CLSTE Cellstar (MM)

CellStar Obtains Waiver From Lenders to Extend SEC Filing Date CARROLLTON, Texas, June 1 /PRNewswire-FirstCall/ -- CellStar (NASDAQ:CLSTE), a value-added wireless logistics services leader, today announced that as of May 31, 2005, the Company has obtained a waiver from its lenders under its domestic revolving credit facility to extend the date to file its Annual Report on Form 10-K for fiscal 2004 and its Quarterly Report on Form 10-Q for the period ended February 28, 2005, to July 15, 2005. Pursuant to the waiver, the Company's lenders also agreed to waive certain financial covenants for the quarters ended November 30, 2004 and February 28, 2005, and for the quarters ended prior to November 30, 2004, with which the Company would not have been in compliance due to the contemplated restatements of its financial statements. The Company had previously obtained a waiver from its lenders to extend the date to file its 2004 Form 10-K and Form 10-Q for the first quarter of 2005 to May 31, 2005. On May 26, 2005, the Company announced that it would be unable to file its Form 10-K for fiscal 2004 by May 31, 2005, because the Audit Committee of the Company's Board of Directors needed more time to complete its independent review of certain accounts receivable and revenue issues in the Asia Pacific Region. 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 North American, Latin American and Asia-Pacific 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. 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: Sherrian Gunn of CellStar Corporation, +1-972-466-5031, or Web site: http://www.cellstar.com/

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