SBC Responding To Economic Challenges With Financial Discipline, Whitacre Tells Shareowners.

Business Editors, Technology Writers

SAN ANTONIO--(BUSINESS WIRE)--April 26, 2002

Growing DSL Internet, wireless, and long-distance services;

aggressive cost management; and smart investing highlight

annual meeting

SBC Communications Inc. (NYSE: SBC) met the challenge of a tightening economy in 2001 by continuing to focus on its core businesses and aggressively managing operating expenses, Edward E. Whitacre Jr., chairman and CEO, told shareowners at the company's annual meeting today.

"SBC's financial discipline and commitment to its major growth drivers enabled us to respond well to a challenging economic environment," Whitacre said. "SBC delivered solid results because we took decisive action in cutting capital spending and operating expenses while continuing to focus on further strengthening our data, long-distance and wireless businesses.

"Although we will continue to trim capital expenditures in 2002, we also will invest capital appropriately in our major growth drivers," Whitacre added. "It is essential that we continue to provide excellent customer service and invest smartly to grow our revenues.

"SBC is well positioned to weather challenging times. Our strong cash flow has enabled us to fund future growth while continuing to pay dividends, which increased by 5.4 percent in March. That marks 18 consecutive years of dividend increases, a record that's unsurpassed by any of our telecom peers."

Whitacre noted that since the last annual meeting of shareowners, the company has added nearly $800 million in incremental data revenues; has increased the number of Digital Subscriber Line (DSL) Internet customers from 954,000 to 1.5 million; has increased its total long-distance lines in service by 1.7 million and now has 5.3 million long-distance lines in service in six states; and that Cingular Wireless, in which SBC holds a 60 percent stake, had grown its subscriber base from 20.5 million to 21.8 million.

At the meeting, shareowners re-elected seven SBC board members to three-year terms: James Barnes, August Busch III, William Clark, Lynn Martin, Mary Metz, Laura D'Andrea Tyson, and Whitacre. Each nominee won at least 93 percent of the votes.

In other business, by 97 percent of the votes cast, shareowners ratified the re-appointment of Ernst & Young LLP as SBC's independent auditor.

Cautionary Language Concerning Forward-Looking Statements

Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties. A discussion of factors that may affect future results is contained in SBC's filings with the Securities and Exchange Commission. SBC disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.

SBC Communications Inc. (www.sbc.com) is one of the world's leading data, voice and Internet services providers. Through its world-class network and its subsidiaries' trusted brands - SBC Southwestern Bell, SBC Ameritech, SBC Pacific Bell, SBC Nevada Bell, SBC SNET and Sterling Commerce - SBC companies provide a full range of voice, data, networking and e-business services, as well as directory advertising and publishing. A Fortune 27 company, America's leading provider of high-speed DSL Internet Access services, and one of the nation's leading Internet Service Providers, SBC companies currently serve nearly 60 million access lines nationwide. In addition, SBC owns 60 percent of America's second largest wireless company -- Cingular Wireless -- which serves more than 21 million wireless customers. Internationally, SBC has telecommunications investments in 28 countries.

SOURCE: SBC Communications Inc.