Cingular Wireless results

Bellsouth Corp
20 April 2004

                                                                           FINAL


               Cingular Wireless Reports First-Quarter Results:
                   Solid Subscriber Growth, Improved Margins,

                            Continued GSM Success


•    First-quarter net adds total 554,000, to reach 24.6 million cellular/
     PCS subscribers; 2.5 million net gain over the past four quarters

•    Cingular's nationwide GSM/GPRS network overlay on track to achieve
     100 percent network coverage in next 90 days

•    66 percent of Cingular's minutes now on its GSM/GPRS network

•    Revenues up 8.4 percent to $3.9 billion; cellular/PCS data revenues up 53 
     percent

•    580 basis point sequential improvement in operating margin, delivering on 
     goals outlined in January


ATLANTA - April 20, 2004 - Cingular Wireless LLC, a joint venture between SBC
Communications (NYSE: SBC) and BellSouth Corporation (NYSE: BLS), today reported
first-quarter 2004 results shaped by continued solid subscriber growth, rapid
progress in its GSM/GPRS conversion, and a 580 basis point sequential
improvement in operating margins, in line with goals outlined by the company in
January.

            For the three months ended March 31, 2004, Cingular achieved net
subscriber additions of 554,000, bringing its nationwide cellular/PCS customer
base to 24.6 million - up 2.5 million over the past four quarters.

            Gross customer additions in the first quarter totaled 2.5 million,
marking Cingular's third consecutive quarter with gross adds at or above 2.5
million.  Average monthly subscriber churn declined 10 basis points sequentially
to 2.7 percent, driven by a decline in postpaid retail subscriber churn.
Wireless local number portability, implemented in November of 2003, continues to
have minimal impact on Cingular's subscriber results.

            As it has sustained solid subscriber growth, Cingular continues to
move forward   aggressively toward completion of its nationwide network overlay
of next-generation GSM/GPRS technology.  At the end of the first quarter,
Cingular's GSM/GPRS network was available to 94 percent of the company's
operational POPs, up from approximately 56 percent a year earlier. Cingular now
expects to achieve 100 percent GSM/GPRS network coverage by July of this year.

            At the end of the first quarter, more than 53 percent of Cingular's
handsets in service were GSM capable, up from 22 percent a year earlier and 45
percent at the end of 2003.  Approximately 66 percent of Cingular's total
minutes are now carried on its GSM network.  GSM provides the truest voice
quality in wireless.  GSM is the world's most popular wireless technology, and
it provides customers the widest selection of handsets in the industry with
features such as color screens, built-in cameras and the latest data services


            "Cingular continues to execute very well," said Stan Sigman,
President and CEO of Cingular Wireless, "In the first quarter, we sustained good
momentum in subscriber growth.  We improved margins.  We introduced innovations
in customer care, such as our new personalized summary of customers' service
plans available within minutes of signing up for service.  And we continued our
nationwide drive to improve coverage and network quality.

            "In February, Cingular Wireless took a huge step forward when we
agreed to acquire AT&T Wireless," Sigman continued.  "This transaction will
strengthen our nationwide coverage and help us deliver great service for
customers.  It will give us a terrific platform for innovation and new services.
  And, it will provide expanded opportunities for growth in the years ahead.

            "Coverage and scale are key, but sustained success in wireless comes
from doing a great job on the fundamentals," Sigman said.  "And the fundamentals
for our business are network performance and customer care.  These are the
execution areas where Cingular is intensely focused in 2004, as we move toward
finalizing our acquisition of AT&T Wireless.  And these are the areas where we
intend to excel as we move our business forward."

Financial Results

Major drivers of Cingular's first-quarter financial results were solid
subscriber growth coupled with aggressive execution in terms of GSM network
build, network expansion and customer service initiatives.

•    First-quarter revenues grew to $3.9 billion, up 8.4 percent compared with 
     the year-earlier first quarter.  Service revenues increased 4.8 percent to
     $3.6 billion.

•    Cellular/PCS data revenue increased 53 percent year-over-year, largely due 
     to the rising popularity of text messaging, as well as downloadable
     ringtones and photo messaging. Cingular delivered more than 1.3 billion 
     text messages during the quarter, almost double the volume in the first 
     quarter of 2003.

•    Cellular/PCS ARPU (average revenue per user), which represents service 
     revenue per subscriber, was $47.95, down 2.2 percent from the fourth 
     quarter of 2003 and down 5.5 percent from the year-earlier first quarter.
     However, during the first quarter, Cingular saw improving ARPU trends, with
     March results up from January and February levels.

•    Total operating expenses were $3.4 billion in the first quarter, down 5.6 
     percent versus 3.6 billion in the fourth quarter of 2003 and up 15.8
     percent from $2.9 billion in the year-ago period.

•    Cingular's operating margins improved substantially from fourth-quarter 
     2003 levels, in line with the goals outlined by management in January.  
     Cingular's operating margin was 14.2 percent, up 580 basis points from the 
     fourth quarter of 2003 and down 550 basis points from the first quarter of
     2003.  (Operating margin is the percentage of operating income to operating
     revenue)

•    First-quarter operating income was $559 million, compared with $329 million 
     in the fourth quarter of 2003 and $716 million in the first quarter a
     year ago.


Agreement To Acquire AT&T Wireless



To expand its ability to serve customers and improve growth prospects, Cingular
announced in February an agreement to acquire AT&T Wireless.  Customers of the
new company will have access to the largest network in the United States, with
spectrum in 49 states and coverage in 97 of the top 100 markets. Today, the
combined companies would have 46 million customers, and combined 2003 annual
revenues of $32 billion.

            "AT&T Wireless' first quarter subscriber and revenue numbers, which
were released this morning are consistent with our expectations for the quarter,
" said Sigman.  "The release indicates that management at AT&T Wireless is
taking action to address the issues they are facing, but these results emphasize
the importance of completing this deal as soon as possible."



The Cingular/AT&T Wireless transaction requires approvals from the U.S.
Department of Justice and the Federal Communications Commission.  Filings with
both agencies were made in mid-March.  Cingular anticipates no delays in the
review process and expects the transaction to close before year end.



Product and Service Initiatives


In addition to announcing this transaction, Cingular made progress on a number
of fronts in the first quarter as it worked to enhance its products and service
capabilities.



•    In March, Cingular Wireless announced a major customer service initiative 
designed to provide customers with a clear, personalized summary of
their service plan within minutes of signing up for service.  The Cingular
Service Summary gives new customers easy-to-understand information about their
service plan, a simulated first bill with expected charges, an example of an
ongoing bill, color-coded coverage maps specific to their calling plan, and
other details about the terms of service. The service began rolling out on April
5th in company owned stores in all markets and will be available in exclusive
agent locations later this summer. Beginning May 22nd, customers will have the
ability to view their Cingular Service Summary on www.cingular.com. The Summary
is one of several initiatives the company plans to introduce throughout the year
to improve the customer experience.


•    Cingular also has launched a new service that lets subscribers
obtain fast and easy access to important account information directly from their
handsets.  Called "* (Star) Services" this new feature essentially puts
management of personal account information in the hands of wireless customers.
By simply dialing the appropriate "star code," Cingular customers can have their
current account balance and/or remaining minutes delivered to their handset via
short-messaging. * (Star) Services also allows customers to enter a star code to
make a bill payment using an interactive voice response (IVR) feature.



•    To drive expanded customer options in data services, Cingular
continues to move forward in implementing EDGE (Enhanced Data rate for GSM
Evolution) high speed data technology throughout its network and expects to have
substantially all of its markets enabled with the high speed EDGE technology by
the end of this summer.  Cingular was the first carrier in the world to launch
EDGE when it turned up its network in Indianapolis in July 2003. EDGE allows for
data rates up to 170 Kbps with average speeds ranging between 75-135 Kbps.


•    Cingular also closed its $1.4 billion acquisition of 34 PCS spectrum
licenses from NextWave Telecom Inc. on April 8th.  These licenses, covering
approximately 83 million potential customers, are for spectrum primarily in
markets where Cingular currently has voice and data operations.  This additional
spectrum depth enhances Cingular's ability to improve network quality, increase
capacity and build next generation services for customers.



About Cingular Wireless



Cingular Wireless, a joint venture between SBC Communications (NYSE - SBC) and
BellSouth (NYSE - BLS), serves more than 25 million voice and data customers
across the United States. A leader in mobile voice and data communications,
Cingular is the only U.S. wireless carrier to offer RolloverSM, the wireless
plan that lets customers keep their unused monthly minutes. Cingular has
launched the world's first commercial deployment of wireless services using
Enhanced Data rate for GSM Evolution (EDGE) technology. Cingular provides
cellular/PCS service in 43 of the top 50 markets nationwide, and provides
corporate e-mail and other advanced data services through its GPRS, EDGE and
Mobitex packet data networks. Details of the company are available at
www.cingular.com.



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www.cingular.com/newsroom.



Conference Calls



SBC will host its first quarter earnings conference call, during which
Cingular's earnings results will be discussed, on April 21, 2004. It will be
broadcast live via the Internet at 10 a.m. Eastern time at www.sbc.com/
investor_relations.



BellSouth's first quarter earnings conference call, during which Cingular's
earnings results will be discussed, will be held at 10 a.m. Eastern time on
April 22, 2004 at www.bellsouth.com/investor/.



Forward-looking Information



In addition to historical information, this document and the conference calls
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 we
     operate;

•    delay in closing the acquisition of AT&T Wireless;

•    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;

•    problems associated with the transition of our network to higher speed
     technologies;

•    slow growth of our data services due to lack of popular applications,
     terminal equipment, advanced technology and other factors;

•    sluggish economic and employment conditions in the markets we serve;

•    the final outcome of FCC proceedings, including rulemakings, and
     judicial review, if any, of such proceedings;

•    impact of local number portability on our growth and churn rates,
     revenues and expenses;

•    enactment of additional state and federal laws, regulations and
     requirements pertaining to our 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.



Contact:


Investor Relations Contacts:
Kent Evans
404-236-6203
[e-mail]


Jeff Cannon
404-236-5486
[e-mail]


Media Relations Contact:
Clay Owen
404-236-6153 (office)
404-538-0124 (wireless)
[e-mail]






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            The company news service from the London Stock Exchange