Metrocall, Inc. (ticker: MCLLQ, exchange: OTC Bulletin Board) News Release
11-May-2001

Metrocall To Seek To Renegotiate Combination With Weblink
Ends Pending Restructuring and Merger Agreement

ALEXANDRIA, VIRGINIA, May 11, 2001—Metrocall, 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.


Metrocall Contact:
Timothy J. Dietz
Corporate Communications
(703) 660-6677x6231 (703)
dietzt@metrocall.com

 


© 2001 Metrocall, Inc.