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Shared Technologies Cellular and Nextel Communications Expand

8 October 1999

Shared Technologies Cellular and Nextel Communications Expand Digital Phone Rental Program to California; STC Renews Hertz Contract for Two Years

    WETHERSFIELD, Conn.--October 7, 1999--Shared Technologies Cellular, Inc. (STC) announced today that it and Nextel Communications have expanded their digital phone rental program to include California markets. The program was introduced at car rental locations in the Dallas, Houston, and San Antonio markets in September. With the expansion, rental car customers in the San Francisco, Oakland, Sacramento, Los Angeles, Burbank, Orange County, Ontario, San Diego, San Jose, and Reno (Nevada) markets will be able to rent Nextel's feature-rich i1000plus(TM) digital phones made by Motorola.
    STC rental division president Jon P. Sorenson said, "The expansion into California is the direct result of the success we've enjoyed in the Texas markets, which saw a 30% increase in the number of rental agreements. Our car rental partners (Hertz, Avis, National, Budget, and Alamo) are very enthusiastic about this program; it enables them to offer business travelers a more technologically advanced cellular product, and it generates incremental revenues as well."
    Sorenson added that "at Los Angeles International Airport alone, some 250 thousand business travelers pass through our car rental partners' turnstiles every month. Based on the product acceptance rate in our Texas test, STC should see significant revenue increases."
    STC also announced that it had renewed its agreement with Hertz Corporation for two years. Sorenson said the renewal, effective October 1, 1999, "clearly expresses Hertz's commitment to a program that provides its customers with value-added products and services that add convenience and safety to the car rental experience."
    Nextel Communications, based in Reston, Virginia, is the leading provider of fully integrated wireless communications and has built the largest guaranteed all-digital wireless network in the United States covering thousands of communities across the United States. Nextel and Nextel Partners, Inc. currently serve 92 of the top 100 U.S. markets. The Nextel National Network offers a fully integrated wireless communications tool with digital cellular, text/numeric paging and Nextel Direct Connect(R)--a digital two-way radio feature. In addition, through Nextel International, Inc., Nextel has wireless operations and investments in Canada, Mexico, Argentina, Brazil, the Philippines, Peru, Japan and Shanghai, China. Please visit our website at http://www.nextel.com.
    Headquartered in Wethersfield, Connecticut, STC is a national cellular services provider with over ten years of cellular experience, offering rental, prepaid, and activation services across the United States. STC offers its rental services through marketing agreements with car rental companies and various airlines and hotels throughout the United States. STC's CellEase(R) prepaid cellular programs are distributed by various partners, including MCI WorldCom . These programs all employ a universal usage card utilizing technology provided under contract by Telemac Corporation, US/Intelicom, Boston Communications Group, Inc. , and JRC International. As a reseller or agent for most cellular carriers, STC can offer cellular services to approximately 98% of the U.S. population. Visit the Company's interactive web site at http://www.CellEase.com.

    Any statements released by STC that are forward-looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward-looking statements involve risk and uncertainties which may affect STC's business prospects and performance. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those in any forward-looking statement. Such risks and uncertainties may include, without limitation, technological obsolescence, price and industry competition, financing capabilities, dependence on major customers and relationships, or other factors discussed in STC's filings with the SEC on forms 10-K, 10-Q, and 8-K.