The towers are strategically located throughout Mexico and cover
approximately 95% of the population, including highly populated cities
such as Mexico City, Monterrey, Guadalajara, Acapulco and Cancun. The
towers are structurally designed to accommodate additional broadcast
antennas and have significant capacity for cellular, PCS, paging,
microwave back-haul and other telecommunications providers.
"This is an exciting deal for American Tower as it provides us
with a significant foundation upon which to establish ourselves in
Mexico, and it represents our first significant foray outside of the
U.S.," stated Steve Dodge, Chairman and Chief Executive Officer of
American Tower. "With over 100 million people and the second largest
economy in South and Central America, Mexico's wireless market has
strong growth potential, and we plan to continue to look for
additional opportunities to expand our presence in this country."
Michael Gearon Jr., Executive Vice President and Director of
American Tower, added, "This agreement with TV Azteca provides
American Tower with a portfolio of towers that are ideally suited for
broadcasters and wireless carriers as they build their networks. These
towers have not been marketed in the past and have tremendous capacity
and upside for revenue growth."
"This transaction will greatly benefit TV Azteca since it allows
us to leverage our assets and use our capital more efficiently. We
will use the financial resources generated by this transaction to
repay short term debt, thereby strengthening our balance sheet," said
Ricardo Salinas, Chairman and Chief Executive Officer of TV Azteca.
"This agreement also marks the beginning of what I know will be a
long-lasting, strategic relationship with American Tower. We are
extremely proud to participate in the first major transaction of this
type in Mexico."
TV Azteca is one of two broadcast television companies in Mexico,
operating two national television networks (Azteca 13 and Azteca 7),
through more than 250 owned-and-operated stations located throughout
Mexico. TV Azteca also operates national broadcast television networks
in Costa Rica and El Salvador.
American Tower is the leading independent owner, operator and
developer of broadcast and wireless communications sites in North
America. Giving effect to this and other pending transactions,
American Tower operates approximately 9,400 towers in the United
States and Mexico, including more than 8,300 owned or leased towers
and over 1,100 managed sites. Giving effect to this and other pending
transactions, American Tower's portfolio includes over 195 broadcast
tower sites in the U.S. and approximately 200 broadcast tower sites in
Mexico. Based in Boston, American Tower has a U.S. footprint of
approximately 9,200 sites, with regional hub offices in Boston,
Atlanta, Chicago, Houston and San Francisco. Through its wholly owned
subsidiary, ATC Teleports, Inc., American Tower also owns and
operates, giving effect to pending transactions, over 110 satellite
antennas in various locations across the United States. For more
information about American Tower Corporation and ATC Teleports, please
visit our web sites www.americantower.com and www.atcteleports.com.
This press release contains "forward-looking statements"
concerning future expectations, plans or strategies that involve a
number of risks and uncertainties. The Company wishes to caution
readers that certain factors may have affected the Company's actual
results and could cause results for subsequent periods to differ
materially from those expressed in any forward-looking statement made
by or on behalf of the Company. Such factors include, but are not
limited to (i) substantial capital requirements and leverage
principally as a consequence of its ongoing acquisitions and
construction activities, (ii) dependence on demand for wireless
communications, use of satellites for internet data transmission, and
implementation of digital television, (iii) the success of the
Company's tower construction program and (iv) the successful
operational integration of the Company's business acquisitions. The
Company undertakes no obligation to update forward-looking statements
to reflect subsequently occurring events or circumstances.
--30--sg/bos*
CONTACT: American Tower
Investors - Anne Alter, (617) 375-7500
or
Media - Michael Gearon, (770) 953-9400
KEYWORD: MASSACHUSETTS INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS ENTERTAINMENT
INTERACTIVE/MULTIMEDIA/INTERNET TELECOMMUNICATIONS