American Mobile Satellite Corporation has completed its acquisition of ARDIS Company, which owns and operates the nation's largest terrestrial, two-way wireless data communications network. With the merger, American Mobile is positioned to leverage an integrated terrestrial and satellite network to advance its leadership in wireless data services.

The combined company serves more than 80,000 subscribers, and has annual

service revenue in excess of $60 million. The new American Mobile has proven

nationwide wireless communications services, including data and voice dispatch communications for the transportation, field services, maritime and emergency response markets, as well as two-way messaging, and telemetry services.

"This transaction solidifies our position as a single-source for a broad

range of cost-effective nationwide wireless communications services," said

President Walt Purnell. "It represents the culmination of a long-term

partnership between ARDIS and American Mobile, and enables us to provide the

first fully-deployed and owned terrestrial/satellite network that provides

complete U.S. coverage. We have the expertise, products and financial strength to leverage our integrated network to meet accelerating market demand for wireless communications services."

Walt Purnell, formerly president and chief executive officer of ARDIS, was

named president of American Mobile. Purnell joined ARDIS as chief financial

officer in 1990 and was named president in 1995. Gary Parsons, previously

president of American Mobile, continues as chief executive and becomes

chairman of the board, while former board Chairman Jack Shaw continues to

serve as a director of the company and chairman of the executive committee.

In a simultaneous transaction, the company closed a $335 million high

yield debt offering that consists of 335,000 units of 12/ percent senior notes due 2008 and warrants to purchase 1.26 million shares of the company's common stock at an exercise price of $12.51.

The offering was made pursuant to regulation 144A in the private market,

with proceeds used to fund the cash portion of the ARDIS acquisition, pay down the company's existing debt, purchase a portfolio of government securities sufficient to fund three years of interest payments, and provide for the working capital needs of the company.

"We are clearly pleased with the successful financing and the strategic

position of the combined company," said Gary Parsons. "The strength of the

combined network technologies, customer base and market strategy was

recognized by the bond investors, and Wall Street in general."

Also completed today was a restructuring of the company's existing $200

million guaranteed bank financing. The new facility is underwritten by Morgan Guaranty Trust Company, Toronto Dominion Bank and Bank of America NT&SA, and is guaranteed by Hughes Electronics Corporation, Singapore Telecommunications Ltd. and Baron Capital Partners, L.P., three of the company's largest shareholders.