Leap Amends Credit Agreement

Dublin, Jun 20, 2008 (M2 PRESSWIRE via COMTEX) -- LEAP | Quote | Chart | News | PowerRating -- Leap Wireless International, a provider of wireless communications services, announced that the company and its subsidiary, Cricket Communications, have successfully amended the company s senior secured credit agreement.

The credit agreement has been amended to resize and amend certain baskets and exclusions to reflect the growth in the company s business and ongoing business expansion activities. Leap Wireless International said the amendment permits the company to incur additional unsecured debt, to issue certain preferred stock, and to make certain other modifications which are described below and will be more fully described in a current report on Form 8-K that the Company will file with the Securities and Exchange Commission.

We believe that the successful amendment of our credit agreement provides the Company with the additional financial flexibility we need to support future business growth," said Doug Hutcheson, Leap s president and CEO. We appreciate the support of the Company s senior secured lenders to help us achieve our strategic initiatives and improve the strength and the financial position of our Company."

Key terms of the amendment include:

- an increase in the amount of unsecured debt the Company is allowed to incur from $1.2 billion to $1.65 billion plus $1.00 for every $1.00 of cash proceeds from the issuance of new common equity of the Company, up to $200 million in the aggregate; - an increase in the amount and duration of certain add-backs for new market operating losses in the calculation of the Company s consolidated EBITDA and consolidated fixed charge coverage ratio; - an amendment to permit the Company to add back certain capital expenditures relating to network expansion activities in calculating its consolidated fixed charge coverage ratio; and - other amendments to facilitate the Company s business expansion and financing activities.

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