BellSouth Latin Disc Ops

Bellsouth Corp
31 March 2004



March 31, 2004



INVESTOR RELATIONS
For more information call:        1-800-241-3419
                                                                   Jeff Battcher
                                                                 MEDIA RELATIONS
                                                           BellSouth Corporation
                                                                  [phone]
                                                     [e-mail]


 BellSouth Provides recast Financials reflecting treatment of Latin America as
                          discontinued operations

     Updates guidance for 2004 pension and post-retirement benefit costs

Atlanta, GA. - On March 8, 2004, BellSouth Corp. (NYSE: BLS)  announced a
definitive agreement to sell its interests in its 10 Latin American operations
to Telefonica Moviles, the wireless affiliate of Telefonica, S.A.  Following
generally accepted accounting principles (GAAP), the company's financial
statements will reflect results for the Latin American segment as Discontinued
Operations beginning in the first quarter of 2004. The operational results and
other activity, including the gain on disposition, associated with the Latin
American segment will be presented on one line item in the income statement
separate from Continuing Operations.  In addition, BellSouth will no longer
include the results related to its Latin American segment in normalized results.

To help familiarize investors with the new presentation format before the first
quarter earnings release, BellSouth is providing eight quarters of history for
both the consolidated income and cash flow statements on its web site at
www.bellsouth.com/investor.

Separately, BellSouth is also updating its 2004 guidance with respect to
combined pension and retiree medical costs.  In December 2003, the Medicare
Prescription Drug Act was signed into law.  The Act allows companies who provide
certain prescription drug benefits for retirees to receive a federal subsidy
beginning in 2006.  BellSouth previously accounted for the subsidy provided
under the Act as a plan amendment under SFAS No. 106, "Employers Accounting for
Postretirement Benefits Other Than Pensions."  Effective January 1, 2004,
BellSouth will treat the subsidy as an actuarial gain.  The effect of this
change will result in the benefit being recognized over a longer period of time,
thus changing our estimate of the impact of retiree medical costs in 2004.

In January, BellSouth provided guidance indicating that the incremental
year-over-year impact of combined pension and retiree medical costs would be an
increase to 2004 earnings per share of 7 cents.  As a result of the change
described above, the expected year-over-year annual increase is now expected to
be approximately 1 cent per share.



About BellSouth Corporation
BellSouth Corporation is a Fortune 100 communications services company
headquartered in Atlanta, Georgia. BellSouth serves nearly 50 million local,
long distance, Internet and wireless customers in the United States and 12 other
countries.

Consistently recognized for customer satisfaction, BellSouth provides complete
communications solutions to the residential and business markets. In the
residential market, BellSouth offers DSL high-speed Internet access and long
distance, advanced voice features and other services. The company's BellSouth
AnswersSM package combines local and long distance service with an array of
calling features; wireless data, voice and e-mail services; and high-speed DSL
or dial-up Internet service and Cingular Wireless. In the business market,
BellSouth serves small, medium and large businesses providing secure, reliable
local and long distance voice and data networking solutions. BellSouth also
provides online and directory advertising services through BellSouth(R)
RealPages.comSM and The Real Yellow Pages(R).

BellSouth owns 40 percent of Cingular Wireless, the nation's second largest
wireless company, which provides innovative wireless voice and data services.

In addition to historical information, this document 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: (i) a change in
economic conditions in domestic or international markets where we operate or
have material investments which would affect demand for our services; (ii) the
intensity of competitive activity and its resulting impact on pricing strategies
and new product offerings; (iii) higher than anticipated cash requirements for
investments, new business initiatives and acquisitions; (iv) unfavorable
regulatory actions; (v) currency devaluations and continued economic weakness in
certain international markets in which we operate or have material investments;
and (vi) those factors contained in the Company's periodic reports filed with
the SEC.  The forward-looking information in this document is given as of this
date only, and, BellSouth assumes no duty to update this information.

This document may also contain certain non-GAAP financial measures.  The most
directly comparable GAAP financial measures, and a full reconciliation of
non-GAAP to GAAP financial information, are attached hereto and provided on the
Company's investor relations web site, www.bellsouth.com/investor.


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