NTELOS Holdings Corp. Reports Fourth Quarter and Year-End 2012 Operating Results

  NTELOS Holdings Corp. Reports Fourth Quarter and Year-End 2012 Operating
  Results

                 –Quarterly Net Subscriber Additions of 9,300

                 –Quarterly Adjusted EBITDA of $33.0 Million

           –Company Declares Quarterly Dividend of $0.42 Per Share

Business Wire

WAYNESBORO, Va. -- February 28, 2013

NTELOS Holdings Corp. (the “Company,” NASDAQ: NTLS), a leading regional
provider of nationwide wireless voice and data communications and home to the
“best value in wireless,” announced today operating results for its fourth
quarter and year ended December 31, 2012.

Fourth Quarter Highlights

  *Operating revenues for the fourth quarter 2012 increased 11% to $117.4
    million, compared to $106.0 million for the same period in 2011;
  *Postpay net subscriber additions for the fourth quarter 2012 were 9,200,
    compared to a net loss of (1,900) for the same period in 2011;
  *Subscriber churn for the fourth quarter 2012 improved to 2.8%, compared to
    3.4% for the same period in 2011; and
  *ARPU for the fourth quarter was $52.78, compared to $48.57 for the same
    period in 2011.

Full Year 2012 Highlights

  *Total net subscriber additions for 2012 were 25,100, compared to a loss of
    (17,900) for 2011;
  *Churn for 2012 improved to 2.9% from 3.5% in 2011, with postpay churn
    improving to 2.0% in 2012 from 2.4% in 2011; and
  *Data ARPU for 2012 rose to $20.00, up $4.14 from $15.86 in 2011,
    reflecting increased customer adoption of smartphones.

“During the fourth quarter, we experienced significant traction in our retail
business, particularly with postpay, as we continued to execute on our
strategy to attract and serve high-quality, value-conscious customers. A focus
on improving our handset lineup drove substantial growth in smartphone
penetration as well as significant gains in ARPU and net adds,” said James A.
Hyde, CEO of NTELOS Holdings Corp. “During the quarter, we generated net ports
of nearly 6,000, our sixth consecutive positive quarter. The fact that we
continue to take market share when effectively 100 percent of the population
in our footprint already has wireless service demonstrates the competiveness
of our offering and the strength of our brand. Throughout 2012, we continued
to deliver strong wholesale revenue, driven by growth in both voice and data
usage on our network.”

Highlights from Operations

  *Operating revenues for the fourth quarter 2012 were $117.4 million, up 11%
    from the fourth quarter 2011. Operating revenues for the full year 2012
    were $454.0 million, up 7% compared to the year 2011. The increase in
    operating revenues reflected an increase in both wholesale and retail
    revenues;
  *Retail revenues, which include subscriber and equipment revenue, increased
    13% to $75.1 million for the fourth quarter 2012, compared to $66.3
    million for the fourth quarter 2011. Retail revenues for the year 2012
    were $285.1 million, compared to $278.1 million for the year 2011;
  *Wholesale and other revenue derived primarily from the Company’s Strategic
    Network Alliance with Sprint increased 7% to $42.2 million for the fourth
    quarter 2012, compared to $39.6 million for the fourth quarter 2011.
    Wholesale and Other revenues for the year 2012 were $168.9 million, a 17%
    increase over $144.5 million for the year 2011; and
  *Adjusted EBITDA was $33.0 million for the fourth quarter 2012, compared to
    $34.0 million for the fourth quarter 2011. Adjusted EBITDA was $134.7
    million for year 2012, compared to $143.1 million for the year 2011.

Total Subscribers

  *Total subscribers were 439,600 as of December 31, 2012, compared to
    414,500 as of December 31, 2011;
  *Total gross additions for the fourth quarter were 46,200, compared to
    41,600 for the same period of 2011. Total net subscriber additions for the
    fourth quarter were 9,300, compared to a loss of (500) for the same period
    in 2011; and
  *Total gross additions for 2012 were 171,300 compared to 158,100 in 2011.
    Total net subscriber additions for 2012 were 25,100, compared to a loss of
    (17,900) for 2011.

Postpay Subscribers

  *Postpay subscriber gross additions for the fourth quarter 2012 were
    25,100, compared to 20,700 in the fourth quarter 2011 and 22,000 in the
    third quarter 2012;
  *Net postpay subscriber additions were 9,200 for the fourth quarter 2012,
    compared to a loss of (1,900) in the fourth quarter 2011 and up
    significantly from a gain of 4,900 in the third quarter 2012;
  *Postpay churn for the fourth quarter 2012 was 1.8%, compared to 2.6% in
    the fourth quarter 2011; and
  *As of December 31, 2012, total postpay subscribers were 297,400.

Prepay Subscribers

  *Prepay subscriber gross additions for the fourth quarter 2012 were 21,100,
    compared to 20,900 in the fourth quarter 2012 and 20,400 in the third
    quarter 2012;
  *Net prepay subscriber additions were 100 for the fourth quarter 2012,
    compared to a gain of 1,400 in the fourth quarter 2011 and net additions
    of 600 in the third quarter 2012;
  *Prepay churn for the fourth quarter 2012 was 4.9%, compared to 5.4% in the
    fourth quarter 2011; and
  *As of December 31, 2012, total prepay subscribers were 142,200.

Mr. Hyde concluded, “In 2012, we delivered strong operating results across the
board as our expanding customer base continued to respond positively to our
improved distribution and handset selection as well as our relentless focus on
savings, simplicity and service. While we anticipate that the wireless
industry will remain very competitive in 2013, we will continue to invest in
our business to drive growth and generate value for all stakeholders.”

Discontinued Operations

The Company completed the separation of its wireless and wireline operations
with the spin-off of Lumos Networks Corp. (NASDAQ: LMOS) on October 31, 2011.
The wireline results are reflected as Discontinued Operations for all periods
presented. As such, the reported operating results reflect the wireless
operations of the Company, including certain expenses related to the business
separation.

Net Income

Net income after net income attributable to noncontrolling interests was $18.4
million, or $0.86 per diluted share, for the year 2012 compared to a loss of
($23.7) million, or ($1.11) per diluted share, for the year 2011, which
included losses of ($45.4) million, or ($2.13) per diluted share, related to
discontinued operations.

Declaration of Dividend

On February 25, 2013, the Company’s Board of Directors declared a quarterly
cash dividend on its common stock in the amount of $0.42 per share to be paid
on April 12, 2013 to stockholders of record on March 14, 2013.

Business Outlook

For the year ending December 31, 2013, the Company expects full year 2013
Adjusted EBITDA to be between $135.0 million and $145.0 million. In addition,
the Company expects its full year 2013 capital expenditures to be between
$75.0 million and $85.0 million.

Conference Call

The Company will host a conference call with investors and analysts to discuss
its fourth quarter 2012 results this morning, February 28, 2013, at 11:00a.m.
ET. To participate, please dial 1-888-317-6016, 1-855-669-9657 in Canada and
1-412-317-6016 for international, approximately 10 minutes before the
scheduled start of the call. The conference call will also be accessible live
on the Investor Relations section of the Company’s website at
http://ir.ntelos.com.

An archive of the conference call will be available online at
http://ir.ntelos.com beginning approximately one hour after the call and
continuing until March 7, 2013. A replay will also be available via telephone
by dialing 1-877-344-7529, 1-412-317-0088 internationally and entering access
code 10024764 beginning approximately one hour after the call and continuing
until March 7, 2013.

Non-GAAP Measures

Adjusted EBITDA is defined as net income attributable to NTELOS Holdings Corp.
before interest, income taxes, depreciation and amortization, accretion of
asset retirement obligations, gain/loss on derivatives, net income
attributable to noncontrolling interests, other expenses/income, equity-based
compensation charges, acquisition related charges, net income from
discontinued operations and costs related to the separation of the wireless
and wireline operations.

ARPU, or average monthly revenue per user, is computed by dividing service
revenues per period by the average number of subscribers during that period.
Please see the footnotes in the exhibits for a complete definition of this
measure.

Adjusted EBITDA is a key metric used by investors to determine if the Company
is generating sufficient cash flows to continue to produce shareholder value,
provide liquidity for future growth and continue to fund dividends. ARPU
provides management with useful information concerning the appeal of the
Company’s rate plans and service offerings and the Company’s performance in
attracting and retaining high value customers.

Adjusted EBITDA and ARPU are non-GAAP financial performance measures. They
should not be considered in isolation or as an alternative to measures
determined in accordance with accounting principles generally accepted in the
United States of America (“GAAP”). Please refer to the exhibits and materials
posted on the Company’s website for a reconciliation of these non-GAAP
financial performance measures to the most comparable measures reported in
accordance with GAAP and for a discussion of the presentation, comparability
and use of such financial performance measures.

About NTELOS

NTELOS Holdings Corp. (NASDAQ: NTLS), operating through its subsidiaries as
“nTelos Wireless,” is headquartered in Waynesboro, VA, and provides
high-speed, dependable nationwide voice and data coverage for over 439,000
retail subscribers based in Virginia, West Virginia and portions of Maryland,
North Carolina, Pennsylvania, Ohio and Kentucky. The Company’s licensed
territories have a total population of approximately 7.9 million residents, of
which its wireless network covers approximately 6.0 million residents. The
Company is also the exclusive wholesale provider of wireless digital PCS
services to Sprint Nextel in the Company’s western Virginia and West Virginia
service area for all Sprint CDMA wireless customers. Additional information
about the Company is available at www.ntelos.com or
www.facebook.com/nteloswireless and www.twitter.com/ntelos_wireless.

SPECIAL NOTE FROM THE COMPANY REGARDING FORWARD-LOOKING STATEMENTS

Any statements contained in this press release that are not statements of
historical fact, including statements about our beliefs and expectations, are
forward-looking statements and should be evaluated as such. The words
“anticipates,” “believes,” “expects,” “intends,” “plans,” “estimates,”
“targets,” “projects,” “should,” “may,” “will” and similar words and
expressions are intended to identify forward-looking statements. Such
forward-looking statements reflect, among other things, our current
expectations, plans and strategies, and anticipated financial results, all of
which are subject to known and unknown risks, uncertainties and factors that
may cause our actual results to differ materially from those expressed or
implied by these forward-looking statements. Many of these risks are beyond
our ability to control or predict. Because of these risks, uncertainties and
assumptions, you should not place undue reliance on these forward-looking
statements. Furthermore, forward-looking statements speak only as of the date
they are made. We do not undertake any obligation to update or review any
forward-looking information, whether as a result of new information, future
events or otherwise. There are important factors with respect to any such
forward-looking statements, including certain risks and uncertainties that
could cause actual results to differ from those contained in the
forward-looking statements. We advise the reader to review in detail the
cautionary statements and risk factors included in our SEC filings, including
our most recent Annual Report filed on Form 10-K.

Exhibits:

  *Consolidated Balance Sheets
  *Consolidated Statements of Operations
  *Reconciliation of Net Income Attributable to NTELOS Holdings Corp. to
    Adjusted EBITDA
  *Key Metrics
  *ARPU Reconciliation

                                                          
NTELOS Holdings Corp.                                     
Consolidated Balance Sheets
                                       December 31, 2012  December 31, 2011
(In thousands)
                                                             
ASSETS
Current Assets
Cash                                     $     76,197        $     59,950
Restricted cash                                -                   199
Accounts receivable, net                       51,301              36,292
Inventories and supplies                       9,581               7,570
Deferred income taxes                          4,297               4,668
Prepaid expenses and other current            17,695             14,445
assets
                                              159,071            123,124
                                                             
Securities and Investments                     1,499               1,403
                                                             
Property, Plant and Equipment, net             303,103             288,368
                                                             
Intangible Assets
Goodwill                                       63,700              63,700
Radio spectrum licenses                        132,033             132,318
Customer relationships and trademarks,         9,996               13,336
net
                                                             
Deferred Charges and Other Assets              10,712              10,409
                                                            
Total Assets                             $     680,114       $     632,658
                                                             
                                                             
LIABILITIES AND EQUITY
Current Liabilities
Current portion of long-term debt        $     5,429         $     4,412
Accounts payable                               23,445              18,118
Dividends payable                              -                   8,902
Advance billings and customer deposits         12,085              10,003
Accrued expenses and other current            22,372             14,316
liabilities
                                              63,331             55,751
                                                             
Long-Term Debt                                 488,650             453,997
                                                             
Other Long-Term Liabilities                    83,598              71,776
                                                             
Equity                                         44,535              51,134
                                                            
Total Liabilities and Equity             $     680,114       $     632,658

                                                              
NTELOS Holdings                                             
Corp.
Consolidated
Statements of    Three Months Ended                Twelve Months Ended
Operations
                  (Unaudited)                       (Audited)
(In thousands,    December 31,     December 31,     December 31,   December
except per       2012            2011             2012          31, 2011
share amounts)
                                                                   
Operating         $  117,398       $  105,996       $  453,989     $ 422,629
Revenues
                                                                   
Operating
Expenses
Cost of sales        47,420           37,188           174,683       143,323
and services
Customer             30,691           29,847           120,150       117,105
operations
Corporate            7,848            7,942            32,756        32,864
operations
Depreciation
and                 17,440        17,589         63,258     63,083  
amortization
                    103,399       92,566         390,847    356,375 
Operating            13,999           13,430           63,142        66,254
Income
                                                                   
Other Expense
Interest             (6,651   )       (5,463   )       (22,944 )     (23,380 )
expense
Other expense,      (7,038   )     (1,174   )      (7,194  )   (3,071  )
net
                    (13,689  )     (6,637   )      (30,138 )   (26,451 )
                                                                   
Income (Loss)
from Continuing
Operations           310              6,793            33,004        39,803
before Income
Taxes
                                                                   
Income Taxes        (454     )     2,071          12,676     16,363  
Income (Loss)
from Continuing      764              4,722            20,328        23,440
Operations
                                                                   
Discontinued        -             (64,812  )      -          (45,386 )
Operations, net
                                                                   
Net Income           764              (60,090  )       20,328        (21,946 )
(Loss)
                                                                   
Net Income
Attributable to      (443     )       (447     )       (1,941  )     (1,769  )
Noncontrolling
Interests
                                                              
Net Income
(Loss)
Attributable to   $  321         $  (60,537  )    $  18,387    $ (23,715 )
NTELOS Holdings
Corp.
                                                                   
                                                                   
Earnings (Loss)
per Share
Attributable to
NTELOS Holdings
Corp.: ^1
                                                                   
Basic
Continuing        $  0.02          $  0.21          $  0.88        $ 1.04
operations
Discontinued        -             (3.12    )      -          (2.18   )
operations
Total             $  0.02        $  (2.91    )    $  0.88      $ (1.14   )
                                                                   
Diluted
Continuing        $  0.02          $  0.20          $  0.86        $ 1.02
operations
Discontinued        -             (3.06    )      -          (2.13   )
operations
Total             $  0.02        $  (2.86    )    $  0.86      $ (1.11   )
                                                                   
Weighted
average shares      20,922        20,817         20,889     20,779  
outstanding -
basic
Weighted
average shares      21,380        21,187         21,337     21,276  
outstanding -
diluted
                                                                   
Cash Dividends
Declared per      $  0.42        $  0.42         $  1.68      $ 2.10    
Share - Common
Stock

   
     All share and per share amounts presented in this press release and on
     the Company's Form 10-K for 2011 have been adjusted for the impact of the
^1   reverse stock split which occurred after market close on October 31, 2011
     in connection with the separation of the Company's wireless and wireline
     operations.

                                                            
NTELOS Holdings                                             
Corp.
Reconciliation of Net Income (Loss) Attributable to NTELOS
Holdings Corp. to Adjusted EBITDA
(In thousands)                                               
                    Three Months Ended               Twelve Months Ended
                    December 31,    December 31,     December    December
                      2012            2011             31, 2012    31, 2011
    Net income
    (loss)
    attributable to   $  321          $  (60,537  )    $ 18,387    $ (23,715 )
    NTELOS Holdings
    Corp.
    Net income
    (loss)
    attributable to    443           447           1,941      1,769   
    noncontrolling
    interests
    Net income        $  764          $  (60,090  )    $ 20,328    $ (21,946 )
    (loss)
                                                                   
    Discontinued       -             (64,812  )     -          (45,386 )
    operations, net
    Income (loss)
    from continuing   $  764          $  4,722         $ 20,328    $ 23,440
    operations
                                                                   
    Interest             6,651           5,463           22,944      23,380
    expense
    Income taxes         (454    )       2,071           12,676      16,363
    Other expense,     7,038         1,174         7,194      3,071   
    net
    Operating         $  13,999       $  13,430        $ 63,142    $ 66,254
    income
                                                                   
    Depreciation
    and                  17,440          17,589          63,258      63,083
    amortization
    Accretion of
    asset                174             156             637         658
    retirement
    obligations
    Equity-based         1,346           1,225           6,029       6,072
    compensation
    Business
    separation         56            1,608         1,660      6,997   
    charges ^1
    Adjusted EBITDA   $  33,015      $  34,008       $ 134,726   $ 143,064 

   
^1   Charges for legal and consulting services in connection with the
     separation of the Company's wireless and wireline operations.

                                                                                                              
NTELOS Holdings                                                                                          
Corp.
Key Metrics                                                                                Twelve Months Ended
 Quarter Ended:   12/31/2011    3/31/2012    6/30/2012    9/30/2012    12/31/2012     12/31/2012    12/31/2011 
Subscribers                                                                                               
 Beginning          415,000          414,500         421,300         424,800         430,300          414,500          432,400
  Subscribers
  Prepay             119,900          122,100         135,300         139,400         141,400          122,100          125,600
  Postpay            295,100          292,400         286,000         285,400         288,900          292,400          306,800
                                                                                                                      
  Gross              41,600           45,900          36,800          42,400          46,200           171,300          158,100
  Additions
  Prepay             20,900           28,900          20,000          20,400          21,100           90,400           85,100
  Postpay            20,700           17,000          16,800          22,000          25,100           80,900           73,000
                                                                                                                      
  Disconnections     42,100           39,100          33,300          36,900          36,900           146,200          176,000
  Prepay             19,500           17,300          17,200          19,800          21,000           75,300           90,500
  Postpay            22,600           21,800          16,100          17,100          15,900           70,900           85,500
                                                                                                                      
  Net Additions      (500       )     6,800           3,500           5,500           9,300            25,100           (17,900    )
  (Losses)
  Prepay             1,400            11,600          2,800           600             100              15,100           (5,400     )
  Postpay            (1,900     )     (4,800    )     700             4,900           9,200            10,000           (12,500    )
                                                                                                                      
  Ending             414,500          421,300         424,800         430,300         439,600          439,600          414,500
  Subscribers
  Prepay             122,100          135,300         139,400         141,400         142,200          142,200          122,100
  Postpay            292,400          286,000         285,400         288,900         297,400          297,400          292,400
                                                                                                                      
  Churn, net         3.4        %     3.1       %     2.6       %     2.9       %     2.8        %     2.9        %     3.5        %
  Prepay             5.4        %     4.5       %     4.2       %     4.7       %     4.9        %     4.6        %     6.1        %
  Postpay            2.6        %     2.5       %     1.9       %     2.0       %     1.8        %     2.0        %     2.4        %
                                                                                                                      
Other Items                                                                                               
                                                                                                                      
  ARPU             $ 48.57          $ 49.08         $ 49.41         $ 50.93         $ 52.78          $ 50.57          $ 49.79
  Prepay           $ 33.01          $ 36.56         $ 34.89         $ 34.50         $ 35.41          $ 35.31          $ 33.76
  Postpay          $ 54.94          $ 54.63         $ 56.42         $ 58.97         $ 61.19          $ 57.82          $ 56.39
                                                                                                                      
  Data ARPU        $ 17.36          $ 19.05         $ 19.65         $ 20.25         $ 21.03          $ 20.00          $ 15.86
                                                                                                                      
  Licensed
  Population         8.1              8.1             8.1             8.1             7.9              7.9              8.1
  (millions)
                                                                                                                      
  Covered
  Population         5.9              5.9             6.0             6.0             6.0              6.0              5.9
  (millions)
                                                                                                                      
  Total Cell         1,353            1,365           1,378           1,396           1,429            1,429            1,353
  Sites
                                                                                                                      
  Strategic Network Alliance Revenues (000's)
  Total Voice      $ 23,122         $ 23,533        $ 23,856        $ 24,655        $ 24,141         $ 96,185         $ 88,678
  Total Data       14,780        16,347       16,536       16,971       16,606         66,460        48,332     
  Total           $ 37,902       $ 39,880      $ 40,392      $ 41,626      $ 40,747        $ 162,645      $ 137,010    

                                                             
NTELOS Holdings                                            
Corp.
ARPU             Three Months Ended               Twelve Months Ended
Reconciliation
Average Monthly   December 31,     December 31,    December 31,   December 31,
Revenue per      2012            2011            2012          2011
User (ARPU) ^1
(In thousands,
except for
subscribers and
ARPU)
                                                                  
Operating         $  117,398       $  105,996      $ 453,989      $ 422,629
Revenues
Less: Equipment
revenue from         (3,808   )       (2,877   )     (15,041  )     (9,091   )
sales to new
customers
Less: Equipment
revenue from
sales to             (3,315   )       (3,642   )     (15,037  )     (17,793  )
existing
customers
Less:
Wholesale,         (41,488  )     (39,326  )    (165,765 )   (143,477 )
other and
adjustments
Gross
subscriber           68,787           60,151         258,146        252,268
revenue
                                                                  
Less: prepay
subscriber           (14,823  )       (11,588  )     (56,330  )     (48,758  )
revenue
Less:
adjustments to
prepay             (237     )     (304     )    (1,706   )   (1,175   )
subscriber
revenue
Gross postpay
subscriber       $  53,727      $  48,259      $ 200,110    $ 202,335  
revenue
                                                                  
Prepay
subscriber           14,823           11,588         56,330         48,758
revenue
Plus:
adjustments to
prepay             237           304          1,706       1,175    
subscriber
revenue
Gross prepay
subscriber       $  15,060      $  11,892      $ 58,036     $ 49,933   
revenue
                                                                  
Average number     434,457       412,851      425,377     422,256  
of subscribers
Total ARPU       $  52.78       $  48.57       $ 50.57      $ 49.79    
                                                                  
Average number
of postpay         292,668       292,775      288,428     298,992  
subscribers
Postpay ARPU     $  61.19       $  54.94       $ 57.82      $ 56.39    
                                                                  
Average number
of prepay          141,789       120,076      136,949     123,264  
subscribers
Prepay ARPU      $  35.41       $  33.01       $ 35.31      $ 33.76    
                                                                  
Gross
subscriber           68,787           60,151         258,146        252,268
revenue
Less: voice and
other feature      (41,379  )     (38,651  )    (156,032 )   (171,882 )
revenue
Data revenue     $  27,408      $  21,500      $ 102,114    $ 80,386   
                                                                  
Average number     434,457       412,851      425,377     422,256  
of subscribers
Total Data ARPU  $  21.03       $  17.36       $ 20.00      $ 15.86    
                                                                  
Gross postpay
subscriber           53,727           48,259         200,110        202,335
revenue
Less: postpay
voice and other    (34,651  )     (33,224  )    (130,601 )   (144,114 )
feature revenue
Postpay data     $  19,076      $  15,035      $ 69,509     $ 58,221   
revenue
                                                                  
Gross prepay
subscriber           15,060           11,892         58,036         49,933
revenue
Less: prepay
voice and other    (6,728   )     (5,427   )    (25,431  )   (27,768  )
feature revenue
Prepay data      $  8,332       $  6,465       $ 32,605     $ 22,165   
revenue
                                                                  
Average number
of postpay         292,668       292,775      288,428     298,992  
subscribers
Postpay data     $  21.73       $  17.12       $ 20.08      $ 16.23    
ARPU
                                                                  
Average number
of prepay          141,789       120,076      136,949     123,264  
subscribers
Prepay data      $  19.59       $  17.95       $ 19.84      $ 14.99    
ARPU

   
     Average monthly revenue per user (ARPU) is computed by dividing service
     revenues per period by the average number of subscribers during that
     period. ARPU as defined may not be similar to ARPU measures of other
     companies, is not a measurement under GAAP and should be considered in
     addition to, but not as a substitute for, the information contained in
^1   the Company’s consolidated statements of operations. The Company closely
     monitors the effects of new rate plans and service offerings on ARPU in
     order to determine their effectiveness. ARPU provides management useful
     information concerning the appeal of NTELOS rate plans and service
     offerings and the Company’s performance in attracting and retaining
     high-value customers.

Contact:

Investor Relations:
KCSA Strategic Communications
Jeffrey Goldberger, 212-896-1249
jgoldberger@kcsa.com
or
Rob Fink, 212-896-1206
rfink@kcsa.com