MobilePro Signs Definitive Agreement to Sell CLEC Division
MobilePro Corp. announced today that it has signed a definitive agreement to sell its CLEC Division in a transaction valued at $30 million to United Systems Access Telecom, Inc., which does business as USA Telephone (http://www.savewithusa.com/). The sale will include cash of $21.9 million and $8.1 million in convertible preferred stock in United Systems Access paid in two tranches.

MobilePro's CLEC Division consists of the wholly-owned subsidiaries American Fiber Network, Inc. (AFN), CloseCall America, Inc. and the company's ISP businesses including Inreach Internet and Nationwide Internet. The company expects the sale of the ISPs to close within 10 days. The sale of AFN and CloseCall, which are subject to obtaining required regulatory consents and other customary closing conditions, is expected to close in 90 to 120 days. Also, both the ISP sale and the sale of AFN and CloseCall require the consent of Cornell Capital to release its lien on the assets being sold.

Jay Wright, chairman and CEO of MobilePro Corp., said, "This transaction, which represents the culmination of a sale process MobilePro has run over the past three months and saw us receive inquiries from more than a dozen companies and multiple acquisition proposals, allows us to become a preferred shareholder in USA Telephone, a privately held telecommunications company with, in my view, superior management and financial backers. It also would allow us, upon closing, to pay off our debt to Cornell Capital and focus our efforts on our other operating divisions. Through our preferred stock position, we will have the opportunity to continue to share in the upside growth opportunity of our CLEC business going forward."