Jeff Gardner

1

Jeff Gardner Sr. V.P. and Chief Financial
Officer Lehman Brothers 4th Annual Global
Communications Wireless Conference New York,
NY May 20, 2003
2
Safe Harbor Statement

• This presentation includes certain estimates and
  other forward-looking statements, including
  statements with respect to anticipated operating
  and financial performance, growth opportunities
  and growth rates, acquisition and divestiture
  opportunities, and other statements of
  expectation. Words such as expects,
  anticipates, intends, plans, believes,
  assumes, seeks, estimates, and should,
  and variations of these words and similar
  expressions, are intended to identify these
  forward-looking statements. Forward-looking
  statements are subject to uncertainties that
  could cause actual future performance, outcomes
  and results to differ materially. These
  statements by the Company and its management are
  based on estimates, projections, beliefs and
  assumptions of management and are not guarantees
  of future performance. The company disclaims any
  obligation to update or revise any
  forward-looking statement based on the occurrence
  of future events, the receipt of new information,
  or otherwise.

3
Regulation G Disclaimer

• Todays presentation will include certain
  non-GAAP financial measures. I refer you to the
  Investor Relations section of ALLTELs Web site
  where the company has posted additional
  information regarding these non-GAAP financial
  measures, including a reconciliation of each such
  measure to the most directly comparable GAAP
  measure. The companys Web site is located at
  www.alltel.com.

4
First Quarter 2003 Highlights

• EPS from current businesses and discontinued
  operations of .85, an increase of 10
  year-over-year
• Equity Free Cash Flow1 of 290 million, an
  increase of 12 year-over-year
• Wireless revenue of 1.1 billion, an increase of
  17 year-over-year
• Wireline revenue of 609 million, an increase of
  22 year-over-year
• Postpay Churn of 2.16
• ARPU of 45.59, a slight increase year-over-year
• Wireline access line declines much smaller than
  4Q 02
• Added
• 159,000 wireless customers for a total of 7.76
  million
• 18,000 DSL customers for a total of 88,000

1 From Current Businesses - defined as Net Income
Depreciation Amortization - Capital
Expenditures (including software development)
5
2002 Financial Highlights

• Grew wireline revenue 11 to 2.2 billion
• Grew wireless revenue 9 to 4.2 billion
• Increased consolidated revenue 6 to 8 billion
• Grew Equity Free Cash Flow1,2 21 to 996 million
• Grew EPS1 143 to 3.24
• Earned a 17 Return on Equity1
• Increased the dividend for the 42nd consecutive
  year to 1.40 per share annually

1 From Current Businesses (Prior to the
restatement for discontinued operations which
reflects the 2Q 03 sale of the financial
services division of the Information services
business) 2 Equity Free Cash Flow defined as Net
Income Depreciation Amortization - Capital
Expenditures (excluding software development) 3
Reflects January 2002 implementation of SFAS 142
6
2002 Operational Highlights

• Invested over 1.1B to improve and expand our
  service capabilities, i.e., 1X wireless
  technology and high-speed wireline technology
• Grew our DSL, high-speed Internet access service
  customer base by 162
• Launched downloadable wireless e-mail, games,
  ring-tones and a variety of other applications
  via QUALCOMMs BREW wireless data platform.
• Launched Simple Freedom in about 1,500 Wal -Mart
  locations across the U.S.
• At year-end we served over
• 7.6 million wireless customers (14 y/y growth)
• 3.1 million wireline customers (21 y/y growth)
• 1.5 million long distance customers (22 y/y
  growth)

7
Investment Highlights
Strategic Model
Solid Financial Performance
Strong Platform for Continued Growth
Industry Leading Results
Conservative Capital Structure
8
Strategic Model

• Operational Focus
• Financial Discipline
• Opportunistic Growth

• Operational Focus
• Point of Sale Experience
• Customer Service Experience
• Network Quality Experience

• Financial Discipline
• Invest in Businesses Not Products
• Best Customer/Best Price
• Stay Relevant

• Opportunistic Growth
• Focus on Free Cash Flow
• Operational Fit
• Think Long-Term (5 years)

9
Strong Platform for Continued Growth Wireless
Markets as of 3/31/03 A Closer Look
ALLTEL Wireless Verizon Other Roaming
Agreements

• Almost 7.7 million customers
• 60 million POPs

10
Strong Platform for Continued Growth
Total/National Freedom Rate Plans
ALLTEL Wireless Verizon Other Roaming
Agreements

• Total/National Freedom Plans
• Leverage Verizon roaming agreement
• Net present values are significantly higher than
  other rate plans
• ARPU is 20-30 higher
• Approximately 25 of customer base is on a
  national plan

11
Strong Platform for Continued Growth Wireless
Markets as of 3/31/03 A Closer Look
Customers
ALLTEL Wireless Verizon Other Roaming
Agreements

• Almost 7.7 million customers
• 60 million POPs

12
Strong Platform for Continued Growth Local
Network Coverage Matters
PCS Competitor vs. ALLTEL Local Package
13
Strong Platform for Continued Growth Wireline
Markets as of 3/31/03 A Closer Look
ALLTEL Wireline ALLTEL Wireless Verizon Other
Roaming Agreements

• 2nd largest independent ILEC
• Almost 3.2 million customer lines

14
Strong Platform for Continued Growth Wireline
Markets as of 3/31/03 A Closer Look
ALLTEL Wireline ALLTEL Wireless Verizon Other
Roaming Agreements

• 2nd largest independent ILEC
• Almost 3.2 million customer lines

15
Strong Platform for Continued Growth Wireline
Markets as of 3/31/03 A Closer Look
DSL Customers
Long-Distance Customers
In thousands
16
Industry Leading Results Wireless EBITDA Margins

• EBITDA Drivers
• Direct Sales Channel is approximately 70 of
  total sales
• CDMA technology
• Cash cost per customer competitive with companies
  with greater scale

Service revenue margin. Source Company reports.
17
Industry Leading Results Wireline EBITDA Margins

• EBITDA Drivers
• Focused on second and third tier cities and rural
  markets
• Convergence drives better margins

Source Company reports.
18
Conservative Capital Structure

• ALLTEL has one of the strongest credit profiles
  in the telecom industry
• Well capitalized balance sheet
• A1 / Prime-1 / F1 (SP / Moodys / Fitch)
  Commercial Paper ratings
• A / A2 / A (SP / Moodys / Fitch) long-term
  credit ratings
• Net Debt / EBITDA1 1.7X

TELECOM COMPANY CREDIT RATINGS STATISTICS
9.0
RCCC
8.0
7.0
6.0
5.0
NXTL
CZN
4.0
Q
CTL
3.0
FON/PCS
2.0
USM
VZ
AWE
AT
BLS
TDS
T
1.0
SBC
0.0
A
AA-
B
BB-
BB
BB
BBB-
BBB
BBB
A-
A
B
B-
CCC
SP Credit Rating
Source Wall Street equity research and company
filings. Note Assumes 80 equity credit for AT,
CZN, CTL and Sprint Equity Units. Q
pf directories sale and debt exchange, Sprint pf
directories sale, SBC pf Cegetel sale, VZ pf
Northcoast. 1 Net Debt/Operating Income 3.6X.
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Solid Financial Performance Delivering
Consistent Growth
Revenue (bn)
EBITDA1 (bn)
Dividends per Share
Earnings per Share1
1 From Current Businesses (prior to the
restatement of discontinued operations which
reflects the 2Q 03 sale of the financial
services division of the information services
business).
20
Solid Financial Performance Strong and Growing
Free Cash Flow
Millions
of Revenues

4-Year CAGR 31

Defined as Net Income Depreciation
Amortization - CAPEX and Capitalized Software
Development Costs.
21
ALLTEL has performed better than the SP 500 and
its Peers over the last 5 years

• Assumes that 100 was invested on the last
  trading day of 1997 and that all dividends were
  reinvested.

1 Peer group an index of a group of peer
issuers consisting of American Management
Systems Incorporated, ATT Corp., BellSouth
Corporation, CenturyTel Inc., Broadwing
Communications Inc., Electronic Data Systems
Corp., SBC Communications Inc., Sprint FON Group,
Verizon Communications Inc., and Qwest
Communications International Inc., respectively.
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Reconciliation of non-GAAP Measures
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Reconciliation of non-GAAP Measures
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Reconciliation of non-GAAP Measures
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Reconciliation of non-GAAP Measures
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Reconciliation of non-GAAP Measures
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Reconciliation of non-GAAP Measures
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Reconciliation of non-GAAP Measures
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Reconciliation of non-GAAP Measures
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