ALLTEL Reports First Quarter Earnings Per Share From

Current Businesses of 59 Cents, Up 26 Percent LITTLE ROCK, Ark. (PROTEXT) - ALLTEL (NYSE: AT) today announced record first quarter results from current businesses. Revenues grew 16 percent to $1.4 billion from the previous year; net income was up 31 percent to $167 million; and earnings per share grew 26 percent to 59 cents per share from the previous year. Among the highlights from businesses in the first quarter: -- Revenues and operating income for ALLTEL's wireless business increased 21 percent and 49 percent, respectively, from last year. This was driven by an increase in average revenue per customer (ARPU) of 5 percent year over year, to $47.35. -- ALLTEL added 174,000 net wireless customers during the first quarter, including 85,000 from the acquisition of the Richmond, Va., market. -- Revenues and operating income for ALLTEL's wireline business increased 12 percent and 10 percent, respectively, from last year, which include the acquisition of Standard Group Inc. in Georgia. -- Revenues from emerging businesses more than doubled in the quarter over the same period last year. This was due to growth in long-distance, competitive local exchange access, Internet access, network management and PCS (personal communications service) operations. -- Revenues and operating income for ALLTEL's information services business increased 14 percent and 10 percent, respectively, from last year. "I am extremely pleased with ALLTEL's double-digit earnings growth for the quarter. Strong performance by the operating units combined to produce impressive results," said Joe Ford, ALLTEL chairman and chief executive officer. "Our communications business continued to produce industry- leading operating and cash flow margins. Additionally, ALLTEL expanded its bundled service offering in key markets with the addition of new services, including digital wireless service. ALLTEL launched digital wireless service in three markets in the first quarter with additional markets planned for later this year. "To date, ALLTEL has introduced digital wireless service to 16 markets representing nearly 45 percent of the company's wireless POPs (potential customers.) ALLTEL now has the largest digital wireless network in the Carolinas. "In addition, the company launched digital PCS in the Birmingham/Tuscaloosa and Mobile/Pensacola markets," Ford said. "As the company introduced new services, we also expanded ALLTEL's geographic footprint through the acquisition of wireline and wireless properties in Georgia, Colorado and Alabama. Our geographically focused communications operations are now in 23 states," Ford said. "Our information services business continued to sign new business and expand its range of information technology solutions. "In the first quarter, ALLTEL Information Services signed a wireline billing contract with Centennial Communications for its Puerto Rico markets. In addition, ALLTEL successfully delivered its Virtuoso customer care and billing system to Hughes Ispat Limited's data center in Bombay, India," he said. "As ALLTEL Information Services signed new business, it continued to expand the range of services it provides through the acquisition of Corporate Solutions, Inc. (CSI), a leading provider of consumer loan origination software. The CSI acquisition further strengthens ALLTEL's efforts to become the worldwide leader in providing consumer lending automation," Ford said. In summary, he said, "We are extremely pleased with ALLTEL's first quarter results, from both a financial and strategic standpoint. Throughout the quarter, we maintained our focus on delivering value to our customers, shareholders and employees." ALLTEL is a customer-focused, information technology company that provides wireline and wireless communications and information services. ALLTEL CORPORATION CONSOLIDATED HIGHLIGHTS (Dollars in thousands, except per share amounts) THREE MONTHS ENDED MARCH 31, Increase (Decrease) FROM CURRENT BUSINESSES (A) 1999 1998 Amount % REVENUES AND SALES: Wireless $ 582,822 $ 481,638 $ 101,184 21 Wireline 357,531 319,876 37,655 12 Emerging businesses 39,049 19,094 19,955 105 Total communications979,402 820,608 158,794 19 Information services 305,398 266,861 38,537 14 Other operations 117,064 105,115 11,949 11 Total business segments 1,401,864 1,192,584 209,280 18 Less: intercompany eliminations 33,502 8,266 25,236 305 Total revenues and sales $1,368,362 $1,184,318 $ 184,044 16 OPERATING INCOME (LOSS): Wireless $ 180,402 $ 121,215 $ 59,187 49 Wireline 129,986 117,904 12,082 10 Emerging businesses (12,129) (5,729) (6,400) (112) Total communications298,259 233,390 64,869 28 Information services 40,452 36,825 3,627 10 Other operations 4,250 5,137 (887) (17) Total business segments 342,961 275,352 67,609 25 Corporate expenses 5,737 3,447 2,290 66 Total operating income 337,224 271,905 65,319 24 Other income, net 13,145 7,184 5,961 83 Interest expense (64,896) (66,758) (1,862) (3) Income before income taxes 285,473 212,331 73,142 34 Income taxes 118,791 85,008 33,783 40 Net income 166,682 127,323 39,359 31 Preferred dividends 232 240 (8) (3) Net income applicable to common shares $ 166,450 $ 127,083 $ 39,367 31 EARNINGS PER SHARE: Basic $.59 $.47 $.12 26 Diluted $.59 $.46 $.13 28 THREE MONTHS ENDED MARCH 31, AS REPORTED 1999 1998 Revenues and sales $ 1,368,362 $ 1,184,318 Costs and expenses: Operations 1,031,138 912,413 Merger and integration expenses and provision to reduce carrying value of certain assets --- --- Total costs and expenses 1,031,138 912,413 Operating income 337,224 271,905 Other income, net 13,145 7,184 Interest expense (64,896) (66,758) Gain on disposal of assets and other --- 67,090 Income before income taxes 285,473 279,421 Income taxes 118,791 111,750 Net income 166,682 167,671 Preferred dividends 232 240 Net income applicable to common shares $166,450 $167,431 EARNINGS PER SHARE: Basic $.59 $.61 Diluted $.59 $.61 SUPPLEMENTAL OPERATING INFORMATION FROM CURRENT BUSINESSES (A) THREE MONTHS ENDED MARCH 31, 1999 1998 Wireless: Controlled POPs 34,996,207 33,292,927 Customers 4,182,601 3,620,842 Gross customer additions 385,520 322,852 Net customer additions 88,590 96,963 Average customers 4,112,837 3,562,652 Churn 2.34% 2.07% Penetration rate 12.0% 10.9% Average revenue per customer per month $47.35 $45.07 Cost to acquire a new customer $291 $295 Operating margin 31.0% 25.2% EBITDA dollars (in thousands) $259,041 $193,076 Cash flow (EBITDA) margin 44.4% 40.1% Wireline: Customers 2,034,750 1,821,170 Operating margin 36.4% 36.9% EBITDA dollars (in thousands) $200,531 $184,330 Cash flow (EBITDA) margin 56.1% 57.6% Emerging businesses: Long-distance customers 581,703 389,465 EBITDA dollars (in thousands) $(8,837) $(4,212) Information services: Operating margin 13.2% 13.8% EBITDA dollars (in thousands) $74,563 $69,018 Cash flow (EBITDA) margin 24.4% 25.9% Consolidated: EBITDA dollars (in thousands) $527,545 $446,881 Cash flow (EBITDA) margin 38.6% 37.7% Weighted average common shares 280,720,000 273,296,000 Capital expenditures (in thousands) $172,044 $132,890 Total assets (in thousands) $9,861,079 $8,774,257 (A) Current businesses excludes the sold wire and cable operations, merger and integration expenses and provision to reduce carrying value of certain assets, and gain on disposal of assets. Emerging businesses includes the long-distance, local competitive access, internet access, network management and PCS operations. TWELVE MONTHS ENDED MARCH 31, Increase (Decrease) FROM CURRENT BUSINESSES (A) 1999 1998 Amount % REVENUES AND SALES: Wireless $ 2,238,345 $ 1,900,428 $ 337,917 18 Wireline 1,346,719 1,257,107 89,612 7 Emerging businesses 119,902 62,868 57,034 91 Total communications 3,704,966 3,220,403 484,563 15 Information services 1,200,305 1,023,317 176,988 17 Other operations 613,299 430,812 182,487 42 Total business segments 5,518,570 4,674,532 844,038 18 Less: intercompany eliminations 140,518 32,036 108,482 339 Total revenues and sales $ 5,378,052 $ 4,642,496 $ 735,556 16 OPERATING INCOME (LOSS): Wireless $ 662,800 $ 497,152 $ 165,648 33 Wireline 483,646 461,860 21,786 5 Emerging businesses (51,276) (23,074) (28,202) (122) Total communications 1,095,170 935,938 159,232 17 Information services 166,278 148,161 18,117 12 Other operations 25,039 19,598 5,441 28 Total business segments 1,286,487 1,103,697 182,790 17 Corporate expenses 25,142 18,310 6,832 37 Total operating income 1,261,345 1,085,387 175,958 16 Other income, net 56,793 19,584 37,209 190 Interest expense (261,807) (265,336) (3,529) (1) Income before income taxes 1,056,331 839,635 216,696 26 Income taxes 436,667 333,195 103,472 31 Net income 619,664 506,440 113,224 22 Preferred dividends 930 990 (60) (6) Net income applicable to common shares $ 618,734 $ 505,450 $ 113,284 22 EARNINGS PER SHARE: Basic $2.24 $1.84 $.40 22 Diluted $2.22 $1.82 $.40 22 TWELVE MONTHS ENDED MARCH 31, AS REPORTED 1999 1998 Revenues and sales $5,378,052 $4,653,813 Costs and expenses: Operations 4,116,707 3,568,106 Merger and integration expenses and provision to reduce carrying value of certain assets 307,000 16,874 Total costs and expenses 4,423,707 3,584,980 Operating income 954,345 1,068,833 Other income, net 56,793 19,596 Interest expense (261,807) (265,336) Gain on disposal of assets and other 229,060 257,496 Income before income taxes 978,391 1,080,589 Income taxes 453,905 434,690 Net income 524,486 645,899 Preferred dividends 930 990 Net income applicable to common shares $523,556 $644,909 EARNINGS PER SHARE: Basic $1.90 $2.34 Diluted $1.88 $2.32 SUPPLEMENTAL OPERATING INFORMATION FROM CURRENT BUSINESSES (A) TWELVE MONTHS ENDED MARCH 31, 1999 1998 Wireless: Controlled POPs 34,996,207 33,292,927 Customers 4,182,601 3,620,842 Gross customer additions 1,527,677 1,353,561 Net customer additions 456,141 512,765 Average customers 3,884,878 3,375,686 Churn 2.20% 2.04% Penetration rate 12.0% 10.9% Average revenue per customer per month $48.07 $46.92 Cost to acquire a new customer $276 $282 Operating margin 29.6% 26.2% EBITDA dollars (in thousands) $961,683 $770,966 Cash flow (EBITDA) margin 43.0% 40.6% Wireline: Customers 2,034,750 1,821,170 Operating margin 35.9% 36.7% EBITDA dollars (in thousands) $742,048 $711,806 Cash flow (EBITDA) margin 55.1% 56.6% Emerging businesses: Long-distance customers 581,703 389,465 EBITDA dollars (in thousands) $(40,015) $(20,298) Information services: Operating margin 13.9% 14.5% EBITDA dollars (in thousands) $306,928 $267,420 Cash flow (EBITDA) margin 25.6% 26.1% Consolidated: EBITDA dollars (in thousands) $1,983,819 $1,743,489 Cash flow (EBITDA) margin 36.9% 37.6% Weighted average common shares 276,008,000 275,095,000 Current annual dividend rate per common share $1.22 $1.16 Capital expenditures (in thousands) $907,732 $791,152 Total assets (in thousands) $9,861,079 $8,774,257 (A) Current businesses excludes the sold wire and cable operations, merger and integration expenses and provision to reduce carrying value of certain assets, and gain on disposal of assets. Emerging businesses includes the long-distance, local competitive access, internet access, network management and PCS operations. ALLTEL CORPORATION CONSOLIDATED BALANCE SHEETS (Dollars in thousands) ASSETS MARCH 31, DEC. 31, MARCH 31, 1999 1998 1998 CURRENT ASSETS: Cash and short-term investments $29,277 $55,472 $43,366 Accounts receivable (less allowance for doubtful accounts of $33,124, $29,121 and $25,488, respectively) 771,859 776,720 685,494 Materials and supplies 17,876 10,539 17,491 Inventories 92,091 88,467 71,608 Prepaid expenses and other 64,349 49,633 43,634 Total current assets 975,452 980,831 861,593 Investments 1,882,639 1,668,171 1,463,510 Goodwill and other intangibles 1,691,256 1,625,617 1,630,279 PROPERTY, PLANT AND EQUIPMENT: Wireline 4,357,186 4,090,791 3,962,816 Wireless 2,871,786 2,658,822 2,364,449 Information services 695,724 678,244 628,538 Other 181,983 182,066 170,676 Under construction 562,441 623,415 393,643 Total property, plant and equipment 8,669,120 8,233,338 7,520,122 Less accumulated depreciation 3,664,872 3,405,270 3,044,635 Net property, plant and equipment 5,004,248 4,828,068 4,475,487 Other assets 307,484 271,539 343,388 TOTAL ASSETS $9,861,079 $9,374,226 $8,774,257 LIABILITIES AND SHAREHOLDERS' EQUITY ARCH 31, DEC. 31, MARCH 31, 1999 1998 1998 CURRENT LIABILITIES: Current maturities of long-term debt $56,224 $55,484 $64,588 Accounts and notes payable 407,599 486,047 376,985 Advance payments and customer deposits 112,390 129,092 135,129 Accrued taxes 182,013 130,675 167,629 Accrued dividends 86,374 84,388 55,155 Other current liabilities 275,643 320,822 164,233 Total current liabilities 1,120,243 1,206,508 963,719 Long-term debt 3,604,100 3,491,755 3,592,697 Deferred income taxes 1,050,357 933,485 816,652 Other liabilities 494,816 466,601 426,182 Preferred stock, redeemable 4,991 5,005 5,592 SHAREHOLDERS' EQUITY: Preferred stock 9,114 9,121 9,142 Common stock 281,346 275,137 274,097 Additional capital 879,015 846,647 814,103 Unrealized holding gain on investments 667,506 551,615 425,498 Retained earnings 1,749,591 1,588,352 1,446,575 Total shareholders' equity 3,586,572 3,270,872 2,969,415 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $9,861,079 $9,374,226 $8,774,257 ots Original Text Service: ALLTEL Internet: http://www.newsaktuell.de Contact: George S. Smith, Vice President - Media Services, 501-905-8117, or Daniel A. Powell, Vice President - Investor Relations, 501-905-8991, both of ALLTEL Web site: http://www.alltel.com Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT