Independent investigators hired by havefound evidence to contradict allegations contained in an anonymous reportagainst the company regarding the circumstances under which the FCC renewedcertain 39 GHz spectrum licenses in 2011 and 2012.

These allegations included that the substantial serviceshowings were a "word-processing exercise without any work in thefield." Investigators found that equipment was deployed at the original locationsin connection with the substantial service applications but was likely put inplace for a short time period at each location, according to a July 21 Form 8-K.The investigators did not find any evidence that the equipment is still at theoriginally specified locations but also found no evidence that anyone toldStraight Path before November 2015 that this equipment may have no longer beenthere, with the exception of the company becoming aware in late 2013 ofequipment missing from one location. Straight Path addressed that issue at thattime.

The wireless provider has shared the conclusions with theFCC and cannot provide assurances as to how the commission may move forwardwith this matter. If the FCC concludes that the company has not complied withits rules, it could take various actions, including revoking licenses. If thecommission decides to revoke a significant portion of the company's licenses orimpose other material conditions on the licenses' use, it could have a materialadverse effect on the value of the spectrum licenses and the company's abilityto generate revenues from their use.