Replies to post #1160 on The Golden Lounge

[Jim Bishop]

MTNT Motient Announces New Funding for Mobile Satellite Ventures Subsidiary

RESTON, Va., Oct. 15 /PRNewswire/ -- Motient Corporation (Nasdaq: MTNT)
today reported that new investment had been secured for Mobile Satellite
Ventures LLC (MSV), enabling Motient to complete its previously announced plan
to integrate the satellite operations of Motient and those of TMI
Communications and Company, L.P., a wholly owned subsidiary of BCE Inc. of
Canada. The formation of MSV, announced in January 2001, is currently
awaiting customary American and Canadian regulatory approvals.
The new investment involves MSV's issuance of $55 million in subordinated
convertible notes to an investor group including Telcom Ventures, LLC,
Columbia Capital, Spectrum Equity Investors, a subsidiary of
Rare Medium Group, Inc. (Nasdaq: RRRR), and Motient. The $55 million
investment will provide MSV with sufficient resources to close on its pre-
existing agreement to consolidate the satellite-related assets of both Motient
and TMI, and allows it to move forward as a standalone operating entity.
As a part of this transaction, Motient will receive $60 million, of which
$45 million will be in cash and $15 million in a note, and after closing
Motient will remain a minority investor in MSV, allowing Motient substantial
participation in MSV's potential success. Motient indicated that the cash
payment, along with an additional $10 million released from escrow based on
certain milestone achievements surrounding the prior sale of its
transportation mobile communications assets, is expected to provide liquidity
for Motient's operations during its restructuring process. Separately,
Motient reported it had retained the services of Credit Suisse First Boston to
advise it in connection with the possible restructuring of its debt, including
its Senior Notes.
"We are gratified that Mobile Satellite Ventures has attracted further
investment to secure its future as an independent company," said
Walter V. Purnell, Jr., president and CEO of Motient. "The long-awaited
completion of this transaction brings together an impressive group of partners
and investors, while retaining a significant stake in this promising venture
for Motient. In addition, I'm sure the cash infusion into Motient's core
wireless data business will help to further Motient's business plan for the
benefit of all stakeholders."
Upon completion of the transaction, MSV will bring together the mobile
satellite businesses of both Motient and TMI and creates the largest provider
of mobile satellite services in North America. MSV's approximately 40,000
customers will enjoy the benefits of digital voice and data services,
including circuit switched voice, nationwide voice and data dispatch and
packet data services. Subject to regulatory approvals, MSV intends to develop
a highly innovative and spectrally efficient combination of next generation
spot beam satellites complemented with ancillary terrestrial base stations.
In separate action, Motient and Rare Medium announced that Motient repaid
approximately $26.2 million, plus accrued interest, of the $50 million
aggregate principal amount of exchangeable notes issued by Motient to Rare
Medium by delivering to Rare Medium five million shares of
XM Satellite Radio (Nasdaq: XMSR) common stock held by Motient. The maturity
date for the remaining outstanding principal amount of approximately $26.2
million was extended for 60 days, and will be further extended to October 12,
2002 upon satisfaction of certain conditions.

About TMI Communications
TMI Communications (www.tmisolutions.com) is a leading developer and
supplier of mobile satellite communications solutions. From the powerful
MSAT-1 satellite, the company offers a full portfolio of services, including
voice, dial-up data, dispatch radio, fax and packet data, across all of North
and Central America, northern South America, the Caribbean, Hawaii, and up to
250 miles offshore. TMI Communications services are ideally suited for the
transportation, maritime, mining, government, utility and petroleum
industries. Headquartered in Ottawa, TMI Communications is owned by BCE Inc.,
one of the world's premier telecommunications companies.

About Motient Corporation
Motient (www.motient.com) owns and operates an integrated
terrestrial/satellite network and provides a wide range of two-way mobile and
Internet communications services principally to business-to-business customers
and enterprises. The company provides eLink(SM) and BlackBerry(TM) by Motient
two-way wireless email service to customers accessing email through corporate
servers, Internet Service Provider (ISP) and Mail Service Provider (MSP)
accounts, and paging network suppliers. Motient serves a variety of markets
including mobile professionals, telemetry, transportation, field service, and
nationwide voice dispatch offering coverage to all 50 states, Puerto Rico, the
U.S. Virgin Islands, and thousands of miles of U. S. coastal waters.

eLink is a service mark and Motient is a trademark of Motient Corporation.
The BlackBerry and RIM families of related marks, images and symbols are the
exclusive properties of, and trademarks of Research In Motion Limited and are
used by permission. "BlackBerry by Motient" - used by permission.

This press release contains forward looking statements, including
statements regarding completion of the MSV financing, MSV's future operations
and developments, future performance of Motient and its network, Motient's
future operating cash flow, the possible restructuring of Motient's Senior
Notes and Motient's ability to fully leverage its network. Factors that could
cause actual results to differ materially from those in the forward looking
statements in this news release include Motient's serious short-term liquidity
needs, Motient's substantial debt, the need for American and Canadian
regulatory approvals, competition in the wireless industry, general economic
conditions, market acceptance of Motient's products and services, the
reliability and cost of Motient's supply of wireless handheld devices, and
Motient's dependence on a relatively small number of customers. Many of these
and other factors are described in Motient Corporation's registration
statement on Form S-4 (File No. 333-63826) and in Motient's annual report on
Form 10-K for the year ended December 31, 2000 and its other periodic filings
and reports with the Securities and Exchange Commission. Copies of such
reports and filings are available upon request from Motient Corporation's
Investor Relations Department.

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SOURCE Motient Corporation
-0- 10/15/2001
/CONTACT: Eric Swank, Vice President, Corporate Planning,
[phone], or [e-mail], or Donald L. Campbell, Director,
Corporate Communications and Investor Relations, [phone], or
[e-mail], both of Motient Corporation/
/Web site: http://www.motient.com
http://www.tmisolutions.com /
(MTNT XMSR RRRR)

CO: Motient Corporation; TMI Communications and Company, L.P.
ST: Canada, Virginia
IN: CPR TLS
SU: FNC


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