BellSouth and SBC Communications Name Stephen Carter President and CEO of Joint-Venture Wireless Company; BellSouth Wireless Services President Mark Feidler Named COO.

Business Editors/Technology Writers

ATLANTA and SAN ANTONIO--(BUSINESS WIRE)--July 14, 2000

Atlanta Chosen for Headquarters;

Major Operations Centers Set for Dallas, Atlanta

SBC Communications Inc. (NYSE:SBC) and BellSouth Corporation (NYSE:BLS) today announced that Stephen Carter has been named president and chief executive officer of the joint-venture company that will be created with the merger of the two companies' U.S. wireless operations. In April, BellSouth and SBC announced plans to merge their domestic wireless operations to create the nation's second-largest wireless company, a powerful single entity jointly controlled by both companies, poised to compete nationwide in the exploding wireless voice and data businesses.

Before assuming this position, Carter was president of SBC Wireless, responsible for SBC's U.S. wireless operations, serving nearly 12 million customers.

Mark Feidler was named the company's chief operating officer. He is currently the president of BellSouth's domestic wireless operations.

In addition, SBC and BellSouth announced that a centralized headquarters staff for the new wireless company will be based in Atlanta, while two major operations centers will continue to be located in Dallas and Atlanta, focused on serving more than 17.4 million customers and 175 million potential customers in 34 states, the District of Columbia and two U.S. territories.

"This is an exciting opportunity to lead a world-class wireless company that's well-positioned to serve customers from coast-to-coast with superb service, innovative technology and attractive product offerings, including data and the Internet," Carter said. "We will build on each company's strengths and best practices to create a new breed of wireless company that's second to none."

"Our goal in selecting a CEO for the new company was to identify a proven business leader who can fully leverage the powerful assets that will be deployed in our consumer and business wireless markets," said Duane Ackerman, BellSouth chairman and CEO. "Stephen's broad experience makes him ideally suited for this position. Mark's proven track record will be a valuable asset to Stephen as he pulls this team together."

Edward E. Whitacre Jr., SBC's chairman and CEO, added, "With Stephen's leadership, this new company immediately will be one of the strongest national competitors in the fast-growing wireless marketplace. Mark provides us with an excellent number two who has enjoyed great success in this industry. We have assembled a great team to lead us in this growing business."

After a thorough executive search, both companies became convinced that Carter was the clear choice to lead the new independent enterprise. Prior to successfully managing SBC's wireless operations, he led two start-up operations for SBC: the company's national expansion into 30 U.S. markets outside its traditional wireline territory; and SBC's long-distance business. Prior to joining SBC in 1987, Carter was general manager for one of Sony's (United Kingdom) consumer products divisions, and a managing director of Gazelle Group PLC in London, an independent telecommunications company.

Feidler was president of BellSouth Mobility prior to being named president of BellSouth Wireless in January of this year, which includes BellSouth Wireless data properties. He has also served as president of BellSouth's Interconnection Services and vice president of corporate development. Prior to joining BellSouth, he was one of five principals in the investment banking firm Breckinridge Group. He also has worked for the corporate finance department at Robinson-Humphrey and practiced law for the Atlanta firm King & Spalding.

The companies also announced that Rick Lindner, currently senior vice president and chief operating officer for SBC Wireless, will be chief financial officer of the new enterprise.

"We'll move quickly to put the rest of the leadership team in place and finalize our plans for launching this new company, establishing a national brand and integrating our operations so that our customers can begin to benefit from our combined strengths," Carter said.

Over the past several weeks, teams of BellSouth and SBC executives have been developing integration plans for the new company in the areas of marketing, operations, technology, and human resources, among others.

The new company will serve 42 of the nation's top 50 markets, with more than 16 million subscribers and reaching more than 70 percent of the U.S. population - more than 175 million Americans - from coast to coast, with the most robust set of services in the wireless industry.

The joint venture will allow SBC and BellSouth to achieve the scale and scope to compete aggressively by offering customers everything from wireless Internet access and interactive messaging, to attractive national rate plans and bundles of other services. In addition, the joint venture will pursue opportunities to grow the business through further expansion of its national wireless network.

The new wireless company will be managed independently from both parents, with a four-seat Board of Directors (two seats from each company). Serving on the board will be: Stan Sigman, SBC Group President; Don Kiernan, SBC senior executive vice president and chief financial officer; Gary Forsee, BellSouth chief staff officer; and Ron Dykes, BellSouth chief financial officer.

The proposed joint venture currently is under review by the Federal Communications Commission and the Department of Justice. The European Union has approved the proposed venture. It's anticipated the new company will receive all necessary approvals and begin operations later this year.

A native of London, England, Carter holds a master's degree from the Business School at the City of London University. Carter and his wife, Elizabeth, have two children.

BellSouth (NYSE: BLS) is a $25 billion communications services company. It provides telecommunications, wireless and wireless long distance communications, Internet and data services, advertising and publishing, and video and entertainment services to 39 million customers in 18 countries worldwide. For more information about BellSouth, visit http://www.bellsouth.com/.

SBC Communications Inc. (www.sbc.com) is a global communications leader. Through its subsidiaries' trusted brands - Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom, Nevada Bell, SNET and Cellular One - and world-class network, SBC's subsidiaries provide local and long-distance phone service, wireless and data communications, paging, high-speed Internet access and messaging, cable and satellite television, security services and telecommunications equipment, as well as directory advertising and publishing. In the United States, the company currently has 94.1 million voice grade equivalent lines, 11.7 million wireless customers and is undertaking a national expansion program that will bring SBC service to an additional 30 markets. Internationally, SBC has telecommunications investments in 22 countries. With more than 208,000 employees, SBC is the 13th-largest employer in the U.S., with annual revenues that rank it among the largest Fortune 500 companies.

SOURCE: SBC Communications Inc.