Verizon Communications Board Approves Spin-Off of U.S. Print and Internet Yellow Pages Directories

New Company to Be Called Idearc

Oct 18, 2006, 01:00 ET from Verizon

    NEW YORK, Oct. 18 /PRNewswire/ -- Verizon Communications Inc. today
 announced that its Board of Directors has approved the proposed spin-off of
 Verizon's U.S. print and Internet yellow pages directories company to its
 stockholders. The spin-off will result in a new public company that will be
 separate from Verizon and that will be called Idearc Inc. (pronounced EYE'-
     The Verizon Board declared a dividend of one share of Idearc common
 stock for every 20 shares of Verizon common stock held as of the close of
 business on Nov. 1, 2006. Subject to the satisfaction of certain
 conditions, the distribution will occur on Nov. 17, 2006, and is expected
 to qualify as a tax- free distribution. Stockholders who own fewer than 20
 shares of Verizon common stock (or who do not own multiples of 20 shares)
 will receive a taxable cash payment in lieu of a fractional share to which
 they would be entitled.
     As previously announced, when the Board next considers the Verizon
 dividend, management expects to recommend that the Board not reduce
 Verizon's quarterly dividend of 40.5 cents per share as a result of the
     Verizon currently expects that a "when issued" public market for Idearc
 common stock will begin on or about Nov. 2 on the New York Stock Exchange
 (NYSE) under the symbol "IAR wi." Following the spin-off, Idearc common
 stock will trade under the symbol "IAR."
     If a Verizon stockholder sells shares of his or her Verizon common
 stock (which trades on the NYSE under the symbol "VZ") in the regular way
 market on or prior to the distribution date, the shareholder will also be
 selling the right to receive shares of Idearc common stock in connection
 with those shares. Investors are encouraged to consult with their financial
 advisors regarding the specific implications of selling shares of their
 Verizon common stock on or before the distribution date.
                              Details of New Name
     Following the spin-off, the company will operate under the trademarks
 IDEARC, IDEARC MEDIA and the arc design logo. These trademarks will be used
 in promoting the company's multi-platform print and online publishing and
 advertising services, including Yellow Pages, White Pages, business
 directories and magazines, an online directory and search services, website
 design and hosting services, and directory and information services for
 wireless subscribers.
     Idearc was selected as the new company's name to differentiate it from
 other publishers in the industry. A combination of the words "idea" and
 "arc," Idearc symbolizes how the company connects buyers and sellers
 through robust content available across multiple media.
                                    New Logo
     Idearc's logo incorporates the name with three, interconnected arcs
 that each tie to facets of Idearc's strategic portfolio: Gray links with
 its print product design, green to its industry-leading
 service, and blue to the future. Idearc's name and logo were created by
 Landor Associates, the branding and design consultancy that also created
 the Verizon name and logo in 2000.
     (Logo: )
     Idearc will be headquartered in the Dallas/Fort Worth area and have
 approximately 7,100 employees. After the spin-off, Idearc and its
 subsidiaries will continue to operate the domestic directories publishing
 business previously operated by Verizon.
     Completion of the spin-off is subject to the satisfaction of a number
 of conditions, including the Form 10 Registration Statement for Idearc's
 common stock being declared effective by the Securities and Exchange
 Commission, Idearc common stock being accepted for listing on the NYSE, and
 certain other conditions described in the Form 10. The Board has reserved
 the right to withdraw its declaration of the dividend at any time prior to
 the distribution.
     Verizon Communications Inc. (NYSE:  VZ), a Dow 30 company, is a leader in
 delivering broadband and other wireline and wireless communication
 innovations to mass market, business, government and wholesale customers.
 Verizon Wireless operates America's most reliable wireless network, serving
 nearly 55 million customers nationwide. Verizon Business operates one of
 the most expansive wholly-owned global IP networks. Verizon Telecom is
 deploying the nation's most advanced fiber-optic network to deliver the
 benefits of converged communications, information and entertainment
 services to customers. Based in New York, Verizon has a diverse workforce
 of more than 252,000 and generates annual consolidated operating revenues
 of approximately $90 billion. For more information, visit
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     NOTE: This news release contains statements about expected future
 events and financial results that are forward-looking and subject to risks
 and uncertainties. For those statements, we claim the protection of the
 safe harbor for forward-looking statements contained in the Private
 Securities Litigation Reform Act of 1995. The following important factors
 could affect future results and could cause those results to differ
 materially from those expressed in the forward-looking statements:
 materially adverse changes in economic and industry conditions and labor
 matters, including workforce levels and labor negotiations, and any
 resulting financial and/or operational impact, in the markets served by us
 or by companies in which we have substantial investments; material changes
 in available technology; technology substitution; an adverse change in the
 ratings afforded our debt securities by nationally accredited ratings
 organizations; the final results of federal and state regulatory
 proceedings concerning our provision of retail and wholesale services and
 judicial review of those results; the effects of competition in our
 markets; the timing, scope and financial impacts of our deployment of
 fiber-to-the-premises broadband technology; the ability of Verizon Wireless
 to continue to obtain sufficient spectrum resources; changes in our
 accounting assumptions that regulatory agencies, including the SEC, may
 require or that result from changes in the accounting rules or their
 application, which could result in an impact on earnings; the timing of the
 closings of the sales of our Latin American and Caribbean properties; and
 the extent and timing of our ability to obtain revenue enhancements and
 cost savings following our business combination with MCI, Inc.

SOURCE Verizon