“The business delivered strong year-over-year growth in adjusted OIBDA during the third quarter of 87 percent, even as the Company successfully moved through a challenging period,” said Doug Hutcheson, Leap’s CEO, president and acting CFO. “We also achieved an 11 percent year-over-year increase in gross customer additions that, while positive, was less than we anticipated. Looking forward to our current quarter, the Company has seen attractive post-Thanksgiving results that indicate we are on the right track for our expected fourth quarter customer additions, reinforcing our belief that our efforts to drive further return for the business are progressing as expected.

“While we experienced changes in customer buying patterns during the third quarter which affected our near-term customer growth rate, we believe that the long-term prospects for our business remain bright. We recently concluded a significant investment cycle which nearly doubled our footprint, customer base and adjusted OIBDA over the prior year. We passed a major milestone for this investment during the second quarter of this year in reaching adjusted OIBDA break-even for our new markets. During the third quarter, operating income increased as compared to the prior year period, demonstrating the strong financial progress the Company has made as we expanded the business. We are now in the early stages of realizing the benefits from these investments as we continue to penetrate these markets, and seek to leverage costs through scale and to grow adjusted OIBDA.”

Net loss for the third quarter was $43.3 million, or $0.64 per diluted share, compared to a net loss of $0.8 million, or $0.01 per diluted share, for the corresponding quarter of the prior year. The increase in net loss over the prior year period is primarily attributable to a $12.9 million increase in net interest expense resulting from an increase in the Company’s long-term debt and a change in the Company’s tax accounting method for amortizing certain wireless licenses that resulted in accelerated deductions and other tax benefits and a $24.1 million increase in income tax expense for accounting purposes. The change in taxes includes $19.3 million in one time expenses and is expected to improve the potential utilization of these tax benefits in future periods. Together, the increases in net interest and tax expense as a result of the change in tax accounting method during the third quarter of 2007 contributed $0.55 to the net loss of $0.64 per diluted share reported for the quarter.

“In September, the Company initiated a comprehensive review of our service revenue activity and forecasting process, which ultimately resulted in our announcement that we would restate financial statements for fiscal years 2004, 2005, 2006 and the first two quarters of 2007,” continued Hutcheson. “Over these periods, the restatement had a net cumulative impact of approximately $8 million on service revenues and approximately $23 million on operating income over these periods. We have been working with our independent auditors to finalize our financial statements and expect to file the third quarter Form 10-Q by December 14, 2007 and complete the necessary amendments and restatements of the required prior annual and quarterly reports on or before December 31, 2007.”

About Leap

Leap provides innovative, high-value wireless services to a fast-growing, young and ethnically diverse customer base. With the value of unlimited wireless services as the foundation of its business, Leap pioneered both the Cricket^® and Jump^TM Mobile services. The Company and its joint ventures now operate in 23 states and hold licenses in 35 of the top 50 U.S. markets. Through its affordable, flat-rate service plans, Cricket offers customers a choice of unlimited voice, text, data and mobile Web services. Jump Mobile is a unique prepaid wireless service designed for the mobile-dependent, urban youth market. Headquartered in San Diego, Calif., Leap is traded on the NASDAQ Global Select Market under the ticker symbol “LEAP.” For more information, please visit www.leapwireless.com.