Leap Wireless International, Inc. (NASDAQ:LEAP), a leading provider of innovative and value-driven wireless communications services, announced that its wholly owned subsidiary, Cricket Communications, Inc. (Cricket), today completed the previously announced acquisition of the remaining 17.5% controlling membership interest that it did not own in Denali Spectrum, LLC (Denali), thus providing Cricket with ownership and control of Denali’s Chicago and Southern Wisconsin markets. Cricket acquired the remaining interest from Denali Spectrum Manager, LLC (DSM) for approximately $53 million in cash and a five-year $45.5 million promissory note. In connection with the acquisition, Cricket paid approximately $11 million to the FCC in unjust enrichment payments. As a result of the acquisition, Denali and its subsidiaries became wholly owned subsidiaries of Cricket.

Leap also announced today that, immediately prior to the acquisition by Cricket of the remaining 17.5% controlling membership interest that it did not own in Denali, Denali completed the contribution of its wireless spectrum outside its Chicago and Southern Wisconsin operating markets and a related spectrum lease to Savary Island Wireless, LLC (Savary Island), a newly formed venture, in exchange for an 85% non-controlling membership interest. Savary Island obtained these licenses as a "very small business" designated entity under applicable FCC rules. Denali retained the wireless spectrum and assets relating to its Chicago and Southern Wisconsin operating markets. Ring Island Wireless, LLC (Ring Island) contributed cash to the venture in exchange for a 15% controlling membership interest. In connection with Denali’s contribution to Savary Island, Savary Island assumed $211.6 million of the outstanding senior secured debt owed by Denali to Cricket. At the closing, Savary Island also entered into a management services agreement with Cricket, pursuant to which Cricket has agreed to provide management and administrative services to Savary Island and its subsidiaries. As result of these transactions, DSM has ceased to own any direct or indirect equity interests in Denali or Savary Island and has no management of either enterprise.

About Leap

Leap provides innovative, high-value wireless services to a young and ethnically diverse customer base. With the value of unlimited wireless services as the foundation of its business, Leap pioneered its Cricket® service. The Company and its joint ventures operate in 35 states and hold licenses in 35 of the top 50 U.S. markets. Through its affordable, flat-rate service plans, Cricket offers customers a choice of unlimited voice, text, data and mobile Web services. Headquartered in San Diego, Calif., Leap is traded on the NASDAQ Global Select Market under the ticker symbol "LEAP." For more information, please visit www.leapwireless.com.

Leap is a registered service mark of Leap Wireless International, Inc. Cricket is a registered trademark of Cricket Communications, Inc.

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