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Press Release -- July 17th, 2012
Source: FiberTower
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FiberTower Corporation to Eliminate Long-term Debt Through Chapter 11 Re-organization

SAN FRANCISCO, July 17, 2012 /PRNewswire/ -- FiberTower Corporation (OTC:FTWRQ), and certain of its wholly-owned subsidiaries: FiberTower Network Services Corp., FiberTower Licensing Corp., and FiberTower Spectrum Holdings, LLC (collectively, the "Company" or "FiberTower") filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.  The filing, which was made in U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth division, includes a proposed plan of reorganization for FiberTower.

The proposed plan of reorganization will eliminate the Company's long-term debt enabling the Company to emerge from bankruptcy as a stronger business.  The proposed plan reorganizes FiberTower around its restructured legacy backhaul network as well as two other business lines - - spectrum services and carrier services.  FiberTower has taken these steps after evaluating various strategic and financial alternatives and determining that reorganizing under Chapter 11 is in the best long-term interests of the Company, its customers, employees, creditors, business partners and other stakeholders.  The proposed plan of reorganization is supported by an ad hoc group of holders of the Company's secured debt (the "Ad Hoc Group") pursuant to a plan support agreement.

During the Chapter 11 process, the Company intends to run "business as usual" and will: (i) operate its backhaul network; (ii) pay "post-petition" vendors, suppliers and other business partners for goods and services provided; and (iii) pay employees' wages and salaries and maintain current medical, dental, life insurance, disability and other benefits.   The Company has reached a consensual agreement with the Ad Hoc Group to use cash collateral.  In addition, the Company filed a variety of "first day motions" to support its employees, customers, vendors and other stakeholders; to maintain existing cash management programs; to retain legal and other professionals; and to support the Company's reorganization case.

The Company is issuing unaudited summarized financial statements for the periods ending December 31, 2011 and June 30, 2012.  Those summarized financial statements are included at the end of this press release.

Documents related to the filing may be found at: www.bmcgroup.com/fibertower.

Forward-Looking Statements
This news release includes "forward-looking'" statements, as that term is defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, or SEC, in its rules, regulations and releases.  Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts.  These include statements regarding, among other things, our ability to emerge from bankruptcy as a reorganized company, our future financial performance and results of operations including our financial and business prospects, the deployment of our services, capital requirements, financing prospects, planned capital expenditures, anticipated customer growth, expansion plans, and anticipated cash balances.

There are many risks, uncertainties and other factors that can prevent the achievement of goals or cause results to differ materially from those expressed or implied by these forward-looking statements. These include, among other things, negative cash flows and operating and net losses, additional liquidity requirements, potential loss of significant customers, downturns in the wireless communication industry, regulatory costs and restrictions, potential loss of FCC licenses, equipment supply disruptions and cost increases, competition from alternative backhaul service providers and technologies, along with those risk factors described in the company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.

FiberTower Corporation
Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012
Income Statements
 FY 2011  June 2012 YTD
 Revenue
 Revenue w/o ETLs $ 77,386,864 $        33,384,266
 ETLs 19,898,921 348,767
 Total 97,285,785 33,733,033
 Cost of Service
 Rent 22,007,102 11,065,073
 FSP costs 19,470,693 8,232,788
 Impairments (1) 346,000,250 1,491,251
 Other COS 6,071,868 1,676,687
 Total COS 393,549,913 22,465,799
 SG & A
 fSG&A 24,935,125 2,128,550
 Corporate SG&A 23,397,346 7,904,526
 Retention - 1,526,771
 Stock Comp 3,216,017 247,132
 Total SG&A 51,548,488 11,806,979
 EBITDA
 Adjusted fEBITDA 24,935,125 9,990,843
 Adjusted EBITDA 3,042,934 2,210,065
 EBITDA margin 3.1% 6.6%
 (1) Includes fair value write-down of network assets and spectrum in 2011
 FiberTower Corporation
 Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012
 Reconciliation to Net Income
FY 2011 June 2012 YTD
 Adjusted EBITDA $        3,042,934 $        2,210,065
Stock-based compensation 3,216,017 247,132
Depreciation & amortization 25,352,525 4,963,681
Interest income (97,953) (109,512)
Interest expense 14,119,315 7,464,838
Impairment/USAC 346,534,168 1,491,251
Restructuring Charge 1,492,359 149,708
Income Tax Adjustment (65,565,562) 153,000
Early termination payments (19,898,921) (348,767)
Gain/(Loss) on disposal of assets 28,629 (216,019)
Total adjustments 305,180,577 13,795,312
Net Income $   (302,137,642) $     (11,585,247)
Adjusted Field EBITDA $      24,935,125 $        9,990,843
Corporate SG&A 23,397,346 7,904,526
Stock-based compensation 3,216,017 247,132
Depreciation & amortization 25,352,525 4,963,681
Interest income (97,953) (109,512)
Interest expense 14,119,315 7,464,838
Impairment/USAC 346,534,168 1,491,251
Bad debt expense (12,798) 25,959
Income Tax Adjustment (65,565,562) 153,000
Early termination payments (19,898,921) (348,767)
Gain/(Loss) on disposal of assets 28,629 (216,019)
Total adjustments 327,072,767 21,576,089
Net Income $   (302,137,642) $     (11,585,247)
 FiberTower Corporation
 Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012
 Balance Sheets
  FY 2011  June 2012 YTD
 Assets
 Current assets:
 Cash and cash equivalents $ 26,122,765 $          24,406,664
 Accounts receivable 8,751,635 8,106,081
 Prepaid expenses and other 1,822,199 1,609,052
 Total current assets 36,696,599 34,121,797
 Total fixed assets 45,026,352 38,785,999
 Restricted cash equivalents 6,342,011 4,456,177
 FCC Spectrum Licenses 106,630,000 106,630,000
 Deposits and other long-term assets 4,689,870 4,113,958
 Total assets $199,384,832 $188,107,931
 Liabilities
 Current liabilities:
 Accounts payable and accrued liabilities $9,686,726 $5,015,876
 Accrued interest payable 3,551,109 4,951,757
 Capital lease Obligation - ST 1,213,621 1,143,286
 Total current liabilities 14,451,457 11,110,920
 Long-term liabilities:
 Long-term debt 172,296,441 176,178,844
 Deferred tax liability 6,138,270 6,138,270
 Other long-term liabilities 18,156,525 17,675,874
 Total long-term liabilities 196,591,237 199,992,988
 Total stockholders' equity (11,657,862) (22,995,977)
 Total liabilities and equity $199,384,832 $188,107,931
 FiberTower Corporation
 Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012
 Statement of Cashflows
 FY 2011  June 2012 YTD
 Operating Activities
 Net income/(loss) ($302,137,642) ($11,585,247)
 Depreciation & amortization (97,799,183) 4,880,373
 Accretion expense 8,215,546 3,254,318
 Impairment/USAC 527,399,168 1,491,251
 Stock-based compensation 3,216,017 247,132
 Debt related amortization 85,778
 Deferred tax benefit (65,565,562) -
 Working capital/other (837,745) (1,994,269)
 Net operating cashflow 72,490,599 (3,620,664)
 Investing Activities
 Change in restricted cash 3,648,572 1,885,834
 Property, plant & equipment (71,247,578) 18,729
 Net investing cashflows (67,599,006) 1,904,563
 Financing Activities
 Exercise of stock options & warrants (82,479) -
 Net financing cashflow (82,479) -
 Net change in cash and equivalents 4,809,114 (1,716,101)
 Beginning cash 21,313,651 26,122,765
 Ending cash $   26,122,765 $     24,406,664
 FiberTower Corporation
 Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012
 Debt Summary
 FY 2011  June 2012 YTD
 GAAP
2012 Converts $36,220,209 $37,046,442
2016 Sr Notes 136,076,232 139,132,402
Total $172,296,441 $176,178,844
 Contract Amount
2012 Converts $36,232,902 $37,051,945
2016 Sr Notes 124,215,075 127,941,527
Total $160,447,977 $164,993,472
 Accrued Interest
2012 Converts $1,698,234 $3,043,296
2016 Sr Notes 1,852,875 1,908,461
Total $3,551,109 $4,951,757

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