Alltel Continues Strong Growth in Second Quarter While Working to Close Merger with TPG Capital, Goldman Sachs

LITTLE ROCK, Ark.--(BUSINESS WIRE)--Alltel (NYSE:AT) recorded strong growth in the second quarter by adding 181,000 post-pay customers and dropping churn to an all-time low. Alltel reported fully diluted earnings per share under Generally Accepted Accounting Principles (GAAP) of 56 cents and fully diluted earnings per share of 75 cents from current businesses, a 42 percent increase from a year ago and a record high for the quarter.

“This was truly an exceptional quarter that saw our company establish new records for earnings per share, service revenue, operating income, post-pay additions and churn,” said Alltel President and CEO Scott Ford. “The entire Alltel team has done an outstanding job of delivering strong financial results while remaining focused on our customers and working to obtain the approvals necessary to close on the merger agreement.”

Among the highlights for the second quarter:

Revenues were $2 billion, a 12 percent increase from a year ago. Net income under GAAP was $196 million. Net income from current businesses was $261 million, a 25 percent increase from a year ago.
Alltel added 181,000 post-pay customers, up 46 percent from a year ago. Pre-pay net additions were flat during the quarter due to seasonal trends.
Wireless service revenue was $1.97 billion, a new record and an increase of 14 percent from a year ago.
Post-pay churn was 1.16 percent and total churn was 1.67 percent. Both are record lows for Alltel and year-over-year improvements for the sixth consecutive quarter.
Average revenue per wireless customer (ARPU) was $54.10, a 3 percent increase from last year. Data revenue per customer was $5.63, up 73 percent from last year and 20 percent sequentially.
Equity free cash flow from current businesses was $243 million, a 42 percent increase. Net cash provided from operations was $552 million, a 114 percent increase from last year.

In the quarter, Alltel announced on May 20 it has agreed to be acquired by TPG Capital and Goldman Sachs Capital Partners for $71.50 per share in cash. The necessary regulatory approvals are progressing well. As expected, the Hart-Scott-Rodino waiting period expired on July 5 without issue. Proxy statements were mailed to Alltel shareholders on July 25 and the shareholder meeting to approve the transaction is scheduled for Aug. 29. The Federal Communications Commission filed a Public Notice related to the transfer of Alltel’s licenses on June 25 and, while the company is waiting to hear from the FCC more definitively on the timing of its approval process, Alltel expects a favorable FCC vote this year.

The merger agreement (which is summarized in Alltel’s proxy statement and available on the company website) provides that the obligations of TPG/Goldman Sachs to acquire Alltel are not conditioned on financing. TPG and Goldman received written commitments at the time of the deal from several of the largest financial institutions in the world to back their obligations. Alltel has been given no reason to believe that these firms will not honor their obligations. Alltel expects the transaction to close by year end.

Alltel operates America’s largest wireless network, which delivers voice and advanced data services nationwide to 12 million customers. Headquartered in Little Rock, Ark., Alltel is a Forbes 500 company with annual revenues of nearly $8 billion.

Alltel claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-looking statements. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Actual future events and results may differ materially from those expressed in these forward-looking statements as a result of a number of important factors. Representative examples of these factors include (without limitation) occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement with TPG and GS Capital; the inability to complete the merger due to the failure to obtain stockholder approval for the merger or the failure to satisfy other conditions to completion of the merger, including the receipt of all regulatory approvals related to the merger; risks that the proposed transaction disrupts current plans and operations; adverse changes in economic conditions in the markets served by Alltel; the extent, timing, and overall effects of competition in the communications business; material changes in the communications industry generally that could adversely affect vendor relationships with equipment and network suppliers and customer relationships with wholesale customers; changes in communications technology; the risks associated with the integration of acquired businesses; adverse changes in the terms and conditions of the wireless roaming agreements of Alltel; the potential for adverse changes in the ratings given to Alltel's debt securities by nationally accredited ratings organizations; the uncertainties related to Alltel’s strategic investments; the effects of litigation; and the effects of federal and state legislation, rules, and regulations governing the communications industry. In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes.

Alltel, NYSE: AT

www.alltel.com


ALLTEL CORPORATION
CONSOLIDATED HIGHLIGHTS AND OTHER FINANCIAL INFORMATION (UNAUDITED)
(In thousands, except per share amounts)


	THREE MONTHS ENDED
					Increase
	June 30,		June 30,		(Decrease)
	2007		2006		Amount			%
UNDER GAAP:
Service revenues	$	1,971,616	$	1,734,128	$	237,488		14
Total revenues and sales	$	2,175,088	$	1,945,232	$	229,856		12
Operating income	$	378,534	$	343,831	$	34,703		10
Service revenue operating margin (A)		19.2%		19.8%		(.6%	)	(3	)
Operating margin (B)		17.4%		17.7%		(.3%	)	(2	)
Income from continuing operations	$	198,579	$	288,429	$	(89,850	)	(31	)
Net income	$	195,696	$	428,903	$	(233,207	)	(54	)
Earnings per share:
Basic	$.57		$1.10		$(.53		)	(48	)
Diluted	$.56		$1.10		$(.54		)	(49	)

Weighted average common shares:
Basic		344,641		388,752		(44,111	)	(11	)
Diluted		347,727		390,463		(42,736	)	(11	)

Capital expenditures (C)	$	325,400	$	299,830	$	25,570		9
Total assets	$	17,438,572	$	23,933,548	$	(6,494,976	)	(27	)

FROM CURRENT BUSINESSES (NON-GAAP) (D):
Operating income	$	459,740	$	388,572	$	71,168		18
Service revenue operating margin (A)		23.3%		22.4%		.9%		4
Operating margin (B)		21.1%		20.0%		1.1%		6
Net income	$	261,084	$	208,193	$	52,891		25
Earnings per share:
Basic	$.76		$.54		$.22			41
Diluted	$.75		$.53		$.22			42
Equity free cash flow (E)	$	242,740	$	170,951	$	71,789		42

(A)	Service revenue operating margin is calculated by dividing operating income by service revenues.
(B)	Operating margin is calculated by dividing operating income by total revenues and sales.
(C)	Includes capitalized software development costs.
(D)	Current businesses excludes the effects of discontinued operations, amortization expense related to acquired, finite-lived intangible assets, gain on disposal of assets, costs associated with Hurricane Katrina, and integration expenses and other charges.
(E)	Equity free cash flow is calculated as the sum of net income from current businesses plus depreciation expense less capital expenditures, which includes capitalized software development costs as indicated in Note C.

Operating results from current businesses have been reconciled to operating results under GAAP on pages 6 and 7 of this release.


ALLTEL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME UNDER GAAP (UNAUDITED)-Page 2
(In thousands, except per share amounts)

	THREE MONTHS ENDED
	June 30,			June 30,
	2007			2006
Revenues and sales:
Service revenues	$	1,971,616		$	1,734,128
Product sales		203,472			211,104
Total revenues and sales		2,175,088			1,945,232
Costs and expenses:
Cost of services		640,212			573,977
Cost of products sold		288,638			283,351
Selling, general, administrative and other		479,442			434,509
Depreciation and amortization		352,271			309,564
Integration expenses and other charges		35,991			-
Total costs and expenses		1,796,554			1,601,401

Operating income		378,534			343,831

Equity earnings in unconsolidated partnerships		16,406			15,399
Minority interest in consolidated partnerships		(8,889	)		(11,482	)
Other income, net		5,591			21,016
Interest expense		(47,437	)		(86,438	)
Gain on disposal of assets		-			176,639

Income from continuing operations before income taxes		344,205			458,965
Income taxes		145,626			170,536

Income from continuing operations		198,579			288,429
Income (loss) from discontinued operations		(2,883	)		140,474

Net income		195,696			428,903
Preferred dividends		19			21
Net income applicable to common shares	$	195,677		$	428,882

Basic earnings per share:
Income from continuing operations	$.58			$ .74
Income (loss) from discontinued operations		(.01	)		.36
Net income	$.57			$1.10

Diluted earnings per share:
Income from continuing operations	$.57			$ .74
Income (loss) from discontinued operations		(.01	)		.36
Net income	$.56			$1.10


ALLTEL CORPORATION
CONSOLIDATED HIGHLIGHTS AND OTHER FINANCIAL INFORMATION (UNAUDITED)
(In thousands, except per share amounts)


	SIX MONTHS ENDED
					Increase
	June 30,		June 30,		(Decrease)
	2007		2006		Amount			%
UNDER GAAP:
Service revenues	$	3,851,736	$	3,383,276	$	468,460		14
Total revenues and sales	$	4,253,636	$	3,788,465	$	465,171		12
Operating income	$	732,825	$	635,785	$	97,040		15
Service revenue operating margin (A)		19.0%		18.8%		.2%		1
Operating margin (B)		17.2%		16.8%		.4%		2
Income from continuing operations	$	428,862	$	422,613	$	6,249		1
Net income	$	425,834	$	726,310	$	(300,476	)	(41	)
Earnings per share:
Basic	$1.21		$1.87		$(.66		)	(35	)
Diluted	$1.20		$1.86		$(.66		)	(35	)

Weighted average common shares:
Basic		350,910		387,760		(36,850	)	(10	)
Diluted		353,790		389,958		(36,168	)	(9	)

Capital expenditures (C)	$	495,048	$	458,217	$	36,831		8

FROM CURRENT BUSINESSES (NON-GAAP) (D):
Operating income	$	866,258	$	736,808	$	129,450		18
Service revenue operating margin (A)		22.5%		21.8%		.7%		3
Operating margin (B)		20.4%		19.4%		1.0%		5
Net income	$	486,521	$	376,766	$	109,755		29
Earnings per share:
Basic	$1.39		$.97		$.42			43
Diluted	$1.38		$.97		$.41			42
Equity free cash flow (E)	$	602,157	$	434,957	$	167,200		38

(A)	Service revenue operating margin is calculated by dividing operating income by service revenues.
(B)	Operating margin is calculated by dividing operating income by total revenues and sales.
(C)	Includes capitalized software development costs.
(D)	Current businesses excludes the effects of discontinued operations, amortization expense related to acquired, finite-lived intangible assets, gain on disposal of assets, costs associated with Hurricane Katrina, and integration expenses and other charges.
(E)	Equity free cash flow is calculated as the sum of net income from current businesses plus depreciation expense less capital expenditures, which includes capitalized software development costs as indicated in Note C.

Operating results from current businesses have been reconciled to operating results under GAAP on pages 6 and 7 of this release.


ALLTEL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME UNDER GAAP (UNAUDITED)-Page 2
(In thousands, except per share amounts)

	SIX MONTHS ENDED
	June 30,			June 30,
	2007			2006
Revenues and sales:
Service revenues	$	3,851,736		$	3,383,276
Product sales		401,900			405,189
Total revenues and sales		4,253,636			3,788,465
Costs and expenses:
Cost of services		1,251,207			1,116,761
Cost of products sold		576,147			556,048
Selling, general, administrative and other		949,340			860,205
Depreciation and amortization		701,776			608,876
Integration expenses and other charges		42,341			10,790
Total costs and expenses		3,520,811			3,152,680

Operating income		732,825			635,785

Equity earnings in unconsolidated partnerships		31,385			28,331
Minority interest in consolidated partnerships		(18,583	)		(25,377	)
Other income, net		13,263			31,807
Interest expense		(94,132	)		(171,154	)
Gain on disposal of assets		56,548			176,639

Income from continuing operations before income taxes		721,306			676,031
Income taxes		292,444			253,418

Income from continuing operations		428,862			422,613
Income (loss) from discontinued operations		(3,028	)		303,697

Net income		425,834			726,310
Preferred dividends		39			42
Net income applicable to common shares	$	425,795		$	726,268

Basic earnings per share:
Income from continuing operations	$1.22			$1.09
Income (loss) from discontinued operations		(.01	)		.78
Net income	$1.21			$1.87

Diluted earnings per share:
Income from continuing operations	$1.21			$1.08
Income (loss) from discontinued operations		(.01	)		.78
Net income	$1.20			$1.86


ALLTEL CORPORATION
CONSOLIDATED BALANCE SHEETS UNDER GAAP (UNAUDITED)-Page 3
(In thousands)


ASSETS

	June 30,			December 31,
	2007			2006

CURRENT ASSETS:
Cash and short-term investments	$	456,298		$	934,228
Accounts receivable (less allowance for doubtful accounts of $64,500 and $54,865, respectively)		839,195			807,307
Inventories		206,473			218,629
Prepaid expenses and other		86,106			67,665
Assets related to discontinued operations		-			4,321

Total current assets		1,588,072			2,032,150

Investments		187,067			368,871
Goodwill		8,421,305			8,447,013
Other intangibles		2,042,341			2,129,346


PROPERTY, PLANT AND EQUIPMENT:
Land		328,310			314,902
Buildings and improvements		990,888			955,061
Operating plant and equipment		8,313,569			7,933,840
Information processing		1,114,089			1,048,136
Furniture and fixtures		178,560			173,835
Under construction		431,093			495,968

Total property, plant and equipment		11,356,509			10,921,742
Less accumulated depreciation		6,257,618			5,690,360

Net property, plant and equipment		5,098,891			5,231,382

Other assets		100,896			89,455
Assets related to discontinued operations		-			45,497


TOTAL ASSETS	$	17,438,572		$	18,343,714


ALLTEL CORPORATION
CONSOLIDATED BALANCE SHEETS UNDER GAAP (UNAUDITED)-Page 3
(In thousands)


LIABILITIES AND SHAREHOLDERS' EQUITY

	June 30,			December 31,
	2007			2006

CURRENT LIABILITIES:
Current maturities of long-term debt	$	39,689		$	36,285
Accounts payable		496,231			576,126
Advance payments and customer deposits		205,270			186,193
Accrued taxes		180,538			114,109
Accrued dividends		43,010			46,039
Accrued interest		79,105			79,281
Other current liabilities		185,577			156,471
Liabilities related to discontinued operations		-			2,761

Total current liabilities		1,229,420			1,197,265


Long-term debt		2,743,942			2,697,412
Deferred income taxes		1,083,342			1,109,479
Other liabilities		700,146			677,609

Total liabilities		5,756,850			5,681,765



SHAREHOLDERS' EQUITY:
Preferred stock		253			258
Common stock		343,864			364,572
Additional paid-in capital		3,031,311			4,296,786
Accumulated other comprehensive income (loss)		(26,053	)		9,525
Retained earnings		8,332,347			7,990,808

Total shareholders' equity		11,681,722			12,661,949


TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	17,438,572		$	18,343,714


ALLTEL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS UNDER GAAP (UNAUDITED)-Page 4
(In thousands)

	THREE MONTHS ENDED
	June 30,			June 30,
	2007			2006
Cash Flows from Operating Activities:
Net income	$	195,696		$	428,903
Adjustments to reconcile net income to net cash provided from operating activities:
Loss (income) from discontinued operations		2,883			(140,474	)
Depreciation and amortization expense		352,271			309,564
Provision for doubtful accounts		49,566			64,693
Non-cash portion of gain on disposal of assets		-			(176,639	)
Change in deferred income taxes		34,938			(19,220	)
Other, net		(9,441	)		(4,264	)
Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions:
Accounts receivable		(124,393	)		(127,422	)
Inventories		7,889			34,336
Accounts payable		8,103			32,478
Other current liabilities		34,799			(109,112	)
Other, net		(763	)		(35,373	)
Net cash provided from operating activities		551,548			257,470

Cash Flows from Investing Activities:
Additions to property, plant and equipment		(315,963	)		(290,528	)
Additions to capitalized software development costs		(9,437	)		(9,302	)
Purchases of property, net of cash acquired		(3,750	)		(217,487	)
Proceeds from the sale of investments		-			199,921
Proceeds from the return on investments		13,880			13,363
Other, net		1,036			4,058
Net cash used in investing activities		(314,234	)		(299,975	)

Cash Flows from Financing Activities:
Dividends on common and preferred stock		(44,565	)		(149,415	)
Repayments of long-term debt		(35,590	)		(41	)
Cash payments to effect conversion of convertible notes		-			-
Distributions to minority investors		(13,283	)		(8,483	)
Purchases of common stock		(421,514	)		-
Excess tax benefits from stock option exercises		1,339			2,276
Long-term debt issued		100,000			-
Common stock issued		10,510			33,688
Net cash used in financing activities		(403,103	)		(121,975	)

Cash Flows from Discontinued Operations:
Cash provided from (used in) operating activities		(3,107	)		165,013
Cash provided from investing activities		48,365			1,557,828
Cash provided from financing activities		-			92,726
Net cash provided from discontinued operations		45,258			1,815,567

Effect of exchange rate changes on cash and short-term investments		-			(6,464	)

Increase (decrease) in cash and short-term investments		(120,531	)		1,644,623

Cash and Short-term Investments:
Beginning of the period		576,829			881,838
End of the period	$	456,298		$	2,526,461


ALLTEL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS UNDER GAAP (UNAUDITED)-Page 4
(In thousands)

	SIX MONTHS ENDED
	June 30,			June 30,
	2007			2006
Cash Flows from Operating Activities:
Net income	$	425,834		$	726,310
Adjustments to reconcile net income to net cash provided from operating activities:
Loss (income) from discontinued operations		3,028			(303,697	)
Depreciation and amortization expense		701,776			608,876
Provision for doubtful accounts		86,827			113,393
Non-cash portion of gain on disposal of assets		(56,548	)		(176,639	)
Change in deferred income taxes		47,093			21,267
Other, net		(16,163	)		(4,334	)
Changes in operating assets and liabilities, net of the effects of acquisitions and dispositions:
Accounts receivable		(120,834	)		(136,115	)
Inventories		12,156			71,000
Accounts payable		(81,675	)		(68,157	)
Other current liabilities		133,800			(155,913	)
Other, net		(22,585	)		(53,684	)
Net cash provided from operating activities		1,112,709			642,307

Cash Flows from Investing Activities:
Additions to property, plant and equipment		(477,818	)		(441,201	)
Additions to capitalized software development costs		(17,230	)		(17,016	)
Purchases of property, net of cash acquired		(6,250	)		(676,418	)
Proceeds from the sale of investments		188,711			199,921
Proceeds from the return on investments		24,811			22,277
Other, net		680			11,377
Net cash used in investing activities		(287,096	)		(901,060	)

Cash Flows from Financing Activities:
Dividends on common and preferred stock		(90,526	)		(297,152	)
Repayments of long-term debt		(36,254	)		(730	)
Cash payments to effect conversion of convertible notes		-			(59,848	)
Distributions to minority investors		(21,055	)		(20,293	)
Purchases of common stock		(1,360,298	)		-
Excess tax benefits from stock option exercises		5,169			5,657
Long-term debt issued		100,000			-
Common stock issued		52,958			88,584
Net cash used in financing activities		(1,350,006	)		(283,782	)

Cash Flows from Discontinued Operations:
Cash provided from (used in) operating activities		(1,178	)		599,484
Cash provided from investing activities		47,641			1,492,015
Cash provided from financing activities		-			969
Net cash provided from discontinued operations		46,463			2,092,468

Effect of exchange rate changes on cash and short-term investments		-			(5,879	)

Increase (decrease) in cash and short-term investments		(477,930	)		1,544,054

Cash and Short-term Investments:
Beginning of the period		934,228			982,407
End of the period	$	456,298		$	2,526,461


ALLTEL CORPORATION
SUPPLEMENTAL OPERATING INFORMATION (UNAUDITED)-Page 5
(Dollars in thousands, except per customer amounts)

		THREE MONTHS ENDED
						Increase
		June 30,		June 30,		(Decrease)
		2007		2006		Amount			%

Controlled POPs			79,575,793		78,000,811		1,574,982		2
Customers			12,242,066		11,085,145		1,156,921		10
Penetration rate			15.4%		14.2%		1.2%		8
Average customers			12,147,380		10,951,268		1,196,112		11
Gross customer additions:
Internal			789,961		770,589		19,372		3
Acquired			-		112,095		(112,095	)	(100	)
Total			789,961		882,684		(92,723	)	(11	)
Net customer additions:
Internal			181,494		145,985		35,509		24
Acquired			-		112,095		(112,095	)	(100	)
Total			181,494		258,080		(76,586	)	(30	)
Cash costs from current businesses:
Cost of services		$640,212		$576,212		$64,000			11
Cost of products sold			288,638		283,351		5,287		2
Selling, general, administrative and other			479,442		434,509		44,933		10
Less product sales			203,472		211,104		(7,632	)	(4	)
Total		$1,204,820		$1,082,968		$121,852			11
Cash costs from current businesses per unit per month (A)		$33.06		$32.96		$.10			-
Revenues:
Service revenues		$1,971,616		$1,734,128		$237,488			14
Less wholesale roaming revenues			170,121		163,590		6,531		4
Less wholesale transport revenues			42,850		7,844		35,006		446
Retail revenues		$1,758,645		$1,562,694		$195,951			13
Average revenue per customer per month (B)		$54.10		$52.78		$1.32			3
Retail revenue per customer per month (C)		$48.26		$47.57		$.69			1
Retail minutes of use per customer per month (D)			724		638		86		13
Postpay churn			1.16%		1.47%		(.31%	)	(21	)
Total churn			1.67%		1.91%		(.24%	)	(13	)


(A)	Cash costs from current businesses per unit per month is calculated by dividing the sum of the current businesses reported cost of services, cost of products sold, selling, general, administrative and other expenses less product sales by the number of average customers for the period. Measured on a GAAP basis, cash costs per unit per month were $33.06 and $32.87 for the three and six months ended June 30, 2007, respectively, and $32.90 and $32.72 for the same periods of 2006, respectively.
(B)	Average revenue per customer per month is calculated by dividing service revenues by average customers for the period.
(C)	Retail revenue per customer per month is calculated by dividing retail revenues (service revenues less wholesale revenues) by average customers for the period.
(D)	Retail minutes of use per customer per month represents the average monthly minutes that Alltel's customers use on both the Company's network and while roaming on other carriers' networks.

Operating results from current businesses have been reconciled to operating results under GAAP on pages 6 and 7 of this release.


ALLTEL CORPORATION
SUPPLEMENTAL OPERATING INFORMATION (UNAUDITED)-Page 5
(Dollars in thousands, except per customer amounts)

		SIX MONTHS ENDED
						Increase
		June 30,		June 30,		(Decrease)
		2007		2006		Amount			%

Average customers			12,041,655		10,838,881		1,202,774		11
Gross customer additions:
Internal			1,657,434		1,576,043		81,391		5
Acquired			-		112,095		(112,095	)	(100	)
Total			1,657,434		1,688,138		(30,704	)	(2	)
Net customer additions:
Internal			418,128		310,726		107,402		35
Acquired			-		112,095		(112,095	)	(100	)
Total			418,128		422,821		(4,693	)	(1	)
Cash costs from current businesses:
Cost of services		$1,251,207		$1,118,996		$132,211			12
Cost of products sold			576,147		556,048		20,099		4
Selling, general, administrative and other			949,340		860,205		89,135		10
Less product sales			401,900		405,189		(3,289	)	(1	)
Total		$2,374,794		$2,130,060		$244,734			11
Cash costs from current businesses per unit per month (A)		$32.87		$32.75		$.12			-
Revenues:
Service revenues		$3,851,736		$3,383,276		$468,460			14
Less wholesale roaming revenues			324,308		314,593		9,715		3
Less wholesale transport revenues			89,284		18,194		71,090		391
Retail revenues		$3,438,144		$3,050,489		$387,655			13
Average revenue per customer per month (B)		$53.31		$52.02		$1.29			2
Retail revenue per customer per month (C)		$47.59		$46.91		$.68			1
Retail minutes of use per customer per month (D)			688		620		68		11
Postpay churn			1.24%		1.56%		(.32%	)	(21	)
Total churn			1.72%		1.95%		(.23%	)	(12	)


(A)	Cash costs from current businesses per unit per month is calculated by dividing the sum of the current businesses reported cost of services, cost of products sold, selling, general, administrative and other expenses less product sales by the number of average customers for the period. Measured on a GAAP basis, cash costs per unit per month were $33.06 and $32.87 for the three and six months ended June 30, 2007, respectively, and $32.90 and $32.72 for the same periods of 2006, respectively.
(B)	Average revenue per customer per month is calculated by dividing service revenues by average customers for the period.
(C)	Retail revenue per customer per month is calculated by dividing retail revenues (service revenues less wholesale revenues) by average customers for the period.
(D)	Retail minutes of use per customer per month represents the average monthly minutes that Alltel's customers use on both the Company's network and while roaming on other carriers' networks.

Operating results from current businesses have been reconciled to operating results under GAAP on pages 6 and 7 of this release.

ALLTEL CORPORATION
RECONCILIATIONS OF RESULTS OF OPERATIONS UNDER GAAP TO RESULTS OF OPERATIONS FROM CURRENT BUSINESSES (NON-GAAP) (UNAUDITED) - Page 6
(In thousands)

	THREE MONTHS ENDED JUNE 30, 2007


				Depreciation
	Cost of			and		Operating
	Services			Amortization		Income
Under GAAP	$640,212			$352,271		$378,534
Items excluded from measuring results from current businesses:
Amortization expense related to acquired, finite-lived intangible assets (A)		-		(45,215	)	45,215
Integration expenses and other charges (B)(C)		-		-		35,991
Loss from discontinued operations (I)		-		-		-
Net increase (decrease)		-		(45,215	)	81,206
From current businesses	$640,212			$307,056		$459,740


	Income					Income
	Before					From
	Income			Income		Continuing		Net
	Taxes			Taxes		Operations		Income
Under GAAP	$344,205			$145,626		$198,579		$195,696
Items excluded from measuring results from current businesses:
Amortization expense related to acquired, finite-lived intangible assets (A)		45,215		17,589		27,626		27,626
Integration expenses and other charges (B)(C)		35,991		1,112		34,879		34,879
Loss from discontinued operations (I)		-		-		-		2,883
Net increase (decrease)		81,206		18,701		62,505		65,388
From current businesses	$425,411			$164,327		$261,084		$261,084


	Basic			Diluted
	Earnings			Earnings
	Per Share			Per Share
Under GAAP	$.57			$.56
Items excluded from measuring results from current businesses:
Amortization expense related to acquired, finite-lived intangible assets (A)		.08		.08
Integration expenses and other charges (B)(C)		.10		.10
Loss from discontinued operations (I)		.01		.01
Net increase (decrease)		.19		.19
From current businesses	$.76			$.75




ALLTEL CORPORATION
RECONCILIATIONS OF RESULTS OF OPERATIONS UNDER GAAP TO RESULTS OF OPERATIONS FROM CURRENT BUSINESSES (NON-GAAP) (UNAUDITED) - Page 6
(In thousands)

	THREE MONTHS ENDED JUNE 30, 2006


				Depreciation
	Cost of			and		Operating
	Services			Amortization		Income
Under GAAP	$573,977			$309,564		$343,831
Items excluded from measuring results from current businesses:
Amortization expense related to acquired, finite-lived intangible assets (A)		-		(46,976	)	46,976
Reversal of excess bad debt reserve related to Hurricane Katrina (G)		2,235		-		(2,235	)
Gain on disposal of assets (H)		-		-		-
Income from discontinued operations (I)		-		-		-
Net increase (decrease)		2,235		(46,976	)	44,741
From current businesses	$576,212			$262,588		$388,572


	Income					Income
	Before					From
	Income			Income		Continuing		Net
	Taxes			Taxes		Operations		Income
Under GAAP	$458,965			$170,536		$288,429		$428,903
Items excluded from measuring results from current businesses:
Amortization expense related to acquired, finite-lived intangible assets (A)		46,976		18,274		28,702		28,702
Reversal of excess bad debt reserve related to Hurricane Katrina (G)		(2,235	)	(869	)	(1,366	)	(1,366	)
Gain on disposal of assets (H)		(176,639	)	(69,067	)	(107,572	)	(107,572	)
Income from discontinued operations (I)		-		-		-		(140,474	)
Net increase (decrease)		(131,898	)	(51,662	)	(80,236	)	(220,710	)
From current businesses	$327,067			$118,874		$208,193		$208,193


	Basic			Diluted
	Earnings			Earnings
	Per Share			Per Share
Under GAAP	$1.10			$1.10
Items excluded from measuring results from current businesses:
Amortization expense related to acquired, finite-lived intangible assets (A)		.08		.07
Reversal of excess bad debt reserve related to Hurricane Katrina (G)		-		-
Gain on disposal of assets (H)		(.28	)	(.28	)
Income from discontinued operations (I)		(.36	)	(.36	)
Net increase (decrease)		(.56	)	(.57	)
From current businesses	$ .54			$ .53


ALLTEL CORPORATION
RECONCILIATIONS OF RESULTS OF OPERATIONS UNDER GAAP TO RESULTS OF OPERATIONS FROM CURRENT BUSINESSES (NON-GAAP) (UNAUDITED)- Page 7
(In thousands)

	SIX MONTHS ENDED JUNE 30, 2007


				Depreciation
	Cost of			and		Operating
	Services			Amortization		Income
Under GAAP	$1,251,207			$701,776		$732,825
Items excluded from measuring results from current businesses:
Amortization expense related to acquired, finite-lived intangible assets (A)		-		(91,092	)	91,092
Integration expenses and other charges (B)(C)(D)		-		-		42,341
Gain on disposal of assets (E)		-		-		-
Loss from discontinued operations (I)		-