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November 25, 2008

Bank Street Closes $100 Million Equity Placement for Pocket Communications

For Immediate Release - Tuesday, November 25, 2008

San Antonio, TX (November 25, 2008) - Pocket Communications, a provider of flat rate, unlimited use wireless voice and data services in South Texas, announced today that it has closed a $100 million equity funding for the newly created Pocket Communications Northeast led by Battery Ventures with participation by Pocket's Founder, President and Chief Executive Officer, Paul Posner, along with Charles River Ventures.  Pocket Northeast will provide flat rate, unlimited use wireless services under the Pocket brand in the Northeast Corridor markets of Hartford and New Haven, CT, Pittsfield and Springfield, MA and Poughkeepsie, NY, which have a combined population of approximately 3.5 million.

The financing will be used to fund Pocket Northeast's network construction and working capital as it builds out and launches service in the Northeast markets.  Battery Ventures was the lead investor in this financing and the majority shareholder in the new company. Battery will be represented by partner Matthew Niehaus on Pocket Northeast's board of directors, which will also include general partner John Auerbach from Charles River Ventures, Paul Posner from Pocket, and John Goocher.  Bank Street Group served as exclusive financial advisor and placement agent in connection with the financing.

"Bank Street successfully structured and placed this $100 million equity financing and our recent $45 million Credit Facility for our Texas operations in what is clearly one of the most challenging financing markets in recent history.  The success of this financing is a testament to the powerful opportunity offered by an affordable flat rate, unlimited use wireless service and the strength of Pocket's execution to date," commented Paul Posner, President & CEO of Pocket Communications.

"Pocket is really changing the unlimited wireless game, which has been successful against legacy wireless providers but mostly limited to single market footprints for many years," said Matt Niehaus, Partner, Battery Ventures. "With the Pocket Northeast launch, the company will push beyond the norm and establish a broad footprint unlimited use network, serving consumers and business users across multiple markets. It's an ambitious plan, and we believe the company has the right ingredients to be successful: a smart strategy, a sound operating model, an experienced management team, and a tremendous opportunity to expand the market for flat rate unlimited wireless."

"We are pleased to have been able to match a visionary company with a tenacious focus on execution with two of the most capable communications private equity investors in the business," said Richard S. Lukaj, Senior Managing Director at Bank Street.