CLSTE Cellstar (MM)

PhoneCo Wireless Selects CellStar for Comprehensive Supply Chain Management Support CellStar's Omnigistics(SM) Helps New MVNO Facilitate Direct-to-Consumer Sales and Assists With Product Support CARROLLTON, Texas, April 12 /PRNewswire-FirstCall/ -- CellStar (NASDAQ:CLSTE), a value-added wireless logistics services leader, today announced it has signed an agreement with local and long-distance telecom company PhoneCo, to provide logistical support for the company's new MVNO (mobile virtual network operator), PhoneCo Wireless, a pre-paid wireless company. CellStar's Omnigistics(SM) will provide turnkey forward and reverse logistics, seamlessly integrating into PhoneCo's business model offering transparent supply chain management services. On the forward side, CellStar will program, kit and package PhoneCo phones into retail-ready units. On the reverse side, CellStar will offer its expertise in returns management and asset recovery, helping PhoneCo manage the cumbersome, complex returns, repair and warranty work. "From competitively priced handsets to comprehensive logistics solutions, CellStar was able to meet all of our needs," said Ken Weaver, chairman of PhoneCo. "Without CellStar's all-in-one Omnigistics solution, we would have been forced to manage multiple vendors. CellStar erased the confusion and simplified our supply chain. Now we can focus on doing what we do best, offering the very best in pre-paid packages that are superior to those offered by our competitors." "Based on PhoneCo's tremendous success as a diversified telecommunications provider to the pre-paid market, we expect them to be even more successful in the wireless arena," said Laurie Stixrood, vice president, new business development for CellStar. "And because we offer such scalable logistics services, we look forward to growing our relationship as their business expands." PhoneCo Wireless service will be available in the second quarter 2005 by calling its toll-free number, 1-800-4-A-PHONE. PhoneCo is an established communications provider, offering phone service, two-way paging and Internet access to value-conscious consumers. About Omnigistics Omnigistics, a turnkey reverse and forward logistics solution, provides enhanced logistic services and programs designed to meet the most complex wireless business demands. Omnigistics offers valuable asset tracking and management processes, from advanced exchange and direct-to-consumer programs to bulk fulfillment and retail-ready solutions that include kitting, packaging and programming. A single, integrated system that manages the entire reverse logistics process, Omnigistics also boasts simplified returns management and asset recovery, giving clients the most value for their returned assets. With centralized returns and an on-site repair center, CellStar handles refurbishment and repair, and redistributes wireless assets -- eliminating the need to juggle multiple third-party vendors. Detailed daily reporting, financial analysis, inventory management and information management are all bundled into one integrated offering that centralizes and consolidates logistics management under one primary provider. About CellStar Corporation CellStar Corporation is a leading global provider of value-added logistics services to the wireless communications industry, with operations primarily in the Asia-Pacific, North American and Latin American regions. CellStar facilitates the effective and efficient distribution of handsets, related accessories and other wireless products from leading manufacturers to network operators, agents, resellers, dealers and retailers. CellStar also provides activation services in some of its markets that generate new subscribers for wireless carriers. For the year ended November 30, 2003, the Company generated revenues of $1.8 billion. Additional information about CellStar may be found on its Web site at http://www.cellstar.com/ . This news release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. A variety of risk factors, including the Company's ability to implement its business strategies, to maintain its channels of distribution, continue to secure an adequate supply of competitive products on a timely basis and on commercially reasonable terms, improve its operating margins, secure adequate financial resources, maintain an adequate system of internal control, comply with debt covenants, and continually turn its inventories and accounts receivable, as well as changes in foreign laws, regulations and tariffs, new technologies, system implementation difficulties, competition, handset shortages or overages, terrorist acts, a decline in consumer confidence and continued economic weakness in the U.S. and other countries in which the Company does business and other risk factors, are discussed in the Company's Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. Any one, or a combination of these risk factors could cause CellStar's actual results to vary materially from anticipated results or other expectations expressed in the Company's forward-looking statements. DATASOURCE: CellStar Corporation CONTACT: Alicia Thomas, +1-972-462-2730, or , or Sherrian Gunn, +1-972-466-5031, or , both of CellStar Corporation Web site: http://www.cellstar.com/

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