ALLTEL Reports First Quarter Earnings Per Share From

Current Businesses of 59 Cents, Up 26 Percent LITTLE ROCK, Ark. (PROTEXT) - ALLTEL (NYSE: AT) todayannounced 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 pershare grew 26 percent to 59 cents per share from the previousyear. Among the highlights from businesses in the first quarter: -- Revenues and operating income for ALLTEL's wirelessbusiness increased 21 percent and 49 percent, respectively, fromlast year. This was driven by an increase in average revenue percustomer (ARPU) of 5 percent year over year, to $47.35. -- ALLTEL added 174,000 net wireless customers during thefirst quarter, including 85,000 from the acquisition of theRichmond, Va., market. -- Revenues and operating income for ALLTEL's wirelinebusiness increased 12 percent and 10 percent, respectively, fromlast year, which include the acquisition of Standard Group Inc.in Georgia. -- Revenues from emerging businesses more than doubled in thequarter over the same period last year. This was due to growth inlong-distance, competitive local exchange access, Internetaccess, network management and PCS (personal communicationsservice) operations. -- Revenues and operating income for ALLTEL's informationservices business increased 14 percent and 10 percent,respectively, from last year. "I am extremely pleased with ALLTEL's double-digit earningsgrowth for the quarter. Strong performance by the operating unitscombined to produce impressive results," said Joe Ford, ALLTELchairman and chief executive officer. "Our communications business continued to produce industry-leading operating and cash flow margins. Additionally, ALLTELexpanded its bundled service offering in key markets with theaddition of new services, including digital wireless service.ALLTEL launched digital wireless service in three markets in thefirst quarter with additional markets planned for later thisyear. "To date, ALLTEL has introduced digital wireless service to 16markets representing nearly 45 percent of the company's wirelessPOPs (potential customers.) ALLTEL now has the largest digitalwireless network in the Carolinas. "In addition, the company launched digital PCS in theBirmingham/Tuscaloosa and Mobile/Pensacola markets," Ford said. "As the company introduced new services, we also expandedALLTEL's geographic footprint through the acquisition of wirelineand wireless properties in Georgia, Colorado and Alabama. Ourgeographically focused communications operations are now in 23states," Ford said. "Our information services business continued to sign newbusiness and expand its range of information technologysolutions. "In the first quarter, ALLTEL Information Services signed awireline billing contract with Centennial Communications for itsPuerto Rico markets. In addition, ALLTEL successfully deliveredits Virtuoso customer care and billing system to Hughes IspatLimited's data center in Bombay, India," he said. "As ALLTEL Information Services signed new business, itcontinued to expand the range of services it provides through theacquisition of Corporate Solutions, Inc. (CSI), a leadingprovider of consumer loan origination software. The CSIacquisition further strengthens ALLTEL's efforts to become theworldwide leader in providing consumer lending automation," Fordsaid. In summary, he said, "We are extremely pleased with ALLTEL'sfirst quarter results, from both a financial and strategicstandpoint. Throughout the quarter, we maintained our focus ondelivering value to our customers, shareholders and employees." ALLTEL is a customer-focused, information technology companythat provides wireline and wireless communications andinformation 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 cableoperations, merger and integration expenses and provision toreduce carrying value of certain assets, and gain on disposal ofassets. Emerging businesses includes the long-distance, localcompetitive access, internet access, network management and PCSoperations.

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 cableoperations, merger

and integration expenses and provision to reduce carryingvalue of certain

assets, and gain on disposal of assets.

Emerging businesses includes the long-distance, localcompetitive 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

1998CURRENT 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

$8,774,257ots Original Text Service: ALLTEL Internet:http://www.newsaktuell.de Contact: George S. Smith, VicePresident - Media Services, 501-905-8117, or Daniel A. Powell,Vice President - Investor Relations, 501-905-8991, both of ALLTELWeb site: http://www.alltel.com

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