MobilePro Corp. has acquired CommSouth Companies, a pre-paid local exchange carrier (CLEC) and long distance and Internet service provider based in Dallas, Texas. CommSouth was, at one time, the leading provider of prepaid dial tone in the US. (CommSouth declared bankruptcy in October 2003). The acquisition is subject to certain closing conditions, including CommSouth receiving final approval of its plan of reorganization. Terms were not disclosed and the transaction is expected to close in the fourth quarter of 2004.

Kevin Kuykendall, MobilePro's group president for voice services, said, "As part of our voice strategy, we are aggressively looking to expand our local and long distance capabilities through the acquisition of companies that have licenses, products, subscribers, revenue and profits. We believe the acquisition of CommSouth meets all these criteria and is especially important to MobilePro's voice strategy because CommSouth has CLEC licenses, long distance (IXC) licenses and interconnect agreements in 42 U.S. states plus Puerto Rico. These licenses enable MobilePro to immediately begin providing local and long distance services to over 40,000 Internet customers acquired by MobilePro over the past five months. This also positions MobilePro to rapidly take advantage of new technologies such as Voice over Internet Protocol (VoIP), Wi-Fi, and Wi-Max. CommSouth has over 50,000 lines and, we believe, an excellent management team and office support systems."

John McClure, CEO of CommSouth said, "I am excited to be a part of the business growth strategy of a dynamic corporation such as MobilePro, whose vision and plan I believe will make it not only one of the industry's profitable leaders, but one of its success stories. I look forward to working with Kevin and Jay Wright as we build MobilePro into a large, profitable telecommunications company."

CommSouth Companies, Inc., based in Dallas, TX, was founded in 1996. MobilePro Corp. is a wireless technology and broadband Internet services company based in Bethesda, Maryland with operations in Hurst, Houston, Dallas and Beaumont, Texas and Shreveport, Louisiana.  Over the past six months, MobilePro Corp. has signed eleven letters of intent and has closed five of those transactions. The other six transactions are expected to close by the end of August. If all the announced transactions are successfully closed, MobilePro's pro forma annualized revenue would be over $37 million.