Clearwire Issues Transaction Update: to Take $80M Draw in March on Sprint Deals

Clearwire (NASDAQ: CLWR)today announced that it has elected to take the $80 million March draw underthe terms of its agreements with Sprint Nextel Corporation ("Sprint") thatprovide additional financing to Clearwire in the form of exchangeable notes,which will be exchangeable under certain conditions for Clearwire common stockat $1.50 per share, subject to adjustment under certain conditions (the"Sprint Financing Agreements").  Clearwire no longer has any right to take thefirst two monthly draws under the Sprint Financing Agreements.  The SpecialCommittee has not made any determination as to whether to take any futuredraws under the Sprint Financing Agreements and has not made any determinationto change its recommendation of the current Sprint transaction.As previously disclosed on January 8, 2013, Clearwire received an unsolicited,non-binding proposal from DISH Network Corporation ("DISH"), which was apreliminary indication of interest and subject to numerous, materialuncertainties and conditions. Consistent with its fiduciary duties toClearwire's non-Sprint class A stockholders, the Special Committee ofClearwire's board of directors has engaged in discussions with DISH concerningits proposal and with Sprint over the course of the last two months, and theSpecial Committee intends to continue such discussions.  The Special Committeewill pursue the course of action that it believes is in the best interests ofClearwire's non-Sprint Class A stockholders.Also, Clearwire and Sprint have amended the Sprint Financing Agreements toremove the condition to Sprint's obligation to provide financing for the lastthree draws (in August, September and October 2013) that an agreement has beenreached between Sprint and Clearwire on the accelerated build out ofClearwire's wireless broadband network.  This amendment will allow Clearwire,at its option, to take the last three draws under the Sprint FinancingAgreements whether or not an accelerated build out agreement has been enteredinto by the parties.  Clearwire does not expect to enter into an acceleratedbuild-out agreement with Sprint at this time.