Subject: [NEXTEL-1] TSI Announces Third Quarter 2002 Results -- News Summary: TSI announces $85.8 million in revenue and $36.2 million in EBITDA for third quarter 2002

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TSI Announces Third Quarter 2002 Results -- News Summary: TSI announces $85.8 million in revenue and $36.2 million in EBITDA for third quarter 2002

TAMPA, Fla., Nov 12, 2002 (BUSINESS WIRE) -- TSI Telecommunication Services Inc. (http://www.tsiconnections.com), a leading provider of mission critical transaction processing services to wireless telecommunications carriers globally, reported $85.8 million in total gross revenue for the quarter ending September 30, 2002. Excluding off-network database query fees, total revenues for the third quarter of 2002 were $67.6 million. EBITDA before restructuring charges for the quarter was $36.2 million, resulting in increased EBITDA margin before restructuring charges of 42.1% versus 35% in the second quarter 2002.

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Date:

11/12/2002 19:10

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FE20021112600000020

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Document Type:

Press releases

TSI Announces Third Quarter 2002 Results -- News Summary: TSI announces $85.8 million in revenue and $36.2 million in EBITDA for third quarter 2002

Story Filed: Tuesday, November 12, 2002 7:10 PM EST

TAMPA, Fla., Nov 12, 2002 (BUSINESS WIRE) -- TSI Telecommunication Services
Inc. (
http://www.tsiconnections.com), a leading provider of mission critical
transaction processing services to wireless telecommunications carriers
globally, reported $85.8 million in total gross revenue for the quarter ending
September 30, 2002. Excluding off-network database query fees, total revenues
for the third quarter of 2002 were $67.6 million. EBITDA before restructuring
charges for the quarter was $36.2 million, resulting in increased EBITDA margin
before restructuring charges of 42.1% versus 35% in the second quarter 2002.

"We are pleased to report that TSI achieved its projected revenue and EBITDA
targets for the third quarter, despite challenging market conditions," said
Chief Executive Officer Ed Evans. "Our overall financial stability and
exceptional cash flow provides a firm foundation from which to enhance our
product offerings, expand our international presence and make strategic
investments in our business."

Ray Lawless, TSI chief financial officer, said, "TSI's results in the third
quarter reflect our ability to actively manage our costs to keep expenses in
line with revenue. Our cash flow remains strong, with the third quarter ending
at $26.4 million in cash, after making the scheduled repayment of $7.5 million
of our bank loan and after $19.7 million in interest payments."

Third Quarter Results
Technology Interoperability Services

TSI's technology interoperability services revenues were $20.8 million in the
third quarter, a 6.2% decrease over second quarter 2002 revenues of $22.2
million. These services address technology interoperability complexities by
acting as the primary point of contact for hundreds of wireless carriers for the
processing of roaming, billing and short message service (SMS) transactions. The
decrease in revenues was driven primarily by one carrier's conversion of its
billing system as expected.

Network Services

TSI's network services revenues in the third quarter 2002 totaled $46.2 million,
a 1.3% decrease over second quarter 2002 revenues of $46.9 million. Excluding
off-network database query fees, third quarter network services revenue
increased 1.3% over last quarter to $28.0 million from $27.7 million. Network
services provide customers with connectivity to TSI's SS7 network and other
widely used communications networks, access to intelligent network services and
use of network monitoring tools. The increase was due to growth in INLink(R)
revenues during the quarter.

Call Processing Services

TSI's call processing services generated $13.9 million in total revenues in the
third quarter, an increase of 5.6% over second quarter 2002 revenues of $13.2
million. These services provide wireless carriers call delivery, subscriber
verification and fraud prevention and detection solutions. This increase is
primarily attributable to higher FraudManager(R) revenues.

Other Outsourcing Services

Other outsourcing services revenues were $4.9 million in the third quarter, an
8.6% decrease over second quarter 2002 revenues of $5.3 million. TSI's other
outsourcing services include revenues generated primarily in prepaid wireless
services, telematics and corporate account management. This decrease was due
primarily to lower prepaid wireless services revenues as expected.

Business Highlights:
-- TSI signed contracts with five of the top ten U.S. wireless
carriers for services related to wireless number portability
and expects to secure several additional agreements
-- TSI's recently completed SS7 network expansion has resulted in
five new customers contracting for various network services,
primarily TSI's new toll-free database storage solution
-- TSI continues to penetrate the top ten U.S. wireless carriers
with the signing of a contract with Nextel Communications for
LATALink(R)signaling services
-- Dobson Communications has contracted with TSI for GSM network
transport services, allowing Dobson to connect its GPRS
network with other GPRS network operators worldwide
-- Rural Cellular Corporation (RCC) has contracted with TSI for
INLink(R), TSI's SS7-based intelligent network solution
-- TSI and Cellus USA have combined services to offer premium
mobile content and TSI's Message Manager in a mobile data
package for wireless operators
Guidance

Based on results through September 30, 2002, management expects to be within the
net revenue and EBITDA ranges previously established of $263-$270 million for
net revenues and $124-$130 million in EBITDA for 2002.

Third Quarter Results Earnings Call

TSI will host a conference call on Wednesday, November 13, 2002 at 9:00 a.m.
(ET) to review its third quarter results. To participate on this call, please
dial (888) 202-2422 (for U.S. callers) or +1 (913) 981-5592 (international
direct dial). The pass code for this call is "TSI."

A replay of this call will be available beginning Wednesday, November 13, 2002
at 1:00 p.m. (EDT) through November 20, 2002, 5:00 p.m. (EDT). To access the
replay, please dial (888) 203-1112 pass code: 571263 (for U.S. callers), or +1
(719) 457-0820 pass code: 571263 (international direct dial).

About TSI

TSI Telecommunication Services Inc. (TSI) is a leading provider of mission
critical business, technical and network solutions. Operating one of the
industry's largest Signaling System 7 (SS7) networks, the company provides more
than 250 telecom operators throughout the world with robust intelligent network
technology and interoperability services. Products include mobile data, roaming,
fraud and carrier access billing solutions as well as many other service bureau
applications. TSI is a privately owned corporation based in Tampa, Fla., U.S.A.

CUSIP: 87287VAB8; Bloomberg Tickers: TSITEL (Bond) 32497Z (Equity)

Note

On February 14, 2002, TSI Telecommunication Services Inc., (TSI) was effectively
acquired by a series of private equity funds controlled by GTCR Golder Rauner,
LLC, a Chicago, Illinois-based private equity investment firm, and certain
members of TSI's management. As a result of applying the required purchase
accounting rules, the financial statements of TSI result in different accounting
bases and hence the information for the periods beginning on February 14, 2002
is not comparable to the information prior to this date. Although the results
before and after February 14, 2002 are not comparable, we have combined the
results for these two 2002 periods to aid in the comparison to the nine months
ended September 30, 2001.

Cautions about Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These include, but are not
limited to, statements regarding the Company's plans, intentions and
expectations. Such statements are inherently subject to a variety of risks and
uncertainties that could cause actual results to differ materially from those
projected. Given these concerns, investors and analysts should not place undue
reliance on forward-looking statements.

TSI Telecommunication Services Inc.
Condensed Consolidated Statements of Operations (unaudited)
(Dollars in thousands)
Pre- Pre- Successor Pre- Successor Combined
decessor decessor decessor

Three Nine Three Period Period Nine
Months Months Months from from Months
Ended Ended Ended Jan 1 to Feb 14 to Ended
Sep 30, Sep 30, Sep 30, Feb 13, Sep 30, Sep 30,
2001 2001 2002 2002 2002 2002

Revenues Excluding
Off Network
Database

Queries $76,054 $217,120 $67,605 $31,408 $169,224 $200,632

Off Network

Database Queries 19,805 49,557 18,192 8,588 47,004 55,592

Total Revenues 95,859 266,677 85,797 39,996 216,228 256,224
Cost of
operations 42,532 121,745 37,182 20,655 96,351 117,006

Gross Margin 53,327 144,932 48,615 19,341 119,877 139,218
Gross Margin
% 55.6% 54.3% 56.7% 48.4% 55.4% 54.3%
Gross Margin
% before 70.1% 66.8% 71.9% 61.6% 70.8% 69.4%
Off Network
Database
Queries
Sales and
marketing 6,103 17,526 4,892 2,614 14,114 16,728
General and
administrative 11,153 33,919 7,568 4,341 24,115 28,456
Depreciation
and
amortization 3,367 9,939 9,227 1,464 22,899 24,363
Restructuring - - 2,845 - 2,845 2,845

Operating income 32,704 83,548 24,083 10,922 55,904 66,826

Other income
(expense), net
Interest income

(expense), net 1,080 2,709 (15,753) 432 (38,393) (37,961)
Other, net (76) (79) (2) (19) (7) (26)

1,004 2,630 (15,755) 413 (38,400) (37,987)

Income before
provision for

income taxes 33,708 86,178 8,328 11,335 17,504 28,839

Provision for

income taxes 13,146 33,374 3,264 4,418 6,865 11,283
Net income 20,562 52,804 5,064 6,917 10,639 17,556

Preferred unit

dividends - - (6,633) - (16,238) (16,238)

Net income (loss)
attributable to common
stockholder/

unitholders $20,562 $52,804 $(1,569) $6,917 $(5,599) $1,318
====================================================
EBITDA(1) $35,995 $93,408 $36,153 $12,367 $81,641 $94,008
====================================================
EBITDA Margin 37.5% 35.0% 42.1% 30.9% 37.8% 36.7%

1) EBITDA is earnings before interest, taxes, depreciation,
amortization and restructuring plus other income, net.

CONTACT: TSI Telecommunication Services Inc., Tampa
Raymond L. Lawless, 813/273-3313

http://www.tsiconnections.com

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KEYWORD: FLORIDA

INDUSTRY KEYWORD: NETWORKING

TELECOMMUNICATIONS

CONFERENCE

CALLS

EARNINGS

SOURCE:

TSI

Telecommunication

Services

Inc.

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