OKLAHOMA CITY, Feb. 7, 2006 (PRIMEZONE) -- Dobson Cellular Systems, a subsidiary of Dobson Communications Corporation (Nasdaq:DCEL), announced today that it has signed a distribution agreement with RadioShack Corporation under which Dobson's Cellular One wireless products and services will be sold through 54 RadioShack-owned stores in seven states. The majority of the stores are in New York and Pennsylvania, but the agreement also includes RadioShack locations in Kentucky, Minnesota, Texas, West Virginia and Wisconsin.
Under the new distribution agreement, RadioShack dealers in Dobson markets will also have the opportunity to participate as Cellular One distributors. Dobson will review each location prior to approval as a distributor.
In August 2005, RadioShack announced its first national distribution agreement with a GSM-technology wireless provider, Cingular Wireless, under which Cingular products and services would be sold through RadioShack stores nationwide starting in January 2006. Dobson is the largest GSM wireless services provider to rural markets in the United States, and Cingular is Dobson's largest roaming partner. The 54 RadioShack stores involved in the new distribution agreement are located primarily in markets served by Dobson but not Cingular.
Dobson's main distribution channel is through its own stores, which serve markets in 16 states. However, the company also sells through direct sales and a growing list of agents and dealers.
"RadioShack will provide Dobson with a much stronger presence in key shopping malls and other retail locations," said Steve Dussek, Dobson president and chief executive officer. "We expect this new distribution agreement to enhance our growth in the dealer channel.
"In addition, the agreement complements our long-term relationship with Cingular Wireless," he said. "Consumers who buy Cingular or Dobson products in RadioShack stores will have unfettered access to the highest quality wireless networks throughout the United States, including Alaska, where Dobson is the largest wireless provider."
Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding the Company's plans, intentions and expectations. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, but are not limited to expected sales growth resulting from the Company's new distribution agreement with RadioShack Corporation. A more extensive discussion of the risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports and other filings filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.