BellSouth Announcement

Bellsouth Corp 17 May 2002 News Release For Immediate Release May 17, 2002 For More Information Contact: Jeff Battcher BellSouth Media Relations 404-713-0274 BellSouth announces workforce reduction May 17, 2002, ATLANTA - BellSouth announced today that it will reduce its workforce by 4,000-5,000 employees. The reduction will involve both non-management and management positions and is designed to reduce operating costs in response to a slow economy, increased competition and regulatory pricing pressures. "We face a fiercely competitive marketplace, and we must continue to reduce our cost structure in order to compete," said BellSouth Chairman and CEO Duane Ackerman. "We must continue to deliver our products and services at competitive prices to meet the increasing demands of our customers." The company expects to achieve its management force reduction needs through a voluntary separation plan. Non-management separations will be handled in accordance with the current working agreement with the Communications Workers of America. As a result of the reduction, BellSouth will record an after-tax charge of $250-300 million. About BellSouth Corporation BellSouth Corporation is a Fortune 100 communications services company headquartered in Atlanta, GA, serving almost 45 million customers in the United States and 14 other countries. Consistently recognized for customer satisfaction, BellSouth provides a full array of broadband data and e-commerce solutions to business customers, including Web hosting and other Internet services. In the residential market, BellSouth offers DSL high-speed Internet access, advanced voice features and other services. BellSouth also provides online and directory advertising services, including BellSouth(R) Real PagesSM.com. BellSouth owns 40 percent of Cingular Wireless, the nation's second largest wireless company, which provides innovative wireless data and voice services. ### This information is provided by RNS The company news service from the London Stock Exchange
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