AirGate PCS Inc. –

ATLANTA – AirGate PCS Inc., a regional wireless carrier, went public September 28, offering 6.7 million shares of stock at $17 apiece. The company’s stock priced above its $14 to $16 filing range.

Underwritten by Donaldson, Lufkin & Jenrette, Credit Suisse First Boston and The Robinson-Humphrey Co., the initial public offering left 11 million shares of stock outstanding.

There were no selling shareholders. Venture backers included Maxicom PCS, Weiss, Peck & Greer Venture Partners, JAFCO America Ventures Inc. and Robert Gourlay & Associates.

AirGate PCS (personal communications services) will be the exclusive Sprint PCS regional wireless carrier in most of South Carolina, parts of North Carolina and eastern Georgia. The company expects to be the second largest Sprint PCS affiliate in the United States.

AirGate plans to use the expected $104.9 million generated from the IPO for capital expenditures, including the build-out of its PCS network and for repaying debt.

AirGate has never been profitable, losing $2.9 million in 1997 and $5.2 million in 1998.

Robert Gourlay, a general partner at Robert Gourlay, is the company’s vice president of marketing, and Gill Cogan, managing partner at Weiss Peck, is on the company’s board of directors. Barry Schiffman, president, chief investment officer and member of the board at JAFCO, is a director and the company’s chairman of the board.


AirGate PCS – Selected Financial

(in thousands, except per share data)

June 15, 1995 (inception) Year Ended December 31 Six Months Ended June 30

to December 31, 1995 1996 1997 1998 1998 1999

Net loss -1,693 -1,853 -2,916 -5,192 -2,355 -7,765

Net loss per share -0.5 -0.55 -0.86 -1.54 -0.7 -2.3