US Unwired Reports Preliminary Fourth Quarter and Full Year 2004 Resul

    Business Editors

    LAKE CHARLES, La.--(BUSINESS WIRE)--Feb. 10, 2005--US Unwired Inc. (OTCBB:UNWR), a Sprint (NYSE:FON) Network Partner, today reported consolidated revenues of $152.6 million for the three-month period ended December 31, 2004. US Unwired posted a consolidated Net Loss of $29.3 million and consolidated Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $16.8 million for fourth quarter of 2004. For the year, US Unwired posted a consolidated Net Loss of $130.2 million on $594.8 million of consolidated revenue and generated $99.2 million of consolidated Adjusted EBITDA.
    On January 4, 2005, IWO Holdings, Inc. ("IWO") and each of its subsidiaries filed a "pre-packaged" plan of reorganization with the United States Bankruptcy Court for the District of Delaware which would eliminate US Unwired's ownership of IWO and IWO's $355 million of debt on US Unwired's consolidated financial statements. The Court confirmed the plan yesterday. The following financial presentation excludes the results, assets and liabilities of IWO; the tables at the end of this release, however, present US Unwired's results both including and excluding the operations of IWO.

US UNWIRED OPERATIONS EXCLUDING IWO HOLDINGS HIGHLIGHTS: ($000) 3 months ended 12/31 12 months ended 12/31 ---------------------- ----------------------- 2004 2003 2004 2003 ---------------------- ----------------------- Total Revenues $107,936 $96,130 $417,554 $372,868 Net Loss(a) (29,301) (33,186) (130,226) (156,985) Adjusted EBITDA(b) 16,327 16,684 78,393 47,802 Capital Expenditures 7,021 2,133 23,646 17,268

3 months ended 12/31 12 months ended 12/31 ---------------------- ----------------------- 2004 2003 2004 2003 ---------------------- ----------------------- Ending Subscribers 469,531 401,541 469,531 401,541 Net Sub. Additions 20,076 16,714 70,982 44,070 Churn 3.3% 3.5% 3.2% 3.6% ARPU (with roaming) $73.34 $75.67 $74.40 $76.06

(a) Net Loss includes IWO Holdings on an equity basis. (b) See attached table.

    For the fourth quarter of 2004, US Unwired excluding the operations of IWO Holdings, ("the Company") reported a Net Loss of $29.3 million and Adjusted EBITDA of $16.3 million on revenues of $107.9 million. For the full year of 2004, the Company's Net Loss was $130.2 million, while Adjusted EBITDA and revenues were $78.4 million and $417.6 million, respectively.
    "Our Company finished the year with an exceptionally strong quarter, particularly in sales, where we tripled last quarter's net subscriber additions. The 20,076 net new customers added during the quarter capped a strong year during which we increased our subscriber base by 17%. This feat is even more impressive given that our cost per gross subscriber addition was only $333 for the fourth quarter and even less for the full year. Additionally, our CDMA network continues to show its superiority in design as our dropped and blocked calls fell to an all-time low of 1.3% and 1.4%, respectively, during the final period of the year," said Robert Piper, US Unwired's President and Chief Executive Officer.
    For the fourth quarter of 2004, monthly average minutes of use per subscriber were 1,011 with roaming and 780 without roaming, while total system minutes of use were approximately 1.5 billion, including 464 million roaming minutes. For the full year, monthly average minutes of use per subscriber were 982 with roaming and 742 without roaming, and total system minutes of use were approximately 5.7 billion, including 1.8 billion roaming minutes.
    In the fourth quarter, US Unwired redeemed $41.1 million aggregate face amount of its 13 3/8% Senior Subordinated Discount Notes due 2009. The redemption finalized a series of transactions competed throughout 2004 that collectively eliminated approximately $22 million of interest expense annually. At December 31, 2004, the Company had cash of approximately $80.4 million.

    Certain Lease Issues

    Like many other publicly traded companies, US Unwired is reviewing its accounting practices with respect to lease accounting. Historically, when accounting for operating leases with escalation provisions, the Company has recorded lease expense at the current rate specified in the lease. The Company has re-evaluated its position and has determined that its operating leases should be recognized on a straight line-basis over the term of the lease. The Company is currently determining the financial effect of straight-lining its operating leases, and, if material, will adjust prior period financial statements. For the year ended December 31, 2004, the Company estimates the impact to US Unwired on a consolidated basis to be a decrease of $0.7 million in cost of service and net loss and to US Unwired, excluding the operations of IWO Holdings, to be a decrease of $1.2 million in cost of service and net loss.
    The review is being undertaken in consultation with the company's audit committee of the board of directors and its independent public accounting firm, Ernst & Young LLP. As the adjustment relates solely to accounting treatment, it does not affect US Unwired's historical or future cash flows or the timing of payments under the related leases. The review is not attributable to any material non-compliance by the company with any financial reporting requirement under the federal securities laws.
    US Unwired will hold a conference call to discuss this press release at 10:00 a.m. Eastern Time on February 11, 2005. An online replay will be available approximately one hour following the conclusion of the live broadcast and will continue through February 25, 2005. Links to these events can be found at the Company's web site at http://www.usunwired.com. If Internet access is unavailable, investors and other interested parties may listen to the teleconference by calling 888-694-4641. The teleconference will be available for replay until February 18, 2005, by calling 973-341-3080, and entering 5610577 when prompted for the pin number.

    About US Unwired

    US Unwired Inc., headquartered in Lake Charles, La., holds direct or indirect ownership interests in four PCS affiliates of Sprint: Louisiana Unwired, Texas Unwired, Georgia PCS and Gulf Coast Wireless. Through Louisiana Unwired, Texas Unwired and Georgia PCS, US Unwired is authorized to build, operate and manage wireless mobility communications network products and services under the Sprint brand name in 48 markets, currently serving approximately 470,000 PCS customers. US Unwired's PCS territory includes portions of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, Tennessee and Texas. For more information on US Unwired, visit the company's web site at http://www.usunwired.com. US Unwired is traded on the OTC Bulletin Board under the symbol "UNWR".

    About Sprint

    Sprint offers an extensive range of innovative communication products and solutions, including global IP, wireless, local and multiproduct bundles. A Fortune 100 company with more than $27 billion in annual revenues in 2004, Sprint is widely recognized for developing, engineering and deploying state-of-the-art network technologies, including the United States' first nationwide all-digital, fiber-optic network; an award-winning Tier 1 Internet backbone; and one of the largest 100-percent digital, nationwide wireless networks in the United States. For more information, visit www.sprint.com/mr.
    This press release may contain forward-looking statements. Forward-looking statements are statements about current and future business strategy, operations, capabilities, construction plan, construction schedule, financial projections, plans and objectives of management, expected actions of third parties and other matters. Forward-looking statements often include words like believes, belief, expects, plans, anticipates, intends, projects, estimates, may, might, would, or similar words. Forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Since these forward looking statements are based on factors that involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. Such factors include: the competitiveness of and the financial impact of Sprint wireless pricing plans, products and services; the ability of Sprint to provide back office, customer care and other services; consumer purchasing patterns; potential fluctuations in quarterly results; an adequate supply of subscriber equipment; risks related to our ability to compete with larger, more established businesses; rapid technological and market change; risks related to future growth and expansion; the potential need for additional capital; future losses; the significant level of indebtedness of US Unwired; and volatility of US Unwired's stock price. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from those contained in this press release, please refer to Items 1, 7 and 7A of US Unwired's Form 10-K for the year ended December 31, 2003, and Items 2 and 5 ("Risk Factors") of US Unwired's Form 10-Q for the period ended June 30, 2004, as filed with the Securities and Exchange Commission.
    US Unwired does not undertake to update or revise any forward-looking statement contained herein.

US UNWIRED INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited)

Three-Month Periods Ended Years Ended December 31, December 31, --------------------- --------------------- 2004 2003 2004 2003 ---------- ---------- ---------- ---------- Revenue: Subscriber $110,676 $95,251 $429,648 $381,558 Roaming 35,324 35,745 135,300 128,553 Merchandise sales 6,156 6,516 28,081 23,224 Other revenue 408 524 1,809 2,416 ---------- ---------- ---------- ---------- Total revenue 152,564 138,036 594,838 535,751 Operating expense: Cost of service 82,087 73,744 310,725 306,223 Merchandise cost of sales 14,818 16,777 56,696 46,367 General and administrative 11,602 4,649 35,667 31,378 Sales and marketing 27,158 24,252 92,142 90,211 Non-cash stock compensation 104 221 375 2,404 Depreciation and amortization 22,835 30,122 95,192 119,188 IWO asset abandonment charge - (324) - 12,079 ---------- ---------- ---------- ---------- Total operating expense 158,604 149,441 590,797 607,850 ---------- ---------- ---------- ---------- Operating income (loss) (6,040) (11,405) 4,041 (72,099) Other income (expense): Interest expense (18,957) (25,161) (86,901) (90,815) Gain (loss) on sale of assets (1,117) 34 (1,841) 12 Loss on extinguishment of debt (3,365) - (62,342) - ---------- ---------- ---------- ---------- Total other expense (23,439) (25,127) (151,084) (90,803) ---------- ---------- ---------- ---------- Loss from continuing operations before income taxes and equity in losses of unconsolidated affiliates (29,479) (36,532) (147,043) (162,902) Income tax benefit - (531) - (531) ---------- ---------- ---------- ---------- Loss from continuing operations before equity in losses of unconsolidated affiliates (29,479) (36,001) (147,043) (162,371) Equity in income (losses) of unconsolidated affiliates (9) 2,720 215 2,911 ---------- ---------- ---------- ---------- Loss from continuing operations (29,488) (33,281) (146,828) (159,460) Discontinued operations: Gain on disposal of discontinued operations 187 - 16,318 - Income from discontinued operations - 126 284 2,506 ---------- ---------- ---------- ---------- 187 126 16,602 2,506 ---------- ---------- ---------- ---------- Net loss $(29,301) $(33,155) $(130,226) $(156,954) ========== ========== ========== ==========

Basic and diluted loss per share Continuing operations $(0.18) $(0.26) $(0.98) $(1.24) Discontinued operations - - 0.11 0.02 ---------- ---------- ---------- ---------- $(0.18) $(0.26) $(0.87) $(1.22) ========== ========== ========== ==========

Weighted average outstanding common shares 163,555 128,832 149,398 128,832 ========== ========== ========== ==========

US UNWIRED INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited)

December 31, ----------------------- Assets: 2004 2003 ----------- ----------- Current assets: Cash and cash equivalents $114,253 $97,193 Restricted cash 80 19,358 Subscriber receivables, net 36,730 28,687 Other receivables 1,582 2,625 Inventory 5,069 5,615 Prepaid expenses and other assets 14,963 14,833 Receivables from related parties - 647 Receivables from officers 156 85 Current assets related to discontinued operations - 1,049 ----------- ----------- Total current assets 172,833 170,092

Property and equipment, net 357,491 411,518 Goodwill 46,705 46,705 Intangibles, net 30,424 40,785 Notes receivable from unconsolidated affiliates - 1,887 Other assets 32,992 42,571 Non-current assets related to discontinued operations - 4,770 ----------- ----------- Total assets $640,445 $718,328 =========== ===========

Liabilities and stockholders' deficit: Current liabilities: Accounts payable $67,263 $41,377 Accrued expenses 85,276 77,137 Current maturities of long term debt, including IWO debt in default 355,765 362,842 Current liabilities related to discontinued operations - 49 ----------- ----------- Total current liabilities 508,304 481,405

Long term debt, net of current maturities 364,351 434,745 Deferred gain 28,111 30,729 Investments in and advances to unconsolidated affiliates 2,467 1,216

Stockholders' deficit: Common stock 1,637 1,288 Additional paid in capital 751,576 654,899 Retained deficit (1,015,991) (885,765) Treasury stock (10) (10) Promissory note - (179) ----------- ----------- Total stockholders' deficit (262,788) (229,767)

----------- ----------- Total liabilities and stockholders' deficit $640,445 $718,328 =========== ===========

US UNWIRED INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

Years Ended December 31, ------------------- 2004 2003 --------- --------- Cash flows from operating activities: Net cash provided by operating activities $63,345 $60,641

Cash flows from investing activities: Proceeds from sale of assets 43,344 350 Investments in unconsolidated affiliates (1,298) - Distribution from unconsolidated affiliates 2,451 250 Payments for the purchase of equipment (35,529) (30,486) Release of restricted cash 19,279 21,859 --------- --------- Net cash provided by (used in) investing activities 28,247 (8,027)

Cash flows from financing activities: Proceeds from long-term debt 360,232 - Proceeds from exercised options 438 - Principal payments of long-term debt (422,634) (14,718) Debt issuance costs (12,568) (2,688) --------- --------- Net cash used in financing activities (74,532) (17,406) --------- ---------

Net increase in cash and cash equivalents 17,060 35,208

Cash and cash equivalents at beginning of period 97,193 61,985 --------- --------- Cash and cash equivalents at end of period $114,253 $97,193 ========= =========

US UNWIRED AND SUBSIDIARIES SELECTED OPERATING METRICS

3 Month Periods Ended 12/31 Years Ended 12/31 ------------------- ------------------- 2004 2003 2004 2003 --------- --------- --------- --------- Subscribers Gross Additions 99,867 88,107 364,116 316,100 Net Additions 26,729 22,089 93,382 59,246 Total Subscribers 706,942 617,813 706,942 617,813 Resale Subscribers 189,930 88,219 189,930 88,219 Churn 3.2% 3.4% 3.1% 3.4%

Average Revenue Per User, Monthly Including Roaming $70.17 $71.96 $71.30 $72.27 Without Roaming 53.19 52.33 54.23 54.06

Cost Per Gross Addition 359 391 332 358

Average Monthly Minutes of Use Per Subscriber Home 717 590 680 568 Roaming 210 192 218 179

System Minutes of Use (Millions) Subscriber 1,492 1,074 5,385 4,012 Roaming 641 512 2,492 1,771

Licensed POPs (Millions) 17.6 17.6 17.6 17.6 Covered POPs (Millions) 12.9 12.8 12.9 12.8 Cell Sites 1,945 1,878 1,945 1,878

CONDENSED STATEMENTS OF OPERATIONS OF US UNWIRED, EXCLUDING THE OPERATIONS OF IWO (In thousands, except per share data) (Unaudited)

Three-Month Periods Ended Years Ended December 31, December 31, --------------------- --------------------- 2004 2003 2004 2003 ---------- ---------- ---------- ---------- Revenue: Subscriber $75,202 $63,308 $289,778 $252,830 Roaming 25,896 25,947 97,738 93,541 Merchandise sales 4,057 4,448 19,208 16,177 Other revenue 2,781 2,427 10,830 10,320 ---------- ---------- ---------- ---------- Total revenue 107,936 96,130 417,554 372,868 Operating expense: Cost of service 57,499 49,500 214,327 205,427 Merchandise cost of sales 9,894 11,575 38,665 33,006 General and administrative 6,556 3,209 25,356 25,628 Sales and marketing 17,556 14,941 60,438 58,601 Non-cash stock compensation 104 221 375 2,404 Depreciation and amortization 15,477 16,238 59,976 64,553 ---------- ---------- ---------- ---------- Total operating expense 107,086 95,684 399,137 389,619 ---------- ---------- ---------- ---------- Operating income (loss) 850 446 18,417 (16,751) Other income (expense): Interest expense (8,408) (13,640) (47,674) (50,634) Gain (loss) on sale of assets (1,117) 3 (1,757) 12 Loss on extinguishment of debt (3,365) - (62,342) - ---------- ---------- ---------- ---------- Total other expense (12,890) (13,637) (111,773) (50,622) ---------- ---------- ---------- ---------- Loss from continuing operations before income taxes and equity in losses of unconsolidated affiliates (12,040) (13,191) (93,356) (67,373) Income tax benefit - (531) - (531) ---------- ---------- ---------- ---------- Loss from continuing operations before equity in losses of unconsolidated affiliates (12,040) (12,660) (93,356) (66,842) Equity in losses of unconsolidated affiliates, including IWO (17,448) (20,652) (53,472) (92,649) ---------- ---------- ---------- ---------- Loss from continuing operations (29,488) (33,312) (146,828) (159,491) Discontinued operations: Gain on disposal of discontinued operations 187 - 16,318 - Income from discontinued operations - 126 284 2,506 ---------- ---------- ---------- ---------- 187 126 16,602 2,506 ---------- ---------- ---------- ---------- Net loss $(29,301) $(33,186) $(130,226) $(156,985) ========== ========== ========== ==========

Basic and diluted loss per share Continuing operations $(0.18) $(0.26) $(0.98) $(1.24) Discontinued operations - - 0.11 0.02 ---------- ---------- ---------- ---------- $(0.18) $(0.26) $(0.87) $(1.22) ========== ========== ========== ==========

Weighted average outstanding common shares 163,555 128,832 149,398 128,832 ========== ========== ========== ==========

CONDENSED BALANCE SHEETS OF US UNWIRED, EXCLUDING THE OPERATIONS OF IWO (Unaudited)

As of December 31, ----------------------- Assets: 2004 2003 ----------- ----------- Current assets: Cash and cash equivalents $80,413 $64,856 Subscriber receivables, net 25,349 18,749 Other receivables 1,437 2,477 Inventory 3,683 3,996 Prepaid expenses and other assets 8,049 9,114 Receivables from related parties 471 686 Receivables from officers 156 85 Current assets related to discontinued operations - 1,049 ----------- ----------- Total current assets 119,558 101,012

Property and equipment, net 206,170 245,615 Goodwill 46,705 46,705 Intangible assets, net 13,093 15,143 Notes receivable from unconsolidated affiliates - 1,887 Other assets 19,349 26,031 Non-current assets related to discontinued operations - 4,770 ----------- ----------- Total assets $404,875 $441,163 =========== ===========

Liabilities and stockholders' deficit Current liabilities: Accounts payable $43,648 $24,298 Accrued expenses 44,942 38,886 Current maturities of long term debt 490 11,145 Current liabilities related to discontinued operations - 49 ----------- ----------- Total current liabilities 89,080 74,378

Long term debt, net of current maturities 364,351 434,745 Deferred gain 27,502 29,836 Investments in and advances to unconsolidated affiliates, including IWO 186,955 132,016

Stockholders' deficit: Common stock 1,637 1,288 Additional paid in capital 751,382 654,705 Retained deficit (1,016,022) (885,795) Treasury stock (10) (10) ----------- ----------- Total stockholders' deficit (263,013) (229,812)

----------- ----------- Total liabilities and stockholders' deficit $404,875 $441,163 =========== ===========

CONDENSED STATEMENTS OF CASH FLOW OF US UNWIRED, EXCLUDING THE OPERATIONS OF IWO (Unaudited)

Years Ended December 31, ------------------- 2004 2003 --------- ---------

Cash flows from operating activities: Net cash provided by operating activities $71,213 $71,953

Cash flows from investing activities: Proceeds from sale of assets 43,185 350 Investments in unconsolidated affiliates (1,298) - Distribution from unconsolidated affiliates 2,451 250 Payments for the purchase of equipment (23,646) (17,268) --------- --------- Net cash provided by (used in) investing activities 20,692 (16,668)

Cash flows from financing activities: Proceeds from long-term debt 358,416 - Proceeds from exercised options 438 - Principal payments of long-term debt (422,634) (14,718) Debt issuance costs (12,568) (2,688) --------- --------- Net cash used in financing activities (76,348) (17,406)

Net increase in cash and cash equivalents 15,557 37,879

Cash and cash equivalents at beginning of period 64,856 26,977 --------- --------- Cash and cash equivalents at end of period $80,413 $64,856 ========= =========

US UNWIRED, EXCLUDING THE OPERATIONS OF IWO SELECTED OPERATING METRICS

3 Month Period Ended 12/31 Year Ended 12/31 ----------------- ----------------- 2004 2003 2004 2003 -------- -------- -------- -------- Subscribers Gross Additions 70,013 60,740 255,576 219,317 Net Additions 20,076 16,714 70,982 44,070 Total Subscribers 469,531 401,541 469,531 401,541 Resale Subscribers 98,795 42,968 98,795 42,968 Churn 3.3% 3.5% 3.2% 3.6%

Average Revenue Per User, Monthly Including Roaming $73.34 $75.67 $74.40 $76.06 Without Roaming 54.55 53.67 55.64 55.52

Cost Per Gross Addition 333 357 311 338

Average Monthly Minutes of Use Per Subscriber Home 780 644 742 620 Roaming 230 210 241 196

System Minutes of Use (Millions) Subscriber 1,076 760 3,863 2,822 Roaming 464 366 1,789 1,276

Licensed POPs (Millions) 11.3 11.3 11.3 11.3 Covered POPs (Millions) 8.1 8.1 8.1 8.1 Cell Sites 1,224 1,197 1,224 1,197

    Definition of Performance Measurements and Metrics (Non-GAAP Terms)

    The wireless telecommunications industry uses terms such as subscriber additions, average revenue per user, churn and cost per gross addition as performance measurements or metrics. None of these terms are measures of financial performance under accounting principles generally accepted in the United States ("GAAP"). When we use these terms, they may not be comparable to similar terms used by other wireless telecommunications companies.
    Subscribers. We refer to our customers as "subscribers". Gross additions refer to the total number of new subscribers added during the period. Net additions refer to the total number of new subscriber additions during the period reduced by any subscribers that have cancelled or terminated their service with us during this same period.
    Reseller Subscribers. We participate in a reseller program in our service area through Sprint PCS as part of the partnership between Sprint PCS and Virgin Mobile USA, LLC ("Virgin"). The agreement allows Virgin to sell prepaid wireless services and pay us for use of our network on a per minute basis.
    Churn. Churn is the monthly rate of customer turnover expressed as a percentage of our overall average customers for the reporting period. Customer turnover includes both customers that elected voluntarily to not continue using our service and customers that were involuntarily terminated from using our service because of non-payment. Churn is calculated by dividing the sum of (i) the number of customers that discontinue service; (ii) less those customers discontinuing their service within 30 days of their original activation date; and, (iii) adding back those customers that reactivate their service, by our overall average customers for the reporting period; and dividing the result by the number of months in the period.
    Average Revenue per User. Average revenue per user ("ARPU") is the average monthly service revenue per subscriber and is calculated by dividing total subscriber revenue for the period by the average number of subscribers during the period. We present ARPU excluding and including roaming revenue.
    Cost per Gross Addition. Cost per gross addition ("CPGA") summarizes the average cost to acquire new customers during the reporting period. CPGA is computed by adding sales and marketing expenses and merchandise cost of sales and reducing the amount by the revenue from merchandise sales. The net amount is divided by the number of total new subscriber gross additions for the period.
    Average Monthly Minutes of Use per Subscriber. We calculate average monthly minutes of use ("MOUs) per subscriber to provide us with an indication of the effectiveness of our basic service plans. We calculate average monthly MOUs per subscriber by dividing total subscriber minutes with and without roaming by the average number of our subscribers. System Minutes of Use
    System Minutes of Use. System Minutes of Use ("MOUs") provide an indication of total network ("system") usage. We track and evaluate system usage for our subscribers as well as other Sprint PCS, Sprint PCS affiliates and non-Sprint PCS subscribers using our system in order to assess network capacity.
    Licensed/Covered POPs. Licensed POPs means the number of residents in our service area. "Covered POPs" is the number of residents in our service area that have service available as a result of our network build out. The number of people in our service area does not represent the number of Sprint PCS subscribers that we expect to have in our service area.
    EBITDA is an acronym for Earnings before Interest, Taxes, Depreciation and Amortization, although other items in addition to these are sometimes excluded to calculate Adjusted EBITDA. Although EBITDA is not a calculation in accordance with accounting principles generally accepted in the United States (GAAP), we believe that EBITDA is widely used as a measure of operating performance in our industry. Nevertheless, the measure should not be considered in isolation or as a substitute for operating income, cash flows from operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance with GAAP. In addition, since all companies do not calculate EBITDA in the same manner, this measure may not be comparable to similarly titled measures reported by other companies. We believe the nearest comparable GAAP measure to EBITDA is our Net Loss, and we have presented below a reconciliation of the two measures.

US UNWIRED INC. AND SUBSIDIARIES (In thousands)

Three-Month Periods Ended Years Ended December 31, December 31, --------------------- ---------------------- 2004 2003 2004 2003 ---------- ---------- ----------- ---------- (Unaudited) (Unaudited) Adjusted EBITDA $16,795 $18,717 $99,233 $47,089 Depreciation and amortization (22,835) (30,122) (95,192) (119,188) Other income (expense) (23,439) (25,127) (151,084) (90,803) Income tax benefit - 531 - 531 Equity in income (losses) of unconsolidated affiliates (9) 2,720 215 2,911 Income from discontinued operations, net 187 126 16,602 2,506 ---------- ---------- ----------- ---------- Net loss $(29,301) $(33,155) $(130,226) $(156,954) ========== ========== =========== ==========

US UNWIRED, EXCLUDING THE OPERATIONS OF IWO (In thousands)

Three-Month Periods Ended Years Ended December 31, December 31, ------------------- --------------------- 2004 2003 2004 2003 --------- --------- ---------- ---------- (Unaudited) (Unaudited) Adjusted EBITDA $16,327 $16,684 $78,393 $47,802 Depreciation and amortization (15,477) (16,238) (59,976) (64,553) Other income (expense), net (12,890) (13,637) (111,773) (50,622) Income tax benefit - 531 - 531 Equity in income (losses) of unconsolidated affiliates, including IWO (17,448) (20,652) (53,472) (92,649) Income from discontinued operations, net 187 126 16,602 2,506 Net loss $(29,301) $(33,186) $(130,226) $(156,985) ========= ========= ========== ==========

--30--JS/na*

CONTACT: US Unwired Inc., Lake Charles Investor Relations: Ed Moise, 337-310-3500

KEYWORD: ARKANSAS MISSISSIPPI ALABAMA TEXAS TENNESSEE LOUISIANA OKLAHOMA GEORGIA FLORIDA INDUSTRY KEYWORD: TELECOMMUNICATIONS EARNINGS CONFERENCE CALLS SOURCE: US Unwired Inc.

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