter
11 of the Bankruptcy Code at this time.
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 the Metrocall/WebLink
transaction, are forward-looking statements that are subject to
risks and uncertainties. Among the factors that could cause actual
results to differ are the following: 1) there is no assurance that
Metrocall and WebLink will in fact attempt to renegotiate their
combination, or, if they do, will able to reach agreement on the
terms of a revised transaction, 2) the terms of such a renegotiated
transaction cannot be predicted at this time; 3) when and if Metrocall
will commence a proceeding under chapter 11 will depend on a number
of factors, including developments with respect to the WebLink transaction,
results of MetrocallŐs operations, MetrocallŐs liquidity position,
possible negotiations with MetrocallŐs creditors regarding the terms
of a debt restructuring, and actions by creditors to enforce their
rights as a result of pending defaults by Metrocall; and 4) Metrocall's
business will be subject to the risks of a chapter 11 proceeding,
including the impact of such a proceeding on vendors, customers
and employees, as well as the additional costs resulting from the
restructuring process, such as professional fees and other costs
of administration.
Please refer to Metrocall's Annual Report on Form
10-K and its other reports filed with the Securities and Exchange
Commission for a description of other risks that could affect Metrocall's
business.
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