USA Mobility Reports Second Quarter Operating Results; Board Declares Quarterly Cash Distribution; $50 Million Stock Repurchase Program Announced

Total revenue for the second quarter was $92.1 million, compared to $94.8 in the first quarter and $107.5 million in the second quarter of 2007. EBITDA (earnings before interest, taxes, depreciation, amortization, accretion and goodwill impairment) in the second quarter totaled $30.6 million, compared to $29.9 million in the first quarter and $33.3 million in the second quarter of 2007. Net income in the second quarter was $10.3 million, or $0.37 per fully diluted share, compared to net income of $13.0 million, or $0.47 per fully diluted share, in the year-earlier quarter.

Second quarter results included:

-- EBITDA margin (or EBITDA as a percentage of revenue) increased to 33.2 percent in the second quarter, compared to 31.6 percent in the first quarter and 31.0 percent in the second quarter of 2007, reaching its highest level since USA Mobility was formed in 2004.

-- The quarterly rate of revenue erosion improved to 2.8 percent, compared to 5.4 percent in the first quarter and 3.7 percent in the year-earlier quarter. The annual rate of revenue erosion improved to 14.3 percent from 15.0 percent in the first quarter and 15.5 percent in the second quarter of 2007.

-- Total paging ARPU (average revenue per unit) was $8.54 in the second quarter, an increase from $8.49 in the first quarter and equal to $8.54 in the year-earlier quarter.

-- Units in service totaled 3,176,000 at June 30, 2008, compared to 3,333,000 at March 31, 2008. Net unit loss in the second quarter was 157,000, compared to 152,000 in the first quarter and 155,000 in the second quarter of 2007.

-- The annual rate of subscriber erosion was 15.5 percent, compared to 14.8 percent in the first quarter and 15.2 percent in the year-earlier quarter. The quarterly rate of subscriber loss was 4.7 percent, compared to 4.4 percent in first quarter and 4.0 percent in the second quarter of 2007.

-- Operating expenses (excluding depreciation, amortization, accretion and goodwill impairment) totaled $61.5 million in the second quarter, a reduction of 17.1 percent from $74.1 million in the second quarter of 2007. Operating expenses declined $12.7 million since the second quarter of 2007 and, as a percentage of revenue, were at their lowest level since 2004.

-- Capital expenses were $3.9 million, compared to $4.0 million in the first quarter.

-- The Company's cash balance at June 30, 2008 was $85.8 million.

"We continued to make excellent progress during the second quarter," said Vincent D. Kelly, president and chief executive officer, "as the Company's results met or exceeded the majority of our performance objectives and were largely consistent with the financial guidance we provided earlier this year. Our annual rate of revenue erosion showed further improvement, average revenue per unit (ARPU) increased in the quarter, operating expenses declined and our cash flow margins reached record highs. Although overall subscriber cancellations remained higher than expected," Kelly added, "we continued to see lower net unit loss rates in our core market segment of Healthcare, which now represents 40.0 percent of our customer base."

The Company's Board of Directors declared a regular cash distribution of $0.25 per share, payable on September 11, 2008 to stockholders of record on August 14, 2008. The Company expects the September cash distribution, a total of approximately $6.8 million, to be paid as a return of capital. The Company's Board of Directors also adopted a stock repurchase plan to buy back up to $50 million of USA Mobility common stock. The repurchase plan will commence on or about August 5, 2008 and will continue for up to twelve months. Credit Suisse Securities (USA) LLC will administer the stock repurchase program.

Commenting on the Company's capital distribution policy going forward, Kelly stated: "While we revised our cash distribution rate in the second quarter to better reflect projected cash flow over the next several years, our commitment to return cash to our stockholders has not changed. We recognize that notwithstanding our excellent current results, continued levels of subscriber erosion will continue to put pressure on our future operating margins and our revised cash distribution rate takes that potential into effect."

Kelly said the Company decided to move forward with a stock repurchase program at this time after a ruling on July 8, 2008 by the United States Court of Appeals for the DC Circuit delayed a final decision on its appeal of the Federal Communications Commission's Back-Up Power Order (Order). The Court held the appeal in abeyance pending approval by the Office of Management and Budget (OMB) of new paperwork requirements associated with the Order, a process that is expected to postpone a final ruling in the case for at least several months. "Although we were disappointed the Court did not vacate the Order at this time," Kelly said, "we believe it ultimately will do so based on the merits of our appeal. In the meantime, the delay serves to reduce the potential cost of compliance as we continue to eliminate transmitters in connection with our long-term network rationalization program."

Thomas L. Schilling, chief operating officer and chief financial officer, said the Company reported solid financial and operating results for the quarter. "The improved rate of revenue erosion was largely the result of retail price adjustments we made during the quarter," he said, "while a continued emphasis on cost reduction contributed to our higher EBITDA and cash flow margins. Operating expenses (excluding depreciation, amortization, accretion and goodwill impairment) continued to decline due to numerous cost savings programs," Schilling noted, "and are down 17.1 percent from the second quarter of 2007 and well ahead of the 14.3 percent annual rate of revenue erosion."

The Company also revised upward its previously announced financial guidance for 2008 as follows: revenues are now expected to be between $355 million to $360 million, up from the previous guidance of $345 million to $355 million; operating expenses (excluding depreciation, amortization, accretion and goodwill impairment) are now expected to be between $245 million to $250 million, a decrease from the previous range of $250 million to $255 million; while guidance for capital expenses for 2008 remains unchanged at $18 million to $20 million.

USA Mobility plans to host a conference call for investors on its second quarter results at 10:00 a.m. Eastern Time on Friday, August 1, 2008. The dial-in number for the call is 888-600-4885 (toll-free) or 913-312-6685 (toll). The pass code for the call is 9967444. A replay of the call will be available from 2:00 p.m. ET on August 1 until 11:59 p.m. on Friday, August 15. The replay number is 888-203-1112 (toll-free) or 719-457-0820 (toll). The pass code for the replay is 9967444.

About USA Mobility

USA Mobility, Inc., headquartered in Alexandria, Virginia, is a comprehensive provider of reliable and affordable wireless communications solutions to the healthcare, government, large enterprise and emergency response sectors. As a single-source provider, USA Mobility's focus is on the business-to-business marketplace and supplying wireless connectivity solutions to a majority of the Fortune 1000 companies. The Company operates nationwide networks for both one-way paging and advanced two-way messaging services. In addition, USA Mobility offers mobile voice and data services through Sprint Nextel, including BlackBerry(R) smartphones and GPS location applications. The Company's product offerings include customized wireless connectivity systems for the healthcare, government and other campus environments. USA Mobility also offers M2M (machine-to-machine) telemetry solutions for numerous applications that include asset tracking, utility meter reading and other remote device monitoring applications on a national scale. For further information visit www.usamobility.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act: Statements contained herein or in prior press releases which are not historical fact, such as statements regarding USA Mobility's expectations for future operating and financial performance, are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that may cause USA Mobility's actual results to be materially different from the future results expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expectations include, but are not limited to, declining demand for paging products and services, our ability to continue to reduce operating expenses and to generate cash from operations, our future capital needs, competitive pricing pressures, competition from both traditional paging services and other wireless communications services, technological improvements in hand-held devices and transmission services offered by our competitors, government regulation, reliance upon third-party providers for certain equipment and services, as well as other risks described from time to time in periodic reports and registration statements filed with the Securities and Exchange Commission. Although USA Mobility believes the expectations reflected in the forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. USA Mobility disclaims any intent or obligation to update any forward-looking statements.

USA MOBILITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (a) (unaudited and in thousands, except share and per share amounts) For the three months ended ---------------------------------------- 3/31/07 6/30/07 9/30/07 ---------------------------------------- (restated) Revenues: Paging service $ 104,003 $ 98,248 $ 95,393 Cellular 2,087 2,497 2,035 Product sales 4,400 5,335 6,851 Other 1,052 1,390 1,145 ---------------------------------------- Total revenues 111,542 107,470 105,424 ---------------------------------------- Operating expenses: Cost of products sold 687 1,508 2,435 Service, rental and maintenance 39,033 39,356 36,746 Selling and marketing 10,242 9,975 9,891 General and administrative 26,448 23,297 23,606 Severance and restructuring 17 - 1,177 Depreciation, amortization and accretion 13,318 12,450 12,048 Goodwill impairment - - - ---------------------------------------- Total operating expenses 89,745 86,586 85,903 ---------------------------------------- % of total revenues 80.5% 80.6% 81.5% ---------------------------------------- Operating income (loss) 21,797 20,884 19,521 ---------------------------------------- % of total revenues 19.5% 19.4% 18.5% Interest income, net 951 932 856 Other (expense) income, net (516) 826 1,038 ---------------------------------------- Income (loss) before income tax expense 22,232 22,642 21,415 Income tax expense 9,206 9,676 5,947 ---------------------------------------- Net income (loss) $ 13,026 $ 12,966 $ 15,468 ======================================== Basic net income (loss) per common share $ 0.47 $ 0.47 $ 0.56 ======================================== Diluted net income (loss) per common share $ 0.47 $ 0.47 $ 0.56 ======================================== Basic weighted average common shares outstanding 27,434,418 27,440,094 27,445,028 ======================================== Diluted weighted average common shares outstanding 27,578,066 27,570,346 27,594,513 ======================================== Reconciliation of operating income (loss) to EBITDA (b): Operating income (loss) $ 21,797 $ 20,884 $ 19,521 Add back: depreciation, amortization and accretion 13,318 12,450 12,048 Add back: goodwill impairment - - - ---------------------------------------- EBITDA $ 35,115 $ 33,334 $ 31,569 ======================================== % of total revenues 31.5% 31.0% 29.9% For the three months ended --------------------------------------- 12/31/07 3/31/08 6/30/08 --------------------------------------- Revenues: Paging service $ 91,825 $ 86,773 $ 83,360 Cellular 1,705 1,859 1,547 Product sales 5,618 4,871 5,741 Other 1,040 1,255 1,427 --------------------------------------- Total revenues 100,188 94,758 92,075 --------------------------------------- Operating expenses: Cost of products sold 1,603 1,081 1,408 Service, rental and maintenance 36,795 33,969 31,583 Selling and marketing 8,720 7,836 7,549 General and administrative 23,316 21,808 20,782 Severance and restructuring 5,235 145 153 Depreciation, amortization and accretion 10,872 12,513 11,674 Goodwill impairment - 188,170 - --------------------------------------- Total operating expenses 86,541 265,522 73,149 --------------------------------------- % of total revenues 86.4% 280.2% 79.4% --------------------------------------- Operating income (loss) 13,647 (170,764) 18,926 --------------------------------------- % of total revenues 13.6% -180.2% 20.6% Interest income, net 709 578 672 Other (expense) income, net 802 125 202 --------------------------------------- Income (loss) before income tax expense 15,158 (170,061) 19,800 Income tax expense 61,816 7,739 9,528 --------------------------------------- Net income (loss) $ (46,658) $ (177,800) $ 10,272 ======================================= Basic net income (loss) per common share $ (1.70) $ (6.48) $ 0.37 ======================================= Diluted net income (loss) per common share $ (1.70) $ (6.48) $ 0.37 ======================================= Basic weighted average common shares outstanding 27,450,035 27,459,068 27,474,156 ======================================= Diluted weighted average common shares outstanding 27,450,035 27,459,068 27,600,976 ======================================= Reconciliation of operating income (loss) to EBITDA (b): Operating income (loss) $ 13,647 $ (170,764) $ 18,926 Add back: depreciation, amortization and accretion 10,872 12,513 11,674 Add back: goodwill impairment - 188,170 - --------------------------------------- EBITDA $ 24,519 $ 29,919 $ 30,600 ======================================= % of total revenues 24.5% 31.6% 33.2% (a) Slight variations in totals are due to rounding. (b) EBITDA or earnings before interest, taxes, depreciation, amortization, accretion and goodwill impairment is a non-GAAP measure and is presented for analytical purposes only.

USA MOBILITY, INC. UNITS IN SERVICE ACTIVITY (a) (unaudited and in thousands) For the three months ended ------------------------------------------------------ 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08 ------------------------------------------------------ Units in service --------------- Beginning units in service Direct one- way 3,318 3,179 3,071 2,961 2,854 2,733 Direct two- way 280 263 245 232 221 206 ------------------------------------------------------ Total direct 3,598 3,442 3,316 3,193 3,075 2,939 ------------------------------------------------------ Indirect one-way 417 378 346 330 312 286 Indirect two-way 90 92 95 97 98 108 ------------------------------------------------------ Total indirect 507 470 441 427 410 394 ------------------------------------------------------ Total beginning units in service 4,105 3,912 3,757 3,620 3,485 3,333 ====================================================== Gross placements Direct one- way 91 112 107 81 77 90 Direct two- way 12 14 13 10 8 11 ------------------------------------------------------ Total direct 103 126 120 91 85 101 ------------------------------------------------------ Indirect one-way 19 25 35 29 17 22 Indirect two-way 8 8 7 7 16 7 ------------------------------------------------------ Total indirect 27 33 42 36 33 29 ------------------------------------------------------ Total gross placements 130 159 162 127 118 130 ====================================================== Gross disconnects Direct one- way (230) (220) (217) (188) (199) (209) Direct two- way (29) (32) (26) (21) (22) (21) ------------------------------------------------------ Total direct (259) (252) (243) (209) (221) (230) ------------------------------------------------------ Indirect one-way (58) (57) (51) (47) (44) (47) ------------------------------------------------------ Indirect two-way (6) (5) (5) (6) (5) (10) ------------------------------------------------------ Total indirect (64) (62) (56) (53) (49) (57) ------------------------------------------------------ Total gross disconnects (323) (314) (299) (262) (270) (287) ====================================================== Net gain (loss) Direct one- way (139) (108) (110) (107) (122) (119) Direct two- way (17) (18) (13) (11) (14) (10) ------------------------------------------------------ Total direct (156) (126) (123) (118) (136) (129) ------------------------------------------------------ Indirect one-way (39) (32) (16) (18) (27) (25) ------------------------------------------------------ Indirect two-way 2 3 2 1 11 (3) ------------------------------------------------------ Total indirect (37) (29) (14) (17) (16) (28) ------------------------------------------------------ Total net change (193) (155) (137) (135) (152) (157) ====================================================== Ending units in service Direct one- way 3,179 3,071 2,961 2,854 2,732 2,614 Direct two- way 263 245 232 221 207 196 ------------------------------------------------------ Total direct 3,442 3,316 3,193 3,075 2,939 2,810 ------------------------------------------------------ Indirect one-way 378 346 330 312 285 261 ------------------------------------------------------ Indirect two-way 92 95 97 98 109 105 ------------------------------------------------------ Total indirect 470 441 427 410 394 366 ------------------------------------------------------ Total ending units in service 3,912 3,757 3,620 3,485 3,333 3,176 ====================================================== (a) Slight variations in totals are due to rounding.

USA MOBILITY, INC. AVERAGE REVENUE PER UNIT (ARPU) AND CHURN (a) (unaudited) For the three months ended ------------------------------------------------ 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08 ------------------------------------------------ ARPU ---------------------------------------------------------------------- Direct one-way $7.96 $7.87 $7.98 $7.93 $7.83 $7.85 Direct two-way 23.91 24.02 24.17 24.06 23.68 23.90 ------------------------------------------------ Total direct 9.18 9.08 9.16 9.09 8.95 8.97 Indirect one-way 4.45 4.12 4.35 4.11 4.10 4.57 Indirect two-way 6.30 6.10 5.30 8.20 7.52 7.08 ------------------------------------------------ Total indirect 4.79 4.53 4.56 5.06 4.97 5.28 Total one-way 7.57 7.48 7.61 7.55 7.47 7.54 Total two-way 19.46 19.18 18.74 19.30 18.44 18.07 ------------------------------------------------ Total paging ARPU $8.65 $8.54 $8.62 $8.62 $8.49 $8.54 ------------------------------------------------ Gross disconnect rate (b) ---------------------------------------------------------------------- Direct one-way -6.9% -6.9% -7.1% -6.4% -7.0% -7.6% Direct two-way -10.4% -12.2% -10.5% -9.1% -10.2% -10.4% ------------------------------------------------ Total direct -7.2% -7.3% -7.3% -6.6% -7.2% -7.8% Indirect one-way -14.0% -15.0% -14.7% -14.1% -13.9% -16.4% Indirect two-way -6.2% -5.9% -5.7% -6.7% -5.3% -8.8% ------------------------------------------------ Total indirect -12.6% -13.2% -12.8% -12.5% -11.8% -14.3% Total one-way -7.7% -7.8% -7.8% -7.1% -7.7% -8.5% Total two-way -9.4% -10.4% -9.2% -8.4% -8.7% -9.8% ------------------------------------------------ Total paging gross disconnect rate -7.9% -8.0% -8.0% -7.2% -7.7% -8.6% ------------------------------------------------ Net gain (loss) rate (c) ---------------------------------------------------------------------- Direct one-way -4.2% -3.4% -3.6% -3.6% -4.3% -4.3% Direct two-way -5.9% -6.9% -5.3% -4.6% -6.4% -5.2% ------------------------------------------------ Total direct -4.3% -3.6% -3.7% -3.7% -4.4% -4.4% Indirect one-way -9.5% -8.5% -4.6% -5.4% -8.5% -8.6% Indirect two-way 2.5% 3.2% 2.1% 0.8% 11.0% -2.4% ------------------------------------------------ Total indirect -7.3% -6.2% -3.2% -4.0% -3.9% -6.9% Total one-way -4.8% -3.9% -3.7% -3.8% -4.7% -4.8% Total two-way -3.9% -4.2% -3.3% -3.0% -1.1% -4.2% ------------------------------------------------ Total paging net gain (loss) rate -4.7% -4.0% -3.7% -3.7% -4.4% -4.7% ------------------------------------------------ (a) Slight variations in totals are due to rounding. (b) Gross disconnect rate is current period disconnected units divided by prior period ending units in service. (c) Net gain (loss) rate is net current period placements and disconnected units in service divided by prior period ending units in service.

USA MOBILITY, INC. SUPPLEMENTAL INFORMATION BY MARKET SEGMENT (a) (unaudited) For the three months ended -------------------------------------------------- 3/31/07 6/30/07 9/30/07 12/31/07 3/31/08 6/30/08 -------------------------------------------------- Gross placement rate (b) Healthcare 3.6% 4.8% 4.5% 3.6% 3.3% 4.8% Government 2.2% 2.5% 2.5% 2.0% 2.2% 2.1% Large enterprise 2.7% 3.0% 2.9% 2.7% 2.4% 2.3% Other 2.6% 3.2% 3.4% 2.4% 2.5% 2.6% -------------------------------------------------- Total direct 2.9% 3.7% 3.6% 2.8% 2.8% 3.4% Total indirect 5.3% 6.9% 9.6% 8.5% 8.0% 7.4% -------------------------------------------------- Total 3.2% 4.1% 4.3% 3.5% 3.4% 3.9% ================================================== Gross disconnect rate (b) Healthcare -4.6% -5.0% -5.6% -5.0% -5.1% -5.8% Government -5.8% -6.4% -6.8% -6.0% -6.7% -8.5% Large enterprise -8.4% -9.3% -7.6% -6.9% -8.6% -9.2% Other -10.9% -10.5% -10.5% -9.5% -10.7% -10.5% -------------------------------------------------- Total direct -7.2% -7.3% -7.3% -6.6% -7.2% -7.8% Total indirect -12.6% -13.2% -12.8% -12.5% -11.8% -14.3% -------------------------------------------------- Total -7.9% -8.0% -8.0% -7.2% -7.7% -8.6% ================================================== Net loss rate (b) Healthcare -1.1% -0.2% -1.0% -1.3% -1.7% -0.9% Government -3.6% -3.8% -4.3% -4.0% -4.5% -6.4% Large enterprise -5.7% -6.2% -4.6% -4.3% -6.2% -6.9% Other -8.3% -7.2% -7.2% -7.1% -8.2% -7.9% -------------------------------------------------- Total direct -4.3% -3.6% -3.7% -3.7% -4.4% -4.4% Total indirect -7.3% -6.2% -3.2% -4.0% -3.9% -6.9% -------------------------------------------------- Total -4.7% -4.0% -3.7% -3.7% -4.4% -4.7% ================================================== End of period units in service % of total (b) Healthcare 33.6% 35.0% 36.2% 37.1% 38.3% 40.0% Government 17.9% 18.0% 17.8% 17.8% 17.9% 17.7% Large enterprise 13.8% 13.6% 13.5% 13.5% 13.1% 12.8% Other 22.6% 21.7% 20.7% 19.8% 18.9% 18.0% -------------------------------------------------- Total direct 88.0% 88.3% 88.2% 88.2% 88.2% 88.5% Total indirect 12.0% 11.7% 11.8% 11.8% 11.8% 11.5% -------------------------------------------------- Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% ================================================== (a) Slight variations in totals are due to rounding. (b) Changes in the classification of units in service are reflected in the quarter when such changes are identified. Such changes are then appropriately reflected in calculating the gross placement, gross disconnect and net loss rates.

USA MOBILITY, INC. SUPPLEMENTAL INFORMATION - DIRECT UNITS IN SERVICE AND CELLULAR ACTIVATIONS (a) (unaudited) For the three months ended ------------------------------- 3/31/07 6/30/07 9/30/07 ------------------------------- Account size ending units in service (000's) 1 to 3 units 251 232 216 4 to 10 units 150 139 129 11 to 50 units 368 344 319 51 to 100 units 215 200 189 101 to 1,000 units 924 898 856 >1,000 units 1,534 1,503 1,483 ------------------------------- Total 3,442 3,316 3,193 =============================== End of period units in service % of total direct 1 to 3 units 7.2% 7.0% 6.7% 4 to 10 units 4.4% 4.2% 4.1% 11 to 50 units 10.7% 10.4% 10.0% 51 to 100 units 6.2% 6.0% 5.9% 101 to 1,000 units 26.9% 27.1% 26.8% >1,000 units 44.6% 45.3% 46.5% ------------------------------- Total 100.0% 100.0% 100.0% =============================== Account size net loss rate 1 to 3 units -9.0% -7.6% -6.6% 4 to 10 units -7.9% -7.6% -7.0% 11 to 50 units -7.5% -6.4% -7.3% 51 to 100 units -4.9% -6.9% -5.7% 101 to 1,000 units -4.4% -2.8% -4.7% >1,000 units -2.2% -2.0% -1.3% ------------------------------- Total -4.3% -3.6% -3.7% =============================== Account size ARPU 1 to 3 units $ 14.68 $ 14.67 $ 14.90 4 to 10 units 13.41 13.40 13.68 11 to 50 units 10.95 10.93 11.15 51 to 100 units 9.44 9.48 9.74 101 to 1,000 units 8.24 8.24 8.35 >1,000 units 7.93 7.80 7.86 ------------------------------- Total $ 9.18 $ 9.08 $ 9.16 =============================== Cellular revenue Number of activations 5,450 8,046 5,579 =============================== Revenue from cellular services (000's) $ 2,087 $ 2,497 $ 2,035 =============================== For the three months ended ------------------------------- 12/31/07 3/31/08 6/30/08 ------------------------------- Account size ending units in service (000's) 1 to 3 units 200 184 172 4 to 10 units 120 112 104 11 to 50 units 298 276 255 51 to 100 units 176 164 155 101 to 1,000 units 827 784 750 >1,000 units 1,454 1,419 1,374 ------------------------------- Total 3,075 2,939 2,810 =============================== End of period units in service % of total direct 1 to 3 units 6.5% 6.2% 6.1% 4 to 10 units 3.9% 3.8% 3.7% 11 to 50 units 9.7% 9.4% 9.1% 51 to 100 units 5.7% 5.6% 5.5% 101 to 1,000 units 26.9% 26.7% 26.7% >1,000 units 47.3% 48.3% 48.9% ------------------------------- Total 100.0% 100.0% 100.0% =============================== Account size net loss rate 1 to 3 units -7.6% -7.8% -6.9% 4 to 10 units -7.5% -6.5% -7.2% 11 to 50 units -6.6% -7.6% -7.4% 51 to 100 units -6.4% -6.9% -5.5% 101 to 1,000 units -3.3% -5.2% -4.3% >1,000 units -2.0% -2.4% -3.2% ------------------------------- Total -3.7% -4.4% -4.4% =============================== Account size ARPU 1 to 3 units $ 14.83 $ 14.66 $ 14.62 4 to 10 units 13.62 13.56 13.56 11 to 50 units 11.07 10.99 11.03 51 to 100 units 9.74 9.57 9.76 101 to 1,000 units 8.38 8.23 8.45 >1,000 units 7.81 7.75 7.70 ------------------------------- Total $ 9.09 $ 8.95 $ 8.97 =============================== Cellular revenue Number of activations 5,070 4,509 3,970 =============================== Revenue from cellular services (000's) $ 1,705 $ 1,859 $ 1,547 =============================== (a) Slight variations in totals are due to rounding.

USA MOBILITY, INC. CONSOLIDATED OPERATING EXPENSES SUPPLEMENTAL INFORMATION (a) (unaudited and in thousands) For the three months ended ----------------------------- 3/31/07 6/30/07 9/30/07 ----------------------------- Cost of products sold $ 687 $ 1,508 $ 2,435 ----------------------------- Service, rental and maintenance Site rent 22,284 22,115 20,705 Telecommunications 7,058 6,622 5,289 Payroll and related 6,488 6,657 6,871 Stock based compensation 31 30 26 Other 3,172 3,932 3,855 ----------------------------- Total service, rental and maintenance 39,033 39,356 36,746 ----------------------------- Selling and marketing Payroll and related 6,740 6,259 5,984 Commissions 2,170 2,386 2,140 Stock based compensation 93 91 67 Other 1,239 1,239 1,700 ----------------------------- Total selling and marketing 10,242 9,975 9,891 ----------------------------- General and administrative Payroll and related 9,560 9,343 9,487 Stock based compensation 304 299 214 Bad debt 1,402 1,075 854 Facility rent 2,947 3,066 2,614 Telecommunications 1,764 1,526 1,402 Outside services 5,504 5,222 5,136 Taxes, licenses and permits 2,316 (20) 1,815 Other 2,651 2,786 2,084 ----------------------------- Total general and administrative 26,448 23,297 23,606 ----------------------------- Severance and restructuring 17 - 1,177 Depreciation, amortization and accretion 13,318 12,450 12,048 Goodwill impairment - - - ----------------------------- Operating expenses $ 89,745 $ 86,586 $ 85,903 ============================= Capital expenditures $ 5,086 $ 3,525 $ 4,528 For the three months ended ----------------------------- 12/31/07 3/31/08 6/30/08 ----------------------------- Cost of products sold $ 1,603 $ 1,081 $ 1,408 ----------------------------- Service, rental and maintenance Site rent 19,602 17,792 16,756 Telecommunications 6,356 6,204 5,503 Payroll and related 6,878 6,683 6,504 Stock based compensation 25 17 19 Other 3,934 3,273 2,801 ----------------------------- Total service, rental and maintenance 36,795 33,969 31,583 ----------------------------- Selling and marketing Payroll and related 5,517 5,164 4,797 Commissions 2,056 1,724 2,037 Stock based compensation 52 39 50 Other 1,095 909 665 ----------------------------- Total selling and marketing 8,720 7,836 7,549 ----------------------------- General and administrative Payroll and related 8,744 8,682 8,129 Stock based compensation 180 190 247 Bad debt 1,015 711 691 Facility rent 2,177 2,073 2,199 Telecommunications 1,366 1,048 983 Outside services 4,854 5,359 4,584 Taxes, licenses and permits 2,218 1,958 2,055 Other 2,762 1,787 1,894 ----------------------------- Total general and administrative 23,316 21,808 20,782 ----------------------------- Severance and restructuring 5,235 145 153 Depreciation, amortization and accretion 10,872 12,513 11,674 Goodwill impairment - 188,170 - ----------------------------- Operating expenses $ 86,541 $265,522 $ 73,149 ============================= Capital expenditures $ 5,184 $ 3,988 $ 3,892 (a) Slight variations in totals are due to rounding.

USA MOBILITY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (a) (in thousands) 12/31/07 6/30/08 --------- ----------- (unaudited) Assets Current assets: Cash and cash equivalents $ 64,542 $ 85,756 Accounts receivable, net 28,044 26,655 Prepaid expenses and other 8,608 7,094 Deferred income tax assets, net 8,267 6,178 --------- ----------- Total current assets 109,461 125,683 Property and equipment, net 75,669 65,154 Goodwill 188,170 - Intangible assets, net 16,929 12,437 Deferred income tax assets, net 86,219 72,548 Other assets 7,634 6,144 --------- ----------- Total assets $ 484,082 $ 281,966 ========= =========== Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued liabilities $ 53,418 $ 43,988 Distributions payable 93 1,068 Customer deposits 1,592 1,384 Deferred revenue 12,059 11,113 --------- ----------- Total current liabilities 67,162 57,553 Other long-term liabilities 43,352 42,459 --------- ----------- Total liabilities 110,514 100,012 --------- ----------- Stockholders' equity: Preferred stock - - Common stock 3 3 Additional paid-in capital 373,565 349,927 Accumulated deficit - (167,976) --------- ----------- Total stockholders' equity 373,568 181,954 --------- ----------- Total liabilities and stockholders' equity $ 484,082 $ 281,966 ========= =========== (a) Slight variations in totals are due to rounding.

USA MOBILITY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (a) (unaudited and in thousands) For the six months ended -------------------- 6/30/07 6/30/08 --------- ---------- Cash flows from operating activities: Net income (loss) $ 25,992 $(167,528) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation, amortization and accretion 25,768 24,187 Goodwill impairment - 188,170 Deferred income tax expense 15,230 15,759 Amortization of stock based compensation 848 562 Provisions for doubtful accounts, service credits and other 6,069 3,022 Non-cash transaction tax accrual adjustments (1,754) (1,228) Loss on disposals of property and equipment 634 24 Changes in assets and liabilities: Accounts receivable (7,376) (1,633) Prepaid expenses and other 1,667 1,617 Other long-term assets (46) 1,490 Accounts payable and accrued liabilities (3,686) (9,798) Customer deposits and deferred revenue (919) (1,154) --------- ---------- Net cash provided by operating activities $ 62,427 $ 53,490 --------- ---------- Cash flows from investing activities: Purchases of property and equipment (8,611) (7,880) Proceeds from disposals of property and equipment 129 169 --------- ---------- Net cash used in investing activities $ (8,482) $ (7,711) --------- ---------- Cash flows from financing activities: Cash distributions to stockholders (62,816) (24,565) --------- ---------- Net cash used in financing activities $(62,816) $ (24,565) --------- ---------- Net (decrease) increase in cash and cash equivalents (8,871) 21,214 Cash and cash equivalents, beginning of period 66,507 64,542 --------- ---------- Cash and cash equivalents, end of period $ 57,636 $ 85,756 ========= ========== Supplemental disclosure: Interest paid $ 7 $ 3 ========= ========== Income taxes paid (state and local) $ - $ 420 ========= ========== (a) Slight variations in totals are due to rounding.

SOURCE: USA Mobility, Inc.

USA Mobility, Inc. Bob Lougee, 703-721-3080 bob.lougee@usamobility.com