Jeff Gardner Executive Vice President

1
Jeff GardnerExecutive Vice President Chief
Financial Officer

• Arkansas Financial Analysts Society Luncheon
• Little Rock, AR
• August 19, 2004

2
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.

3
Regulation G Disclaimer

• Todays presentation will include certain
  non-GAAP financial measures. I refer you to the
  Investor Relations section of ALLTELs Web site
  where the company has posted additional
  information regarding these non-GAAP financial
  measures, including a reconciliation of each such
  measure to the most directly comparable GAAP
  measure. The companys Web site is located at
  www.alltel.com.

4
Agenda

• Industry Perspective
• A Closer Look at ALLTEL
• Strategic Model
• Track Record of Financial Performance
• Track Record of Shareholder Returns
• 2Q 04 Results
• Wireless
• Wireline
• Summary Why Invest in ALLTEL

5
Industry PerspectiveWireless and Broadband are
the Growth Drivers in Telecom
Customer Lines (M)
Sources FCC, CTIA, NCTA, Telecomweb, UBS,
Goldman Sachs, Merrill Lynch.
6
A Closer Look at ALLTELAs of 6/30/04
2Q04 of Total
Revenue 60 29 11

• 2Q04
• Wireless 8.3M
• Wireline (ILEC CLEC) 3.1M
• Long-Distance 1.7M
• DSL 195K

• Wireless
• Wireline (ILEC, CLEC, Internet)
• Communication Support Services
• Communications Products
• Long-Distance
• Publishing
• Telecom Svcs

Business Mix
Customers

• Wireless
• 61M POPs
• 2/3 of customers in Tier 2 and 3 markets
• Wireline
• 50 of our wireline is overlapped by our wireless

7
Strategic Model Access is KeyPositions ALLTEL
for Telecom Industry Evolution and Shareholder
Value

• 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)

8
Strategic ModelDisciplined Approach to
Transactions to Better Position the Business

• 1998 360 Communications - 6.1B
• Added 2.6M wireless customers
• 1999 Aliant Communications and Liberty Cellular
  - 2.4B
• Added 300K access lines and 440K wireless
  customers
• 2000 Verizon Property Swap and Roaming Deal -
  600M
• Added 700K net wireless customers
• 2002 Verizon Kentucky Wireline - 1.9B
• Added 600K access lines
• 2002 CenturyTel Wireless Business - 1.6B
• Added 700K wireless customers
• 2003 Sale of Information Services business to
  Fidelity National - 1.05B

Transaction Strategy Has Improved the Business Mix
9
Strong Balance SheetALLTEL Has One of the
Strongest Credit Profiles in the Telecom Industry

• Well capitalized balance sheet
• A1 / Prime-1 / F1 Commercial Paper ratings
• A / A2 / A long-term credit ratings
• Net Debt / OIBDA 1.2X(1)
• Net Debt / Total Cap 32

Source Wall Street equity research and company
filings. Note Assumes 80 equity credit for AT,
CZN and CTL Equity Units. CZN, Q, and RCCC as of
1Q04. SBC and BLS PF ATT Wireless
acquisition. SP / Moodys / Fitch,
respectively. (1) From current businesses OIBDA
defined as operating income before depreciation
and amortization.
10
Track Record of Results Strategic Model Driving
Consistent Growth
Operating Income Before Depreciation and
Amortization (bn)1
Revenue (bn)1
CAGR 8.6
CAGR 9.3
Dividends per Share
Earnings per Share1
CAGR 3.4
CAGR 7.0
1 From Current Businesses
11
Track Record of Results Strategic Model Driving
Strong and Growing Equity Free Cash Flow
Millions
of Revenues
Over 1B in Equity Free Cash Flow in 2003

CAGR 17.6
1
1 Equity Free Cash Flow defined as Net Income
Depreciation Amortization - Capital
Expenditures Note From Current Businesses
12
Track Record of Results Strategic Model
Generating Leading Total Returns(1)
Rank
5 Year(2)
3 Year (2)
1 Year (2)
1 3 4 5 2
1 3 5 4 2
2 5 3 1 4
ALLTEL BellSouth SBC Sprint Verizon
Note (1) Total return based on stock price
appreciation and dividends (2) Period ending
July 26, 2004 Source FactSet database
13
Track Record of Results Disciplined Approach to
Return of Capital

• Quarterly dividends have been raised for 43
  consecutive years
• 3 yield
• 750M share buyback program
• 5 of shares outstanding
• Authorizes repurchase over period ending 12/31/05
• As of June 30, 2004
• Repurchased 4.8M shares 243M
• Completed 1/3 of the Repurchase Plan

14
Increased the Mix to 60 WirelessAn Integrated
Telecom Company With the Highest Wireless
Contribution
2003 ALLTEL
Integrated Telecom Companies
2003 Wireless Rev as of Total Rev
(1) 58 48 36 33 32
2Q 04 Wireless Rev as of Total Rev
(1) 60 51 40 38 33
Revenue
OIBDA
Company Name ALLTEL Sprint BellSouth(2) Ve
rizon SBC(2)
2003 OIBDA 3.2B
2003 Revenue 8.0B
Business is well positioned for growth and free
cash flow
(1) Source Analyst and company reports - before
eliminations (2) Includes prorata share of AWE
2003 and 2Q04 revenue assuming no divestitures.
15
2Q04 HighlightsSolid Earnings, Free Cash Flow,
and Operating Metrics

• Consolidated 2Q04 YOY
• EPS from current businesses .85 9
• Equity free cash flow 304M 29
• Wireless
• Service revenue 1.18B 5
• Retail service revenue 1.09B 6
• RRPU 44.08 1
• Post-pay churn 1.57 (46bp)
• Net Adds 155K 92
• Wireline
• ARPU 65.99 3
• Segment income 234M 8
• DSL net adds 20K 15

Solid Performance in Both Wireless and Wireline
16
Wireless Business 2Q04Quality of Gross Adds has
Significantly Improved
Gross Adds Quarter Over Quarter in thousands
On a relative basis ALLTEL is capturing its fair
share of gross adds
1 Decrease YOY
2Q04 Gross Adds Per 1K Pops (1)
Gross Adds are down 1 year over year, but with a
significantly higher mix of post pay additions
Post Pay as Percentage of Total Gross
12 Increase YOY
(1) Source Analyst and company reports
17
Wireless Business 2Q04And Post Pay Churn has
Significantly Improved
Post Pay / Total Churn

• Proactive retention efforts
• Improved service levels
• JD Power Associates Customer Care Performance
  Report
• First call resolution
• Fewest network complaints

45 bp Decline
46 bp Decline
Proactive Retention and Service Levels
Improvements Driving Better Churn
18
Wireless Business 2Q04And Net Customer Additions
Continue to Improve
All on Post Pay plans
2Q03 / 2Q04 Net Adds
2003 / 1H04 Net Adds
92 Increase
Quantity and Quality of Net Customer Additions
Continues to Improve
19
Wireless Business 2Q04Retail Revenue Continues
to Grow While Wholesale Revenue Declines
Retail Revenue Per Unit (RRPU) Year Over Year
Average Revenue Per Unit (ARPU) Year Over Year
Wholesale Revenue Year Over Year (In Millions)
1 Increase
9 Decrease
lt1 Decrease

• National plans gt 40 of total gross adds
• Data access revenue is 2 of total ARPU

• Lower analog and TDMA minutes of use offset by
  continued growth in CDMA minutes of use

20
Wireless Business 2Q04Industry Leading Cost
Structure
Cash Costs per Customer
OIBDA Margins1

• Maintaining good expense management
• Expenses associated with significant growth in
  customer usage putting some pressure on margins
  (490 minutes of use per customer up 33 year
  over year)

Excludes acquisition costsVerizon Cash Costs
calculated by taking Average CCPU from a S.G.
Cowen research report dated 7/21/04 and
multiplying by average subscribers. Source
Analyst and company reports
1OIBDA defined as operating income before
depreciation and amortization (measured on
service revenues).
21
LTM 2Q04 Comparison to Wireless PeersRevenue and
Income Metrics Per Customer
Monthly Op. Income Per Customer 8 11 8 2 20
10
Penetration of covered PoPs 17.7 16.2 10.0 6.4
5.6 13.5
Customers (In Millions) 46.8 40.4 19.2 14.3 13.9 8
.3
Market Share 28 24 12 9 8 5
ARPU (Service Rev) 55 49 60 54 72 47
CCPU (Exc Acq Costs) 24 21 27 22 24 21
Acq Cost Per Customer 13 7 13 20 17 9
Depr/Amor Per Customer 10 9 12 10 11 7

• Cingular/AWE
• Verizon
• Sprint
• T-Mobile
• Nextel
• ALLTEL

SCALE IS LOCAL
Source Analyst and company reports Notes
Market share based on CTIA customer estimates as
of 6/30/04 T-Mobile results as of
3/31/04. Verizon Cash Costs calculated by taking
Average CCPU from a S.G. Cowen research report
dated 7/21/04 and multiplying by average
subscribers. Cingular Cost to Acquire calculated
by taking CPGA estimate from a Deutsche Bank
research report dated 2/25/04 and reported S,GA.
22
Wireless Business New Initiatives Regulatory,
Data and New Product Update

• Regulatory Wireless ETC Subsidies
• Expect to receive at least 30M in 2004
• Five non-rural applications pending FCC, if
  approved could receive additional 4M per quarter
• 2004 Wireless Data Plans still on track
• Further expand 1X data footprint
• Trial EV-DO in several markets by year-end
• Touch2Talk
• Customer reaction has been positive
• Pleased with sales results
• Added additional handset in late June
• Continue improving functionality

23
Wireline Business 2Q04Access Lines Continue to
Decline at 2
Year Over Year Total Access Lines
Year Over Year Access Line Declines
2 Decline YOY

• Access lines declined 2 year over year
• Primary Drivers
• Wireless substitution
• Broadband

the rate of decline is unchanged
24
Wireline Business 2Q04DSL and Features Driving
ARPU Increase
ARPU has increased. . .
Driven by

• DSL Growth
• 20K DSL net adds
• 195K total DSL customers up 85 yoy
• 10 penetration of addressable lines
• Almost 90 have ALLTEL Internet Service
• Almost 70 of ILEC lines DSL capable
• Feature Revenue per Eligible Line is up 6 yoy
• In 2Q04, recorded 7M of directory revenue
  associated with initial publication of
  directories in newest Kentucky market

3 Increase YOY
25
Wireline Business 2Q04Industry Leading Cost
Structure
Cash Costs per Customer
OIBDA Margins1
170BP Increase YOY

• 2Q03 includes 3M of expense related to Kentucky
  work stoppage
• 2Q04 includes 7M of directory revenue
• Organizational changes improving cost structure

Source Analyst and company reports
1OIBDA defined as operating income before
depreciation and amortization (measured on
service revenues).
26
LTM 2Q04 Comparison to Wireline PeersRevenue and
Income Metrics Per Customer
Monthly Op. Income Per Customer
Customers (In Millions)
ARPU
CCPU
Verizon 54.4 58 36 9 SBC 53.5 55 38 5 BellSo
uth 21.8 69 38 18 Qwest 16.0 68 39 17 Sprint
7.8 65 34 19 ALLTEL 3.1 64 26 24 CenturyTel
2.4 74 33 24
SCALE IS LOCAL
Source Analyst and company reports Note Qwest
results as of 3/31/04
27
Wireline Business New Initiatives New Product
and Service Offering Update

• Bundles
• Exploring wireless and wireline bundles
• Video
• Considering adding video to product mix
• Technology
• Investigating VoIP and Fiber deployment

28
Summary - Why Invest in ALLTEL?

• Integrated telecom with highest relative
  contribution from wireless in the industry
• Solid balance sheet
• Strong equity free cash flow
• gt 1B in 2003
• gt 630M in 1H 2004
• 3 dividend yield, 750M share repurchase plan
  ongoing (1/3 completed)
• Wireless Business improving quality/quantity of
  customer growth, significantly improving
  retention, and industry leading cash cost per
  user
• Wireline Business higher DSL penetration,
  growing feature revenues, and industry leading
  cash cost per user

29
Reconciliation of Non-GAAP Financial Measuresfor
the years ended December 31, 2003, 2002, 2001,
2000 and 1999
30
Reconciliation of Non-GAAP Financial Measuresfor
the years ended December 31, 2003, 2002, 2001,
2000 and 1999
31
Reconciliation of Non-GAAP Financial Measuresfor
the years ended December 31, 2003, 2002, 2001,
2000 and 1999
32
Reconciliation of Non-GAAP Financial Measures for
the three months ended June 30
33
Reconciliation of Non-GAAP Financial Measures for
the three months ended June 30
34
Other Reconciliations of Non-GAAP Financial
Measures
35
Other Reconciliations of Non-GAAP Financial
Measures
36