MobilePro lowers conversion price on $15.5 million in 7.75% convertible debentures

By Sheri Kasprzak

New York, July 7 - MobilePro Corp. has changed the conversion price on $15.5 million in 7.75% convertible debentures held by Cornell Capital Partners, LP.

The conversion price was lowered to $0.275 from $0.30, and if the company chooses to make principal payments in stock, the price will be equal to the lower of $0.275 or 93% of the average of the two lowest daily volume weighted average prices of the stock for the five trading days following the scheduled payment date.

MobilePro may redeem the debentures at a 20% premium to the principal being redeemed plus interest if the stock trades above $0.275. If the debentures are redeemed, Cornell will receive warrants equal to one-third of the principal being redeemed divided by $0.275. The warrants are exercisable for five years.

The issuer has $15,149,650 in outstanding principal of the debentures remaining.

The debentures were issued in principal of $15.5 million on May 5, 2005. The debentures are due in three years.

Based in Bethesda, Md., MobilePro is a wireless technology and broadband telecommunications company.

The stock fell 1.23%, or $0.002, Friday to close at $0.161 (OTCBB: MOBL).

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