Alltel Reports Combined Wireless, Wireline Results for the Final Time; Company Produ

LITTLE ROCK, Ark.--(BUSINESS WIRE)--Aug. 2, 2006--Alltel (NYSE:AT)
produced double-digit wireless revenue and segment income growth in
the second quarter on top of strong wireless customer additions.
Alltel reported fully diluted earnings per share under Generally
Accepted Accounting Principles (GAAP) of $1.10, which includes several
one-time items and wireless intangible amortization. Excluding these
items, fully diluted earnings per share from current businesses was 93
cents. This is the final quarter Alltel will report results for the
wireline business, which now is part of the operations of Little
Rock-based Windstream Corp.

"Our company has completed the spinoff of our wireline business
and the sale of all of our international assets, important steps in
the transformation of Alltel," said Alltel President and CEO Scott
Ford. "Alltel's wireless growth in the second quarter was driven by
continuing efforts to expand market share and focus on delivering
superior customer satisfaction, which is reflected in a new six-year
low in churn. At the same time, Alltel is pushing ahead with key
financial goals, including a $3 billion stock repurchase and a $1
billion debt reduction plan."

Among the combined highlights for the second quarter:

-- Total revenues were $2.7 billion, an 18 percent increase from
a year ago. Net income under GAAP was $429 million, up 7
percent. Net income from current businesses was $365 million,
a 24 percent increase from a year ago.

-- Wireless revenue was $1.9 billion, a 28 percent increase from
a year ago. Service revenue was $1.7 billion, a 26 percent
increase. Segment income was $392 million, a 22 percent
increase.

-- Alltel added 146,000 net new wireless customers, which
includes 124,000 post-pay customers and 22,000 prepay
customers. In addition, the company added 112,000 net new
customers through acquisitions of First Cellular in Southern
Illinois and Virginia Cellular. Post-pay churn was 1.47
percent, a 7 percent improvement from a year ago.

-- Average revenue per wireless customer (ARPU) was $52.54, a 4
percent increase. Data revenue per customer was $3.26, a 61
percent increase, and now represents more than 6 percent of
total ARPU.

-- Wireline revenue was $581 million, down 2 percent from the
previous year. Segment income was $235 million, up 9 percent
from a year ago. The wireline business added 40,000 net
broadband customers.

-- Equity free cash flow from current businesses was $336
million, a 32 percent increase. Net cash provided from
operations was $431 million.

This quarter the company also is reporting pro-forma results for
the new, all-wireless Alltel. These pro-forma results present Alltel
as if both the spinoff of the wireline business and the acquisition of
Western Wireless had occurred on Jan. 1, 2005. The results include the
wireless business, the communications support services retained by the
company after the spinoff and the operations of Western Wireless.

On a pro-forma basis, revenues were $1.95 billion, up 9 percent,
and operating income was $389 million, a 6 percent increase.

Alltel began the quarter by launching "My Circle," an exclusive
feature that gives customers the ability to select up to 10 numbers
they can call for free. Customers on select rate plans can choose any
combination of wireless, home and office numbers located anywhere in
the U.S., regardless of local phone company or wireless carrier.

Also in the quarter, Alltel signed a 10-year, voice and data
roaming agreement with Sprint that became effective July 1, expanding
Alltel's high-speed data network nationwide. In addition, Alltel
extended for two years, through 2012, its roaming agreement with
Cingular Wireless.

Alltel operates America's largest wireless network, which delivers
voice and advanced data services nationwide to more than 11 million
customers. Headquartered in Little Rock, Arkansas, Alltel is a Forbes
500 company with annual revenues of $8 billion.

Alltel claims the protection of the safe-harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are subject
to uncertainties that could cause actual future events and results to
differ materially from those expressed in the forward-looking
statements. These forward-looking statements are based on estimates,
projections, beliefs, and assumptions and are not guarantees of future
events and results. Actual future events and results may differ
materially from those expressed in these forward-looking statements as
a result of a number of important factors. Representative examples of
these factors include (without limitation) adverse changes in economic
conditions in the markets served by Alltel; the extent, timing, and
overall effects of competition in the communications business;
material changes in the communications industry generally that could
adversely affect vendor relationships with equipment and network
suppliers and customer relationships with wholesale customers; changes
in communications technology; the risks associated with the pending
acquisition of Midwest Wireless; the risks associated with the
integration of acquired businesses; adverse changes in the terms and
conditions of the wireless roaming agreements of Alltel; the potential
for adverse changes in the ratings given to Alltel's debt securities
by nationally accredited ratings organizations; the uncertainties
related to Alltel's strategic investments; the effects of litigation;
and the effects of federal and state legislation, rules, and
regulations governing the communications industry. In addition to
these factors, actual future performance, outcomes, and results may
differ materially because of more general factors including (without
limitation) general industry and market conditions and growth rates,
economic conditions, and governmental and public policy changes.

Alltel, NYSE: AT

www.alltel.com