Motient Corporation Reports Strong Subscriber Growth And Continued Network Expansion During First Quarter

Network Additions Top 20,000,

Nearly Double the Rate of the Same Period Last Year



Apr 26, 2001, 01:00 ET from Motient Corporation

    RESTON, Va., April 26 /PRNewswire/ -- Motient Corporation (Nasdaq:   MTNT),
 today reported substantial subscriber growth of 20,156 net additions to its
 network, and reaffirmed its core strategy to maintain the leadership position
 as the largest wireless data network operator in North America.  Fueled by
 strong eLink(SM) wireless email sales of more than 17,700 units during the
 first quarter, the company realized a 96 percent increase over last year's
 first quarter growth of 10,300.  The Motient network now supports more than
 226,000 users.  In addition to record eLink activity and other service
 offerings like BlackBerry(TM) by Motient, the accelerated growth is driven by
 strong partner relationships with Aether Systems, Research In Motion Limited,
 Apriva, and SkyTel.
     Network expansion included passing the 2,100 base station mark, and
 reaching the milestone of 100 cities operating at 19.2 Kbps.  The RDLAP
 protocol, which makes 19.2Kbps possible, is the highest wireless data
 transmission speed available for any nationwide wireless data network.
     Net service revenues were $18.0 million, compared with $17.2 million for
 the first quarter of 2000.  Total revenue, including equipment sales, was
 $23.4 million in the first quarter, compared to $22.2 million for the same
 quarter in 2000.
     "In the face of a challenging business climate, Motient is succeeding at
 penetrating a growing market," said Walter V. Purnell, Jr., president and CEO
 of Motient.  "Our emphasis on providing productivity-enhancing communications
 solutions that enable a lower cost alternative to expensive laptop PCs has
 paved the way for us to meet our business projections and has attracted the
 attention of our newest investor partner, Rare Medium, who has pledged up to
 $50 million to Motient.
     "In addition, many of our business customers are finding that their
 monthly cellular bills decrease dramatically once the eLink or Blackberry by
 Motient solutions are deployed," added Purnell.
     Motient reported a first quarter consolidated EBITDA loss of ($16.7)
 million and a consolidated net loss of ($54.0) million, or ($1.09) per share,
 as compared to an EBITDA loss of ($29.2) million and a net loss of ($4.5)
 million, or ($0.09) per share, for the same quarter of the previous year.
     Included in the company's consolidated net loss for the first quarter of
 2000 were the results of XM Satellite Radio Holdings Inc. (XM Radio) of
 ($16.7) million operating expenses and depreciation & amortization, $4.1
 million interest income, and $8.3 million minority interest income, all of
 which Motient was required to consolidate as a result of its controlling
 voting interest in XM Radio.  During the first quarter of 2001, Motient took
 steps to reduce its voting interest in XM below 50%, following approval to do
 so by the FCC.  As a result, Motient will no longer be consolidating the
 financial results of XM Radio but will be recording its equity share of XM
 Radio losses.  For the first quarter of 2001, Motient recorded an equity loss
 of ($12.5) million associated with XM Radio.
     Excluding results from XM Radio and unusual items, the company reported a
 first quarter 2001 consolidated EBITDA loss of ($16.7) million and a net loss
 of ($40.5) million, or ($0.82) per share, as compared to an EBITDA loss of
 ($12.8) million and a net loss of ($35.6) million, or ($0.73) per share, for
 the same quarter of the previous year.
     The company will hold a conference call at 11:00 a.m. Eastern Daylight
 Time tomorrow to discuss the results. To participate in the call, please dial
 (1-800-946-0782) 5-10 minutes prior to the scheduled conference call time.
 The Pass code for the call is 695624.
 
     About Motient Corporation
     Motient (http://www.motient.com ) owns and operates an integrated
 terrestrial/satellite network and provides a wide range of two-way mobile and
 Internet communications services principally to business-to-business customers
 and enterprises.  The company provides eLink and BlackBerry(TM) by Motient
 two-way wireless email service to customers accessing email through corporate
 servers, Internet Service Provider (ISP) and Mail Service Provider (MSP)
 accounts, and paging network suppliers.  Motient serves a variety of markets
 including mobile professionals, telemetry, transportation, field service, and
 nationwide voice dispatch offering coverage to all 50 states, Puerto Rico, the
 U.S. Virgin Islands, and thousands of miles of U.S. coastal waters.
 
     eLink is a service mark of Motient Corporation.  The BlackBerry and RIM
 families of related marks, images and symbols are the exclusive properties of,
 and trademarks of Research In Motion Limited and are used by permission.
 "BlackBerry by Motient" -- used by permission.
 
     Factors that could cause actual results to differ materially from those in
 the forward-looking statements in this news release are described in Motient
 Corporation's registration statement on Form S-3 (File No. 333-42104) and in
 Motient's annual report on Form 10-K for the year ended December 31, 2000 and
 its other periodic filings and reports with the Securities and Exchange
 Commission.  Copies of such Factors that reports and filings are available
 upon request from Motient's Investor Relations Department.
 
                              FINANCIAL HIGHLIGHTS
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                                  Three Months Ended March 31,
                                                       2001           2000
     Consolidated Income Statement Data
     Service revenues                                 $18,007        $17,152
     Revenue from equipment sales                      $5,400         $5,018
     Total Revenues                                   $23,407        $22,170
     Cost of service and operations                   $18,164        $18,018
     Cost of equipment sold                            $5,934         $5,256
     Sales and advertising                             $9,649         $6,226
     General and administrative                        $6,327         $5,527
     Operating expenses from XM Radio consolidation        --        $16,386
     Depreciation and amortization (including
       $264 of Depreciation and amortization
       relating to XM Radio for the three months
       ended March 31, 2000)                           $8,550         $9,093
     Operating Loss                                  ($25,217)      ($38,336)
     Interest and Other Expense, Net
       (including $4,148 of Net Interest Income
       relating to XM Radio for the three months
       ended March 31, 2000)                         ($15,284)       ($9,779)
     Equity in Loss of XM Radio                      ($12,472)             --
     Unusual Items:
     Gain on marketable securities                         --         $3,925
     Gain on conversion of note payable                    --        $32,854
     Minority Interest                                     --         $8,307
     Consolidated Net Loss before extraordinary
       item and XM Radio Preferred Stock Dividend    ($52,973)       ($3,029)
     Extraordinary loss on extinguishment of debt     ($1,033)             --
     XM Radio Preferred Stock Dividend and
       Beneficial Conversion Charge                         --       ($1,471)
     Consolidated Net Loss Attributable
       to Common Shareholders                        ($54,006)       ($4,500)
     Consolidated Net Loss Per Share                   ($1.09)        ($0.09)
     Consolidated EBITDA                             ($16,667)      ($29,243)
     Weighted average shares outstanding               49,689         49,094
 
                              FINANCIAL HIGHLIGHTS
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                                  Three Months Ended March 31,
                                                      2001           2000
     Summary data excluding XM Radio
       and unusual items:
     Operating Loss                                 ($25,217)      ($21,676)
     EBITDA                                         ($16,667)      ($12,847)
     Net Loss                                       ($40,501)      ($35,613)
     Net Loss Per Share                               ($0.82)        ($0.73)
 
 
 
     Balance Sheet Data,                             March 31,      Dec. 31,
       Excluding XM Radio                              2001           2000
     Cash and cash equivalents                         $7,833         $2,520
     Total assets                                    $535,489       $585,079
     Debt and capital leases
       (incl. Current portions)                      $457,394       $462,325
     Stockholders' (deficit) equity                  ($53,090)       $12,884
 
                                                     March 31,       Dec 31,
     Consolidated Balance Sheet Data                    2001          2000
     Cash and cash equivalents                         $7,833       $227,423
     Total assets                                    $535,489     $1,571,714
     Debt and capital leases
       (incl. Current portions)                      $457,394       $725,546
     Stockholders' (deficit) equity                  ($53,090)       $12,884
 
                            OPERATIONAL  HIGHLIGHTS
                                  (unaudited)
 
     Subscribers
       by Market
       Segment
       - as of:     3/31/00      6/30/00     9/30/00     12/31/00     3/31/01
     Elink            6,234       15,090      30,653       45,402      63,102
     Field Service   44,885       43,349      43,878       45,465      45,070
     Transportation  62,711       71,161      73,637       73,044      74,237
     Telemetry       13,923       14,881      15,121       16,052      18,059
     Maritime         6,030        6,234       6,423        6,386       6,288
     Other           17,250       19,328      19,494       19,526      19,275
     Total          151,033      170,043     189,206      205,875     226,031
 
     Subscribers
       by Market
       Segment
       - as of:     3/31/00      6/30/00     9/30/00     12/31/00     3/31/01
     Elink               4%           9%         16%          22%         28%
     Field Service      30%          25%         24%          22%         20%
     Transportation     42%          42%         39%          35%         33%
     Telemetry           9%           9%          8%           9%          8%
     Maritime            4%           4%          3%           3%          3%
     Other              11%          11%         10%           9%          8%
 
     Average
       Revenue per
       Subscriber
       per Month
       by Market
       Segment      3/31/00      6/30/00     9/30/00     12/31/00     3/31/01
     Elink (see
       note below)      $22          $17         $11          $11         $12
     Field Service      $51          $50         $46          $40         $43
     Transportation     $28          $29         $27          $22         $18
     Telemetry          $25          $25         $26          $27         $14
     Maritime           $68          $62         $42          $45         $47
     Other              $53          $55         $89          $80         $77
     Weighted Average   $39          $38         $37          $31         $28
 
 
     Notes to Motient Q1'01 Un-audited Operational Highlights:
 
     When normalized for late quarter loading of units across all channels, and
 delayed sell-through in reseller channels, eLink ARPU was $28.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X84148267
 
 

SOURCE Motient Corporation
    RESTON, Va., April 26 /PRNewswire/ -- Motient Corporation (Nasdaq:   MTNT),
 today reported substantial subscriber growth of 20,156 net additions to its
 network, and reaffirmed its core strategy to maintain the leadership position
 as the largest wireless data network operator in North America.  Fueled by
 strong eLink(SM) wireless email sales of more than 17,700 units during the
 first quarter, the company realized a 96 percent increase over last year's
 first quarter growth of 10,300.  The Motient network now supports more than
 226,000 users.  In addition to record eLink activity and other service
 offerings like BlackBerry(TM) by Motient, the accelerated growth is driven by
 strong partner relationships with Aether Systems, Research In Motion Limited,
 Apriva, and SkyTel.
     Network expansion included passing the 2,100 base station mark, and
 reaching the milestone of 100 cities operating at 19.2 Kbps.  The RDLAP
 protocol, which makes 19.2Kbps possible, is the highest wireless data
 transmission speed available for any nationwide wireless data network.
     Net service revenues were $18.0 million, compared with $17.2 million for
 the first quarter of 2000.  Total revenue, including equipment sales, was
 $23.4 million in the first quarter, compared to $22.2 million for the same
 quarter in 2000.
     "In the face of a challenging business climate, Motient is succeeding at
 penetrating a growing market," said Walter V. Purnell, Jr., president and CEO
 of Motient.  "Our emphasis on providing productivity-enhancing communications
 solutions that enable a lower cost alternative to expensive laptop PCs has
 paved the way for us to meet our business projections and has attracted the
 attention of our newest investor partner, Rare Medium, who has pledged up to
 $50 million to Motient.
     "In addition, many of our business customers are finding that their
 monthly cellular bills decrease dramatically once the eLink or Blackberry by
 Motient solutions are deployed," added Purnell.
     Motient reported a first quarter consolidated EBITDA loss of ($16.7)
 million and a consolidated net loss of ($54.0) million, or ($1.09) per share,
 as compared to an EBITDA loss of ($29.2) million and a net loss of ($4.5)
 million, or ($0.09) per share, for the same quarter of the previous year.
     Included in the company's consolidated net loss for the first quarter of
 2000 were the results of XM Satellite Radio Holdings Inc. (XM Radio) of
 ($16.7) million operating expenses and depreciation & amortization, $4.1
 million interest income, and $8.3 million minority interest income, all of
 which Motient was required to consolidate as a result of its controlling
 voting interest in XM Radio.  During the first quarter of 2001, Motient took
 steps to reduce its voting interest in XM below 50%, following approval to do
 so by the FCC.  As a result, Motient will no longer be consolidating the
 financial results of XM Radio but will be recording its equity share of XM
 Radio losses.  For the first quarter of 2001, Motient recorded an equity loss
 of ($12.5) million associated with XM Radio.
     Excluding results from XM Radio and unusual items, the company reported a
 first quarter 2001 consolidated EBITDA loss of ($16.7) million and a net loss
 of ($40.5) million, or ($0.82) per share, as compared to an EBITDA loss of
 ($12.8) million and a net loss of ($35.6) million, or ($0.73) per share, for
 the same quarter of the previous year.
     The company will hold a conference call at 11:00 a.m. Eastern Daylight
 Time tomorrow to discuss the results. To participate in the call, please dial
 (1-800-946-0782) 5-10 minutes prior to the scheduled conference call time.
 The Pass code for the call is 695624.
 
     About Motient Corporation
     Motient (http://www.motient.com ) owns and operates an integrated
 terrestrial/satellite network and provides a wide range of two-way mobile and
 Internet communications services principally to business-to-business customers
 and enterprises.  The company provides eLink and BlackBerry(TM) by Motient
 two-way wireless email service to customers accessing email through corporate
 servers, Internet Service Provider (ISP) and Mail Service Provider (MSP)
 accounts, and paging network suppliers.  Motient serves a variety of markets
 including mobile professionals, telemetry, transportation, field service, and
 nationwide voice dispatch offering coverage to all 50 states, Puerto Rico, the
 U.S. Virgin Islands, and thousands of miles of U.S. coastal waters.
 
     eLink is a service mark of Motient Corporation.  The BlackBerry and RIM
 families of related marks, images and symbols are the exclusive properties of,
 and trademarks of Research In Motion Limited and are used by permission.
 "BlackBerry by Motient" -- used by permission.
 
     Factors that could cause actual results to differ materially from those in
 the forward-looking statements in this news release are described in Motient
 Corporation's registration statement on Form S-3 (File No. 333-42104) and in
 Motient's annual report on Form 10-K for the year ended December 31, 2000 and
 its other periodic filings and reports with the Securities and Exchange
 Commission.  Copies of such Factors that reports and filings are available
 upon request from Motient's Investor Relations Department.
 
                              FINANCIAL HIGHLIGHTS
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                                  Three Months Ended March 31,
                                                       2001           2000
     Consolidated Income Statement Data
     Service revenues                                 $18,007        $17,152
     Revenue from equipment sales                      $5,400         $5,018
     Total Revenues                                   $23,407        $22,170
     Cost of service and operations                   $18,164        $18,018
     Cost of equipment sold                            $5,934         $5,256
     Sales and advertising                             $9,649         $6,226
     General and administrative                        $6,327         $5,527
     Operating expenses from XM Radio consolidation        --        $16,386
     Depreciation and amortization (including
       $264 of Depreciation and amortization
       relating to XM Radio for the three months
       ended March 31, 2000)                           $8,550         $9,093
     Operating Loss                                  ($25,217)      ($38,336)
     Interest and Other Expense, Net
       (including $4,148 of Net Interest Income
       relating to XM Radio for the three months
       ended March 31, 2000)                         ($15,284)       ($9,779)
     Equity in Loss of XM Radio                      ($12,472)             --
     Unusual Items:
     Gain on marketable securities                         --         $3,925
     Gain on conversion of note payable                    --        $32,854
     Minority Interest                                     --         $8,307
     Consolidated Net Loss before extraordinary
       item and XM Radio Preferred Stock Dividend    ($52,973)       ($3,029)
     Extraordinary loss on extinguishment of debt     ($1,033)             --
     XM Radio Preferred Stock Dividend and
       Beneficial Conversion Charge                         --       ($1,471)
     Consolidated Net Loss Attributable
       to Common Shareholders                        ($54,006)       ($4,500)
     Consolidated Net Loss Per Share                   ($1.09)        ($0.09)
     Consolidated EBITDA                             ($16,667)      ($29,243)
     Weighted average shares outstanding               49,689         49,094
 
                              FINANCIAL HIGHLIGHTS
                    (in thousands, except per share amounts)
                                  (unaudited)
 
                                                  Three Months Ended March 31,
                                                      2001           2000
     Summary data excluding XM Radio
       and unusual items:
     Operating Loss                                 ($25,217)      ($21,676)
     EBITDA                                         ($16,667)      ($12,847)
     Net Loss                                       ($40,501)      ($35,613)
     Net Loss Per Share                               ($0.82)        ($0.73)
 
 
 
     Balance Sheet Data,                             March 31,      Dec. 31,
       Excluding XM Radio                              2001           2000
     Cash and cash equivalents                         $7,833         $2,520
     Total assets                                    $535,489       $585,079
     Debt and capital leases
       (incl. Current portions)                      $457,394       $462,325
     Stockholders' (deficit) equity                  ($53,090)       $12,884
 
                                                     March 31,       Dec 31,
     Consolidated Balance Sheet Data                    2001          2000
     Cash and cash equivalents                         $7,833       $227,423
     Total assets                                    $535,489     $1,571,714
     Debt and capital leases
       (incl. Current portions)                      $457,394       $725,546
     Stockholders' (deficit) equity                  ($53,090)       $12,884
 
                            OPERATIONAL  HIGHLIGHTS
                                  (unaudited)
 
     Subscribers
       by Market
       Segment
       - as of:     3/31/00      6/30/00     9/30/00     12/31/00     3/31/01
     Elink            6,234       15,090      30,653       45,402      63,102
     Field Service   44,885       43,349      43,878       45,465      45,070
     Transportation  62,711       71,161      73,637       73,044      74,237
     Telemetry       13,923       14,881      15,121       16,052      18,059
     Maritime         6,030        6,234       6,423        6,386       6,288
     Other           17,250       19,328      19,494       19,526      19,275
     Total          151,033      170,043     189,206      205,875     226,031
 
     Subscribers
       by Market
       Segment
       - as of:     3/31/00      6/30/00     9/30/00     12/31/00     3/31/01
     Elink               4%           9%         16%          22%         28%
     Field Service      30%          25%         24%          22%         20%
     Transportation     42%          42%         39%          35%         33%
     Telemetry           9%           9%          8%           9%          8%
     Maritime            4%           4%          3%           3%          3%
     Other              11%          11%         10%           9%          8%
 
     Average
       Revenue per
       Subscriber
       per Month
       by Market
       Segment      3/31/00      6/30/00     9/30/00     12/31/00     3/31/01
     Elink (see
       note below)      $22          $17         $11          $11         $12
     Field Service      $51          $50         $46          $40         $43
     Transportation     $28          $29         $27          $22         $18
     Telemetry          $25          $25         $26          $27         $14
     Maritime           $68          $62         $42          $45         $47
     Other              $53          $55         $89          $80         $77
     Weighted Average   $39          $38         $37          $31         $28
 
 
     Notes to Motient Q1'01 Un-audited Operational Highlights:
 
     When normalized for late quarter loading of units across all channels, and
 delayed sell-through in reseller channels, eLink ARPU was $28.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X84148267
 
 SOURCE  Motient Corporation