<SUBMISSION>
<ACCESSION-NUMBER>0000950137-03-004946
<TYPE>425
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>20030926
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>AIRGATE PCS INC /DE/
<CIK>0001086844
<ASSIGNED-SIC>4813
<IRS-NUMBER>582422929
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0930
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>425
<ACT>34
<FILE-NUMBER>000-27455
<FILM-NUMBER>03910833
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>233 PEACHTREE ST NE
<STREET2>SUITE 1700
<CITY>ATLANTA
<STATE>GA
<ZIP>30303
<PHONE>4045257272
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>233 PEACHTREE ST
<STREET2>SUITE 1700
<CITY>ATLANTA
<STATE>GA
<ZIP>30303
</MAIL-ADDRESS>
</SUBJECT-COMPANY>
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>AIRGATE PCS INC /DE/
<CIK>0001086844
<ASSIGNED-SIC>4813
<IRS-NUMBER>582422929
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0930
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>425
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>233 PEACHTREE ST NE
<STREET2>SUITE 1700
<CITY>ATLANTA
<STATE>GA
<ZIP>30303
<PHONE>4045257272
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>233 PEACHTREE ST
<STREET2>SUITE 1700
<CITY>ATLANTA
<STATE>GA
<ZIP>30303
</MAIL-ADDRESS>
</FILED-BY>
<DOCUMENT>
<TYPE>425
<SEQUENCE>1
<FILENAME>c79776ae425.htm
<DESCRIPTION>FORM 425
<TEXT>
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<P align="right"><FONT size="2">Filed by AirGate PCS, Inc.<br>
Pursuant to Rule&nbsp;425 under the Securities Act of 1933, as amended<br>
Subject Company: AirGate PCS, Inc.<br>
Commission File No.: 027455
</FONT>

<P align="center"><FONT size="2"><B>AirGate PCS<BR>
Employee Questions and Answers Document<BR>
September&nbsp;2003</B>
</FONT>

<P align="left"><FONT size="2"><B>What is a recapitalization plan?</B>
</FONT>

<P align="left"><FONT size="2">A recapitalization plan is a financial transaction that allows a company to
improve or modify its financial condition by restructuring its debt. There are
many ways in which companies undertake recapitalizations.
</FONT>
<P align="left"><FONT size="2"><B>How will a recapitalization plan benefit AirGate?</B>
</FONT>

<P align="left"><FONT size="2">In both the short-term and the long-term, we believe this recapitalization plan
will allow us to:
</FONT>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">Save AirGate more than $255&nbsp;million in debt service over the next
six years, which would enable us invest this savings back into the
business
</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">Continue to support our &#147;smart growth&#148; strategy
</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">Provide us financial flexibility to consider other initiatives to
improve our operational and financial performance such as the
outsourcing of customer care and related services
</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">Better position us to maintain and maximize our business
competitiveness in the marketplace
</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">Reposition the company&#146;s equity enabling us to have a stock that
trades on a major exchange
</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2"><B>What does this plan mean to me?</B>
</FONT>

<P align="left"><FONT size="2">This recapitalization plan shouldn&#146;t have any impact on your activities from a
day-to-day operational standpoint. This plan is designed to better position
AirGate financially and in the marketplace for continued &#145;smart growth.&#146;
</FONT>
<P align="left"><FONT size="2"><B>What are the key elements of the recapitalization plan?</B>
</FONT>

<P align="left"><FONT size="2">The main component of the plan is an offer to exchange all of our $300&nbsp;million
outstanding old notes for a combination of $160&nbsp;million in new notes at a lower
interest rate and new shares of our common stock, which will represent
approximately 56&nbsp;percent of the outstanding equity.
</FONT>
<P align="left"><FONT size="2">We are very pleased to say that note holders representing more than two-thirds
of the principal amount of the Old Notes have agreed to tender their notes in
the exchange offer under the terms of a support agreement, which became
effective today. We are targeting completion of this restructuring plan for the
end of the year, subject to SEC review and other normal conditions.
</FONT>
<P align="center"><FONT size="2">&nbsp;
</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P align="left"><FONT size="2">Other features of the plan include:
</FONT>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">A reverse stock split
</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">An increase in shares authorized for award under the Company&#146;s
stock incentive plan
</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">An increase in the size of the Company&#146;s board of directors to at
least seven members, three of whom are to be approved by supporting
note holders.
</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">A consent solicitation to remove substantially all covenants of the
indenture under which the Old Notes were issued which can be removed
without consent of all note holders, release the liens created under
the indenture and waive any defaults under the indenture that occur as
a result of the recapitalization plan. Also as mentioned earlier, more
than two-thirds of supporting note holders have agreed to provide this
consent.
</FONT></TD>
</TR>
</TABLE>
<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
       <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
       <TD width="1%" nowrap align="left"><FONT size="2">&#149;
</FONT></TD>
       <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
       <TD><FONT size="2">And finally, the transfer of the Company&#146;s iPCS stock to a
liquidating trust for the benefit of the AirGate shareholders, subject
to approval of the iPCS bankruptcy court. Such shares would be
distributed to AirGate shareholders only if the iPCS bankruptcy court
approves a plan of reorganization for iPCS that calls for distribution
of iPCS shares to the trust.
</FONT></TD>
</TR>
</TABLE>
<P align="left"><FONT size="2"><B>What is a reverse stock split?</B>
</FONT>

<P align="left"><FONT size="2">A traditional stock split occurs when a company takes a share of stock and
splits it to create two shares of stock from one share. For instance, if one
share is valued at $50.00, a split would create two shares valued at $25.00
each. A stock split is traditionally used to reduce the price of very
high-priced stocks to make them more affordable to potential shareowners.
</FONT>
<P align="left"><FONT size="2">A reverse stock split does just the opposite. For instance, a company takes
one share of stock valued at $5.00, combines it with another share of stock, to
create a $10.00 share value. This method is often utilized to allow a share
price to be high enough to qualify for listing on a stock exchange. In both
types of stock splits, the value of a shareowner&#146;s overall shares remain the
same, although the number of total shares changes. This transaction pertains
to all shares of the company&#146;s common stock including employee stock options.
</FONT>
<P align="left"><FONT size="2"><B>Why increase the number of shares available under the stock incentive plan?</B>
</FONT>

<P align="left"><FONT size="2">This increase in shares for the stock incentive plan is intended to give
management the flexibility of aligning employee interests with shareowner
interests. Although a new stock incentive plan has not been finalized by the
Board or approved by the supporting note holders, it is important that we have
the stock options available to accomplish this objective. More details will
follow in the coming months.
</FONT>
<P align="left"><FONT size="2"><B>What is the likelihood that the recapitalization will be approved by bond
holders and shareowners?</B>
</FONT>

<P align="center"><FONT size="2">2
</FONT>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P align="left"><FONT size="2">We anticipate the recapitalization plan will be approved by year&#146;s end, but the
final outcome will be determined by our shareowners and bond holders. This
plan is subject to SEC review and other normal conditions.
</FONT>
<P align="left"><FONT size="2"><B>What happens if the recapitalization is not approved?</B>
</FONT>

<P align="left"><FONT size="2">In the event the Company does not meet the 98% minimum tender requirement
or any other conditions to complete the recapitalization plan, the Company has
the option to pursue a prepackaged plan of reorganization or simply put &#150; a
prepackaged bankruptcy. That term might sound scary to some of you. However,
what it means is this: If we don&#146;t accomplish this recapitalization through
this current proposal, the board could vote to restructure our debt through
another form of reorganization &#150; such as a prepackaged bankruptcy.
</FONT>
<P align="left"><FONT size="2">This prepackaged option is the same plan as the current proposal; it would
merely result in a court-enforced recapitalization plan. Just as in our
current proposal, this would not affect you. This course of action is NOT like
iPCS. Again, we don&#146;t anticipate having to take this course of action, but it
is another option of refinancing that is available to the board if we need it.
</FONT>
<P align="left"><FONT size="2"><B>What is the status of AirGate&#146;s ownership of iPCS? What impact does this recapitalization plan have on iPCS?</B>
</FONT>

<P align="left"><FONT size="2">The recapitalization plan includes a feature to transfer the Company&#146;s iPCS
stock to a liquidating trust for the benefit of the AirGate shareholders,
subject to approval of the iPCS bankruptcy court. Such shares would be
distributed to AirGate shareholders only if the iPCS bankruptcy court approves
a plan of reorganization for iPCS that calls for distribution of iPCS shares to
the trust&#146;s beneficiaries. Business will continue as usual at iPCS, as this
recapitalization plan will have no impact on the company&#146;s operations.
</FONT>
<P align="left"><FONT size="2"><B>Is there any connection between the recapitalization plan and the initiative to
outsource customer care, billing and collections?</B>
</FONT>

<P align="left"><FONT size="2">No, that decision is being considered as part of a strategic plan to more
efficiently provide these particular services to our subscribers.
</FONT>
<P align="left"><FONT size="2"><B>Will a recapitalization plan result in more job eliminations?</B>
</FONT>

<P align="left"><FONT size="2">Thanks to your efforts, the company is operating in a very lean and efficient
manner. This recapitalization plan is designed to put the company in a stronger
financial position. Therefore, we don&#146;t expect this move to have a negative
impact on jobs or the number of positions we have at AirGate.
</FONT>
<P align="left"><FONT size="2"><B>How will a recapitalization affect future salary increases or FY2003 bonus awards?</B>
</FONT>

<P align="left"><FONT size="2">This recapitalization shouldn&#146;t affect the salary increases or FY2003 bonus
awards. Salary increases for the new fiscal year have already been factored
into the FY2004 budget.
</FONT>
<P align="left"><FONT size="2"><B>What is AirGate&#146;s future?</B>
</FONT>

<P align="center"><FONT size="2">3
</FONT>
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<P align="left"><FONT size="2">We believe with this recapitalization plan, AirGate&#146;s future is promising. We
are in the midst of successfully implementing the &#145;smart-growth&#146; strategy. Our
efforts to maximize operating cash flow by reducing our spending and operating
costs have proven effective. The quality of our subscriber base continues to
improve, thanks to the hard work and efforts of our people. These combined
successes will enable us to be ready to maximize the company&#146;s position as the
market demand for Sprint wireless products and services strengthens.
</FONT>
<P align="left"><FONT size="2"><B>Additional Information</B>
</FONT>

<P align="left"><FONT size="2">AirGate PCS, Inc. (the &#147;Company&#148;) expects to file an exchange offer
registration statement and a proxy statement relating to the recapitalization
transaction with the Securities and Exchange Commission (the &#147;SEC&#148;) as soon as
possible. Broadview International, LLC and Masson and Company are advising the
Company on the transaction. Jefferies &#038; Company has been appointed
dealer-manager for the exchange offer. The Company and its directors and
executive officers may be deemed to be participants in the solicitation of
proxies from the stockholders of the Company with respect to the transactions
contemplated by the exchange offer. Information about the Company&#146;s directors
and officers is included in the Company&#146;s Annual Report on Form 10-K filed with
the SEC on January&nbsp;17, 2003 and in the Company&#146;s Proxy Statement for its 2003
Annual Meeting of Shareowners filed with the SEC on January&nbsp;28, 2003.
</FONT>
<P align="left"><FONT size="2">The foregoing reference to the registered exchange offer shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall there be any
sale of shares of the Company&#146;s common stock or the Company 9 3/8% senior
subordinated secured notes due 2009 in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Investors and security holders
are urged to read the Registration Statement on Form S-4, including the
prospectus relating to the exchange offer and the Proxy Statement on Schedule
14A (and, in each case, any amendments thereto) when they become available
because they will contain important information.
</FONT>
<P align="left"><FONT size="2">These documents and amendments to these documents will be filed with the SEC.
When these and other documents are filed with the SEC, they may be obtained at
the SEC&#146;s web site at www.sec.gov. You may also obtain each of these documents
(when available) from the Company by directing your request to Barbara L.
Blackford, Vice President, General Counsel and Corporate Secretary at (404)
525-7272.
</FONT>


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