Cingular Wireless LLC, which is a joint venture between AT&T Inc., formerly SBC Communications Inc. (NYSE: T), and BellSouth Corporation (NYSE: BLS), today reported solid fourth-quarter results driven by its best-ever overall churn, record net customer additions, strong gross additions, progress on merger initiatives, growth of data ARPU, and strength in enterprise services.

For the quarter, the nation's largest wireless provider reported monthly subscriber churn of 2.1 percent -- its lowest ever. This represents an improvement of 30 basis points* over the year-ago fourth quarter and a sequential improvement of 20 basis points. Postpaid churn improved sequentially by 10 basis points to 1.9 percent.

Driven in part by its churn results, Cingular also reported a record 1.8 million net customer additions, which is more than double the number reported in the third quarter of 2005 and compares to 1.7 million pro forma net additions in the fourth quarter of 2004.

Retail customers accounted for approximately 840 thousand net adds for the fourth quarter of 2005, with the rest coming from resellers. Retail net adds resulted from steady growth in postpaid customers and increased growth in Cingular's popular GoPhone (R) prepaid offers.

Gross additions were 5.1 million, which is a sequential improvement of 750 thousand customers and less than 100 thousand on a comparable basis from pro forma gross additions in the fourth quarter of 2004*. The sequential improvement in gross adds was primarily driven by holiday buying activity of prepaid and reseller customers.

Cingular ended 2005 with 54.1 million cellular/PCS subscribers, an increase of 5 million over 2004.

Cingular's data ARPU was $4.71, up 63 percent over the year-ago fourth quarter and a sequential improvement of 9 percent. The company's Business Markets Group signed more than 800 high-end service contracts in the fourth quarter of 2005.

Normalized OIBDA margins for the fourth quarter of 2005 were 31.0 percent, which is an improvement of 760 basis points compared to normalized year-ago fourth quarter results but a sequential decline of 60 basis points from normalized OIBDA margins for the third quarter of 2005 due to anticipated seasonal factors.**

"Cingular finished 2005 on a high note," said Stan Sigman, Cingular's president and chief executive officer. "Our best-ever churn, record net customer additions, the fourth straight quarter of accelerating revenue growth, rising data ARPU, solid margins, and on-target merger initiatives indicate that America's largest wireless company is taking the right steps to become the most highly regarded wireless company in the world.

"I am also pleased that we continue to bring out a steady stream of innovative offers and capabilities - from even easier access to the wireless Internet, to the ability to view exciting new video content, to productivity boosting devices and applications. These are making a real difference in the lives of our customers," Sigman said.

Strong net and gross additions and continued retention of former AT&T Wireless customers

Cingular's "more bars in more places" (SM) and ALLOVER (SM) network messages continue to resonate with our customers, driving Cingular's strong showing in net and gross subscriber additions. In addition, the Company continued to transition its customer base to GSM and move former AT&T Wireless customers to Cingular plans.

During the fourth quarter of 2005, 95 percent of minutes were carried on Cingular's GSM network and 86 percent of the company's subscriber base was GSM-equipped. Approximately 7 percent of Cingular's customer base upgraded handsets during the fourth quarter.

Cingular has now converted nearly 7 million former AT&T Wireless subscribers to new Cingular plans as customers continue to respond positively to Cingular's broad network coverage and innovative products and services.

Cingular operates the nation's largest digital voice and data network. GSM is the world's most widely used wireless technology. Through roaming alliances with other GSM-based providers around the world, Cingular provides the largest global presence of any U.S. wireless carrier, with voice coverage in more than 180 countries and data roaming in more than 100.

Financial Results

- In the fourth quarter of 2005, Cingular's revenues were $8.8 billion,

an improvement of 9.4 percent over pro forma revenues during the

fourth quarter of 2004 and 1.2 percent versus the third quarter of

2005.

- Average revenue per user (ARPU) in the fourth quarter of 2005 was

$48.86, which was down 2.2 percent from pro forma ARPU in the fourth

quarter of 2004. This represents an improvement over the 5.2 percent

year-over-year ARPU decline in the third quarter of 2005. ARPU

reflects continued pressure on voice revenues as the wireless market

becomes more penetrated and lower-revenue customers enter the category,

though these impacts were substantially offset by continued increase in

data ARPU.

- ARPU from data services continued its strong growth in the fourth

quarter of 2005, increasing 63 percent to $4.71 compared to fourth

quarter of 2004 and 9 percent compared to the third quarter of 2005.

This growth was spurred by the increasing popularity of downloadable

games, ringtones, mobile instant messaging, mobile email, photo

messaging, and media bundles. In addition, text messaging continued to

grow. In the fourth quarter of 2005, Cingular had nearly 24 million

active data customers, and delivered 72 million multi-media messages

and 6.1 billion text messages.

- Cingular's 2005 reported fourth-quarter operating expenses were

$8.3 billion. [Operating expenses included $326 million of merger-

related integration costs, $381 million in non-cash amortization

of merger-related intangibles, and $20 million of hurricane-related

cash expenses. Cingular is now conforming its normalized financial

reporting to align with industry norms. Normalized results will

exclude the non-cash amortization of purchased intangibles created by

Cingular's acquisition of AT&T Wireless. Post-merger prior periods

have been recast for this change, and all references for the fourth

quarter of 2005 and the full year of 2005 are in comparison to the

conformed amounts. This change has no impact on revenues or OIBDA

margins, will lower operating expenses, and will increase normalized

operating income and normalized net income from non-normalized levels.]

- Reported OIBDA margin was 29.3 percent, the highest since the merger

and the fourth straight quarter of sequential OIBDA improvement.

Normalized OIBDA margin was 31.0 percent, which is an improvement of

760 basis points compared to the year-ago fourth quarter and a

sequential decline of 60 basis points due to anticipated seasonal

factors.

- Reported operating income for the fourth quarter of 2005 was

$549 million. Normalized operating income was $1.3 billion.

- Reported net income in the fourth quarter of 2005 was $204 million.

Normalized net income was $811 million.

Fourth-quarter highlights and initiatives

- In the fourth quarter of 2005, Cingular became the first carrier in the

world to operate a commercial UMTS/HSDPA network, which provides us

with industry-leading data throughputs with speeds of 400 to 700 Kbps

and leverages Cingular's network investment for incremental voice

capacity at a significantly lower cost. Cingular deployed UMTS/HSDPA

in 16 markets during the quarter, and plans to have most of the

United States' top 100 markets launched by the end of 2006.

- To make the wireless Internet even easier to use, Cingular launched a

significant upgrade to its MEdia Net service, which offers customers

fast, individualized access to their favorite online content. The

service comes with a built-in parental control feature that helps

families manage their wireless Internet experience.

- Cingular unveiled a key component of MEdia Net called Cingular

Video (TM), an on-demand streaming video service, and entered into a

partnership with HBO to give consumers exclusive content through

Cingular Video.

- Cingular brought to market a Push-to-Talk (PTT) offer, which includes

unmatched capabilities such as the largest PTT coverage in the

United States and the ability to convert a PTT call to a regular

wireless call with the touch of a button.

- Cingular's Business Markets Group continued to introduce innovative new

products, services, and alliances. These included the HP iPAQ hw6500

series Mobile Messenger, which is available exclusively through

Cingular in the United States. Cingular also forged an alliance with

the European wireless carrier Orange SA to provide consolidated mobile

services to multi-national companies through Cingular's WorldView

program, and introduced the Cingular Wireless Enterprise Paging

service.

- The Business Markets Group also signed more than 800 new and renewed

high-end service contracts during the fourth quarter of 2005. These

included business and government accounts such as Ferrellgas, City of

Chicago Public Schools, Pearson Corporation, State of Maryland, City

National Bank, and Pro Tech Monitoring, among many others.

Conference Call with Investment Community

Cingular will hold a conference call with the investment community beginning at 10:00 a.m. (ET) today. During the call, we will discuss our operational and financial results for the quarter.

The conference call will be webcast and archived on our website at http://www.cingular.com/investor for 30 days, as well as on the websites of AT&T, Inc. and BellSouth Corporation. Our fourth-quarter news release and downloadable financial statements are also available on that website.

Dial-in information for the conference call is as follows:

Domestic: 866-406-3487

International: 630-691-2771

Replay: 877-213-9653

(Domestic)

Replay: 630-652-3041

(International)

Passcode: 13502948#

Replays will be available for five days.

* Overall churn and gross adds in the fourth quarter of 2004 reflect the first-quarter 2005 adjustment Cingular made in how it calculated reseller churn as if that adjustment had occurred in the fourth quarter of 2004.

** OIBDA margin is operating income (loss) before depreciation and amortization, divided by total service revenues. OIBDA margins and comparative calculations mentioned in the news release reflect normalization for merger-related integration costs and, for the third and fourth quarters of 2005, expenses related to Hurricanes Katrina and Rita.

About Cingular Wireless

Cingular Wireless is the largest wireless carrier in the United States, serving 54.1 million customers. Cingular, a joint venture between AT&T Inc., formerly SBC Communications Inc., (NYSE: T), and BellSouth Corporation (NYSE: BLS), has the largest digital voice and data network in the nation -- the ALLOVER (SM) network -- and the largest mobile-to-mobile community of any national wireless carrier. Cingular is the only U.S. wireless carrier to offer Rollover (SM), the wireless plan that lets customers keep their unused monthly minutes. Details of the company are available at http://www.cingular.com. Get Cingular Wireless press releases e-mailed to you automatically. Sign up at http://www.cingular.com/newsroom.

FORWARD-LOOKING INFORMATION

In addition to historical information, this document and the conference call 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

Cingular operates;

-- 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;

-- delays or inability of vendors to deliver hardware, software, handsets

or network equipment;

-- problems associated with the transition of Cingular's network to

higher-speed technologies;

-- slow growth of Cingular's data services due to lack of popular

applications, terminal equipment, advanced technology and other

factors;

-- sluggish economic and employment conditions in the markets Cingular

serves;

-- the final outcome of FCC proceedings, including rulemakings, and

judicial review, if any, of such proceedings;

-- enactment of additional state and federal laws, regulations and

requirements pertaining to Cingular's 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.

Cingular Wireless LLC Income Statement - amounts in millions (unaudited)

Quarter Ended Year to Date

12/31/05 12/31/04 % 12/31/05 12/31/04 %

Change Change

Operating revenues:

Service revenues $7,779 $6,313 23.2% $30,638 $17,602 74.1%

Equipment sales 1,070 806 32.8% 3,795 1,963 93.3%

Total operating

revenues 8,849 7,119 24.3% 34,433 19,565 76.0%

Operating expenses:

Cost of services 2,417 1,692 42.8% 9,318 4,737 96.7%

Cost of equipment

sales 1,341 1,247 7.5% 5,069 2,874 76.4%

Selling, general and

administrative 2,812 2,947 (4.6%) 11,647 7,349 58.5%

Depreciation and

amortization 1,730 1,386 24.8% 6,575 3,077 113.7%

Total operating

expenses 8,300 7,272 14.1% 32,609 18,037 80.8%

Operating income (loss) 549 (153) 458.8% 1,824 1,528 19.4%

Interest expense 292 303 (3.6%) 1,260 900 40.0%

Minority interest

expense 7 (2) 450.0% 102 86 18.6%

Equity in net income

(loss) of affiliates 1 (114) 100.9% 5 (415) 101.2%

Other income (expense),

net 1 11 (90.9%) 64 16 300.0%

Income (loss) before

income tax provision 252 (557) 145.2% 531 143 271.3%

Provision (benefit) for

income taxes 48 (62) 177.4% 198 (58) 441.4%

Net income (loss) 204 (495) 141.2% 333 201 65.7%

Selected Financial and Operating Data for Cingular Wireless - amounts in

millions, except customer data in 000s

Quarter Ended Year to Date

12/31/05 12/31/04 % 12/31/05 12/31/04 %

Change Change

(Amounts in millions,

except customer data in

000s)

OIBDA (1) $2,279 $1,233 84.8% $8,399 $4,605 82.4%

OIBDA margin (2) 29.3% 19.5% 980 BP 27.4% 26.2% 120 BP

Total Cellular/PCS

Customers (3) 54,144 49,132 10.2% 54,144 49,132 10.2%

Net Customer Additions -

Cellular/PCS 1,820 1,699 7.1% 5,006 3,338 50.0%

M&A Activity, Partitioned

Customers and/or Other

Adjs. 32 21,761 6 21,767

Churn - Cellular/PCS (4) 2.1% 2.6% -50 BP 2.2% 2.7% -50 BP

ARPU - Cellular/PCS (5) $48.86 $49.51 (1.3%) $49.65 $49.68 (0.1%)

Minutes Of Use Per

Cellular/PCS Subscriber (6) 727 617 17.8% 701 584 20.0%

Licensed POPs -

Cellular/PCS (7) 294 291 1.0% 294 291 1.0%

Penetration - Cellular/

PCS (8) 18.9% 17.2% 10.0% 18.9% 17.2% 10.0%

Capital Expenditures (9) 2,970 1,698 74.9% 7,475 3,449 116.7%

Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures

- amounts in millions (unaudited)

Quarter Ended Year to Date

12/31/05 12/31/04 % 12/31/05 12/31/04 %

Change Change

Net income (loss) 204 (495) 141.2% 333 201 65.7%

Plus: Interest expense 292 303 (3.6%) 1,260 900 40.0%

Plus: Minority interest

expense 7 (2) 450.0% 102 86 18.6%

Plus: Equity in net

loss of affiliates (1) 114 NM (5) 415 NM

Plus: Other, net (1) (11) NM (64) (16) NM

Plus: Provision

(benefit) for income

taxes 48 (62) NM 198 (58) NM

Operating income (loss) 549 (153) 458.8% 1,824 1,528 19.4%

Plus: Depreciation and

amortization 1,730 1,386 24.8% 6,575 3,077 113.7%

OIBDA (1) $2,279 $1,233 84.8% $8,399 $4,605 82.4%

NM - Not Meaningful

Notes:

(1) OIBDA is defined as operating income (loss) before depreciation and

amortization. OIBDA differs from operating income (loss), as

calculated in accordance with GAAP, in that it excludes

depreciation and amortization. It differs from net income (loss), as

calculated in accordance with GAAP, in that it excludes, as presented

on our Consolidated Statement of Income:

(1) depreciation and amortization, (2) interest expense, (3) minority

interest expense, (4) equity in net income (loss) of affiliates, (5)

other, net, and (6) provision (benefit) for income taxes.

OIBDA does not give effect to cash used for debt service requirements

and thus does not reflect available funds for distributions,

reinvestment or other discretionary uses. OIBDA is not presented as

an alternative measure of operating results or cash flows from

operations, as determined in accordance with generally accepted

accounting principles. Our calculation of OIBDA, as presented, may

differ from similarly titled measures reported by other companies.

(2) OIBDA margin is defined as OIBDA divided by service revenues.

(3) Cellular/PCS customers include customers served through reseller

agreements.

(4) Cellular/PCS churn is calculated by dividing the aggregate number of

cellular/PCS customers who cancel service during each month in a

period by the total number of cellular/PCS customers at the beginning

of each month in that period.

(5) ARPU is defined as cellular/PCS service revenues during the period

divided by average cellular/PCS customers during the period.

(6) Total Minutes Of Use Per Cellular/PCS Subscriber definition was

changed effective with the 2Q05 reporting period. Prior to the

change, the numerator was defined as Local Minutes of Use. Effective

with this change, the numerator is now defined as including Local

Minutes of Use and Outcollect Minutes of Use.

(7) Licensed POPs refers to the number of people residing in areas where

we and our partners have licenses to provide cellular or PCS service,

including areas where we have not yet commenced service.

(8) Penetration calculation for 4Q05 is based on licensed "operational"

POP's of 286 million.

(9) Capital expenditures reflect GAAP disclosure and accordingly do not

include cash/capital contributed to our previous joint ventures

with T-Mobile and AT&T Wireless (pre-merger).

Cingular Wireless LLC

Reconciliation of Reported Results to Normalized Results

(amounts in millions)

Quarter Ended December 31, 2005 Normalized Items

AWE

Integra- Amortiza- Hurri-

tion tion cane

Costs Expense Costs Normal-

GAAP (1) (2) (3) ized

Operating revenues:

Service revenues $7,779 $- $- $- $7,779

Equipment sales 1,070 - - - 1,070

Total operating revenues 8,849 - - - 8,849

Operating expenses:

Cost of services 2,417 (72) - (19) 2,326

Cost of equipment sales 1,341 - - - 1,341

Selling, general and

administrative 2,812 (38) - (1) 2,773

Depreciation and amortization * 1,730 (216) (381) - 1,133

Total operating expenses 8,300 (326) (381) (20) 7,573

Operating income (loss) 549 326 381 20 1,276

Interest expense 292 - - - 292

Minority interest expense 7 - - - 7

Equity in net income (loss) of

affiliates 1 - - - 1

Other income (expense), net 1 - - - 1

Income (loss) before income tax

provision 252 326 381 20 979

Provision (benefit) for income taxes 48 54 63 3 168

Net income (loss) 204 272 318 17 811

Year to Date - December 31, 2005 Normalized Items

AWE

Integra- Amortiza- Hurri-

tion tion cane

Costs Expense Costs Normal-

GAAP (1) (2) (3) ized

Operating revenues:

Service revenues $30,638 $- $- $- $30,638

Equipment sales 3,795 - - - 3,795

Total operating revenues 34,433 - - - 34,433

Operating expenses:

Cost of services 9,318 (195) - (97) 9,026

Cost of equipment sales 5,069 - - - 5,069

Selling, general and

administrative 11,647 (264) - (19) 11,364

Depreciation and amortization * 6,575 (417) (1,713) - 4,445

Total operating expenses 32,609 (876) (1,713) (116) 29,904

Operating income (loss) 1,824 876 1,713 116 4,529

Interest expense 1,260 - - - 1,260

Minority interest expense 102 - - - 102

Equity in net income (loss) of

affiliates 5 - - - 5

Other income (expense), net 64 - - - 64

Income (loss) before income tax

provision 531 876 1,713 116 3,236

Provision (benefit) for income taxes 198 144 282 19 643

Net income (loss) 333 732 1,431 97 2,593

Notes to Normalized Financial Data

Our normalized earnings have been adjusted for the following:

(1) Tax-effected integration costs resulting from the Cingular

acquisition of AT&T Wireless.

(2) Tax-effected amortization expense associated with intangible assets

recorded for the AT&T Wireless acquisition.

(3) Tax-effected operating costs resulting from hurricanes Katrina and

Rita.

Cingular Wireless LLC Income Statement, NORMALIZED - amounts in millions

(unaudited)

Quarter Ended Year to Date

12/31/05 12/31/04 % 12/31/05 12/31/04 %

Change Change

Operating revenues:

Service revenues $7,779 $6,313 23.2% $30,638 $17,602 74.1%

Equipment sales 1,070 806 32.8% 3,795 1,963 93.3%

Total operating

revenues 8,849 7,119 24.3% 34,433 19,565 76.0%

Operating expenses:

Cost of services 2,326 1,685 38.0% 9,026 4,729 90.9%

Cost of equipment

sales 1,341 1,244 7.8% 5,069 2,871 76.6%

Selling, general and

administrative 2,773 2,712 2.2% 11,364 7,072 60.7%

Depreciation and

amortization 1,133 988 14.7% 4,445 2,679 65.9%

Total operating

expenses 7,573 6,629 14.2% 29,904 17,351 72.3%

Operating income (loss) 1,276 490 160.4% 4,529 2,214 104.6%

Interest expense 292 303 (3.6%) 1,260 900 40.0%

Minority interest

expense 7 (2) 450.0% 102 86 18.6%

Equity in net income

(loss) of affiliates 1 (114) 100.9% 5 (415) NM

Other income (expense),

net 1 11 (90.9%) 64 16 NM

Income (loss) before

income tax provision 979 86 NM 3,236 829 290.3%

Provision (benefit) for

income taxes 168 39 330.8% 643 43 NM

Net income (loss) 811 47 NM 2,593 786 229.9%

Selected Financial and Operating Data for Cingular Wireless - amounts in

millions, except customer data in 000s

Quarter Ended Year to Date

12/31/05 12/31/04 % 12/31/05 12/31/04 %

Change Change

(Amounts in millions,

except customer data in

000s)

OIBDA - normalized (1) $2,409 $1,478 63.0% $8,974 $4,893 83.4%

OIBDA margin -

normalized (2) 31.0% 23.4% 760 BP 29.3% 27.8% 150 BP

Total Cellular/PCS

Customers (3) ** 54,144 49,132 10.2% 54,144 49,132 10.2%

Net Customer Additions -

Cellular/PCS ** 1,820 1,699 7.1% 5,006 3,338 50.0%

M&A Activity, Partitioned

Customers and/or Other

Adjs. ** 32 21,761 6 21,767

Churn - Cellular/PCS (4) ** 2.1% 2.6% -50 BP 2.2% 2.7% -50 BP

ARPU - Cellular/PCS (5) ** $48.86 $49.51 (1.3%) $49.65 $49.68 (0.1%)

Minutes Of Use Per

Cellular/PCS

Subscriber (6) ** 727 617 17.8% 701 584 20.0%

Licensed POPs -

Cellular/PCS (7) ** 294 291 1.0% 294 291 1.0%

Penetration - Cellular/

PCS (8) ** 18.9% 17.2% 10.0% 18.9% 17.2% 10.0%

Capital Expenditures (9) ** 2,970 1,698 74.9% 7,475 3,449 116.7%

Reconciliations of Normalized Financial Measures to Normalized OIBDA and

OIBDA Margin - amounts in millions (unaudited)

Quarter Ended Year To Date

12/31/05 12/31/04 % 12/31/05 12/31/04 %

Change Change

Net income (loss) 811 47 NM 2,593 786 229.9%

Plus: Interest

expense 292 303 (3.6%) 1,260 900 40.0%

Plus: Minority

interest expense 7 (2) NM 102 86 18.6%

Plus: Equity in net

loss of affiliates (1) 114 (100.9%) (5) 415 (101.2%)

Plus: Other, net (1) (11) NM (64) (16) NM

Plus: Provision

(benefit) for income

taxes - normalized 168 39 NM 643 43 NM

Operating income (loss)

- normalized 1,276 490 160.4% 4,529 2,214 104.6%

Plus: Depreciation

and amortization -

normalized 1,133 988 14.7% 4,445 2,679 65.9%

OIBDA - normalized (1) $2,409 $1,478 63.0% $8,974 $4,893 83.4%

OIBDA margin (2) 29.3% 19.5% 980 BP 27.4% 26.2% 120 BP

Plus: OIBDA margin,

integration and

hurricane costs 1.7% 3.9% -220 BP 1.9% 1.6% 30 BP

OIBDA margin -

normalized 31.0% 23.4% 760 BP 29.3% 27.8% 150 BP

NM - Not Meaningful

** Denotes metrics and calculations in this chart that are not impacted by

the 4Q05 and YTD 2005 normalization of merger integration costs, AT&T

Wireless intangibles amortization expenses, and hurricane costs.

Notes:

(1) OIBDA is defined as operating income (loss) before depreciation and

amortization. OIBDA differs from operating income (loss), as

calculated in accordance with GAAP, in that it excludes depreciation

and amortization. It differs from net income (loss), as calculated

in accordance with GAAP, in that it excludes, as presented on our

Consolidated Statement of Income: