NII Holdings, Inc. [NASDAQ: NIHD] today announced its financial results for the fourth quarter and full year of 2017. For the quarter, the Company generated consolidated operating revenues of $189 million, a consolidated operating loss of $40 million and consolidated adjusted OIBDA loss of $18 million. The Company's consolidated adjusted OIBDA excludes the impact of non-cash asset impairments, restructuring charges and other unusual items. For the full year, the Company generated consolidated operating revenues of $870 million, a consolidated operating loss of $272 million and consolidated adjusted OIBDA loss of $55 million. Capital expenditures were $21 million for the quarter and $51 million for the full year.

For the fourth quarter of 2017, Nextel Brazil reported a significant improvement in its 3G/4G subscriber results, with 26,800 3G/4G net subscriber additions, a 59,100 increase compared to the third quarter of 2017. In addition, 3G/4G churn for the fourth quarter was 3.47%, a 57-basis point decrease compared to the third quarter of 2017. Subscriber migrations from its iDEN network to its 3G/4G network were 23,500, the highest quarterly level reported for 2017. The Company expects the improving net subscriber addition and average monthly churn rate trends for 3G/4G experienced in the fourth quarter to continue in the first quarter of 2018.

"The improved subscriber results reported for the fourth quarter reflect the continued efforts we have been making to enhance our customers' experience while providing them with a very competitive and attractive offer," stated Roberto Rittes, Chief Executive Officer of Nextel Brazil. "We are expecting a further reduction in 3G/4G churn in the first quarter, giving us confidence that we can drive meaningful 3G/4G subscriber growth in 2018, which should lead to increasing 3G/4G revenues. At the same time, we are continuing to maintain discipline around our spending and remain focused on capturing additional cost reduction opportunities. Entering 2018, we are energized and excited to execute on our plan for the year."

Nextel Brazil's key financial metrics for 2017 were largely in line with 2016. Average monthly service revenue per subscriber (ARPU) was $19, cost per gross addition (CPGA) was $97 and cash cost per user (CCPU) was $18. For the fourth quarter, Nextel Brazil reported ARPU of $18, CPGA of $102 and CCPU of $17.

At year-end, the Company's sources of funding totaled $371 million, including $211 million of unrestricted cash and short-term investments, $110 million of cash held in escrow to secure indemnification obligations in connection with the sale of Nextel Mexico and $50 million in cash pledged as collateral to secure certain performance bonds in Brazil. The Company recovered substantially all of the cash securing these performance bonds in January 2018.

The Company recently reached an agreement with the Mexican tax authorities on $73 million in previously escrowed funds related to the audits of Nextel Mexico's income tax returns for the years 2010 and 2011. The Company expects to recover some of that amount in the next few months. The Company is continuing to work with the Mexican tax authorities to settle the open non-income tax-based audits and accelerate the release of the remaining escrow.

"We ended the year with a healthy liquidity position," stated Dan Freiman, Chief Financial Officer of NII Holdings. "With the completion of the loan amendments that we recently announced, which take near-term pressure off our liquidity, as well as recent encouraging operating trends, we are positioned to grow our 3G/4G subscriber base this year. We believe this growth will pay back in the form of higher revenues and adjusted OIBDA in 2019 and beyond."

The Company announced the following outlook for 2018:

• Total 3G/4G net subscriber additions of 300,000 or more;
• Moderately better consolidated adjusted OIBDA than the amount reported in 2017, but still negative; and
• A similar level of capital expenditures as the amount reported in 2017.

The Company's consolidated adjusted OIBDA outlook for 2018 excludes an expected positive impact from the adoption of ASU No. 2014-09, "Revenue from Contracts with Customers," or ASC 606, on January 1, 2018.

With the completion of the loan amendments and improvements to the Company's liquidity and outlook, management is finalizing its assessment of whether substantial doubt about the Company's ability to continue as a going concern has been resolved.

Additional details regarding the Company's results, including the Company's conclusion on its assessment of going concern and a more detailed explanation on local currency operating metrics, will be included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017that will be filed with the Securities and Exchange Commission in the coming days. Additional operational and financial details, including a quarterly earnings presentation, are also available under the Company's Investor Relations link at www.nii.com.

In addition to the financial results prepared in accordance with accounting principles generally accepted in the United States (GAAP) provided throughout this press release and in the attached financial tables, NII Holdings has presented consolidated adjusted OIBDA, as well as Nextel Brazil's ARPU, CCPU, and CPGA. These measures are non-GAAP financial measures and should be considered in addition to, but not as substitutes for, the information prepared in accordance with GAAP. Reconciliations from GAAP results to these non-GAAP financial measures are provided in the notes to the attached financial tables. To view these and other reconciliations of non-GAAP financial measures that the Company uses, visit the investor relations link at www.nii.com.

About NII Holdings, Inc.

NII Holdings, Inc., a publicly held company based in Reston, Virginia, is a provider of differentiated mobile communication services for businesses and high value consumers in Brazil. NII Holdings, operating under the Nextel brand, offers fully integrated wireless communication tools with digital cellular voice services, data services and wireless Internet access. Visit the Company's website atwww.nii.com.