Cingular Wireless Reports Record Third-Quarter 2006 Results - Highest-ever net income of $847 million, a year-over-year increase of

over 280 percent

- Year-over-year and sequential ARPU increase

- Normalized OIBDA margin of 35.6 percent, a year-over-year improvement of

400 basis points

- Completion of integration of GSM network on time and on budget

- 1.4 million net subscriber additions, of which 87 percent were retail;

928,000 of net adds were postpaid customers

- Postpaid churn of 1.5 percent and overall churn of 1.8 percent

- 58.7 million cellular/PCS subscribers at quarter's end, tops in the

United States

- 12.2 percent increase in service revenues year-over-year

- Deployment of UMTS/HSDPA technology on track



    ATLANTA, Oct. 19 /PRNewswire/ -- Cingular Wireless LLC, which is a
 joint venture of AT&T Inc. (NYSE:   T) and BellSouth Corporation (NYSE:   BLS),
 today reported record-setting net income of $847 million for the third
 quarter, which is a year-over-year increase of over 280 percent.
     The company also achieved a year-over-year increase in ARPU, normalized
 OIBDA margins that were the best since 2001, and the completion of its GSM
 network integration.
     "Cingular turned in a great third quarter on a variety of fronts. Solid
 execution drove a significant increase in net income, growth in ARPU, and
 strong margin performance," said Stan Sigman, Cingular's president and
 chief executive officer.
     "Cingular's strong financial and operational performance positions us
 well as wireless capabilities and our customers' demand for new wireless
 voice, data, and video services continue to increase," Sigman said. "Our
 work is not yet done in bringing even better results, services, and
 capabilities to our customers."
     Cingular's normalized OIBDA margin* was 35.6 percent in the third
 quarter, which is an improvement of 400 basis points compared to normalized
 year-ago results and a sequential improvement of 300 basis points.
     For the quarter, the nation's largest wireless provider reported
 postpaid churn of 1.5 percent, equal to the company's best-ever results.
 This is a year-over-year improvement of 50 basis points and flat compared
 to the second quarter of 2006.
     Overall monthly subscriber churn was 1.8 percent, which represents a
 year- over-year improvement of 50 basis points and a sequential increase of
 10 basis points. The sequential increase resulted from normal seasonality
 patterns, the sunsetting of AT&T Wireless' prepaid plans, and from certain
 actions the company took to recover increased costs associated with serving
 the rapidly diminishing base of its TDMA customers.
     Cingular's net additions were driven by lower churn and strong gross
 customer additions. The company reported 1.4 million net adds. Cingular's
 performance in net adds compares to 867,000 in the year-ago quarter and to
 1.5 million in the second quarter of 2006. Some 928,000 of the 1.4 million
 net adds were postpaid customers, marking the company's third consecutive
 quarter of postpaid net adds nearly at or above the 900,000 level.
     In addition, retail customers represented 87 percent of net adds in the
 third quarter, which compares to 74 percent in the year-ago quarter and to
 75 percent in the second quarter of 2006. Reseller customer net additions
 were 174,000, which is down from 228,000 in the year-ago quarter and from
 380,000 in the second quarter of 2006.
     Gross additions were 4.6 million, which compares to 4.4 million in the
 year-ago third quarter and to 4.4 million in the second quarter of 2006.
     Cingular ended the third quarter of 2006 with 58.7 million cellular/PCS
 subscribers, tops among U.S. carriers and a year-over-year increase of 6.4
 million. Data ARPU was $6.32, up 46 percent over the year-ago third quarter
 and up 10 percent sequentially.
     In addition, the company's Business Markets Group signed more than
 1,000 new and renewed high-end service contracts in the quarter.
     During the third quarter of 2006, 99 percent of minutes were carried on
 Cingular's GSM/UMTS/HSDPA network and 94 percent of the company's
 subscriber base was GSM/UMTS/HSDPA-equipped.
     Cingular operates the nation's largest digital voice and data network.
 GSM is the world's most widely used wireless technology. Through roaming
 alliances with other GSM-based providers around the world, Cingular
 provides the largest global presence of any U.S. wireless carrier, with
 voice coverage in nearly 190 countries and data roaming in 115.
     Financial Results
 
      - In the third quarter of 2006, Cingular's total revenues were $9.6
        billion, up 9.2 percent over revenues for the year-ago quarter and 3.6
        percent compared to the second quarter of 2006.  Service revenues,
        which exclude revenues from sales of handsets and accessories, were
        $8.7 billion, which is a year-over-year increase of 12.2 percent and a
        sequential improvement of 4.4 percent.
 
      - ARPU increased to $49.76.  This compares to $49.65 in the year-ago
        quarter and to $48.84 in the second quarter of 2006.  Continued growth
        in data ARPU contributed to this increase in overall ARPU.
 
      - ARPU from data services continued to grow robustly, increasing by 46
        percent to $6.32 year-over-year and 10 percent sequentially.  This
        growth was spurred by the increasing popularity of downloadable games,
        ringtones, mobile instant messaging, mobile email, photo messaging, and
        media bundles.  In addition, text messaging continued to grow.  In the
        third quarter of 2006, Cingular had 28 million active data customers,
        and delivered 138 million multi-media messages and 10 billion text
        messages.
 
      - Reported operating expenses were $8.1 billion, which included $87
        million in OIBDA-affecting merger integration costs and $52 million
        non-cash merger integration costs, for a total of $139 million.
        Operating expenses also included $314 million in non-cash amortization
        of intangibles as part of the merger with AT&T Wireless.
 
      - Reported OIBDA margin was 34.5 percent.  Normalized OIBDA margin of
        35.6 percent was the highest margin the company has posted since 2001.
        This is an improvement of 400 basis points compared to the year-ago
        quarter and 300 basis points compared to the second quarter of 2006.
 
      - Reported operating income was $1.4 billion, which compares to $657
        million in the year-ago quarter and to $1.0 billion in the second
        quarter of 2006.  Normalized operating income was $1.9 billion, which
        compares to $1.4 billion in the year-ago quarter and to $1.5 billion in
        the second quarter of 2006.
 
      - Reported net income was $847 million, which compares to $222 million in
        the year-ago quarter and to $540 million in the second quarter of 2006.
        Normalized net income was $1.2 billion, which compares to $835 million
        in the year-ago quarter and to $956 million in the second quarter of
        2006.
 
      - Capital expenditures were $1.8 billion.  These were driven by, among
        other developments:  continued progress in merger integration; ongoing,
        rapidly accelerating improvements in network coverage and quality; and
        the continued introduction of Cingular's powerful UMTS/HSDPA 3G
        technology in markets around the country.
 
     Third-quarter highlights and initiatives
 
      - Cingular completed its GSM network integration, which began shortly
        after the company's merger with AT&T Wireless in October of 2004.  With
        access to 45,000 cell sites around the country, customers are
        experiencing dramatically improved coverage and call quality, including
        the fewest dropped calls.
 
      - The company continues its aggressive deployment of 3G UMTS/HSDPA
        network throughout the country.  The 3G service, which offers mobile
        wireless broadband connections averaging 400-700 kilobits per second,
        is available in 115 cities (with populations of 100 thousand or more)
        in and around 52 major markets in 28 states and the District of
        Columbia.  Customers can use the 3G connections to access e-mail and
        information services or watch streaming video clips using Cingular
        Video.
 
      - Cingular launched the LG CU500, a feature-packed device based on HSDPA
        technology, allowing customers to realize the full potential and
        benefits of Cingular's high-speed 3G network.  The CU500 easily
        addresses customers' voice, data, messaging and music needs.
 
      - In its continuing effort to raise the bar in mobile music, Cingular
        introduced its third phone with iTunes -- the MOTORAZR v3i.  The
        MOTORAZR v3i is the latest addition to the award-winning RAZR family of
        products, offering Cingular customers the ultimate in design and
        entertainment.  To date, Cingular remains the first and only U.S.
        carrier to offer phones with iTunes.
 
      - Cingular continued to introduce innovative new products and services
        for business customers.  Three new 3G-capable business devices were
        launched during the quarter:  the Lenovo ThinkPad T60 and Panasonic(R)
        Toughbook(R) CF-29 notebooks, both of which have Cingular's UMTS/HSDPA-
        based BroadbandConnect service built-in; and the Sierra Wireless
        AirCard(R) 875 LaptopConnect Card, the first commercially available
        HSDPA 3.6 Mbps network card in the Americas.
 
      - The company also introduced the two powerful new handheld devices
        priced at under $150:  the Nokia E62, designed specifically for e-mail,
        and the Cingular 3125 Smartphone, which blends powerful business and
        entertainment capabilities in a flip-phone design.  Cingular also
        strengthened its leadership position in wireless e-mail with the
        introduction of BlackBerry(R) Connect(TM) on the Palm(R) Treo(TM) 650
        and Good(TM) Mobile Messaging for IBM Lotus(R) Notes(R).
 
      - Cingular also signed more than 1,000 new and renewed high-end service
        contracts during the third quarter of 2006.  These included business
        and government accounts such as Assurant, Banta Corporation, Brooke
        Corporation, BusRadio, Commonwealth of Kentucky, J.R. Simplot Company,
        Nokia, St. Paul Travelers, Southwest Airlines, Southwest Freight Lines,
        STERIS Corporation, Unilever, the U.S. Army/U.S. Air Force, U.S. Marine
        Corps Recruiting Command, VHA Inc., Valspar Corporation, Weyerhaeuser,
        and XOJET.
 
     Conference Call with Investment Community
     Cingular will hold a conference call with the investment community
 beginning at 10 a.m. ET today. During the call, we will discuss our
 operational and financial results and prospects.
     The conference call will be Webcast and archived on Cingular's Website
 at http://www.cingular.com/investor for 30 days, as well as on the websites
 of AT&T Inc. and BellSouth Corporation.
     Cingular's third quarter 2006 news release and downloadable financial
 statements will be available on the http://www.cingular.com website
 beginning at 8:00 a.m. (Eastern) on October 19.
     Dial-in information for the conference call is as follows:
           Domestic:        866-406-3487
           International:   630-691-2771
           Passcode:        15787059#
 
           Replay:          877-213-9653
           (Domestic)
           Replay:          630-652-3041
           (International)
           Passcode:        15787059#
           Replays will be available for five days.
     *OIBDA margin is operating income (loss) before depreciation and
 amortization, divided by total service revenues. OIBDA margins and
 comparative calculations mentioned in the news release reflect
 normalization for merger- related integration costs.
     About Cingular Wireless
     Cingular Wireless is the largest wireless carrier in the United States,
 serving 58.7 million customers. Cingular, a joint venture of AT&T Inc.
 (NYSE:   T) and BellSouth Corporation (NYSE:   BLS), has the largest digital
 voice and data network in the nation -- the ALLOVER(TM) network -- and the
 largest mobile-to-mobile community of any national wireless carrier.
 Cingular is a leader in third generation wireless technology. Its 3G
 network is the first widely available service in the world to use HSDPA
 (High Speed Downlink Packet Access) technology. Cingular is the only U.S.
 wireless carrier to offer Rollover(r), the wireless plan that lets
 customers keep their unused monthly minutes. Details of the company are
 available at http://www.cingular.com/. Get Cingular Wireless press releases
 emailed to you automatically. Sign up at http://cingular.mediaroom.com/.
     FORWARD-LOOKING INFORMATION
     In addition to historical information, this document and the conference
 call referred to above may contain forward-looking statements regarding
 events and financial trends. Factors that could affect future results and
 could cause actual results to differ materially from those expressed or
 implied in the forward-looking statements include:
      -- the pervasive and intensifying competition in all markets where
         Cingular operates;
 
      -- failure to quickly realize capital and expense synergies from the
         acquisition of AT&T Wireless as a result of technical, logistical,
         regulatory and other factors;
 
      -- delays or inability of vendors to deliver hardware, software, handsets
         or network equipment, including failure to deliver such equipment free
         of claims, including patent claims, of other parties;
 
      -- problems associated with the transition of Cingular's network to
         higher-speed technologies;
 
      -- slow growth of Cingular's data services due to lack of popular
         applications, terminal equipment, advanced technology and other
         factors;
 
      -- sluggish economic and employment conditions in the markets Cingular
         serves;
 
      -- the final outcome of FCC proceedings, including rulemakings, and
         judicial review, if any, of such proceedings;
 
      -- enactment of additional state and federal laws, regulations and
         requirements pertaining to Cingular's operations; and
 
      -- the outcome of pending or threatened complaints and litigation.
     Such forward-looking information is given as of this date only, and
 Cingular assumes no duty to update this information.
     Cingular Wireless LLC Income Statement
      - amounts in millions (unaudited)
 
                                  Quarter Ended             Year to Date
                            09/30/  09/30/  % Change  09/30/  09/30/   % Change
                             2006    2005              2006    2005
     Operating revenues:
       Service revenues     $8,661  $7,721    12.2%  $24,961  $22,859     9.2%
       Equipment sales         892   1,025   (13.0%)   2,790    2,725     2.4%
         Total operating
          revenues           9,553   8,746     9.2%   27,751   25,584     8.5%
     Operating expenses:
       Cost of services      2,527   2,464     2.6%    7,344    6,901     6.4%
       Cost of equipment
        sales                1,198   1,203    (0.4%)   3,874    3,728     3.9%
       Selling, general and
        administrative       2,836   2,881    (1.6%)   8,439    8,835    (4.5%)
       Depreciation and
        amortization         1,576   1,541     2.3%    4,854    4,845     0.2%
         Total operating
          expenses           8,137   8,089     0.6%   24,511   24,309     0.8%
     Operating income
      (loss)                 1,416     657   115.5%    3,240    1,275   154.1%
     Interest expense          306     304     0.7%      901      968    (6.9%)
     Minority interest
      expense                   43      38    13.2%      127       95    33.7%
     Equity in net income
      (loss) of affiliates       -       1  (100.0%)       -        4  (100.0%)
     Other income
      (expense), net             5      10   (50.0%)      20       63   (68.3%)
     Income (loss) before
      income tax provision   1,072     326   228.8%    2,232      279   700.0%
     Provision (benefit)
      for income taxes         225     104   116.3%      491      150   227.3%
     Net income (loss)        $847    $222   281.5%   $1,741     $129       NM
 
 
 
     Selected Financial and Operating Data for Cingular Wireless
      - amounts in millions, except customer data in 000s
 
                                   Quarter Ended            Year to Date
                             09/30/  09/30/  % Change  09/30/  09/30/  % Change
                              2006    2005              2006    2005
     (Amounts in millions,
      except customer data
      in 000s)
     OIBDA (1)                $2,992  $2,198    36.1%  $8,094  $6,120   32.3%
     OIBDA margin (2)          34.5%   28.5%   600 BP   32.4%   26.8%  560 BP
     Total Cellular/PCS
      Customers (3)           58,666  52,292    12.2%  58,666  52,292   12.2%
     Net Customer Additions -
      Cellular/PCS             1,358     867    56.6%   4,535   3,186   42.3%
     M&A Activity,
      Partitioned Customers
      and/or Other Adjs.         -       (17) (100.0%)    (13)    (26) (50.0%)
     Churn - Cellular/PCS (4)   1.8%    2.3%   -50 BP    1.8%    2.2%  -40 BP
     ARPU - Cellular/PCS (5)  $49.76  $49.65     0.2%  $49.04  $49.92   (1.8%)
     Minutes Of Use Per
      Cellular/PCS
      Subscriber (6)             755     698     8.2%     732     673    8.8%
     Licensed POPs -
      Cellular/PCS (7)           296     294     0.7%     296     294    0.7%
     Penetration -
      Cellular/PCS (8)         20.8%   18.3%   250 BP   20.8%   18.3%  250 BP
     Capital Expenditures     $1,828  $1,346    35.8%  $4,851  $4,505    7.7%
 
 
 
     Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
      - amounts in millions (unaudited)
 
                                   Quarter Ended            Year to Date
                               09/30/  09/30/ % Change  09/30/  09/30/ % Change
                                2006    2005             2006    2005
 
     Net income (loss)          $847    $222   281.5%  $1,741    $129       NM
       Plus:  Interest
        expense                  306     304     0.7%     901     968    (6.9%)
       Plus:  Minority
        interest expense          43      38    13.2%     127      95    33.7%
       Plus:  Equity in net
        loss of affiliates         -      (1) (100.0%)      -      (4) (100.0%)
       Plus:  Other, net          (5)    (10)  (50.0%)    (20)    (63)  (68.3%)
       Plus:  Provision (benefit)
        for income taxes         225     104   116.3%     491     150   227.3%
     Operating income (loss)   1,416     657   115.5%   3,240   1,275   154.1%
       Plus:  Depreciation
        and amortization       1,576   1,541     2.3%   4,854   4,845     0.2%
     OIBDA (1)                $2,992  $2,198    36.1%  $8,094  $6,120    32.3%
     NM - Not Meaningful
 
     Notes:
     (1) OIBDA is defined as operating income (loss) before depreciation and
         amortization.  OIBDA differs from operating income (loss), as
         calculated in accordance with GAAP, in that it excludes depreciation
         and amortization.  It differs from net income (loss), as calculated in
         accordance with GAAP, in that it excludes, as presented on our
         Consolidated Statement of Income: (1) depreciation and amortization,
         (2) interest expense, (3) minority interest expense, (4) equity in net
         income (loss) of affiliates, (5) other, net, and (6) provision
         (benefit) for income taxes. OIBDA does not give effect to cash used
         for debt service requirements and thus does not reflect available
         funds for distributions, reinvestment or other discretionary uses.
         OIBDA is not presented as an alternative measure of operating results
         or cash flows from operations, as determined in accordance with
         generally accepted accounting principles.  Our calculation of OIBDA,
         as presented, may differ from similarly titled measures reported by
         other companies.
     (2) OIBDA margin is defined as OIBDA divided by service revenues.
     (3) Cellular/PCS customers include customers served through reseller
         agreements.
     (4) Cellular/PCS churn is calculated by dividing the aggregate number of
         cellular/PCS customers who cancel service during each month in a
         period by the total number of cellular/PCS customers at the beginning
         of each month in that period.
     (5) ARPU is defined as cellular/PCS service revenues during the period
         divided by average cellular/PCS customers during the period.
     (6) Total Minutes of Use Per Cellular/PCS Subscriber (MOUs) excludes SMS
         activity but includes Local Minutes of Use and Outcollect Minutes of
         Use in the numerator.
     (7) Licensed POPs refers to the number of people residing in areas where
         we and our partners have licenses to provide cellular or PCS service,
         including areas where we have not yet commenced service.
     (8) Penetration calculation for 3Q06 is based on licensed "operational"
         POP's of 282 million.
 
 
 
     Cingular Wireless LLC
     Reconciliation of Reported Results to Normalized Results
     (amounts in millions)
 
 
     Quarter Ended September 30, 2006
                                                Normalized Items
                                         Integration  AWE Amortization
                                    GAAP   Costs (1)    Expense (2)  Normalized
 
     Operating revenues:
          Service revenues         $8,661        $-        $-          $8,661
          Equipment sales             892         -         -             892
               Total operating
                revenues            9,553         -         -           9,553
     Operating expenses:
          Cost of services          2,527       (65)        -           2,462
          Cost of equipment sales   1,198         -         -           1,198
          Selling, general and
           administrative           2,836       (22)        -           2,814
          Depreciation and
           amortization             1,576       (52)     (314)          1,210
               Total operating
                expenses            8,137      (139)     (314)          7,684
     Operating income (loss)        1,416       139       314           1,869
     Interest expense                 306         -         -             306
     Minority interest expense         43         -         -              43
     Equity in net income
      (loss) of affiliates              -         -         -               -
     Other income (expense), net        5         -         -               5
     Income (loss) before
      income tax provision          1,072       139       314           1,525
     Provision (benefit) for
      income taxes                    225        23        52             300
     Net income (loss)               $847      $116      $262          $1,225
 
 
 
     Year to Date - September 30, 2006
                                                Normalized Items
                                         Integration  AWE Amortization
                                    GAAP   Costs (1)    Expense (2)  Normalized
 
     Operating revenues:
          Service revenues        $24,961        $-        $-         $24,961
          Equipment sales           2,790         -         -           2,790
               Total operating
                revenues           27,751         -         -          27,751
     Operating expenses:
          Cost of services          7,344      (150)        -           7,194
          Cost of equipment sales   3,874         -         -           3,874
          Selling, general and
           administrative           8,439       (87)        -           8,352
          Depreciation and
           amortization             4,854      (299)   (1,009)          3,546
               Total operating
                expenses           24,511      (536)   (1,009)         22,966
     Operating income (loss)        3,240       536     1,009           4,785
     Interest expense                 901         -         -             901
     Minority interest expense        127         -         -             127
     Equity in net income
      (loss) of affiliates              -         -         -               -
     Other income (expense), net       20         -         -              20
     Income (loss) before
      income tax provision          2,232       536     1,009           3,777
     Provision (benefit) for
      income taxes                    491        89       167             747
     Net income (loss)             $1,741      $447      $842          $3,030
 
     Notes to Normalized Financial Data
 
     Our normalized earnings have been adjusted for the following:
     (1) Integration costs resulting from the Cingular acquisition of AT&T
         Wireless and the related tax effect.
     (2) Amortization expense associated with intangible assets recorded for
         the AT&T Wireless acquisition and the related tax effect.
 
 
 
     Cingular Wireless LLC Income Statement, NORMALIZED
      - amounts in millions (unaudited)
 
                                  Quarter Ended             Year to Date
                            09/30/  09/30/  % Change  09/30/   09/30/  % Change
                             2006    2005              2006     2005
     Operating revenues:
       Service revenues     $8,661  $7,721    12.2%  $24,961  $22,859     9.2%
       Equipment sales         892   1,025   (13.0%)   2,790    2,725     2.4%
         Total operating
          revenues           9,553   8,746     9.2%   27,751   25,584     8.5%
     Operating expenses:
       Cost of services      2,462   2,285     7.7%    7,194    6,700     7.4%
       Cost of equipment
        sales                1,198   1,203    (0.4%)   3,874    3,728     3.9%
       Selling, general and
        administrative       2,814   2,815     0.0%    8,352    8,591    (2.8%)
       Depreciation and
        amortization         1,210   1,053    14.9%    3,546    3,312     7.1%
         Total operating
          expenses           7,684   7,356     4.5%   22,966   22,331     2.8%
     Operating income
      (loss)                 1,869   1,390    34.5%    4,785    3,253    47.1%
     Interest expense          306     304     0.7%      901      968    (6.9%)
     Minority interest
      expense                   43      38    13.2%      127       95    33.7%
     Equity in net income
      (loss) of affiliates       -       1  (100.0%)       -        4  (100.0%)
     Other income
      (expense), net             5      10   (50.0%)      20       63   (68.3%)
     Income (loss) before
      income tax provision   1,525   1,059    44.0%    3,777    2,257    67.3%
     Provision (benefit)
      for income taxes         300     224    33.9%      747      475    57.3%
     Net income (loss)      $1,225    $835    46.7%   $3,030   $1,782    70.0%
 
 
 
     Selected Financial and Operating Data for Cingular Wireless
      - amounts in millions, except customer data in 000s
 
                                    Quarter Ended            Year to Date
                            09/30/  09/30/  % Change  09/30/   09/30/  % Change
                             2006    2005              2006     2005
     (Amounts in millions,
      except customer data
      in 000s)
     OIBDA -
      normalized (1)       $3,079   $2,443    26.0%   $8,331   $6,565   26.9%
     OIBDA margin
      - normalized (2)      35.6%    31.6%   400 BP    33.4%    28.7%  470 BP
     Total Cellular/PCS
      Customers (3) **     58,666   52,292    12.2%   58,666   52,292   12.2%
     Net Customer
      Additions -
      Cellular/PCS **       1,358      867    56.6%    4,535    3,186   42.3%
     M&A Activity,
      Partitioned
      Customers and/or
      Other Adjs. **            -      (17) (100.0%)     (13)     (26) (50.0%)
     Churn - Cellular/PCS
      (4) **                 1.8%     2.3%   -50 BP     1.8%     2.2%  -40 BP
     ARPU - Cellular/PCS
      (5) **               $49.76   $49.65     0.2%   $49.04   $49.92   (1.8%)
     Minutes Of Use Per
      Cellular/PCS
      Subscriber (6) **       755      698     8.2%      732      673    8.8%
     Licensed POPs -
      Cellular/PCS (7) **     296      294     0.7%      296      294    0.7%
     Penetration -
      Cellular/PCS (8) **   20.8%    18.3%   250 BP    20.8%    18.3%  250 BP
     Capital
      Expenditures **      $1,828   $1,346    35.8%   $4,851   $4,505    7.7%
 
 
 
     Reconciliations of Normalized Financial Measures to Normalized OIBDA and
     OIBDA Margin - amounts in millions (unaudited)
 
                                    Quarter Ended            Year To Date
                             09/30/  09/30/  % Change  09/30/  09/30/  % Change
                              2006    2005              2006    2005
 
     Net income (loss)       $1,225    $835    46.7%  $3,030   $1,782    70.0%
       Plus:  Interest
        expense                 306     304     0.7%     901      968    (6.9%)
       Plus:  Minority
        interest expense         43      38    13.2%     127       95    33.7%
       Plus:  Equity in net
        loss of affiliates        -      (1)  100.0%       -       (4)  100.0%
       Plus:  Other, net         (5)    (10)   50.0%     (20)     (63)   68.3%
       Plus:  Provision
        (benefit) for income
        taxes - normalized      300     224    33.9%     747      475    57.3%
     Operating income
      (loss) - normalized     1,869   1,390    34.5%   4,785    3,253    47.1%
       Plus:  Depreciation
        and amortization -
        normalized            1,210   1,053    14.9%   3,546    3,312     7.1%
     OIBDA - normalized (1)  $3,079  $2,443    26.0%  $8,331   $6,565    26.9%
 
     OIBDA margin (2)         34.5%   28.5%   600 BP   32.4%    26.8%   560 BP
       Plus:  OIBDA margin,
        integration            1.1%    3.1%  -200 BP    1.0%     1.9%   -90 BP
     OIBDA margin
      - normalized            35.6%   31.6%   400 BP   33.4%    28.7%   470 BP
 
     NM - Not Meaningful
 
     ** Denotes metrics and calculations in this chart that are not impacted by
        the 1Q06 and YTD 2006 normalization of merger integration costs and
        AT&T Wireless intangibles amortization expenses.
 
     Notes:
     (1) OIBDA is defined as operating income (loss) before depreciation and
         amortization.  OIBDA differs from operating income (loss), as
         calculated in accordance with GAAP, in that it excludes depreciation
         and amortization.  It differs from net income (loss), as calculated in
         accordance with GAAP, in that it excludes, as presented on our
         Consolidated Statement of Income: (1) depreciation and amortization,
         (2) interest expense, (3) minority interest expense, (4) equity in net
         income (loss) of affiliates, (5) other, net, and (6) provision
         (benefit) for income taxes. OIBDA does not give effect to cash used
         for debt service requirements and thus does not reflect available
         funds for distributions, reinvestment or other discretionary uses.
         OIBDA is not presented as an alternative measure of operating results
         or cash flows from operations, as determined in accordance with
         generally accepted accounting principles.  Our calculation of OIBDA,
         as presented, may differ from similarly titled measures reported by
         other companies.
     (2) OIBDA margin is defined as OIBDA divided by service revenues.
     (3) Cellular/PCS customers include customers served through reseller
         agreements.
     (4) Cellular/PCS churn is calculated by dividing the aggregate number of
         cellular/PCS customers who cancel service during each month in a
         period by the total number of cellular/PCS customers at the beginning
         of each month in that period.
     (5) ARPU is defined as cellular/PCS service revenues during the period
         divided by average cellular/PCS customers during the period.
     (6) Total Minutes of Use Per Cellular/PCS Subscriber (MOUs) excludes SMS
         activity but includes Local Minutes of Use and Outcollect Minutes of
         Use in the numerator.
     (7) Licensed POPs refers to the number of people residing in areas where
         we and our partners have licenses to provide cellular or PCS service,
         including areas where we have not yet commenced service.
     (8) Penetration calculation for 3Q06 is based on licensed "operational"
         POP's of 282 million.
 
 
 
     Cingular Wireless LLC Income Statement
      - amounts in millions (unaudited)
 
                                     Full Year  03/31/  06/30/  09/30/  12/31/
                                        2003     2004    2004    2004    2004
     Operating revenues:
       Service revenues                $14,317  $3,583  $3,833  $3,873  $6,313
       Equipment sales                   1,260     384     354     419     806
         Total operating revenues       15,577   3,967   4,187   4,292   7,119
     Operating expenses:
       Cost of services                  3,775     955     983   1,107   1,692
       Cost of equipment sales           2,031     537     505     585   1,247
       Selling, general and
        administrative                   5,428   1,372   1,463   1,567   2,947
       Depreciation and amortization     2,089     553     565     573   1,386
         Total operating expenses       13,323   3,417   3,516   3,832   7,272
     Operating income (loss)             2,254     550     671     460    (153)
     Interest expense                      856     198     199     200     303
     Minority interest expense             101      27      41      20      (2)
     Equity in net income (loss) of
      affiliates                          (333)   (108)    (95)    (98)   (114)
     Other income (expense), net            41       4       1       -      11
     Income (loss) before income tax
      provision                          1,005     221     337     142    (557)
     Provision (benefit) for income
      taxes                                 28       6      (2)      -     (62)
     Net income (loss)                    $977    $215    $339    $142   $(495)
 
 
                                             03/31/   06/30/   09/30/   12/31/
                                              2005     2005     2005     2005
     Operating revenues:
        Service revenues                     $7,419   $7,719   $7,721   $7,779
        Equipment sales                         810      890    1,025    1,070
           Total operating revenues           8,229    8,609    8,746    8,849
     Operating expenses:
        Cost of services                      2,144    2,293    2,464    2,417
        Cost of equipment sales               1,295    1,230    1,203    1,341
        Selling, general and administrative   3,001    2,953    2,881    2,812
        Depreciation and amortization         1,675    1,629    1,541    1,730
           Total operating expenses           8,115    8,105    8,089    8,300
     Operating income (loss)                    114      504      657      549
     Interest expense                           338      326      304      292
     Minority interest expense                   16       41       38        7
     Equity in net income (loss) of
      affiliates                                  2        1        1        1
     Other income (expense), net                 20       33       10        1
     Income (loss) before income tax
      provision                                (218)     171      326      252
     Provision (benefit) for income taxes        22       24      104       48
     Net income (loss)                        $(240)    $147     $222     $204
 
 
                                            03/31/2006   06/30/2006  09/30/2006
     Operating revenues:
        Service revenues                       $8,005      $8,295      $8,661
        Equipment sales                           975         923         892
           Total operating revenues             8,980       9,218       9,553
     Operating expenses:
        Cost of services                        2,320       2,497       2,527
        Cost of equipment sales                 1,327       1,349       1,198
        Selling, general and
         administrative                         2,846       2,757       2,836
        Depreciation and amortization           1,680       1,598       1,576
           Total operating expenses             8,173       8,201       8,137
     Operating income (loss)                      807       1,017       1,416
     Interest expense                             297         298         306
     Minority interest expense                     41          43          43
     Equity in net income (loss) of
      affiliates                                    -           -           -
     Other income (expense), net                    9           6           5
     Income (loss) before income tax
      provision                                   478         682       1,072
     Provision (benefit) for income taxes         124         142         225
     Net income (loss)                           $354        $540        $847
 
 
     Selected Financial and Operating Data for Cingular Wireless
      - amounts in millions, except customer data in 000s
 
                                               03/31/  06/30/  09/30/  12/31/
                                        2003    2004    2004    2004    2004
 
     OIBDA (1)                         $4,343  $1,103  $1,236  $1,033  $1,233
     OIBDA margin (2)                   30.5%   30.8%   32.2%   26.7%   19.5%
     Integration, AT&T Wireless
      Intangibles Amortization and
      Hurricane Costs                      $-      $-      $-     $43    $643
     OIBDA - normalized                $4,343  $1,103  $1,236  $1,076  $1,478
     OIBDA margin - normalized          30.5%   30.8%   32.2%   27.8%   23.4%
     Total Cellular/PCS Customers (3)  24,027  24,618  25,044  25,672  49,132
     Net Customer Additions -
      Cellular/PCS                      2,116     554     428     657   1,699
     M&A Activity, Partitioned
      Customers and/or Other Adjs.        (14)     37      (2)    (29) 21,761
     Churn - Cellular/PCS (4)            2.7%    2.7%    2.7%    2.8%    2.6%
     ARPU - Cellular/PCS (5)           $51.67  $48.30  $50.75  $50.25  $49.51
     Minutes Of Use Per Cellular/PCS
      Subscriber (6)                      446     527     568     598     617
     Licensed POPs - Cellular/PCS (7)     236     240     243     243     291
     Penetration - Cellular/PCS (8)     10.8%   10.9%   11.1%   11.4%   17.2%
     Total Cingular Interactive
      Customers                           789     768     735     653      NA
     Net Customer Additions - Cingular
      Interactive                         (28)    (21)    (33)    (82)     NA
     Capital Expenditures              $2,734    $334    $783    $634  $1,698
 
 
                                             03/31/   06/30/   09/30/   12/31/
                                              2005     2005     2005     2005
 
     OIBDA (1)                               $1,789   $2,133   $2,198   $2,279
     OIBDA margin (2)                         24.1%    27.6%    28.5%    29.3%
     Integration, AT&T Wireless Intangibles
      Amortization and Hurricane Costs         $596     $649     $733     $727
     OIBDA - normalized                      $1,894   $2,228   $2,443   $2,409
     OIBDA margin - normalized                25.5%    28.9%    31.6%    31.0%
     Total Cellular/PCS Customers (3)        50,350   51,442   52,292   54,144
     Net Customer Additions - Cellular/PCS    1,367      952      867    1,820
     M&A Activity, Partitioned Customers
      and/or Other Adjs.                       (149)     140      (17)      32
     Churn - Cellular/PCS (4)                  2.2%     2.2%     2.3%     2.1%
     ARPU - Cellular/PCS (5)                 $49.60   $50.51   $49.65   $48.86
     Minutes Of Use Per Cellular/PCS
      Subscriber (6)                            628      692      698      700
     Licensed POPs - Cellular/PCS (7)           293      294      294      294
     Penetration - Cellular/PCS (8)           17.7%    18.0%    18.3%    18.9%
     Total Cingular Interactive Customers        NA       NA       NA       NA
     Net Customer Additions - Cingular
      Interactive                                NA       NA       NA       NA
     Capital Expenditures                      $971   $2,188   $1,346   $2,970
 
 
                                            03/31/2006  06/30/2006  09/30/2006
 
     OIBDA (1)                                 $2,487      $2,615      $2,992
     OIBDA margin (2)                           31.1%       31.5%       34.5%
     Integration, AT&T Wireless
      Intangibles Amortization and
      Hurricane Costs                            $593        $499        $453
     OIBDA - normalized                        $2,551      $2,701      $3,079
     OIBDA margin - normalized                  31.9%       32.6%       35.6%
     Total Cellular/PCS Customers (3)          55,810      57,308      58,666
     Net Customer Additions - Cellular/PCS      1,679       1,498       1,358
     M&A Activity, Partitioned Customers
      and/or Other Adjs.                          (13)          -           -
     Churn - Cellular/PCS (4)                    1.9%        1.7%        1.8%
     ARPU - Cellular/PCS (5)                   $48.48      $48.84      $49.76
     Minutes Of Use Per Cellular/PCS
      Subscriber (6)                              698         741         755
     Licensed POPs - Cellular/PCS (7)             296         296         296
     Penetration - Cellular/PCS (8)             19.8%       20.0%       20.8%
     Total Cingular Interactive Customers          NA          NA          NA
     Net Customer Additions - Cingular
      Interactive                                  NA          NA          NA
     Capital Expenditures                      $1,441      $1,582      $1,828
 
 
 
     Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
      - amounts in millions (unaudited)
 
                                                 03/31/  06/30/  09/30/  12/31/
                                          2003    2004    2004    2004    2004
 
     Net income (loss)                    $977    $215    $339    $142   $(495)
       Plus:  Interest expense             856     198     199     200     303
       Plus:  Minority interest
        expense                            101      27      41      20      (2)
       Plus:  Equity in net loss of
        affiliates                         333     108      95      98     114
       Plus:  Other, net                   (41)     (4)     (1)      -     (11)
       Plus:  Provision (benefit) for
        income taxes                        28       6      (2)      -     (62)
     Operating income (loss)             2,254     550     671     460    (153)
       Plus:  Depreciation and
        amortization                     2,089     553     565     573   1,386
     OIBDA (1)                          $4,343  $1,103  $1,236  $1,033  $1,233
       Plus:  Integration costs
        (excluding depreciation and
        amortization)                        -       -       -      43     245
       Plus:  Hurricane costs
        (excluding depreciation and
        amortization)                        -       -       -       -       -
     OIBDA - normalized (1)             $4,343  $1,103  $1,236  $1,076  $1,478
 
     Service revenues                   14,317   3,583   3,833   3,873   6,313
       Less:  Mobitex data revenues        220      58      59      54      36
     Service revenues used to
      calculate ARPU                   $14,097  $3,525  $3,774  $3,819  $6,277
 
 
                                              03/31/   06/30/   09/30/   12/31/
                                               2005     2005     2005     2005
 
     Net income (loss)                        $(240)    $147     $222     $204
       Plus:  Interest expense                  338      326      304      292
       Plus:  Minority interest expense          16       41       38        7
       Plus:  Equity in net loss of
        affiliates                               (2)      (1)      (1)      (1)
       Plus:  Other, net                        (20)     (33)     (10)      (1)
       Plus:  Provision (benefit) for
        income taxes                             22       24      104       48
     Operating income (loss)                    114      504      657      549
       Plus:  Depreciation and amortization   1,675    1,629    1,541    1,730
     OIBDA (1)                               $1,789   $2,133   $2,198   $2,279
       Plus:  Integration costs (excluding
        depreciation and amortization)          105       95      149      110
       Plus:  Hurricane costs (excluding
        depreciation and amortization)            -        -       96       20
     OIBDA - normalized (1)                  $1,894   $2,228   $2,443   $2,409
 
     Service revenues                         7,419    7,719    7,721    7,779
       Less:  Mobitex data revenues              18       20       18       17
     Service revenues used
      to calculate ARPU                      $7,401   $7,699   $7,703   $7,762
 
 
                                             03/31/2006  06/30/2006  09/30/2006
 
     Net income (loss)                           $354        $540        $847
       Plus:  Interest expense                    297         298         306
       Plus:  Minority interest expense            41          43          43
       Plus:  Equity in net loss of affiliates      -           -           -
       Plus:  Other, net                           (9)         (6)         (5)
       Plus:  Provision (benefit) for
        income taxes                              124         142         225
     Operating income (loss)                      807       1,017       1,416
       Plus:  Depreciation and
        amortization                            1,680       1,598       1,576
     OIBDA (1)                                 $2,487      $2,615      $2,992
       Plus:  Integration costs (excluding
        depreciation and amortization)             64          86          87
       Plus:  Hurricane costs (excluding
        depreciation and amortization)              -           -           -
     OIBDA - normalized (1)                    $2,551      $2,701      $3,079
 
     Service revenues                           8,005       8,295       8,661
       Less:  Mobitex data revenues                14          11           7
     Service revenues used
      to calculate ARPU                        $7,991      $8,284      $8,654
     In 2003, to be consistent with industry practices, historical
 consolidated statements of income for all periods presented were
 reclassified to reflect billings to our customers for the Universal Service
 Fund (USF) and other regulatory fees as operating revenues and the costs
 related to payments into the associated regulatory funds as operating
 expenses. Similar reclassifications have also been made to 2003 and 2004
 historical results for certain gross receipts taxes and other fees which
 are billed to our customers. Operating income and net income for all
 periods were unaffected.
     Notes:
 
     (1) OIBDA is defined as operating income (loss) before depreciation and
         amortization.  OIBDA differs from operating income (loss), as
         calculated in accordance with GAAP, in that it excludes depreciation
         and amortization.  It differs from net income (loss), as calculated in
         accordance with GAAP, in that it excludes, as presented on our
         Consolidated Statement of Income: (1) depreciation and amortization,
         (2) interest expense, (3) minority interest expense, (4) equity in net
         income (loss) of affiliates, (5) other, net, and (6) provision
         (benefit) for income taxes. OIBDA does not give effect to cash used
         for debt service requirements and thus does not reflect available
         funds for distributions, reinvestment or other discretionary uses.
         OIBDA is not presented as an alternative measure of operating results
         or cash flows from operations, as determined in accordance with
         generally accepted accounting principles.  Our calculation of OIBDA,
         as presented, may differ from similarly titled measures reported by
         other companies.
     (2) OIBDA margin is defined as OIBDA divided by service revenues.
     (3) Cellular/PCS customers include customers served through reseller
         agreements.
     (4) Cellular/PCS churn is calculated by dividing the aggregate number of
         cellular/PCS customers who cancel service during each month in a
         period by the total number of cellular/PCS customers at the beginning
         of each month in that period.
     (5) ARPU is defined as cellular/PCS service revenues during the period
         divided by average cellular/PCS customers during the period.
     (6) Prior to 1Q05, the numerator includes Local Minutes of Use but
         excludes Outcollect Minutes of Use.
     (7) Licensed POPs refers to the number of people residing in areas where
         we and our partners have licenses to provide cellular or PCS service,
         including areas where we have not yet commenced service. Licensed POPs
         have been restated in periods 4Q04 through 2Q05 due to a
         reconciliation of respective licenses.
     (8) Penetration calculation for 3Q06 is based on licensed "operational"
         POP's of 282 million.
 
 
 
     Cingular Wireless LLC Income Statement, Normalized
      - amounts in millions (unaudited)
 
     The normalized financial data presented below exclude the impact of: 1)
     integration costs that are cash outlays, or specified non-cash charges,
     directly related to the acquisition of AT&T Wireless; 2) amortization of
     intangibles associated with the AT&T Wireless acquisition; and 3) costs
     related to impact of Hurricanes Katrina and Rita in the third and fourth
     quarters of 2005.
 
     Integration costs would not have been incurred if not for the acquisition,
     as they support the utilization and/or disposal of the acquired assets.
     Integration costs are separately identifiable from business as usual
     outlays.  Costs recognized in connection with certain rationalization
     plans approved by management have also been included beginning in the
     second quarter of 2005.
 
     Examples of merger integration costs impacting expenses include (but are
     not limited to) the following:
       * Network rationalization (write-offs and accelerated depreciation
         related to certain "overlap" network assets)
       * Sales distribution optimization (lease terminations, leasehold
         improvement write-offs/accelerated depreciation)
       * Workforce rationalization (severance, relocation, retention)
       * IT System/Application rationalization (system/platform consolidation,
         contract termination fees, third party support)
       * Real Estate space rationalization (lease terminations, leasehold
         improvements write-offs and accelerated depreciation, contract
         termination fees)
 
                                                       Normalized
                                            12/31/   03/31/   06/30/   09/30/
                                             2004     2005     2005     2005
     Operating revenues:
        Service revenues                    $6,313   $7,419   $7,719   $7,721
        Equipment sales                        806      810      890    1,025
           Total operating revenues          7,119    8,229    8,609    8,746
     Operating expenses:
        Cost of services                     1,685    2,141    2,274    2,285
        Cost of equipment sales              1,244    1,295    1,230    1,203
        Selling, general and
         administrative                      2,712    2,899    2,877    2,815
        Depreciation and amortization          988    1,184    1,075    1,053
           Total operating expenses          6,629    7,519    7,456    7,356
     Operating income                          490      710    1,153    1,390
     Interest expense                          303      338      326      304
     Minority interest expense                  (2)      16       41       38
     Equity in net income (loss) of
      affiliates                              (114)       2        1        1
     Other income (expense), net                11       20       33       10
     Income before income tax provision         86      378      820    1,059
     Provision for income taxes                 39      120      131      224
     Net income                                $47     $258     $689     $835
 
 
                                                       Normalized
                                            12/31/   03/31/   06/30/   09/30/
                                             2005     2006     2006     2006
     Operating revenues:
        Service revenues                    $7,779   $8,005   $8,295   $8,661
        Equipment sales                      1,070      975      923      892
           Total operating revenues          8,849    8,980    9,218    9,553
     Operating expenses:
        Cost of services                     2,326    2,302    2,430    2,462
        Cost of equipment sales              1,341    1,327    1,349    1,198
        Selling, general and
         administrative                      2,773    2,800    2,738    2,814
        Depreciation and amortization        1,133    1,151    1,185    1,210
           Total operating expenses          7,573    7,580    7,702    7,684
     Operating income                        1,276    1,400    1,516    1,869
     Interest expense                          292      297      298      306
     Minority interest expense                   7       41       43       43
     Equity in net income (loss) of
      affiliates                                 1        -        -        -
     Other income (expense), net                 1        9        6        5
     Income before income tax provision        979    1,071    1,181    1,525
     Provision for income taxes                168      222      225      300
     Net income                               $811     $849     $956   $1,225
 
 
 
     Selected Financial and Operating Data for Cingular Wireless
      - amounts in millions, except customer data in 000s
 
                                                       Normalized
                                            12/31/   03/31/   06/30/   09/30/
                                             2004     2005     2005     2005
 
     OIBDA (1) (in millions)                $1,478   $1,894   $2,228   $2,443
     OIBDA margin (2)                        23.4%    25.5%    28.9%    31.6%
     Total Cellular/PCS
      Customers (3) (000's)                 49,132   50,350   51,442   52,292
     Net Customer Additions
      - Cellular/PCS (000's)                 1,699    1,367      952      867
     M&A Activity, Partitioned Customers
      and/or Other Adjs. (000's)            21,761     (149)     140      (17)
     Churn - Cellular/PCS (4)                 2.6%     2.2%     2.2%     2.3%
     ARPU - Cellular/PCS (5)                $49.51   $49.60   $50.51   $49.65
 
 
                                                       Normalized
                                            12/31/   03/31/   06/30/   09/30/
                                             2005     2006     2006     2006
 
     OIBDA (1) (in millions)                $2,409   $2,551   $2,701   $3,079
     OIBDA margin (2)                        31.0%    31.9%    32.6%    35.6%
     Total Cellular/PCS
      Customers (3) (000's)                 54,144   55,810   57,308   58,666
     Net Customer Additions
      - Cellular/PCS (000's)                 1,820    1,679    1,498    1,358
     M&A Activity, Partitioned Customers
      and/or Other Adjs. (000's)                32      (13)       -        -
     Churn - Cellular/PCS (4)                 2.1%     1.9%     1.7%     1.8%
     ARPU - Cellular/PCS (5)                $48.86   $48.48   $48.84   $49.76
 
 
 
     Reconciliations of Normalized Financial Measures to Normalized OIBDA and
      Service Revenues - amounts in millions (unaudited)
 
                                                       Normalized
                                             12/31/   03/31/   06/30/   09/30/
                                              2004     2005     2005     2005
 
     Net income                                $47     $258     $689     $835
       Plus:  Interest expense                 303      338      326      304
       Plus:  Minority interest expense         (2)      16       41       38
       Plus:  Equity in net (income) loss
        of affiliates                          114       (2)      (1)      (1)
       Plus:  Other, net                       (11)     (20)     (33)     (10)
       Plus:  Provision for income taxes        39      120      131      224
     Operating income                          490      710    1,153    1,390
       Plus:  Depreciation and
        amortization                           988    1,184    1,075    1,053
     OIBDA (1)                              $1,478   $1,894   $2,228   $2,443
 
     Service revenues                        6,313    7,419    7,719    7,721
       Less:  Mobitex data revenues             36       18       20       18
     Service revenues used
      to calculate ARPU                     $6,277   $7,401   $7,699   $7,703
 
 
                                                       Normalized
                                             12/31/   03/31/   06/30/   09/30/
                                              2005     2006     2006     2006
 
     Net income                               $811     $849     $956   $1,225
       Plus:  Interest expense                 292      297      298      306
       Plus:  Minority interest expense          7       41       43       43
       Plus:  Equity in net (income) loss
        of affiliates                           (1)       -        -        -
       Plus:  Other, net                        (1)      (9)      (6)      (5)
       Plus:  Provision for income taxes       168      222      225      300
     Operating income                        1,276    1,400    1,516    1,869
       Plus:  Depreciation and
        amortization                         1,133    1,151    1,185    1,210
     OIBDA (1)                              $2,409   $2,551   $2,701   $3,079
 
     Service revenues                        7,779    8,005    8,295    8,661
       Less:  Mobitex data revenues             17       14       11        7
     Service revenues used
      to calculate ARPU                     $7,762   $7,991   $8,284   $8,654
 
 
     Notes:
 
     (1) OIBDA is defined as operating income (loss) before depreciation and
         amortization.  OIBDA differs from operating income (loss), as
         calculated in accordance with GAAP, in it excludes depreciation and
         amortization.  It differs from net income (loss), as calculated in
         accordance with GAAP, in that it excludes, as presented on our
         Consolidated Statement of Income: (1) depreciation and amortization,
         (2) interest expense, (3) minority interest expense, (4) equity in net
         income (loss) of affiliates, (5) other, net, and (6) provision
         (benefit) for income taxes.  OIBDA does not give effect to cash used
         for debt service requirements and thus does not reflect available
         funds for distributions, reinvestment or other discretionary uses.
         OIBDA is not presented as an alternative measure of operating results
         or cash flows from operations, as determined in accordance with
         generally accepted accounting principles.  Our calculation of OIBDA,
         as presented, may differ from similarly titled measures reported by
         other companies.
     (2) OIBDA margin is defined as OIBDA divided by service revenues.
     (3) Cellular/PCS customers include customers served through reseller
         agreements.
     (4) Cellular/PCS customer churn is calculated by dividing the aggregate
         number of cellular/PCS customers who cancel service during each month
         in a period by the total number of cellular/PCS customers at the
         beginning of each month in that period.
     (5) ARPU is defined as cellular/PCS service revenues during the period
         divided by average cellular/PCS customers during the period.
 
 
 
     Cingular Wireless LLC Income Statement, Prior Quarter Normalized
     Reconciliations - amounts in millions (unaudited)
 
                                  Three months ended      Three months ended
                                       09/30/04                12/31/04
                                      Normal-  Normal-         Normal-  Normal-
                               GAAP     ized    ized    GAAP     ized    ized
                              Results Expenses Results Results Expenses Results
     Operating revenues:
       Service revenues        $3,873    $-   $3,873    $6,313    $-   $6,313
       Equipment sales            419   -        419       806   -        806
          Total operating
           revenues             4,292   -      4,292     7,119   -      7,119
     Operating expenses:
       Cost of services         1,107    (1)   1,106     1,692    (7)   1,685
       Cost of equipment sales    585   -        585     1,247    (3)   1,244
       Selling, general and
        administrative          1,567   (42)   1,525     2,947  (235)   2,712
       Depreciation and
        amortization              573   -        573     1,386  (398)     988
          Total operating
           expenses             3,832   (43)   3,789     7,272  (643)   6,629
     Operating income             460    43      503      (153)  643      490
     Interest expense             200   -        200       303   -        303
     Minority interest expense     20   -         20        (2)  -         (2)
     Equity in net income
      (loss) of affiliates        (98)  -        (98)     (114)  -       (114)
     Other income (expense),
      net                         -     -        -          11   -         11
     Income (loss) before
      income tax provision        142    43      185      (557)  643       86
     Provision (benefit) for
      income taxes                -     -        -         (62)  101       39
     Net income (loss)           $142   $43     $185     $(495) $542      $47
 
 
                                  Nine months ended      Twelve months ended
                                       09/30/04                12/31/04
                                      Normal-  Normal-         Normal-  Normal-
                               GAAP     ized    ized    GAAP     ized    ized
                              Results Expenses Results Results Expenses Results
     Operating revenues:
       Service revenues       $11,289    $-  $11,289   $17,602    $-  $17,602
       Equipment sales          1,157   -      1,157     1,963   -      1,963
          Total operating
           revenues            12,446   -     12,446    19,565   -     19,565
     Operating expenses:
       Cost of services         3,045    (1)   3,044     4,737    (8)   4,729
       Cost of equipment sales  1,627   -      1,627     2,874    (3)   2,871
       Selling, general and
        administrative          4,402   (42)   4,360     7,349  (277)   7,072
       Depreciation and
        amortization            1,691   -      1,691     3,077  (398)   2,679
          Total operating
           expenses            10,765   (43)  10,722    18,037  (686)  17,351
     Operating income           1,681    43    1,724     1,528   686    2,214
     Interest expense             597   -        597       900   -        900
     Minority interest expense     88   -         88        86   -         86
     Equity in net income
      (loss) of affiliates       (301)  -       (301)     (415)  -       (415)
     Other income (expense),
      net                           5   -          5        16   -         16
     Income (loss) before
      income tax provision        700    43      743       143   686      829
     Provision (benefit) for
      income taxes                  4   -          4       (58)  101       43
     Net income (loss)           $696   $43     $739      $201  $585     $786
 
 
 
                                 Three months ended       Three months ended
                                      3/31/05                  6/30/05
                                      Normal-  Normal-         Normal-  Normal-
                               GAAP     ized    ized    GAAP     ized    ized
                              Results Expenses Results Results Expenses Results
     Operating revenues:
       Service revenues       $7,419    $-  $7,419    $7,719      $-   $7,719
       Equipment sales           810   -       810       890     -        890
          Total operating
           revenues            8,229   -     8,229     8,609     -      8,609
     Operating expenses:
       Cost of services        2,144    (3)  2,141     2,293     (19)   2,274
       Cost of equipment sales 1,295   -     1,295     1,230     -      1,230
       Selling, general and
        administrative         3,001  (102)  2,899     2,953     (76)   2,877
       Depreciation and
        amortization           1,675  (491)  1,184     1,629    (554)   1,075
          Total operating
           expenses            8,115  (596)  7,519     8,105    (649)   7,456
     Operating income            114   596     710       504     649    1,153
     Interest expense            338   -       338       326     -        326
     Minority interest expense    16   -        16        41     -         41
     Equity in net income
      (loss) of affiliates         2   -         2         1     -          1
     Other income (expense),
      net                         20   -        20        33     -         33
     Income (loss) before
      income tax provision      (218)  596     378       171     649      820
     Provision (benefit) for
      income taxes                22    98     120        24     107      131
     Net income (loss)         $(240) $498    $258      $147    $542     $689
 
 
                                 Three months ended        Six months ended
                                      3/31/05                  6/30/05
                                      Normal-  Normal-         Normal-  Normal-
                               GAAP     ized    ized    GAAP     ized    ized
                              Results Expenses Results Results Expenses Results
     Operating revenues:
       Service revenues       $7,419    $-  $7,419    $15,138      $-  $15,138
       Equipment sales           810   -       810      1,700     -      1,700
          Total operating
           revenues            8,229   -     8,229     16,838     -     16,838
     Operating expenses:
       Cost of services        2,144    (3)  2,141      4,437     (22)   4,415
       Cost of equipment sales 1,295   -     1,295      2,525     -      2,525
       Selling, general and
        administrative         3,001  (102)  2,899      5,954    (178)   5,776
       Depreciation and
        amortization           1,675  (491)  1,184      3,304  (1,045)   2,259
          Total operating
           expenses            8,115  (596)  7,519     16,220  (1,245)  14,975
     Operating income            114   596     710        618   1,245    1,863
     Interest expense            338   -       338        664     -        664
     Minority interest expense    16   -        16         57     -         57
     Equity in net income
      (loss) of affiliates         2   -         2          3     -          3
     Other income (expense),
      net                         20   -        20         53     -         53
     Income (loss) before
      income tax provision      (218)  596     378        (47)  1,245    1,198
     Provision (benefit) for
      income taxes                22    98     120         46     205      251
     Net income (loss)         $(240) $498    $258       $(93) $1,040     $947
 
 
 
                               Three months ended         Three months ended
                                    9/30/05                  12/31/05
                                    Normal-  Normal-          Normal-  Normal-
                             GAAP     ized    ized     GAAP     ized    ized
                            Results Expenses Results  Results Expenses Results
 
     Operating revenues:
       Service revenues      $7,721      $-   $7,721   $7,779      $-   $7,779
       Equipment sales        1,025     -      1,025    1,070     -      1,070
         Total operating
          revenues            8,746     -      8,746    8,849     -      8,849
     Operating expenses:
       Cost of services       2,464    (179)   2,285    2,417     (91)   2,326
       Cost of equipment
        sales                 1,203     -      1,203    1,341     -      1,341
       Selling, general and
        administrative        2,881     (66)   2,815    2,812     (39)   2,773
       Depreciation and
        amortization          1,541    (488)   1,053    1,730    (597)   1,133
         Total operating
          expenses            8,089    (733)   7,356    8,300    (727)   7,573
     Operating income           657     733    1,390      549     727    1,276
     Interest expense           304     -        304      292     -        292
     Minority interest
      expense                    38     -         38        7     -          7
     Equity in net income
      (loss) of affiliates        1     -          1        1     -          1
     Other income
      (expense), net             10     -         10        1     -          1
     Income (loss) before
      income tax provision      326     733    1,059      252     727      979
     Provision (benefit)
      for income taxes          104     120      224       48     120      168
     Net income (loss)         $222    $613     $835     $204    $607     $811
 
 
                                Nine months ended        Twelve months ended
                                    9/30/05                    12/31/05
                                    Normal-  Normal-          Normal-  Normal-
                             GAAP     ized    ized     GAAP     ized    ized
                            Results Expenses Results  Results Expenses Results
 
     Operating revenues:
       Service revenues     $22,859      $-  $22,859  $30,638      $-  $30,638
       Equipment sales        2,725     -      2,725    3,795     -      3,795
         Total operating
          revenues           25,584     -     25,584   34,433     -     34,433
     Operating expenses:
       Cost of services       6,901    (201)   6,700    9,318    (292)   9,026
       Cost of equipment
        sales                 3,728     -      3,728    5,069     -      5,069
       Selling, general and
        administrative        8,835    (244)   8,591   11,647    (283)  11,364
       Depreciation and
        amortization          4,845  (1,533)   3,312    6,575  (2,130)   4,445
         Total operating
          expenses           24,309  (1,978)  22,331   32,609  (2,705)  29,904
     Operating income         1,275   1,978    3,253    1,824   2,705    4,529
     Interest expense           968     -        968    1,260     -      1,260
     Minority interest
      expense                    95     -         95      102     -        102
     Equity in net income
      (loss) of affiliates        4     -          4        5     -          5
     Other income
      (expense), net             63     -         63       64     -         64
     Income (loss) before
      income tax provision      279   1,978    2,257      531   2,705    3,236
     Provision (benefit)
      for income taxes          150     325      475      198     445      643
     Net income (loss)         $129  $1,653   $1,782     $333  $2,260   $2,593
 
 
 
                                 Three months ended       Three months ended
                                      3/31/06                  6/30/06
                                    Normal-  Normal-          Normal-  Normal-
                             GAAP     ized    ized     GAAP     ized    ized
                            Results Expenses Results  Results Expenses Results
 
     Operating revenues:
       Service revenues      $8,005    $-  $8,005     $8,295      $-   $8,295
       Equipment sales          975   -       975        923     -        923
          Total operating
           revenues           8,980   -     8,980      9,218     -      9,218
     Operating expenses:
       Cost of services       2,320   (18)  2,302      2,497     (67)   2,430
       Cost of equipment
        sales                 1,327   -     1,327      1,349     -      1,349
       Selling, general and
        administrative        2,846   (46)  2,800      2,757     (19)   2,738
       Depreciation and
        amortization          1,680  (529)  1,151      1,598    (413)   1,185
          Total operating
           expenses           8,173  (593)  7,580      8,201    (499)   7,702
     Operating income           807   593   1,400      1,017     499    1,516
     Interest expense           297   -       297        298     -        298
     Minority interest expense   41   -        41         43     -         43
     Equity in net income
      (loss) of affiliates      -     -       -          -       -        -
     Other income (expense),
      net                         9   -         9          6     -          6
     Income (loss) before
      income tax provision      478   593   1,071        682     499    1,181
     Provision (benefit) for
      income taxes              124    98     222        142      83      225
     Net income (loss)         $354  $495    $849       $540    $416     $956
 
 
                                 Three months ended      Six months ended
                                      3/31/06                 6/30/06
                                    Normal-  Normal-          Normal-  Normal-
                             GAAP     ized    ized     GAAP     ized    ized
                            Results Expenses Results  Results Expenses Results
 
     Operating revenues:
       Service revenues      $8,005    $-  $8,005    $16,300      $-  $16,300
       Equipment sales          975   -       975      1,898     -      1,898
          Total operating
           revenues           8,980   -     8,980     18,198     -     18,198
     Operating expenses:
       Cost of services       2,320   (18)  2,302      4,817     (85)   4,732
       Cost of equipment
        sales                 1,327   -     1,327      2,676     -      2,676
       Selling, general and
        administrative        2,846   (46)  2,800      5,603     (65)   5,538
       Depreciation and
        amortization          1,680  (529)  1,151      3,278    (942)   2,336
          Total operating
           expenses           8,173  (593)  7,580     16,374  (1,092)  15,282
     Operating income           807   593   1,400      1,824   1,092    2,916
     Interest expense           297   -       297        595     -        595
     Minority interest expense   41   -        41         84     -         84
     Equity in net income
      (loss) of affiliates        -     -       -          -       -        -
     Other income (expense),
      net                         9   -         9         15     -         15
     Income (loss) before
      income tax provision      478   593   1,071      1,160   1,092    2,252
     Provision (benefit) for
      income taxes              124    98     222        266     181      447
     Net income (loss)         $354  $495    $849       $894    $911   $1,805
 
      No integration costs were incurred prior to the third quarter of 2004.
 
      Quarterly amortization expense (in millions) associated with intangible
      assets recorded for the AT&T Wireless acquisition is as follows:  $398 in
      4Q04, $491 in 1Q05, $445 in 2Q05, $396 in 3Q05, $381 in 4Q05, $359 in
      1Q06, $336 in 2Q06.
 
 
 
     Cingular Wireless LLC Balance Sheet
      - amounts in millions (unaudited)
 
                                             09/30/   12/31/    Incr   % + / -
                                              2006     2005    (Decr)
                                                    (audited)
     Assets
     Current assets:
      Cash and cash equivalents               $491     $472     $19    4.0%
      Accounts receivable - net of
       allowance for doubtful accounts       3,751    3,622     129    3.6%
      Inventories                              583      536      47    8.8%
      Prepaid expenses and
       other current assets                  1,968    1,419     549   38.7%
        Total current assets                 6,793    6,049     744   12.3%
     Property, plant and equipment - net    22,696   21,745     951    4.4%
     Intangible assets - net                49,401   50,773  (1,372)  (2.7%)
     Other assets                            1,330      752     578   76.9%
        Total assets                       $80,220  $79,319    $901    1.1%
 
     Liabilities and members' capital
     Current liabilities:
      Debt maturing within one year         $2,829   $2,036    $793   38.9%
      Accounts payable and accrued
       liabilities                           6,642    7,972  (1,330) (16.7%)
        Total current liabilities            9,471   10,008    (537)  (5.4%)
     Long-term debt to affiliates            6,717    6,717       -    0.0%
     Long-term debt to external parties     11,876   12,623    (747)  (5.9%)
        Total long-term debt                18,593   19,340    (747)  (3.9%)
     Other noncurrent liabilities            4,893    4,450     443   10.0%
     Minority interests in
      consolidated entities                    618      543      75   13.8%
     Members' capital                       46,645   44,978   1,667    3.7%
        Total liabilities and
         members' capital                  $80,220  $79,319    $901    1.1%
 
 

SOURCE Cingular Wireless
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