Strong Distribution

In 2008, we gave customers more ways and places to buy our growing portfolio of products. We ended the year with approximately 3,000 points of presence nationwide, including our re-emergence in more than 600 Wal-Mart locations with Cricket PAYGo. Our exclusive “premier” dealers, which cost-effectively broaden our reach with the look, feel and service of Cricket stores, continued to be one of our most productive channels. We also accelerated Web and telesales to net a growing share of our gross additions.

To further strengthen the Cricket brand, we have developed a fresh new store concept that more effectively merchandises our three products. The new design is coming to all new launch markets and relocations in 2009. As part of our focus on retail excellence, we also prepared to introduce a high-tech, touch-screen queuing system in our stores. The new process lets our customers learn more about our products and features as they wait for a sales or service representative.

In the coming year, we expect to expand the distribution of both handsets and prepaid airtime significantly. We plan to sell Cricket PAYGo airtime cards at convenience stores, grocery stores and gas stations across the country. In addition, we are introducing systems, processes and programs in a continuous effort to improve the customer experience across every channel. Scalable and cost-effective, our distribution strategy is closely aligned with supply chain management to make us even more efficient and accelerate our growth.