Pegasus Tower Company, Ltd. Raises $20 Million in Equity for New Partnership
 

Friday June 2

RICHLANDS, Virginia. – June 2, 2006 - Pegasus Tower Company, Ltd, a Richlands, Virginia based wireless tower developer and manager, announced the formation of a strategic partnership with Peppertree Capital Fund LP and Primus Capital Fund V, both of Cleveland, Ohio. The two investment firms have committed $20 million in equity to finance this joint venture arrangement. Pegasus Tower Development Company, LLC will fund wireless communication sites developed and acquired throughout the United States.
 

“This partnership further strengthens our market position as a leading tower developer,” remarked Gary Hearl, President and CEO of Pegasus Tower Company LTD. Pegasus Tower Company is the development and operating arm of the joint venture. “Our pipeline of site opportunities provides the basis for achieving our partners’ goal to build a substantial portfolio,” Hearl added. The venture already has begun development of its first towers. Prior to the new partnership, Pegasus had developed over 80 new wireless communication sites.
 

Hearl founded Pegasus in 1999 to develop, acquire, and manage wireless telecommunications structures. Pegasus currently oversees a sizeable inventory of wireless locations and alternate communications structures over a 31 state area.

“This new funding will allow Pegasus to respond to the ongoing tower site development needs of wireless carriers whose objectives are to improve and expand their network coverage,” stated Jeff Milius, Managing Director of Peppertree. “Increased wireless voice and data demand is driving significant carrier capital spending and investment in their wireless networks and infrastructure.”

Jonathan Simmons, Vice President and Chief Financial Officer of Pegasus Tower Company noted, “This new partnership and the substantial capital it brings to bear for developing a quality and sizable portfolio of towers means a significant step forward for Pegasus. Our financial partners also possess considerable experience in the tower and wireless industries. Therefore, their commitment to provide such financial resources to accomplish the joint venture’s goal is a real testament to Pegasus Tower Company, itself.”

Tony Parisi, Director of the financial advisory firm, Fairmount Partners, commented, “This partnership is an exciting initiative that combines the development expertise, customer focus, and entrepreneurial drive of Pegasus Tower with the wireless and tower industry acumen and financial wherewithal of Peppertree and Primus.”

Jeff Mitchell of LeClair Ryan represented Pegasus as legal counsel. Mr. Mitchell is a resident in the firm’s Blacksburg, Virginia office. Pegasus was also represented in this transaction by Philadelphia, Pennsylvania area firms Fairmount Partners, as its financial advisor, and The Keystone Equities Group, as placement agent. The Keystone Equities Group is a member of the NASD and SIPC.
 

About Primus
Founded in 1983, Primus is a Cleveland, Ohio based private equity firm focused on established companies with exceptional growth potential. Primus has raised a total of $620 million across five private equity funds and has invested in over 120 companies since its inception. Six director-level investment professionals, who collectively have over 90 years of private equity experience, manage their current $280 million fund, Primus Capital Fund V.
 

About Peppertree Capital
Peppertree Capital is a private equity fund focused on later stage growth equity, recapitalization and buyout opportunities in the media, telecommunications and business services industries. Peppertree is based in Cleveland, Ohio and has an office in Dallas, Texas.

About Pegasus Tower Company, LTD

Pegasus Tower is a privately-held tower company focused on the development, operation, management, and ownership of wireless communication towers. Pegasus, founded in 1999, is located in Richlands, Virginia.
 

Principals of Fairmount Partners acted as advisors to Pegasus Tower Company in this transaction.