Subject: [NEXTEL-1] More Metro One contracts expiring this year

From: Marcel <[email-masked]>
Date: Sat, 19 Apr 2003 16:55:13 -0400

April 1, 2003

More Metro One contracts expiring this year

Portland-based Metro One Telecommunications reminded its shareholders in a regulatory
filing Monday that it is too reliant on
just a handful of wireless telecom customers, and some of its contracts are expiring this
year.

"A limited number of customers account for substantially all our revenues," the company's
10-K statement says. Metro One
provides enhanced directory services to the wireless phone industry. In 2002, its top four
customers accounted for approximately
95.5 percent of its revenue. The two largest customers, Sprint PCS and AT&T Wireless
Services, accounted for approximately
33 percent each in 2002.

The Sprint PCS contract expired in December and was not renewed. Metro One said the Sprint
contract is being phased out
over the first half of 2003. "It is likely that the expiration of the Sprint PCS contract
will have an adverse effect on our financial
position and future operating results, as well as our operations, although it is not
possible to determine the exact timing, nature or
magnitude at this time," the filing said.

"Of our existing contracts with significant customers, two expire in 2003, including our
contract with AT&T Wireless Services,"
the company reports.

And although its contract with Nextel Communications extends through early in 2005, the
contract provides for a window in 2003
during which Nextel can withdraw from the contract with proper notice and payment of a
substantial fee. Some contracts contain
performance and other standards and may be terminated prior to their scheduled expiration
dates under specified circumstances.

Metro One noted that although it seeks to increase its customer base, "opportunities are
limited because a small number of
companies dominate the telecommunications market. This limits the potential carrier
customer base and our expansion
opportunities through carrier relationships."

Metro One (Nasdaq: MTON) closed Tuesday at $5.04 per share, slightly up from its 52-week
low of $4.05. The 52-week high
was $26.57.

In its most recent quarter, Metro One reported fourth-quarter revenue of $62.2 million,
down 1.2 percent from $63 million in the
fourth quarter of 2001. Net income for the fourth quarter was $5.8 million, or 24 cents
per share, down 28 percent from net
income of $8.1 million, or 32 cents per share, in last year's fourth quarter.

For the full fiscal year, revenue of $258 million was up 11 percent from revenue of $233.3
million for 2001. Net income for 2002
was $26.1 million, or $1.04 per share, down 8 percent from net income of $28.4 million, or
$1.15 per share, in the preceding
year.

Metro One said it expects first-quarter revenue of $58 million to $61 million and earnings
per share of between 13 and 18 cents.

http://portland.bizjournals.com/portland/stories/2003/03/31/daily17.html