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Clearwire Reports First Quarter 2013 Results

Clearwire Reports First Quarter 2013 Results

  *Q1 Total Revenues of $318.0 Million Increased 2% Sequentially, Down 1%
    Year Over Year
  *Retail Subscribers Up 8% Sequentially and 10% Year Over Year on Record
    Gross Additions
  *Approximately 1,300 TDD-LTE Sites Commissioned at Quarter-End; On Track to
    Meet 2,000 Site Milestone by End of June 2013

BELLEVUE, Wash., April 25, 2013 (GLOBE NEWSWIRE) -- Clearwire Corporation
(Nasdaq:CLWR), a leading provider of 4G wireless broadband services in the
U.S., today reported its financial and operating results for first quarter
2013.

"Our ongoing focus ondriving our retail business cash contribution,
controlling costs and maintaining liquiditycontinues to yield results," said
Erik Prusch, President and CEO of Clearwire. "Our day-to-day focus on
delivering for our customers and the substantial progress on the TDD-LTE
network build demonstrate the company's commitment to execution during this
transition period."

First quarter 2013 total revenue increased 2% over fourth quarter 2012
primarily due to sequential retail revenue growth. On a year over year basis,
total revenue declined 1% to $318.0 million, reflecting slight declines in
both wholesale and retail revenue over the prior year period.First quarter
wholesale revenue of $114.9 million declined 1% sequentially on lower revenue
related to the amortization of the second quarter 2011 Sprint wholesale
settlement (the "Sprint Settlement").On a year over year basis, wholesale
revenue declined 2% primarily due to a decrease in the non-Sprint wholesale
customer base as well as lower Sprint Settlement revenue. Wholesale revenue in
first quarter 2013, fourth quarter 2012 and first quarter 2012 reflect the
fixed wholesale WiMAX revenue terms of the November 2011 4G MVNO Agreement
with Sprint which will continue through 2013. Retail revenue and other revenue
increased 4% sequentially and decreased 1% year over year to $203.1 million in
first quarter 2013.Retail average revenue per user (ARPU) was $43.49
representing sequential and year over year decreases of $(0.61) and $(3.34),
respectively, primarily due to lower equipment lease revenue under the
no-contract offering that was fully launched in first quarter 2012.

Clearwire ended first quarter 2013 with approximately 9.4 million total
subscribers.First quarter 2013 retail subscribers increased 10% year over
year and 8% sequentially to approximately 1.5 million retail
subscribers.Retail net subscriber additions during the period were 108,000
reflecting 4.2% churn and record gross additions of approximately
287,000.During the period, wholesale subscribers declined 18% year over year
and 3% sequentially on 270,000 wholesale net subscriber losses to
approximately 7.9 million wholesale subscribers at the end of first quarter
2013.The decline in wholesale subscribers, which consist primarily of Sprint
3G/4G smartphone customers, is primarily due to the discontinuation of
postpaid WiMAX offerings by Sprint.

Retail cost per gross addition (CPGA) was a company record low $143 in first
quarter 2013 compared to $155 in fourth quarter 2012 and $242 in first quarter
2012. Both the sequential and year over year improvements are primarily due to
improved efficiencies in retail selling expenses associated with our
no-contract offering and higher gross adds, partially offset by increased
equipment subsidies.

Excluding $9.3 million of merger-related expenses, first quarter 2013 Adjusted
EBITDA loss was $(42.2) million. Inclusive of merger-related expenses,
Adjusted EBITDA loss in first quarter 2013 was $(51.5) million, representing a
$(13.3) million increase compared to first quarter 2012 Adjusted EBITDA loss
of $(38.2) million.The increase is primarily due to merger-related expenses,
as well as lower revenue and higher COGS (excluding non-cash expenses) on a
year over year basis.

Cash, cash equivalents and investments (invested primarily in U.S. Treasury
securities) as of March 31, 2013 was approximately $797.4 million, a
sequential decrease of $71.2 million from December 31, 2012. The sequential
decrease primarily reflects cash payments for capital expenditures and
operating expenses, which was partially offset by $80 million drawn against
the interim financing facility provided by Sprint in conjunction with our
merger agreement, as well as payments from Sprint for wholesale WiMAX services
and cash inflows from our retail business. As compared to March 31, 2012,
cash, cash equivalents and investments decreased by $635.1 million.

First quarter 2013 capex of $50 million increased $27 million over prior year
period capex of $23 million primarily due to increased expenditures for
Clearwire's TDD-LTE network deployment.Compared to fourth quarter 2012 capex
of $102 million, first quarter 2013 capex decreased $52 million primarily due
to a decline in network equipment received as compared to the prior quarter.

At the end of first quarter 2013, Clearwire operated networks in the U.S.
covering areas where approximately 136 million people reside, including
approximately 134 million people in markets where we provide 4G services. At
the end of the period our TDD-LTE network consisted of approximately 1,300
commissioned sites.

Results of Operations

Cost of goods and services and network costs (COGS) in first quarter 2013
decreased 19% to $213.2 million compared to $263.8 million in first quarter
2012. These amounts include non-cash charges for network equipment reserves
and other write-downs of $4.7 million and $56.4 million in first quarters 2013
and 2012, respectively, and other non-cash network-related expenses of $17.7
million and $26.6 million in first quarters 2013 and 2012, respectively. The
year over year decrease in network equipment reserves and other write-downs is
primarily due to a decrease in charges for network equipment not required to
support our network deployment plans or sparing requirements.The year over
year decrease in other non-cash network related expenses is primarily due to a
higher provision for unused tower-related leases and other network agreements
in first quarter 2012. Excluding non-cash expenses, COGS increased 6% year
over year primarily due to an increase in customer premise equipment sales
associated with our no contract retail model, as well as higher tower- and
network-related expenses in conjunction with our ongoing LTE build.

Selling, general and administrative (SG&A) expense in first quarter 2013
decreased slightly to $141.1 million from $142.7 million in first quarter
2012. The decrease is primarily attributable to lower sales and marketing,
call center and facilities expenses, mostly offset by higher commissions,
employee-related costs and general and administrative expenses related to the
proposed merger with Sprint.

First quarter 2013 reported net loss from continuing operations attributable
to Clearwire was $(227.0) million, or $(0.33) per basic share compared to
$(182.1) million, or $(0.40) per basic share, respectively in the prior year
period.Including the effects of discontinued operations, first quarter 2013
reported net loss attributable to Clearwire was $(227.0) million, or $(0.33)
per basic share, compared to $(181.8) million or $(0.40), respectively in the
prior year period.

CLEARWIRE CORPORATION
SUMMARY FINANCIAL AND OPERATING DATA FROM CONTINUING OPERATIONS
(In thousands)
(Unaudited)
                                                               
                     Three months ended
                     March 31, 2013  December 31,  September 30,  March 31,
                                      2012          2012           2012
                                                               
REVENUES:                                                       
Retail revenue        $202,997      $194,451    $197,215     $204,810
Wholesale revenue     114,917        116,590      116,498       117,821
Other revenue         128            200          169           8
Total revenues        318,042        311,241      313,882       322,639
OPERATING EXPENSES:                                             
Cost of goods and
services and network
costs (exclusive of   213,181        208,322      211,540       263,790
items shown
separately below)
Selling, general and
administrative        141,101        138,489      139,365       142,655
expense
Depreciation and      183,633        194,873      210,781       177,973
amortization
Spectrum lease        83,399         83,387       82,513        79,708
expense
Loss from abandonment
of network and other  414            (1,099)      2,588         80,400
assets
Total operating       621,728        623,972      646,787       744,526
expenses
OPERATING LOSS        (303,686)      (312,731)    (332,905)     (421,887)
                                                               
LESS NON-CASH ITEMS:                                            
Non-cash expenses     63,413         70,041       67,310        66,664
Non-cash write-downs  5,116          1,805        16,551        139,056
Depreciation and      183,633        194,873      210,781       177,973
amortization
Total non-cash items  252,162        266,719      294,642       383,693
Adjusted EBITDA       $(51,524)     $(46,012)   $(38,263)    $(38,194)
                                                               
Adjusted EBITDA       (16)%           (15)%         (12)%          (12)%
margin
                                                               
KEY OPERATING METRICS
(k for '000's, MM for                                           
'000,000's)
Total net subscriber  (162)k        (906)k      (468)k       586k
additions
Wholesale             (270)k        (915)k      (489)k       537k
Retail                108k          9k          21k          49k
Total subscribers     9,413k        9,581k      10,488k      11,000k
Wholesale (1)         7,944k        8,220k      9,136k       9,659k
Retail                1,469k        1,361k      1,353k       1,341k
Retail ARPU           $43.49          $44.10        $45.06         $46.83
Churn                                                           
Wholesale             5.3 %           7.3 %         5.4 %          3.0 %
Retail                4.2 %           5.0 %         5.1 %          3.7 %
Retail CPGA           $143            $155          $191           $242
Capital expenditures  $50MM         $102MM      $34MM        $23MM
Domestic 4G covered   134MM         135MM       133MM        132MM
POPS
Cash, cash
equivalents and       $797MM        $869MM      $1,184MM     $1,433MM
investments
                                                               
(1) Includes non-launched markets. Based on the terms of the November 2011
Amended MVNO Agreement between Clearwire and Sprint, which provides for
unlimited WiMAX service to Sprint retail customers in exchange for fixed
payments in 2012 and 2013, fluctuations in the wholesale subscriber base will
not necessarily correlate to wholesale revenue.

Management Webcast

Clearwire executives will host a conference call and simultaneous webcast to
discuss the company's first quarter 2013 financial results at 4:30 p.m.
Eastern Time today. A live broadcast of the conference call will be available
online on the company's investor relations website located at
http://investors.clearwire.com. Interested parties can access the conference
call by dialing 1-877-392-9886, or from outside the U.S. by dialing
1-707-287-9329, at least five minutes prior to the start time. A replay of the
call will be available beginning at approximately 7:30 p.m. Eastern Time on
April 25, through Thursday, May 2, by calling 1-855-859-2056, or from outside
the U.S. by dialing 1-404-537-3406. The passcode for the replay is 36445633.

About Clearwire

Clearwire Corporation (Nasdaq:CLWR), through its operating subsidiaries, is a
leading provider of 4G wireless broadband services offering services in areas
of the U.S. where more than 130 million people live. The company holds the
deepest portfolio of wireless spectrum available for data services in the
U.S.Clearwire serves retail customers through its own CLEAR^® brand as well
as through wholesale relationships with some of the leading companies in the
retail, technology and telecommunications industries, including Sprint and
NetZero.The company is constructing a next-generation 4G LTE Advanced-ready
network to address the capacity needs of the market,and is also working
closely with the Global TDD-LTE Initiative to further the TDD-LTE ecosystem.
Clearwire is headquartered in Bellevue, Wash. Additional information is
available at http://www.clearwire.com.

Forward-Looking Statements

This release, and other written and oral statements made by Clearwire from
time to time, contain forward-looking statements which are based on
management's current expectations and beliefs, as well as on a number of
assumptions concerning future events made with information that is currently
available. Forward-looking statements may include, without limitation,
management's expectations regarding future financial and operating performance
and financial condition; proposed transactions; network development and market
launch plans; strategic plans and objectives; industry conditions; the
strength of the balance sheet; and liquidity and financing needs. The words
"will," "would," "may," "should," "estimate," "project," "forecast," "intend,"
"expect," "believe," "target," "designed," "plan" and similar expressions are
intended to identify forward-looking statements. Readers are cautioned not to
put undue reliance on such forward-looking statements, which are not a
guarantee of performance and are subject to a number of uncertainties and
other factors, many of which are outside of Clearwire's control, which could
cause actual results to differ materially and adversely from such statements.
Some factors that could cause actual results to differ are:

  *Our business has become increasingly dependent on our wholesale partners,
    and Sprint in particular. Additionally, our current business plans depend
    on our ability to attract new wholesale partners with substantial
    requirements for additional data capacity, which is subject to a number of
    risks and uncertainties. If we do not receive the amount of revenues we
    expect from existing wholesale partners or if we are unable to enter into
    new agreements with additional wholesale partners for significant new
    wholesale commitments in a timely manner, our business prospects, results
    of operations and financial condition could be adversely affected, or we
    could be forced to consider all available alternatives, including
    financial restructuring.
  *If the proposed merger with Sprint fails to close for any reason, we
    believe that we will require substantial additional capital to fund our
    business and to further develop our network; such capital may not be
    available on acceptable terms or at all.If the merger fails to close and
    the funding under our Note Purchase Agreement with Sprint was no longer
    available, we would have to significantly curtail substantially all of our
    LTE network build plan to conserve cashand there would likely be
    substantial doubtabout our ability to continue as a going concern for the
    next twelve months. Additionally, if the proposed merger with Sprint fails
    to close and we are unable to obtain sufficient additional capital, or we
    fail to generate sufficient revenue from our businesses to meet our
    ongoing obligations, our business prospects, financial condition and
    results of operations will likely be materially and adversely affected,
    and we will be forced to consider all available alternatives, including
    financial restructuring.
  *We have a history of operating losses and we expect to continue to realize
    significant net losses for the foreseeable future.
  *Our substantial indebtedness and restrictive debt covenants could limit
    our financing options and liquidity position and may limit our ability to
    grow our business.Further, unless we are able to secure the required
    shareholder approvals to increase the number of authorized shares under
    our Certificate of Incorporation, we may not have enough authorized but
    unissued shares available to raise sufficient additional capital through
    an equity financing.
  *Sprint owns a majority of our common shares, is our largest shareholder,
    and may have, or may develop in the future, interests that may diverge
    from other stockholders.
  *Our proposed merger with Sprint is subject to certain regulatory
    conditions that may not be satisfied on a timely basis, or at all, and is
    also conditioned on the consummation of the Sprint-Softbank (or a similar
    merger) transaction. If the merger with Sprint fails because it is not
    adopted by our shareholders, then under certain circumstances Sprint may
    gain significant additional control over us by acquiring the Clearwire
    shares held by other parties to our Equityholders' Agreement, pursuant to
    the terms of an agreement with those other shareholders. Additionally,
    failure to complete the proposed merger could negatively impact our
    business and the market price of our Class A Common Stock, and substantial
    doubt may arise regarding our ability to continue as a going concern.
  *We are in the early stages of deploying LTE on our wireless broadband
    network, alongside mobile WiMAX, to remain competitive and to generate
    sufficient revenues for our business; we will incur significant costs to
    deploy such technology.Additionally, LTE technology, or other alternative
    technologies that we may consider, may not perform as we expect on our
    network and deploying such technologies would result in additional risks
    to the company, including uncertainty regarding our ability to
    successfully add a new technology to our current network and to operate
    dual technology networks without disruptions to customer service, as well
    as our ability to generate new wholesale customers for the new network.
  *We currently depend on our commercial partners to develop and deliver the
    equipment for our legacy and mobile WiMAX networks, and are dependent on
    commercial partners to deliver equipment and devices for our planned LTE
    network as well.
  *Many of our competitors for our retail business are better established and
    have significantly greater resources, and may subsidize their competitive
    offerings with other products and services.
  *Future sales of large blocks of our common stock may adversely impact our
    stock price.

For a more detailed description of the factors that could cause such a
difference, please refer to Clearwire's filings with the Securities and
Exchange Commission, including the information under the heading "Risk
Factors" in our Annual Report on Form 10-K filed on February 14, 2013, and
subsequent SEC filings. Clearwire assumes no obligation to update or
supplement such forward-looking statements.

CLEARWIRE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par value)
(Unaudited)
                                                           
                                             March 31, 2013 December 31, 2012
ASSETS                                                      
Current assets:                                             
Cash and cash equivalents                     $172,108     $193,445
Short-term investments                        625,297       675,112
Restricted cash                               1,641         1,653
Accounts receivable, net of allowance of      19,769        22,769
$2,400 and $3,145
Inventory                                     16,098        10,940
Prepaids and other assets                     83,672        83,769
Total current assets                          918,585       987,688
Property, plant and equipment, net            2,120,081     2,259,004
Restricted cash                               2,114         3,709
Spectrum licenses, net                        4,237,640     4,249,621
Other intangible assets, net                  21,576        24,660
Other assets                                  137,601       141,107
Total assets                                  $7,437,597   $7,665,789
                                                           
LIABILITIES AND STOCKHOLDERS' EQUITY                        
Current liabilities:                                        
Accounts payable and accrued expenses         $285,723     $177,855
Other current liabilities                     279,001       227,610
Total current liabilities                     564,724       405,465
Long-term debt, net                           4,287,671     4,271,357
Deferred tax liabilities, net                 191,136       143,992
Other long-term liabilities                   913,772       963,353
Total liabilities                             5,957,303     5,784,167
Commitments and contingencies                              
Stockholders' equity:                                       
ClassA common stock, par value $0.0001,
2,000,000 shares authorized; 699,172 and      70            69
691,315shares outstanding
ClassB common stock, par value $0.0001,
1,400,000 shares authorized; 773,733 shares   77            77
outstanding
Additional paid-in capital                    3,217,732     3,158,244
Accumulated other comprehensive income (loss) 15            (6)
Accumulated deficit                           (2,573,346)   (2,346,393)
Total Clearwire Corporation stockholders'     644,548       811,991
equity
Non-controlling interests                     835,746       1,069,631
Total stockholders' equity                    1,480,294     1,881,622
Total liabilities and stockholders' equity    $7,437,597   $7,665,789



CLEARWIRE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
                                                                          
                                               Three Months Ended March 31, 
                                               2013           2012         
                                                                          
Revenues                                        $318,042     $322,639    
Operating expenses:                                                        
Cost of goods and services and network costs    213,181       263,790      
(exclusive of items shown separately below)
Selling, general and administrative expense     141,101       142,655      
Depreciation and amortization                   183,633       177,973      
Spectrum lease expense                          83,399        79,708       
Loss from abandonment of network and other      414           80,400       
assets
Total operating expenses                        621,728       744,526      
Operating loss                                  (303,686)     (421,887)    
Other income (expense):                                                    
Interest income                                 378           264          
Interest expense                                (140,517)     (136,686)    
Loss on derivative instruments                  (1,774)       (4,862)      
Other income (expense), net                     336           (13,268)     
Total other expense, net                        (141,577)     (154,552)    
Loss from continuing operations before income   (445,263)     (576,439)    
taxes
Income tax (provision) benefit                  (16,625)      15,413       
Net loss from continuing operations             (461,888)     (561,026)    
Less: non-controlling interests in net loss
from continuing operations of consolidated      234,935       378,972      
subsidiaries
Net loss from continuing operations             (226,953)     (182,054)    
attributable to Clearwire Corporation
Net loss from discontinued operations
attributable to Clearwire Corporation, net of   —             231          
tax
Net loss attributable to Clearwire Corporation  $(226,953)   $(181,823)  
                                                                          
Net loss from continuing operations
attributable to Clearwire Corporation per Class                            
A common share:
Basic                                           $(0.33)      $(0.40)     
Diluted                                         $(0.33)      $(0.44)     
                                                                          
Net loss attributable to Clearwire Corporation                             
per Class A common share:
Basic                                           $(0.33)      $(0.40)     
Diluted                                         $(0.33)      $(0.44)     
                                                                          
Weighted average Class A common shares                                     
outstanding:
Basic                                           693,901       458,827      
Diluted                                         693,901       1,298,530    



CLEARWIRE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                               
                                                 Three Months Ended March 31,
                                                 2013           2012
Cash flows from operating activities:                           
Net loss from continuing operations               $(461,888)   $(561,026)
Adjustments to reconcile net loss to net cash                   
used in operating activities:
Deferred income taxes                             16,194        (15,863)
Non-cash loss on derivative instruments           1,774         4,862
Accretion of discount on debt                     12,593        10,188
Depreciation and amortization                     183,633       177,973
Amortization of spectrum leases                   13,212        14,216
Non-cash rent expense                             40,560        46,382
Loss on property, plant and equipment            5,116         139,056
Other non-cash activities                         9,644         18,696
Changes in assets and liabilities:                              
Inventory                                         (5,269)       5,070
Accounts receivable                               844           (42,662)
Prepaids and other assets                         1,695         (11,198)
Deferred revenue                                  (36,630)      154,246
Accounts payable and other liabilities            113,429       119,897
Net cash (used in) provided by operating          (105,093)     59,837
activities of continuing operations
                                                               
Net cash provided by operating activities of      —             5,814
discontinued operations
Net cash (used in) provided by operating          (105,093)     65,651
activities
Cash flows from investing activities:                           
Payments to acquire property, plant and equipment (37,510)      (21,867)
Purchases of available-for-sale investments       (249,988)     (1,022,287)
Disposition of available-for-sale investments     299,450       117,953
Other investing activities                        1,599         (845)
Net cash provided by (used in) investing          13,551        (927,046)
activities of continuing operations
                                                               
Net cash provided by investing activities of      —             59
discontinued operations
Net cash provided by (used in) investing          13,551        (926,987)
activities
Cash flows from financing activities:                           
Principal payments on long-term debt              (9,844)       (6,295)
Proceeds from issuance of long-term debt          80,000        300,000
Debt financing fees                               —             (6,205)
Proceeds from issuance of common stock            46            —
Net cash provided by financing activities of      70,202        287,500
continuing operations
Net cash provided by financing activities of      —             —
discontinued operations
Net cash provided by financing activities         70,202        287,500
Effect of foreign currency exchange rates on cash 3             (2,269)
and cash equivalents
Net decrease in cash and cash equivalents         (21,337)      (576,105)
Cash and cash equivalents:                                      
Beginning of period                               193,445       893,744
End of period                                     172,108       317,639
Less: cash and cash equivalents of discontinued   —             7,505
operations at end of period
Cash and cash equivalents of continuing           $172,108     $310,134
operations at end of period



Definitions of Terms and Reconciliations of Non-GAAP Financial Measures to
Unaudited Condensed Consolidated Statements of Operations
                                                            
The company utilizes certain non-GAAP financial measures which are widely used
in the telecommunications industry and are not calculated based on accounting
principles generally accepted in the United States of America (GAAP). Other
companies may calculate these measures differently.
                                                            
(1) Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is
defined as consolidated operating loss excluding depreciation and amortization
expenses, non-cash expenses related to operating leases (primarily towers,
spectrum leases and buildings), stock-based compensation expense, loss from
abandonment of network and other assets, charges for differences between
recorded amounts and the results of physical counts, and charges for excessive
and obsolete network equipment and CPE inventory. A reconciliation of
operating loss to Adjusted EBITDA is as follows:
                                                            
                   Three months ended
                   (Unaudited)
                   March 31, 2013  December 31,  September 30, March 31, 2012
                                    2012          2012
                                                            
(in thousands)                                               
Operating loss      $(303,686)    $(312,731)  $(332,905)  $(421,887)
                                                            
Non-cash expenses:                                           
Spectrum lease      38,916         36,260       39,833       36,415
expense
Building and
network related     14,856         25,256       18,741       24,183
expenses*
Stock compensation  9,641          8,525        8,736        6,066
and other*
Non-cash expenses   63,413         70,041       67,310       66,664
                                                            
Non-cash                                                     
write-downs:
Loss from
abandonment of      414            (1,099)      2,588        80,400
network and other
assets
Network equipment
reserves and other  4,702          2,904        13,963       58,656
write-downs*
Non-cash            5,116          1,805        16,551       139,056
write-downs
                                                            
Depreciation and    183,633        194,873      210,781      177,973
amortization
                                                            
Adjusted EBITDA     $(51,524)     $(46,012)   $(38,263)   $(38,194)
                                                            
*Amounts included in COGS and SG&A.
                                                            
In a capital-intensive industry, management believes Adjusted EBITDA to be a
meaningful measure of the company's operating performance. The company
provides this non-GAAP measure as a supplemental performance measure because
management believes it facilitates comparisons of the company's operating
performance from period to period and comparisons of the company's operating
performance to that of other companies by backing out potential differences
caused by non-cash expenses related to long-term leases, share-based
compensation,non-cash write-downs and depreciation and amortization. Because
this non-GAAP measure facilitates internal comparisons of the company's
historical operating performance, management also uses this non-GAAP measure
for business planning purposes and in measuring the company's performance
relative to that of its competitors. In addition, Clearwire believes that
Adjusted EBITDA and similar measures are widely used by investors, financial
analysts and credit rating agencies as a measure of the company's financial
performance over time and to compare the company's financial performance with
that of other companies in the industry.
                                                            
(2) Retail ARPU (Average Revenue Per User) is total revenue less wholesale
revenue, the revenue generated from the sales of devices, shipping revenue,
and other revenue; divided by the weighted average number of retail
subscribers in the period, divided by the number of months in the period.
                                                            
Management uses retail ARPU to identify average revenue per customer, to track
changes in average retail customer revenues over time, to help evaluate how
changes in the business, including changes in the company's service offerings
and fees, affect average retail revenue per customer, and to assist in
forecasting future service retail revenue. In addition, retail ARPU provides
management with a useful measure to compare the company's customer retail
revenue to that of other wireless communications providers. The company
believes investors use retail ARPU primarily as a tool to track changes in the
company's average retail revenue per customer and to compare Clearwire's per
retail customer service revenues to those of other wireless communications
providers.
                                                            
                   Three months ended
                   (Unaudited)
                   March 31, 2013  December 31,  September 30, March 31, 2012
                                    2012          2012
(in thousands)                                               
Total revenues      $318,042      $311,241    $313,882    $322,639
Wholesale revenue   (114,917)      (116,590)    (116,498)    (117,821)
Device and other    (19,432)       (15,763)     (15,956)     (20,718)
revenue
Retail ARPU revenue $183,693      $178,888    $181,428    $184,100
                                                            
Average retail      1,408          1,352        1,342        1,310
customers
Months in period    3               3             3             3
Retail ARPU         $43.49        $44.10      $45.06      $46.83
                                                            
(3) Churn, which measures customer turnover, is calculated as the number of
subscribers that terminate service in a given period, divided by the weighted
average number of subscribers in that period, divided by the number of months
in that period. Retail customers are deactivated approximately 30 days after
failing to pay their monthly bill or when they ask to terminate their service.
Retail subscribers that discontinue service in the first 30 days of service
for any reason, or in the first 90 days of service under certain
circumstances, are deducted from the company's gross customer additions and
therefore not included in any of the churn calculations.
                                                            
Management uses churn to measure retention of the company's subscribers, to
measure changes in customer retention over time, and to help evaluate how
changes in the business affect customer retention. The company believes
investors use churn primarily as a tool to track changes in the company's
customer retention. Other companies may calculate this measure differently.
                                                            
(4) Retail CPGA (Cost per Gross Addition) is selling, general and
administrative costs, less general and administrative costs and acquired
businesses costs (costs from entities that were acquired by Clearwire's
predecessor entity) plus device equipment subsidies, divided by gross retail
customer additions in the period.
                                                            
                   Three months ended
                   (Unaudited)
                   March 31, 2013  December 31,  September 30, March 31, 2012
                                    2012          2012
(in thousands)                                               
Selling, general    $141,101      $138,489    $139,365    $142,655
and administrative
Less: G&A and other (106,972)      (113,103)    (104,720)    (95,408)
Selling expense     34,129         25,386       34,645       47,247
Plus: Equipment     19,463         16,300       17,707       14,620
COGS
Less:Equipment     (12,417)       (9,042)      (9,396)      (14,355)
revenue
Total retail CPGA   $41,175       $32,644     $42,956     $47,512
Expense
                                                            
Total gross adds    287            211          225          196
Total retail CPGA   $143          $155        $191        $242
                                                            
Management uses retail CPGA to measure the efficiency of the company's
customer acquisition efforts, to track changes in Clearwire's average cost of
acquiring new subscribers over time, and to help evaluate how changes in the
company's sales and distribution strategies affect the cost-efficiency of the
company's customer acquisition efforts. Clearwire believes investors use
retail CPGA primarily as a tool to track changes in the company's average cost
of acquiring new subscribers.

CONTACT: Investor Relations:
         Alice Ryder, 425-505-6494
         alice.ryder@clearwire.com
        
         Media Relations:
         Susan Johnston, 425-505-6178
         susan.johnston@clearwire.com
        
         JLM Partners for Clearwire:
         Mike DiGioia or Jeremy Pemble, 206-381-3600
         mike@jlmpartners.com or jeremy@jlmpartners.com

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