AT&T Wireless and Sprint to Cooperate in the Construction of New Wireless Towers; Companies Expect to Lower Capital Expenses.

Business Editors/High-Tech Writers

REDMOND, Wash. & OVERLAND PARK, Kan.--(BUSINESS WIRE)--Jan. 28, 2003

AT&T Wireless (NYSE:AWE) and Sprint (NYSE:FON) (NYSE:PCS) today announced they have signed an agreement through which they will cooperate in the construction of new wireless towers.

The agreement will enable the companies to reduce the number of towers they build and the capital expenditures associated with this activity. As such, they plan to expand and enhance their wireless footprints throughout the United States faster and at lower cost. AT&T Wireless and Sprint lead the wireless industry in the number of towers they operate.

"This agreement represents a small but important first step for our companies, and potentially, for the wireless industry," said Greg Slemons, executive vice president of Network Services at AT&T Wireless. "Our industry has entered a new phase in its development that calls for creative new solutions that let us do more with less. With this agreement, we expect to reduce capital expenses, accelerate our progress toward profitability, and more rapidly expand the reach and quality of our wireless networks."

"Today's announcement is part of Sprint's commitment to serve wireless consumers better," said Kathy Walker, senior vice president of Network Services for Sprint. "This agreement gives us the ability to expand our coverage nationwide, resulting in a broader appeal of wireless services."

Under the terms of the agreement, the companies' Network Services groups will share information about their current tower inventories and future construction plans. They will then identify areas of overlap -- for example, a community in which both companies want to build a tower -- and decide which company will build and maintain the tower and which will co-locate its network facilities on it. This approach will reduce redundant construction, making it easier for both companies to serve the communities in which they want to add or expand wireless coverage.

In addition to coordinating future tower construction activities, the companies will continue to cooperate on making the best use of their current tower inventories, including co-location when it is appropriate.

AT&T Wireless and Sprint expect to begin implementing the agreement in the first quarter of 2003. Financial terms were not disclosed.

About AT&T Wireless

AT&T Wireless (NYSE:AWE) is the second-largest wireless carrier, based on revenues, in the United States. With 20.859 million subscribers, and full-year 2002 revenues exceeding $15.6 billion, AT&T Wireless will continue delivering advanced high-quality mobile wireless communications services, voice or data, to businesses and consumers, in the U.S. and internationally. For more information, please visit us at www.attwireless.com.

This press release contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by management with information that is currently available to management. Forward-looking statements include, without limitation, management's expectations regarding: our future financial and operating performance and financial condition, including the company's outlook for the fiscal year 2003 and subsequent periods; subscriber growth; industry conditions; the strength of our balance sheet; our liquidity and needs for additional financing; and our ability to generate operating free cash flow.

Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T Wireless' control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of our technology migration strategy, our ability to continue to reduce costs, the potential competitive impacts of industry consolidation or alternative technologies, potential impacts on revenue and ARPU from competitive pricing and slowing penetration in the wireless industry, the effects of vigorous competition in the markets in which we operate, the risk of decreased consumer spending due to softening economic conditions, the outbreak of war or acts of terrorism, and consumer response to new service offerings.

For a more detailed description of the factors that could cause such a difference, please see AT&T Wireless' filings with the Securities and Exchange Commission, including the information under the heading "Additional Factors That May Affect Our Business, Future Operating Results and Financial Condition" and "Forward Looking Statements" in its quarterly report of Form 10-Q filed on November 13, 2002.

About Sprint

Sprint is a global communications company serving more than 26 million business and residential customers in over 70 countries. With approximately 75,000 employees worldwide and more than $26 billion in annual revenues, Sprint is widely recognized for developing, engineering and deploying state-of-the-art network technologies, including the United States' first nationwide all-digital, fiber-optic network and Sprint's award-winning Tier 1 Internet backbone. Sprint provides local voice and data services in 18 states and operates the largest 100-percent digital, nationwide PCS wireless network in the United States.