[US GSA awards $200 million per year contract to Nextel to provide nationwide Enhanced Specialized Mobile Radio (ESMR) services to all federal agencies.]

Reston, VA -- Nextel Communications Inc. announced the signing of a contract award from the U.S. General Services Administration (GSA) for a two-year base contract period with three one-year option periods.

The estimated value of the contract is $200 million per year. The contract will enable Nextel to provide nationwide Enhanced Specialized Mobile Radio (ESMR) services to all federal agencies, as well as state and local agencies with federal funding, and will offer unique interoperability advantages for emergency preparedness and response.

The Indefinite Delivery, Indefinite Quantity (IDIQ) contract will supply the full range of Nextel products and services.

The offering includes access to wireless phones and accessories, Nextel's Java(TM)-technology-enabled wireless phones, wireless packet data tools, Nextel Direct Connect(R), the digital, long-range two-way walkie-talkie feature, messaging services, Custom Network Solutions and the Emergency Response rental program.

This suite of services is being delivered on Nextel's nationwide "always on" all digital voice and packet data network.

Nextel was awarded its initial GSA IDIQ contract in March 1999. Sales under that contract have far exceeded preliminary expectations.

"Nextel is pleased to continue its relationship with the General Services Administration," said Mark Angelino, Nextel senior vice president for Sales Operations. "We are proud that our wireless data and voice capabilities have been so well received in the government sector. Nextel continues to meet the ever-changing needs of the government sector by providing effective communications solutions on a proven national platform."

The U.S. General Service Administration provides acquisitions services and procurement vehicles that ensure "best value" along with streamlined purchasing vehicles for all federal agencies nationwide.

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