Title: Alltel produces double-digit revenue growth in first quarter; Company adds 165,000 net new wireless customers, reduces churn rate Date: 5/3/2006 7:09:00 AM For a complete listing of our news releases, please click here LITTLE ROCK, Ark.--(BUSINESS WIRE)--May 3, 2006--Alltel (NYSE:AT) produced double-digit revenue growth, strong wireless customer net additions and record broadband wireline customer growth in the first quarter. Alltel reported fully diluted earnings per share under Generally Accepted Accounting Principles (GAAP) of 77 cents, which includes a net gain in discontinued operations and expenses related to the integration of Western Wireless properties and the pending wireline separation. Excluding the one-time items, fully diluted earnings per share from current businesses was 82 cents. Results from current businesses also now exclude the effects of non-cash amortization related to the company's previous wireless acquisitions, which was 7 cents in the quarter. "We are very pleased with the performance of the wireless business and are encouraged by the opportunities we see going forward," said Alltel President and CEO Scott Ford. "The wireless growth in this quarter was fueled by strong customer growth and a continued focus on reducing churn. We made progress on several strategic goals, including remaining on track to complete the spin-merge of our wireline business with VALOR Communications Group by mid-year." Among other highlights for the first quarter: -- Total revenues were $2.5 billion, a 19 percent increase from a year ago. Net income under GAAP was $297 million, down 5 percent. Net income from current businesses was $320 million, a 21 percent increase from a year ago. -- Wireless revenue was $1.8 billion, a 30 percent increase from a year ago. Service revenue was $1.64 billion, a 29 percent increase. Segment income was $356 million, a 25 percent increase. -- Alltel added 165,000 net new wireless customers. Average revenue per wireless customer (ARPU) was $50.90, a 4 percent increase. Data revenue per customer was $2.86, a 59 percent increase, and now represents more than 5 percent of total ARPU. Post-pay churn improved to 1.66 percent from 1.72 percent a year ago. -- Wireline revenue was $575 million, down 3 percent from the previous year. Segment income was $227 million, up 6 percent from a year ago. The company added a record 44,000 broadband customers, bringing its total broadband customer base to 441,000, a penetration rate of 15 percent of total access lines. Feature revenue per eligible line increased 2 percent, and total average revenue per wireline customer was $66.77, a 1 percent increase. -- Equity free cash flow from current businesses was $504 million, a 49 percent increase. Net cash provided from operations was $733 million. Alltel is a customer-focused communications company with more than 15 million customers in 36 states and nearly $10 billion in annual revenues.