Jeff Gardner

1

Jeff Gardner Senior Vice President Chief
Financial Officer Fourth Annual Legg
Mason Telecom Conference Waldorf-Astoria, New
York, NY February 13, 2003
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Safe Harbor Statement

• This presentation includes certain estimates and
  other forward-looking statements, including
  statements with respect to anticipated operating
  and financial performance, growth opportunities
  and growth rates, acquisition and divestiture
  opportunities, and other statements of
  expectation. Words such as expects,
  anticipates, intends, plans, believes,
  assumes, seeks, estimates, and should,
  and variations of these words and similar
  expressions, are intended to identify these
  forward-looking statements. Forward-looking
  statements are subject to uncertainties that
  could cause actual future performance, outcomes
  and results to differ materially. These
  statements by the Company and its management are
  based on estimates, projections, beliefs and
  assumptions of management and are not guarantees
  of future performance. The company disclaims any
  obligation to update or revise any
  forward-looking statement based on the occurrence
  of future events, the receipt of new information,
  or otherwise.

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Investment Highlights
2002 Highlights
Solid Financial Performance
Strategic Model
Strong Platform for Continued Growth
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2002 Highlights

• Equity Free Cash Flow growth of 21 to 996
  million
• Return on Equity of 17
• EPS from current businesses increased 14 to
  3.24
• Wireless revenue growth of 9
• Wireline revenue growth of 11
• Raised our dividend for the 42nd consecutive year

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Strategic Model

• Operational Focus

• Operational Focus
• Point of Sale Experience
• Customer Service Experience
• Network Quality Experience

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Strategic Model

• Operational Focus
• Financial Discipline

• Operational Focus
• Point of Sale Experience
• Customer Service Experience
• Network Quality Experience

• Financial Discipline
• Invest in Businesses Not Products
• Best Customer/Best Price
• Stay Relevant

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Strategic Model

• Operational Focus
• Financial Discipline
• Opportunistic Growth

• Operational Focus
• Point of Sale Experience
• Customer Service Experience
• Network Quality Experience

• Financial Discipline
• Invest in Businesses Not Products
• Best Customer/Best Price
• Stay Relevant

• Opportunistic Growth
• Focus on Free Cash Flow
• Operational Fit
• Think Long-Term (5 years)

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Strong Platform for Continued Growth Wireless
Markets as of 12/31/02 A Closer Look
ALLTEL Wireless Verizon Other Roaming
Agreements

• 7.6 million customers
• 59 million POPs

9
Strong Platform for Continued Growth
Total/National Freedom Rate Plans
ALLTEL Wireless Verizon Other Roaming
Agreements

• Total/National Freedom Plans
• Leverage Verizon roaming agreement
• Net present values are significantly higher than
  other rate plans
• ARPU is 20-40 higher
• Approximately 20 of customer base is on a
  national plan

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Strong Platform for Continued Growth Wireline
Markets as of 12/31/02 A Closer Look
ALLTEL Wireline ALLTEL Wireless Verizon Other
Roaming Agreements

• 2nd largest independent ILEC
• Almost 3.2 million customer lines

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Solid Financial Performance Delivering
Consistent Growth
Revenue (bn)
EBITDA (bn)


Dividends per Share
Earnings per Share
Not restated for new reporting
standard. Excluding merger and integration
expenses.
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Solid Financial Performance Strong and Growing
Free Cash Flow
Millions
of Revenues

5-Year CAGR 26

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Defined as Net Income Depreciation
Amortization - CAPEX.
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Proposed Sale of Financial Services Division of
AIS

• Proceeds
• 775M in cash
• 275M in common stock
• Retaining Telecom Services Division 10-12 of
  revenue and EBITDA
• Expect to close 3/31/03
• Proposed sale will
• Improve telecom focus
• Improve the balance sheet
• Improve financial flexibility
• Expect .22 dilution in 03 (9 months) assuming
  close on 3/31/03

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2003 Outlook

• EPS from current businesses of 3.12 to 3.22
• Includes .22 of expected dilution from the
  proposed sale of the financial services division
  of AIS
• Includes .08 of pension expense
• Implies normalized growth rate of 6 to 9
• Capital expenditures of 1.2 billion to 1.3
  billion
• Includes further deployment of CDMA coverage
• Includes 1X data deployment

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