Sprint.com

October 26, 2006

Investor Quarterly Update: Sprint Nextel Reports Third Quarter 2006 Results

    --  Progress on margins, merger integration and operational
        improvements to enhance competitive position

    --  IP and wireless data services set the pace for the industry

    --  Buy-back of common stock underway

    Business Editors/Telecommunications Writers

RESTON, Va.--(BUSINESS WIRE)--Oct. 26, 2006--Third Quarter Highlights

    Wireless (pro forma)

    --  Revenues of $9.1 billion increased 12% from third quarter 2005

    --  Adjusted Operating Income* of $743 million compares to $689
        million in the year-ago period. This measure was partially
        impacted by increased amortization expense arising from
        acquisitions

    --  Adjusted OIBDA* of $3.16 billion increased 20% from the
        year-ago period

    Long Distance

    --  Revenues were $1.6 billion, a 6% decrease year-over-year

    --  Adjusted Operating Income* of $82 million decreased 48% from
        the year- ago period

    --  Adjusted OIBDA* of $206 million was 27% lower than the third
        quarter 2005

Sprint Nextel Corp. (NYSE:S) today reported third quarter 2006 financial results. In the quarter, the company improved profitability and launched several initiatives to enhance operating performance.

For the quarter, diluted earnings per share (EPS) from continuing operations were 8 cents, compared to 12 cents per share for the third quarter 2005. The reported earnings include charges of 2 cents for special items and 22 cents for merger and acquisition-related amortization cost. For the quarter, Adjusted EPS before Amortization*, which removes these effects, increased 7% to 32 cents per share, versus pro forma Adjusted EPS before Amortization* of 30 cents in the year-ago period. Third quarter results reflect growth in operating income from the Wireless segment, offset by a lower contribution from Long Distance.

In the current quarter, the company reported consolidated revenue of $10.5 billion, an increase of 8% compared to pro forma revenues in the 2005 third quarter. Consolidated Adjusted OIBDA* of $3.4 billion increased 14 percent compared to the third quarter of 2005 pro forma results. In the quarter, the company reported a 38.4% Adjusted OIBDA margin* in the Wireless segment and a Consolidated Adjusted OIBDA margin of 34.8%, a 150-basis point improvement from the year-ago period. Third-quarter Consolidated Free Cash Flow* was $769 million.

Total wireless net subscriber additions were 233,000 for the quarter due to growth in CDMA post-paid subscribers, a gain in Boost pre-paid service subscribers and renewed growth in wholesale subscribers, offset by a decline in iDEN post-paid subscribers. At the end of the quarter, Sprint Nextel's total base was 51.9 million subscribers.

In the third quarter, Wireless data revenues increased 74% compared to the year-ago period. Long Distance IP services increased 26% and Cable Voice over Internet Protocol (VoIP) users served by Sprint Nextel more than doubled from the third quarter a year-ago.

In August, the company initiated its common stock buy-back program which is expected to total up to $6 billion over an 18-month period. In the third quarter, the company acquired 91 million common shares at an aggregate cost of approximately $1.5 billion. The company will vary the amount and timing of its common stock purchases from time to time as the program proceeds.

"In the third quarter, our margins benefited from merger synergies and the scale provided by acquisitions," said Sprint Nextel President and Chief Executive Officer Gary Forsee. "Our profitability in the quarter is encouraging and demonstrates the potential of an asset mix that now is predominantly wireless. In the third quarter we took some actions to improve the quality of the customers coming into our business, and this is constraining our near-term growth. At the same time, we have taken a number of actions we believe will improve our top-line growth performance over time. Activities in the quarter included:

    --  Launching a new "Power Up" branding and marketing campaign
        that emphasizes the power of our network and the power we
        bring customers to enhance their lifestyles and productivity.
        The campaign focuses on both the Nextel and Sprint brands, and
        utilizes traditional national channels, local network
        advertising, new media and innovative placement approaches;

    --  Restructuring our sales, service and distribution organization
        and simplifying the business to enhance operating
        effectiveness while lowering our cost structure;

    --  Augmenting our product portfolio to include fourth quarter
        introductions of hybrid phones that will offer the benefits of
        Nextel and Sprint features, and a popular suite of Motorola
        handsets; and

    --  Investing in our networks, including initiatives to improve
        performance on the iDEN platform, expansion of our CDMA EV-DO
        broadband network to areas where 168 million people live or
        work, planning for the fourth quarter implementation of the
        EV-DO Rev. A network, and the announcement of the selection of
        WIMAX as our 4G Network technology.

"We have established an intense focus on execution across the company, and I am confident this will produce stronger customer growth and loyalty, improved margins and increased shareholder value over time," Forsee said.

Editor's Note:

In accordance with purchase accounting rules, Sprint Nextel's 2005 reported results are comprised of Sprint's stand-alone results prior to the Aug. 12, 2005, merger with Nextel Communications Inc., plus combined Sprint and Nextel results for the remainder of the year. Results from acquired Sprint PCS affiliates and Nextel Partners are included as of the date the applicable acquisition was completed.

To provide comparability with previously reported periods, Sprint Nextel also is providing pro forma Consolidated and Wireless results and certain other financial measures* for 2005 reporting periods. The pro forma results assume the merger of Sprint and Nextel occurred at the beginning of each 2005 reporting period and include the impact of conforming the accounting policies and both financial and non-financial measures of the two companies. The pro forma Consolidated and Wireless information excludes results of acquired affiliates prior to their respective acquisition close dates.

Consolidated

TABLE No. 1 Selected Unaudited Financial Data (in millions, except per
 share amounts). Diluted EPS below is from continuing operations.

                       Quarter Ended    %      Year-to-Date       %
                       September 30,  change   September 30,   change
                     -------------------------------------------------
As Reported
 Financial Data         2006    2005           2006      2005
                     -----------------      -------------------
  Net operating
   revenues           $10,496 $ 7,825    34% $ 30,584  $18,997     61%
  Adjusted operating
   income*                824     838   (2)%    2,287    2,252      2%
  Adjusted OIBDA*       3,364   2,325    45%    9,527    5,268     81%

  Income from
   Continuing
   Operations             247     263   (6)%      702      816   (14)%

  Diluted earnings
   per share          $  0.08 $  0.12  (33)% $   0.24  $  0.46   (48)%

  Capex               $ 1,843 $ 1,051    75% $  4,445  $ 2,365     88%

  Free cash flow*     $   769 $   801   (4)% $  2,338  $ 3,824   (39)%


                       Quarter Ended    %      Year-to-Date       %
                       September 30,  change   September 30,   change
                     -------------------------------------------------
                        2006    2005           2006      2005
                     -----------------      -------------------
Pro Forma
 Financial Data
  Net operating
   revenues           $10,496 $ 9,698     8% $ 30,584  $28,385      8%
  Adjusted operating
   income*                824     874   (6)%    2,287    2,344    (2)%
  Adjusted OIBDA*       3,364   2,953    14%    9,527    8,493     12%

  Diluted earnings
   per share from
   continuing
   operations         $  0.08 $  0.05    60% $   0.24  $  0.21     14%
  Adjusted earnings
   per share before
   amortization*      $  0.32 $  0.30     7% $   0.89  $  0.82      9%

Pro Forma Capex       $ 1,843 $ 1,406    31%   $4,445  $ 4,395      1%
    The following is a discussion of Consolidated pro forma results.

    --  Revenue growth in the quarter was due to revenue growth in
        Wireless, offset by lower Long Distance revenues. Long
        Distance revenues were partially impacted by sales of
        businesses.

    --  The decline in Adjusted Operating Income* was due to higher
        amortization and depreciation expense and a lower contribution
        from Long Distance which offset growth in Wireless Adjusted
        OIBDA*.

    --  Free cash flow* in the quarter was $769 million.

    --  In the quarter, a lower average cash balance due to the Nextel
        Partners and UbiquiTel acquisitions, debt retirements and
        purchases of common stock produced a $43 million sequential
        decline in interest income, while interest expense declined
        $18 million.

    --  The effective tax rate for the quarter was 30.8% compared to
        38.1% a year ago. The lower tax rate is due to a favorable tax
        audit settlement covering 1995 to 1999. It includes a tax
        benefit of $26 million, plus interest income, net of tax, of
        $16 million. The $42 million total is netted in special items
        for the quarter.

    --  At the end of the quarter, Net Debt* was $19.9 billion.

    Wireless
TABLE No. 2 Selected Unaudited Financial Data (dollars in millions)

                       Quarter Ended           Year-to-Date
                       September 30,            September 30,
                     -----------------       ------------------
As Reported                              %                        %
 Financial Data         2006    2005  change    2006     2005  change
                     -------------------------------------------------
  Net operating
   revenues           $ 9,072 $ 6,190     47% $26,111  $14,098     85%
  Adjusted operating
   income*                743     653     14%   1,900    1,737      9%
  Adjusted OIBDA*       3,159   2,015     57%   8,781    4,391    100%

  Capex(1)            $ 1,473 $   914     61% $ 3,608  $ 2,010     80%


Pro Forma
 Financial Data
  Net operating
   revenues           $ 9,072 $ 8,066     12% $26,111  $23,496     11%
  Adjusted operating
   income*                743     689      8%   1,900    1,829      4%
  Adjusted OIBDA*       3,159   2,643     20%   8,781    7,616     15%
  Adjusted OIBDA
   margin*               38.4%   36.5%           37.0%    35.9%

Pro Forma Capex(1)    $ 1,473 $ 1,262     17% $ 3,608  $ 4,040   (11)%

(1)Capex includes re-banding capital


    Discussion of the following Wireless results is on a pro forma
basis.

    --  Total operating revenues increased 12% compared to the
        year-ago period. Service revenues increased 14% due to a
        larger subscriber base, offset by lower average revenue per
        user (ARPU). After adjusting for Nextel Partners and all
        affiliate acquisitions, pro forma year-over-year net operating
        revenue growth would have been approximately 4%.

    --  Adjusted OIBDA Margin* improved to 38.4% compared to 37.6% in
        the second quarter and 36.5% a year ago. The margin gain is
        due to a growing customer base and operating cost efficiencies
        which offset lower average customer revenues.

    --  In the quarter, the company reported a total net subscriber
        gain of 233,000. Total net additions include a loss of 188,000
        post-paid subscribers, a gain of 216,000 Boost subscribers, a
        gain of 177,000 Wholesale subscribers, and a gain of 28,000
        net subscribers from affiliates. The company also acquired
        458,000 post-paid customers though the purchase of UbiquiTel.

    --  Total retail gross additions were approximately 3.8 million
        compared to 3.5 million a year ago on a pro forma basis and
        3.8 million in the second quarter.

    --  Post-paid churn in the quarter was 2.4%. Churn increased from
        2.1% in the second quarter, mainly due to seasonally higher
        CDMA network involuntary churn, higher iDEN network voluntary
        churn, and higher-than-expected Nextel Partners churn. Boost
        churn was 6.8% in the quarter versus 6.0% in the second
        quarter. The increase is due to increased competition.

    --  Direct post-paid ARPU was approximately $61, a decline of 5.5%
        year-over-year and 1% sequentially. After adjusting for the
        effects of affiliate acquisitions, the decline was 4% from a
        year ago and 1% sequentially. Strong growth in data services
        partially mitigated lower contributions from voice revenues.
        Data revenues contributed approximately $7.75 to direct
        post-paid ARPU, up from $7.25 in the second quarter. CDMA
        post-paid data ARPU exceeded $10 in the quarter. Boost ARPU
        was approximately $32.50 in the quarter.

    --  Net equipment subsidies increased 18% from the year-ago period
        due to higher gross additions. Subsidies declined 9%
        sequentially due to higher-priced handset sales. Cost of
        services increased 10% year-over-year and 6% sequentially due
        to a larger subscriber base, significant network expansion and
        deployment of broadband services. At the end of the quarter,
        Sprint Nextel was providing services through 59,000 cell
        sites. Selling, general and administrative expense increased
        6% year-over-year and 6% sequentially. The year-over-year
        increase is due to increases in sales and marketing and
        customer care costs, while the sequential increase is due to
        higher sales costs and seasonally higher bad debt expense.

    --  Year-to-date, Adjusted OIBDA* exceeded capital expenditures by
        $5.2 billion compared to $3.6 billion in the year-ago period.

    Long Distance
TABLE No. 3 Selected Unaudited Financial Data (dollars in millions)
                       Quarter Ended    %     Year-to-Date       %
                       September 30,  change   September 30,   change
                     -------------------------------------------------
                        2006    2005            2006    2005
                     -----------------      ------------------
  Net operating
   revenues           $ 1,626 $ 1,735   (6)%  $4,936  $ 5,172     (5)%
  Adjusted operating
   income*                 82     159  (48)%     358      440    (19)%
  Adjusted OIBDA*         206     283  (27)%     717      801    (10)%
  Adjusted OIBDA
   margin*               12.7%   16.3%          14.5%    15.5%

  Capex               $   255 $    83    NM   $  547  $   218      NM
    The following is a discussion of Long Distance results.

    --  Total revenues declined 6% versus the third quarter of 2005,
        and 1% sequentially. Adjusting for the sale of a conferencing
        business and a UNE-P business in prior periods, revenues
        declined 3% on a year-over-year basis and were up modestly on
        a sequential basis.

    --  Compared to a year ago, voice revenues declined 9%. Voice
        revenues continue to be impacted by declining consumer market
        share and lower yields. Adjusting for the sale of businesses,
        voice revenues declined 4% year-over-year and were flat
        sequentially. Legacy data revenues were 14% below the year-ago
        period. These services continue to be impacted by product
        substitution. The company reported strong growth in IP
        revenues, which were up 26%, driven by strong demand for
        Multi-Protocol Label Switching services.

    --  At the end of the quarter, Sprint Nextel was providing
        services to more than 1.3 million cable telephony customers.
        Market penetration now exceeds 10% in more than a quarter of
        the cable footprint served by Sprint Nextel.

    --  The Adjusted OIBDA Margin* of 12.7% was down both sequentially
        and year-over-year. Margins were impacted by a lower product
        margin mix and increased access costs.

    --  Year-to-date Adjusted OIBDA* exceeded capital expenditures by
        $170 million compared to $583 million in year to date 2005.
        The decline is mainly due to increased investment to support
        wireless volume growth and demand for IP services.

    Forward-Looking Guidance

The company is reiterating prior guidance which calls for full-year revenues of $41.0 billion to $41.5 billion, Adjusted OIBDA* of $12.6 billion to $12.9 billion and capital expenditures, inclusive of re-banding requirements, of $7 billion to $7.1 billion. This guidance includes results for Nextel Partners and UbiquiTel operations from July 1, 2006.

*Financial Measures

Sprint Nextel provides financial measures generated using generally accepted accounting principles (GAAP) and using adjustments to GAAP (non-GAAP). The non-GAAP financial measures reflect industry conventions, or standard measures of liquidity, profitability or performance commonly used by the investment community for comparability purposes. These non-GAAP measures are not measurements under accounting principles generally accepted in the United States. These measurements should be considered in addition to, but not as a substitute for, the information contained in our financial statements prepared in accordance with GAAP. We have defined below each of the non-GAAP measures we use, but these measures may not be synonymous to similar measurement terms used by other companies.

Sprint Nextel provides reconciliations of these non-GAAP measures in its financial reporting. Because Sprint Nextel does not predict special items that might occur in the future, and our forecasts are developed at a level of detail different than that used to prepare GAAP-based financial measures, Sprint Nextel does not provide reconciliations to GAAP of its forward-looking financial measures.

The measures used in this release include the following:

Adjusted Earnings per Share (EPS) is defined as income from continuing operations, before special items, net of tax and the diluted EPS calculated thereon. Adjusted EPS before Amortization is defined as income from continuing operations, before special items and amortization, net of tax, and the diluted EPS calculated thereon. These non-GAAP measures should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. We believe that these measures are useful because they allow investors to evaluate our performance for different periods on a more comparable basis by excluding items that relate to acquired amortizable intangible assets and not to the ongoing operations of our businesses.

Adjusted Net Income is defined as income (loss) from continuing operations before special items. Adjusted Net Income before Amortization is defined as income (loss) from continuing operations before special items and amortization, net of tax. These non-GAAP measures should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. We believe that these measures are useful because they allow investors to evaluate our performance for different periods on a more comparable basis by excluding items that do not relate to the ongoing operations of our businesses.

Adjusted Operating Income is defined as operating income before special items. This non-

GAAP measure should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. We believe this measure is useful because it allows investors to evaluate our operating results for different periods on a more comparable basis by excluding special items.

Adjusted OIBDA is defined as operating income before depreciation, amortization, restructuring and asset impairments, and special items. Adjusted OIBDA Margin represents Adjusted OIBDA divided by non-equipment net operating revenues for Wireless and Adjusted OIBDA divided by net operating revenues for Long Distance. Although we have used substantially similar measures in the past, which we called "Adjusted EBITDA," we now use the term Adjusted OIBDA and Adjusted OIBDA Margin to describe the measure we use as it more clearly reflects the elements of the measure. These non-GAAP measures should be used in addition to, but not as a substitute for, the analysis provided in the statement of operations. We believe that Adjusted OIBDA and Adjusted OIBDA Margin provide useful information to investors because they are an indicator of the strength and performance of our ongoing business operations, including our ability to fund discretionary spending such as capital expenditures, spectrum acquisitions and other investments and our ability to incur and service debt. While depreciation and amortization are considered operating costs under generally accepted accounting principles, these expenses primarily represent non-cash current period allocation of costs associated with long-lived assets acquired or constructed in prior periods. Adjusted OIBDA and Adjusted OIBDA Margin are calculations commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the periodic and future operating performance and value of companies within the telecommunications industry.

Free Cash Flow is defined as the change in cash and cash equivalents less the change in debt, investment in certain securities, proceeds from common stock, repurchase of the company's common stock and other financing activities, net, from continuing operations. This non-GAAP measure should be used in addition to, but not as a substitute for, the analysis provided in the statement of cash flows. We believe that Free Cash Flow provides useful information to investors, analysts and our management about the cash generated by our core operations after interest and dividends and our ability to fund scheduled debt maturities and other financing activities, including discretionary refinancing and retirement of debt and purchase or sale of investments.

Net Debt is consolidated debt, including current maturities, less cash and cash equivalents, current marketable securities and restricted cash. This non-GAAP measure should be used in addition to, but not as a substitute for, the analysis provided in the balance sheet and statement of cash flows. We believe that Net Debt provides useful information to investors, analysts and credit rating agencies about the capacity of the company to reduce the debt load and improve its capital structure.

Safe Harbor

This press release includes "forward-looking statements" within the meaning of the securities laws. The statements in this presentation regarding the business outlook and expected performance, as well as other statements that are not historical facts, are forward-looking statements. The words "estimate," "project," "forecast," "intend," "expect," "believe," "target," "providing guidance" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management has made assumptions regarding, among other things, customer and network usage, customer growth and retention, pricing, operating costs, the timing of various events and the economic environment. Future performance cannot be ensured. Actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include:

    --  the effects of vigorous competition, including the impact of
        competition on the price we are able to charge customers for
        the services we provide and on Sprint Nextel's ability to
        attract new customers and retain existing customers; the
        overall demand for Sprint Nextel's service offerings,
        including the impact of decisions of new subscribers between
        Sprint Nextel's post-paid and prepaid services offerings and
        between Sprint Nextel's two network platforms; and the impact
        of new, emerging and competing technologies on Sprint Nextel's
        business;

    --  the impact of overall wireless market penetration on Sprint
        Nextel's ability to attract and retain customers with good
        credit standing and the intensified competition among wireless
        carriers for those customers;

    --  the uncertainties related to the benefits of the Sprint-Nextel
        merger, including anticipated synergies and cost savings and
        the timing thereof;

    --  the potential impact of difficulties we may encounter in
        connection with the integration of the pre-merger Sprint and
        Nextel businesses, and the integration of the businesses and
        assets of certain of the third party affiliates, or PCS
        Affiliates, that provide wireless personal communications
        services, or PCS, under the Sprint(R) brand that we have
        acquired, and Nextel Partners, Inc., including the risk that
        these difficulties could prevent or delay Sprint Nextel's
        realization of the cost savings and other benefits we expect
        to achieve as a result of these integration efforts and the
        risk that Sprint Nextel will be unable to continue to retain
        key employees;

    --  the uncertainties related to the implementation of Sprint
        Nextel's business strategies and Sprint Nextel's investments
        in networks, systems, and other businesses, including
        investments required in connection with Sprint Nextel's
        planned deployment of a next generation broadband wireless
        network;

    --  the costs and business risks associated with providing new
        services and entering new geographic markets, including with
        respect to Sprint Nextel's development of new services
        expected to be provided using the next generation broadband
        wireless network that we plan to deploy;

    --  the impact of potential adverse changes in the ratings
        afforded Sprint Nextel's debt securities by ratings agencies;

    --  the ability of Wireless to continue to grow and improve
        profitability;

    --  the ability of Long Distance to achieve expected revenues;

    --  the effects of mergers and consolidations in the
        communications industry and unexpected announcements or
        developments from others in the communications industry;

    --  unexpected results of litigation filed against Sprint Nextel;

    --  the inability of third parties to perform to Sprint Nextel's
        requirements under agreements related to Sprint Nextel's
        business operations;

    --  no significant adverse change in Motorola, Inc.'s ability or
        willingness to provide handsets and related equipment and
        software applications or to develop new technologies or
        features for the iDEN network;

    --  the impact of adverse network performance, including, but not
        limited to, any performance issues resulting from reduced
        network capacity and other adverse impacts resulting from the
        reconfiguration of the 800 Megahertz band used to operate the
        iDEN network, as contemplated by the Federal Communications
        Commission's, or FCC's, Report and Order, released in August
        2004 and supplemented thereafter;

    --  the costs of compliance with regulatory mandates, particularly
        requirements related to the FCC's Report and Order, deployment
        of enhanced 911, or E911, services on the iDEN network and
        privacy-related matters;

    --  equipment failure, natural disasters, terrorist acts, or other
        breaches of network or information technology security;

    --  one or more of the markets in which Sprint Nextel competes
        being impacted by changes in political or other factors such
        as monetary policy, legal and regulatory changes or other
        external factors over which Sprint Nextel has no control; and

    --  other risks referenced from time to time in Sprint Nextel's
        filings with the Securities and Exchange Commission, including
        its Form 10-K for the year ended December 31, 2005, as
        amended, in Part I, Item 1A, "Risk Factors."

Sprint Nextel believes these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this presentation. Sprint Nextel is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks covering nearly 282 million people and serving more than 51 million customers at the end of third quarter 2006; industry-leading mobile data services; instant national and international walkie-talkie capabilities; and an award-winning and global Tier 1 Internet backbone. For more information, visit www.sprint.com.

                      Sprint Nextel Corporation
        CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (a)
                  (millions, except per share data)


TABLE No. 4                       Quarter Ended       Year-to-Date
                               ---------------------------------------
                               September September September September
                                  30,       30,       30,       30,
                                 2006      2005      2006      2005
                               ------------------- -------------------

Net Operating Revenues         $ 10,496  $  7,825  $ 30,584  $ 18,997
------------------------------ ------------------- -------------------
Operating Expenses
 Costs of services and
  products                        4,201     3,281    12,245     8,337
 Selling, general and
  administrative (1)              3,038     2,532     9,108     5,732
   (includes $107, $234, $296
    & $261 of merger and
    integration)
 Severance, lease exit costs
  and asset impairments (2)          50        37       128        68
 Depreciation                     1,460     1,027     4,264     2,549
 Amortization                     1,080       460     2,976       467
------------------------------ ------------------- -------------------
 Total operating expenses         9,829     7,337    28,721    17,153
------------------------------ ------------------- -------------------
Operating Income                    667       488     1,863     1,844
Interest expense                   (381)     (337)   (1,174)     (896)
Interest income                      74        71       275       142
Gain on early retirement of
 debt                                 6         -        14         -
Equity in (losses) earnings of
 unconsolidated investees, net       (2)      124        (1)      114
Other, net                           (7)       42        76        67
------------------------------ ------------------- -------------------
Income from continuing
 operations before income
 taxes                              357       388     1,053     1,271
Income tax expense                 (110)     (125)     (351)     (455)
------------------------------ ------------------- -------------------
Income from continuing
 operations                         247       263       702       816
Discontinued operations,
 net (3)                              -       253       334       772
                               ------------------- -------------------
Net Income                          247       516     1,036     1,588
Preferred stock dividends paid        -        (2)       (2)       (5)
------------------------------ ------------------- -------------------
Income Available to Common
 Shareholders                  $    247  $    514  $  1,034  $  1,583
                               ------------------- -------------------

Diluted Earnings Per Common
 Share                         $   0.08  $   0.23  $   0.35  $   0.91
Discontinued Operations               -     (0.11)    (0.11)    (0.45)
                               ------------------- -------------------
Diluted Earnings Per Common
 Share from Continuing
 Operations                    $   0.08  $   0.12  $   0.24  $   0.46
                               ------------------- -------------------

Diluted weighted average
 common shares                  2,968.7   2,242.1   2,987.5   1,745.0
                               ------------------- -------------------
Basic Earnings Per Common
 Share                         $   0.08  $   0.23  $   0.35  $   0.92
                               ------------------- -------------------

(a) Results for each of the periods reflected include the results of
 Nextel from the date of Sprint-Nextel merger and of each of the
 acquired PCS Affiliates as well as Nextel Partners from the date of
 each acquisition.

(1), (2), (3) See accompanying Notes to Financial Data.
                      Sprint Nextel Corporation
     PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                  (millions, except per share data)


TABLE No. 5                   Quarter Ended          Year-to-Date
                          --------------------------------------------
                          September  September  September  September
                              30,        30,        30,        30,
                             2006       2005       2006       2005
                          --------------------------------------------

Net Operating Revenues    $   10,496 $    9,698 $   30,584 $   28,385
----------------------------------------------------------------------
Operating Expenses
 Costs of services and
  products                     4,201      3,947     12,245     11,372
 Selling, general and
  administrative
  (includes $107, $37,
   $296 & $68 of merger
   and integration) (1)        3,038      3,195      9,108      8,989
 Severance, lease exit
  costs and asset
  impairments (2)                 50         37        128         68
 Depreciation                  1,460      1,240      4,264      3,667
 Amortization                  1,080        839      2,976      2,482
----------------------------------------------------------------------
 Total operating expenses      9,829      9,258     28,721     26,578
----------------------------------------------------------------------
Operating Income                 667        440      1,863      1,807
Interest expense                (381)      (396)    (1,174)    (1,201)
Interest income                   74         79        275        167
Gain (loss) on early
 retirement of debt                6          -         14        (37)
Equity in (losses)
 earnings of
 unconsolidated
 investees, net                   (2)       136         (1)       165
Other, net                        (7)        (7)        76         23
----------------------------------------------------------------------
Income from continuing
 operations before income
 taxes                           357        252      1,053        924
Income tax expense              (110)       (96)      (351)      (314)
----------------------------------------------------------------------
Income from Continuing
 Operations                      247        156        702        610
Discontinued Operations,
 net (3)                           -        253        334        772
----------------------------------------------------------------------
Net Income                       247        409      1,036      1,382
Preferred stock dividends
 paid                              -         (2)        (2)        (5)
----------------------------------------------------------------------
Income Available to Common
 Shareholders             $      247 $      407 $    1,034 $    1,377
                          --------------------------------------------


Diluted Earnings Per
 Common Share (a)
Diluted earnings per share$     0.08 $     0.14 $     0.35 $     0.47
Discontinued Operations            -      (0.09)     (0.11)     (0.26)
Special items                   0.02       0.08       0.05       0.11
                          --------------------------------------------
Adjusted EPS * (a)        $     0.10 $     0.13 $     0.29 $     0.32
                          --------------------------------------------

Diluted weighted average
 common shares               2,968.7    2,976.1    2,987.5    2,955.0
                          --------------------------------------------


(a) Earnings per share data may not add due to rounding.

(1),(2), (3) See accompanying Notes to Financial Data.

Pro forma consolidated statements of operations have been presented as
 if the Sprint-Nextel merger occurred at the beginning of each 2005
 period presented.
Because the merger occurred in the third quarter 2005, the third
 quarter and the year-to-date 2006 results reflect actual combined
 results. The pro forma results do not include the results of any
 acquired PCS Affiliate, Nextel Partners or Velocita prior to the
 dates of their respective acquisitions because they do not
 significantly affect reported results.
                       Sprint Nextel Corporation
           RECONCILIATIONS OF EARNINGS PER SHARE (Unaudited)
                   (millions, except per share data)
TABLE No. 6                                  As Reported
                               ---------------------------------------
                                  Quarter Ended       Year-to-Date
                               ------------------- -------------------
                               September September September September
                                  30,       30,       30,       30,
                                 2006      2005      2006      2005
                               ------------------- -------------------

Income Available to
 Common Shareholders           $    247  $    514  $  1,034  $  1,583
Preferred stock dividends
 paid                                 -         2         2         5
------------------------------ ------------------- -------------------
Net Income (Loss)                   247       516     1,036     1,588
Discontinued
operations, net                       -      (253)     (334)     (772)
------------------------------ ---------------------------------------
Income from Continuing
 Operations                         247       263       702       816
Special items
(net of taxes) (a)
  Restructuring and asset
   impairments                       31        24        77        43
  Merger and integration
  expense                            66       149       181       166
  Hurricane charges (excluding
   asset impairments)                 -        49         -        49
  Net gains on investment
   activities                         -       (90)      (40)      (90)
  (Gain) Loss on early
   retirement of debt                (4)        -        (9)        -
  Tax audit settlement              (42)        -       (42)        -
  Motorola consent fee                -         -         -         -
------------------------------ ------------------- -------------------
Adjusted Net Income*           $    298  $    395  $    869  $    984
------------------------------ ------------------- -------------------

Amortization (net of taxes)         650       276     1,792       281

------------------------------ ------------------- -------------------
Adjusted Net Income
 before Amortization*          $    948  $    671  $  2,661  $  1,265
------------------------------ ------------------- -------------------

 Diluted Earnings Per Share    $   0.08  $   0.23  $   0.35  $   0.91
Discontinued operations               -     (0.11)    (0.11)    (0.45)
------------------------------ ------------------- -------------------
Earnings Per Share from
 Continuing Operations             0.08      0.12      0.24      0.46
Special items                      0.02      0.06      0.05      0.10

------------------------------ ------------------- -------------------
Adjusted Earnings Per
 Share* (b)                    $   0.10  $   0.18  $   0.29  $   0.56
------------------------------ ------------------- -------------------

Amortization
(net of taxes) (d)                 0.22      0.12      0.60      0.16
------------------------------ ------------------- -------------------
Adjusted Earnings Per Share
 before Amortization* (b)      $   0.32  $   0.30  $   0.89  $   0.72
------------------------------ ------------------- -------------------

TABLE No. 6                                Pro Forma (c)
                             -----------------------------------------
                                 Quarter Ended        Year-to-Date
                              -------------------- -------------------
                              September  September September September
                                  30,       30,       30,       30,
                                   2006      2005      2006      2005
                              -------------------- -------------------

Income Available to
 Common Shareholders           $    247  $    407  $  1,034  $  1,377
Preferred stock dividends
 paid                                 -         2         2         5
----------------------------- -------------------- -------------------
Net Income (Loss)                   247       409     1,036     1,382
Discontinued
operations, net                       -      (253)     (334)     (772)
----------------------------- ----------------------------------------
Income from Continuing
 Operations                         247       156       702       610
Special items
(net of taxes) (a)
  Restructuring and asset
   impairments                       31        24        77        43
  Merger and integration
  expense                            66       204       181       248
  Hurricane charges
   (excluding asset
   impairments)                       -        49         -        49
  Net gains on investment
   activities                         -       (90)      (40)      (90)
  (Gain) Loss on early
   retirement of debt                (4)        -        (9)       22
  Tax audit settlement              (42)        -       (42)        -
  Motorola consent fee                -        50         -        50
----------------------------- -------------------- -------------------
Adjusted Net Income*           $    298  $    393  $    869  $    932
----------------------------- -------------------- -------------------

Amortization (net of taxes)         650       504     1,792     1,492

----------------------------- -------------------- -------------------
Adjusted Net Income
 before Amortization*          $    948  $    897  $  2,661  $  2,424
----------------------------- -------------------- -------------------

 Diluted Earnings Per Share    $   0.08  $   0.14  $   0.35  $   0.47
Discontinued operations               -     (0.09)    (0.11)    (0.26)
----------------------------- -------------------- -------------------
Earnings Per Share from
 Continuing Operations             0.08  $   0.05      0.24  $   0.21
Special items                      0.02      0.08      0.05      0.11

----------------------------- -------------------- -------------------
Adjusted Earnings Per
 Share* (b)                    $   0.10  $   0.13  $   0.29  $   0.32
----------------------------- -------------------- -------------------

Amortization
(net of taxes) (d)                 0.22      0.17      0.60      0.50
----------------------------- -------------------- -------------------
Adjusted Earnings Per Share
 before Amortization* (b)      $   0.32  $   0.30  $   0.89  $   0.82
----------------------------- -------------------- -------------------
(a) See accompanying Notes to Financial Data for more information on
 special items.
(b) Earnings per share data may not add due to rounding.
(c) Pro forma consolidated information has been presented as if the
 Sprint Nextel merger occurred at the beginning of 2005. The 2006
 periods reflect actual results.
(d) Rounding difference is pushed to this line.
                       Sprint Nextel Corporation
          CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
                              (millions)


TABLE No. 7
                                       -------------------------------
                                        September 30,   December 31,
                                            2006            2005
                                       -------------------------------
Assets
 Current assets
   Cash and cash equivalents           $        1,482  $        8,903
   Marketable securities                          626           1,763
   Accounts receivable, net                     4,500           4,166
   Inventories                                    982             776
   Deferred tax assets                          1,181           1,789
   Prepaid expenses and other current
    assets                                        740             779
   Assets of discontinued operations                -             916
----------------------------------------------------------------------
     Total current assets                       9,511          19,092

Investments                                       187           2,543
Property, plant and equipment, net             24,818          23,329
Goodwill                                       30,888          21,288
FCC licenses                                   19,599          18,023
Customer relationships, net                     8,058           8,651
Other intangible assets, net                    2,449           1,345
Other assets                                      648             632
Non-current assets of discontinued
 operations                                         -           7,857
----------------------------------------------------------------------

Total                                  $       96,158  $      102,760
                                       -------------------------------

Liabilities and Shareholders' Equity
 Current liabilities
   Accounts payable                    $        3,315  $        3,562
   Accrued expenses and other                   4,547           4,622
   Current portion of long-term debt
    and capital lease obligations               2,318           5,045
   Liabilities of discontinued
    operations                                      -             822
----------------------------------------------------------------------
    Total current liabilities                  10,180          14,051

Long-term debt and capital lease
 obligations                                   19,643          19,969
Deferred income taxes                          10,276          10,405
Postretirement and other benefit
 obligations                                      497           1,385
Other liabilities                               2,747           2,753
Non-current liabilities of discontinued
 operations                                         -           2,013
----------------------------------------------------------------------
  Total liabilities                            43,343          50,576

Redeemable preferred shares                         -             247

Shareholders' equity
  Common shares                                 5,902           5,846
  Treasury shares                              (1,505)              -
  Other shareholders' equity                   48,418          46,091
----------------------------------------------------------------------
Total shareholders' equity                     52,815          51,937
----------------------------------------------------------------------

Total                                  $       96,158  $      102,760
                                       -------------------------------
                      Sprint Nextel Corporation
     CONDENSED CONSOLIDATED CASH FLOW INFORMATION (Unaudited) (a)
                              (millions)

TABLE No. 8

----------------------------------------------------------------------
                                        September 30,   September 30,
For the Year-to-Date Period Ended           2006            2005
----------------------------------------------------------------------

Operating Activities
    Net income                         $        1,036  $        1,588
    Discontinued operations, net                 (334)           (772)
    Depreciation and amortization               7,240           3,016
    Deferred income taxes                         233             714
    Proceeds from communications
     towers lease transactions                      -           1,195
    Other, net                                   (583)           (525)
----------------------------------------------------------------------
Net cash provided by continuing
 operations                                     7,592           5,216
Net cash provided by discontinued
 operations                                       903           1,597
----------------------------------------------------------------------
Net cash provided by operating
 activities                                     8,495           6,813
----------------------------------------------------------------------

Investing Activities
    Cash paid for capital expenditures         (5,145)         (2,908)
    Cash transferred to Embarq, net of
     cash received                              1,821               -
    Proceeds from sale of Embarq notes          4,447               -
    Cash acquired in Nextel merger,
     net of cash paid                               -           1,183
    Business acquisitions, net of cash
     acquired                                 (10,483)           (949)
    Proceeds from maturities and sales
     of marketable securities                   1,128              49
    Proceeds from sales of assets and
     investments                                  216             597
    Distributions from unconsolidated
     investees, net                                 -             181
    Other, net                                   (544)            (25)
----------------------------------------------------------------------
Net cash used in investing activities          (8,560)         (1,872)
----------------------------------------------------------------------

Financing Activities
    Purchase and retirements of debt           (5,746)         (1,139)
    Retirement of redeemable preferred
     shares                                      (247)              -
    Purchase of treasury shares                (1,523)              -
    Proceeds from issuance of common
     shares                                       372             293
    Dividends paid                               (224)           (447)
    Other, net                                     12               4
----------------------------------------------------------------------
Net cash used in financing activities          (7,356)         (1,289)
----------------------------------------------------------------------

Change in cash and cash equivalents            (7,421)          3,652

Cash and cash equivalents, beginning
 of period                                      8,903           4,176
----------------------------------------------------------------------

Cash and cash equivalents, end of
 period                                $        1,482  $        7,828
                                       -------------------------------


(a) The 2005 statement is comprised of Sprint's stand-alone results,
 prior to the merger with Nextel Communications, Inc., plus combined
 Sprint and Nextel results for the remainder of the year. Results from
 PCS Affiliates and Nextel Partners acquired in 2006 are included
 beginning at each acquisition close date.
       PRO FORMA WIRELESS STATEMENTS OF OPERATIONS (Unaudited)
                              (millions)

TABLE No. 9                   Quarter Ended          Year-to-Date
                          --------------------------------------------
                          September  September  September  September
                              30,        30,        30,        30,
                             2006       2005       2006       2005
                          --------------------------------------------

Net Operating Revenues
  Service                 $    8,017 $    7,022 $   23,100 $   20,566
  Equipment                      843        817      2,397      2,253
  Wholesale, affiliate
  and other                      212        227        614        677
----------------------------------------------------------------------
Total                          9,072      8,066     26,111     23,496
----------------------------------------------------------------------

Operating Expenses
  Cost of services             1,908      1,742      5,465      4,856
  Cost of products             1,350      1,245      3,972      3,645
  Selling, general and
   administrative              2,655      2,501      7,893      7,444
  Severance, lease exit
   costs and asset
   impairments                    41         16        102         37
  Depreciation                 1,336      1,116      3,905      3,306
  Amortization                 1,080        838      2,976      2,481
----------------------------------------------------------------------
  Total operating expenses     8,370      7,458     24,313     21,769
----------------------------------------------------------------------

Operating Income          $      702 $      608 $    1,798 $    1,727
                          --------------------------------------------

NON-GAAP MEASURES AND
 RECONCILIATIONS

 Operating Income         $      702 $      608 $    1,798 $    1,727
 Special items:
   Severance, lease exit
    costs and asset
    impairments                   41         16        102         37
   Hurricane charges
    (excluding asset
    impairments)                   -         65          -         65
                          --------------------------------------------
 Adjusted Operating
  Income *                $      743 $      689 $    1,900 $    1,829
   Depreciation and
    amortization               2,416      1,954      6,881      5,787
                          --------------------------------------------
 Adjusted OIBDA *         $    3,159 $    2,643 $    8,781 $    7,616
                          --------------------------------------------

 Operating Income
  Margin (1)                     8.5%       8.4%       7.6%       8.1%
 Adjusted OIBDA Margin *        38.4%      36.5%      37.0%      35.9%


(1)Operating Income Margin percentage excludes wireless equipment
 revenue.

Pro forma consolidated statements of operations have been presented as
 if the Sprint-Nextel merger occurred at the beginning of each period
 presented. Because the merger occurred in the third quarter of 2005,
 the third quarter and year-to-date 2006 reflect actual results. The
 pro forma results do not include the results of any acquired PCS
 Affiliate, Velocita or Nextel Partners prior to the dates of their
 respective acquisitions because they do not significantly affect
 reported results.
                      Sprint Nextel Corporation
          NON-GAAP MEASURES AND RECONCILIATIONS (Unaudited)
                              (millions)


TABLE No. 10
                          --------------------------------------------
                                                   Long   Corporate &
For the Quarter Ended     Consolidated Wireless  Distance Eliminations
 September 30, 2006
----------------------------------------------------------------------

Operating Income (Loss)    $      667 $      702 $     73 $      (108)
  Special items (a)
   Severance, lease exit
    costs and asset
    impairments                    50         41        9           -
    Merger and integration
     expense                      107          -        -         107
                          --------------------------------------------
Adjusted Operating Income*        824        743       82          (1)
  Depreciation and
   amortization                 2,540      2,416      124           -
                          --------------------------------------------
Adjusted OIBDA*                 3,364      3,159      206          (1)
  Capital expenditures          1,843      1,473      255         115
                          --------------------------------------------
Adjusted OIBDA* less Capex $    1,521 $    1,686 $    (49)$      (116)
                          --------------------------------------------



                          --------------------------------------------
                                                   Long   Corporate &
For the Quarter Ended     Consolidated Wireless  Distance Eliminations
 September 30, 2005
----------------------------------------------------------------------

Operating Income (Loss)    $      488 $      572 $    124 $      (208)
  Special items
   Severance, lease exit
    costs and asset
    impairments                    37         16       21           -
    Merger and integration
     expense                      234          -        -         234
    Hurricane charges              79         65       14           -
                          --------------------------------------------
Adjusted Operating Income*        838        653      159          26
   Depreciation and
    amortization                1,487      1,362      124           1
                          --------------------------------------------
Adjusted OIBDA*                 2,325      2,015      283          27
   Capital expenditures         1,051        914       83          54
                          --------------------------------------------
Adjusted OIBDA* less Capex $    1,274 $    1,101 $    200 $       (27)
                          --------------------------------------------



                          --------------------------------------------
                           Pro forma   Pro forma   Long   Corporate &
For the Quarter Ended     Consolidated Wireless  Distance Eliminations
 September 30, 2005
----------------------------------------------------------------------

Operating Income (Loss)    $      440 $      608 $    124 $      (292)
  Special items
   Severance, lease exit
    costs and asset
    impairments                    37         16       21           -
    Merger and integration
     expense                      318          -        -         318
    Hurricane charges              79         65       14           -
                          --------------------------------------------
Adjusted Operating Income*        874        689      159          26
  Depreciation and
   amortization                 2,079      1,954      124           1
                          --------------------------------------------
Adjusted OIBDA*                 2,953      2,643      283          27
  Capital expenditures          1,406      1,262       83          61
                          --------------------------------------------
Adjusted OIBDA* less Capex $    1,547 $    1,381 $    200 $       (34)
                          --------------------------------------------


(a) See accompanying Notes to Financial Data for more information on
 special items.
                      Sprint Nextel Corporation
          NON-GAAP MEASURES AND RECONCILIATIONS (Unaudited)
                              (millions)


TABLE No. 10
                          --------------------------------------------
                                                   Long   Corporate &
For the Quarter Ended     Consolidated Wireless  Distance Eliminations
 June 30, 2006
----------------------------------------------------------------------

Operating Income (Loss)    $      712 $      660 $    155 $      (103)
  Special items
   Severance, lease exit
    costs and asset
    impairments                    40         33        7           -
    Merger and integration
     expense                      113          -        -         113
                          --------------------------------------------
Adjusted Operating Income*        865        693      162          10
   Depreciation and
    amortization                2,354      2,242      113          (1)
                          --------------------------------------------
Adjusted OIBDA*                 3,219      2,935      275           9
   Capital expenditures         1,359      1,064      200          95
                          --------------------------------------------
Adjusted OIBDA* less Capex $    1,860 $    1,871 $     75 $       (86)
                          --------------------------------------------



                          --------------------------------------------
                                                   Long   Corporate &
For the Quarter Ended     Consolidated Wireless  Distance Eliminations
 March 31, 2006
----------------------------------------------------------------------

Operating Income (Loss)    $      484 $      436 $    104 $       (56)
  Special items
   Severance, lease exit
    costs and asset
    impairments                    38         28       10           -
    Merger and integration
     expense                       76          -        -          76
                          --------------------------------------------
Adjusted Operating Income*        598        464      114          20
   Depreciation and
    amortization                2,346      2,223      122           1
                          --------------------------------------------
Adjusted OIBDA*                 2,944      2,687      236          21
   Capital expenditures         1,243      1,071       92          80
                          --------------------------------------------
Adjusted OIBDA* less Capex $    1,701 $    1,616 $    144 $       (59)
                          --------------------------------------------


(a) See accompanying Notes to Financial Data for more information on
 special items.
                      Sprint Nextel Corporation
          NON-GAAP MEASURES AND RECONCILIATIONS (Unaudited)
                              (millions)


TABLE No. 11
                          --------------------------------------------
                                                   Long   Corporate &
For the Nine Months Ended Consolidated Wireless  Distance Eliminations
 September 30, 2006
----------------------------------------------------------------------

Operating income (Loss)   $     1,863 $    1,798 $    332 $      (267)
    Special items (a)             424        102       26         296
                          --------------------------------------------
Adjusted operating income*      2,287      1,900      358          29
    Depreciation and
     amortization               7,240      6,881      359           -
                          --------------------------------------------
Adjusted OIBDA*                 9,527      8,781      717 $        29
    Capital expenditures        4,445      3,608      547         290
                          --------------------------------------------
Adjusted OIBDA* less Capex$     5,082 $    5,173 $    170 $      (261)
                          --------------------------------------------



                          --------------------------------------------
                                                   Long   Corporate &
For the Nine Months Ended Consolidated Wireless  Distance Eliminations
 September 30, 2005
----------------------------------------------------------------------

Operating income (Loss)   $     1,844 $    1,635 $    395 $      (186)
    Special items                 408        102       45         261
                          --------------------------------------------
Adjusted operating income
 (loss)*                        2,252      1,737      440          75
    Depreciation and
     amortization               3,016      2,654      361           1
                          --------------------------------------------
Adjusted OIBDA*           $     5,268 $    4,391 $    801 $        76
                          --------------------------------------------
    Capital expenditures        2,365      2,010      218         137
                          --------------------------------------------
Adjusted OIBDA* less Capex$     2,903 $    2,381 $    583 $       (61)
                          --------------------------------------------



                          --------------------------------------------
                           Pro forma   Pro forma   Long   Corporate &
For the Nine Months Ended Consolidated Wireless  Distance Eliminations
 September 30, 2005
----------------------------------------------------------------------

Operating income (Loss)   $     1,807 $    1,727 $    395 $      (315)
    Special items                 537        102       45         390
                          --------------------------------------------
Adjusted Operating Income*      2,344      1,829      440          75
    Depreciation and
     amortization               6,149      5,787      361           1
                          --------------------------------------------
Adjusted OIBDA*                 8,493      7,616      801          76
                          --------------------------------------------
    Capital expenditures        4,395      4,040      218         137
                          --------------------------------------------
Adjusted OIBDA* less Capex$     4,098 $    3,576 $    583 $       (61)
                          --------------------------------------------


(a) See accompanying Notes to Financial Data for more information on
 special items.
                       Sprint Nextel Corporation
           NON-GAAP MEASURES AND RECONCILIATIONS (Unaudited)
                              (millions)

TABLE No.12
                       --------------------------- -------------------
                              Quarter Ended           Year-to-date
                       --------------------------- -------------------
                       September  June   September September September
                          30,      30,      30,       30,       30,
                         2006     2006     2005      2006      2005
                       --------------------------- -------------------
Wireless Pro Forma
 Adjusted OIBDA*         $3,159  $2,935    $2,643    $8,781    $7,616
 Service, wholesale,
  affiliate and other
  net operating
  revenues                8,229   7,800     7,249    23,714    21,243
 Adjusted OIBDA
  margin*                  38.4%   37.6%     36.5%     37.0%     35.9%

 Operating income          $702    $660      $608    $1,798    $1,727
 Operating income
  margin                    8.5%    8.5%      8.4%      7.6%      8.1%


Long Distance
 Adjusted OIBDA*           $206    $275      $283      $717      $801
 Total net operating
  revenues                1,626   1,641     1,735     4,936     5,172
 Adjusted OIBDA
  margin*                  12.7%   16.8%     16.3%     14.5%     15.5%

 Operating income           $73    $155      $124      $332      $395
 Operating income
  margin                    4.5%    9.4%      7.1%      6.7%      7.6%


Consolidated Pro Forma
 Adjusted OIBDA*         $3,364  $3,219    $2,953    $9,527    $8,493
 Service, wholesale,
  affiliate and other
  net operating
  revenues                9,653   9,290     8,881    28,187    26,132
 Adjusted OIBDA
  margin*                  34.8%   34.7%     33.3%     33.8%     32.5%

 Operating income          $667    $712      $440    $1,863    $1,807
 Operating income
  margin                    6.9%    7.7%      5.0%      6.6%      6.9%
                      Sprint Nextel Corporation
                NON-GAAP MEASURES AND RECONCILIATIONS
                              (millions)


TABLE No. 13
                          --------------------------------------------
                              Quarter Ended          Year-to-Date
                          --------------------------------------------
                          September  September  September  September
                              30,        30,        30,        30,
                             2006       2005       2006       2005
                          --------------------------------------------

Adjusted OIBDA*           $    3,364 $    2,325 $   9,527 $     5,268
  Adjust for special items      (157)      (350)     (424)       (408)
  Proceeds from
   communications towers
   lease transactions              -          -         -       1,195
  Other operating
   activities, net (a)          (303)      (711)   (1,511)       (839)
  Capital expenditures        (1,885)    (1,051)   (4,798)     (2,365)
  Dividends paid                 (74)       (74)     (224)       (447)
  Proceeds from sales of
   assets                         54        378       211         589
  Other investing
   activities, net              (230)       284      (443)        831
                          --------------------------------------------
Free Cash Flow*                  769        801     2,338       3,824
  Decrease in debt, net       (1,783)        (9)   (5,746)     (1,024)
  Retirement of redeemable
   preferred shares                -          -      (247)          -
  Purchase of treasury
   shares                     (1,523)         -    (1,523)          -
  Cash transferred to
   Embarq, net of cash
   received and proceeds
   from the sale of Embarq
   notes                           -          -     6,268           -
  Discontinued operations
   activity, net (b)               -         68       367          83
  Cash acquired in Nextel
   merger, net of cash
   paid                            -      1,183         -       1,183
  Purchase of PCS
   Affiliates, Nextel
   Partners and Velocita,
   net of cash acquired         (867)      (949)  (10,483)       (949)
  Change in restricted
   cash                        1,124          -        93           -
  Distributions from
   unconsolidated
   investees, net                  -        181         -         181
  Investments in debt
   securities, net                91        134     1,128          49
  Proceeds from common
   shares issued                  46        187       372         293
  Other financing
   activities, net                12          7        12          12
                          --------------------------------------------
Change in cash and cash
 equivalents - GAAP       $   (2,131)$    1,603 $  (7,421)$     3,652
                          ============================================
TABLE No.14

                                                         September 30,
                                                             2006
                                                         -------------
Total Debt                                               $     21,961
  Less: Cash on hand                                           (1,482)
  Less: Current marketable securities                            (626)
                                                         -------------
Net Debt*                                                $     19,853
                                                         =============


(a) Other operating activities, net includes the change in working
 capital, change in deferred income taxes, miscellaneous operating
 activities and non-operating items in net income (loss).
(b) Discontinued operations activity, net includes $6.6 billion from
 the issuance of long-term debt.
                      Sprint Nextel Corporation
                         OPERATING STATISTICS

TABLE No. 15
----------------------------------------------------------------------
                             1Q06       2Q06       3Q06     YTD 2006
----------------------------------------------------------------------

Wireless

 Financial and Other
  Statistics
--------------------------

 Direct Post-Paid
  Subscribers
   Service revenue (in
    millions)             $    7,175 $    7,259 $    7,653 $   22,087
   ARPU                   $       62 $       62 $       61 $       62
   Churn                         2.1%       2.1%       2.4%       2.2%
   Additions (in
    thousands) (1)               563        210       (188)       585
   End of period
    subscribers (in
    thousands) (2)            39,103     41,405     41,675     41,675
   Hours per subscriber           17         17         17         17

 Direct Pre-Paid
  Subscribers
   Service revenue (in
    millions)             $      312 $      337 $      364 $    1,013
   ARPU                   $       36 $       34 $       33 $       34
   Churn (4)                     5.4%       6.0%       6.8%       6.0%
   Additions (in
    thousands)                   502        498        216      1,216
   End of period
    subscribers (in
    thousands) (3)             3,127      3,625      3,841      3,841

Wholesale Subscribers
   Additions (in
    thousands)                   228        (31)       177        374
   End of period
    subscribers (in
    thousands)                 5,382      5,351      5,528      5,528

Affiliate Subscribers
   Additions (in
    thousands) (1)                45         27         28        100
   End of period
    subscribers (in
    thousands)                 1,256      1,283        853        853

Number of cell sites on
 air (approximate)            55,000     57,000     59,000     59,000

Adjusted OIBDA* (in
 millions) (5)            $    2,687 $    2,935 $    3,159 $    8,781
Service, wholesale,
 affiliate and other net
 operating revenues (in
 millions)                $    7,685 $    7,800 $    8,229 $   23,714
Adjusted OIBDA margin*          35.0%      37.6%      38.4%      37.0%

Capital expenditures      $    1,071 $    1,064 $    1,473 $    3,608
Pro forma Adjusted OIBDA*
 less capital expenditures$    1,616 $    1,871 $    1,686 $    5,173
(1)Direct post-paid and affiliate net subscriber additions for the
    first quarter 2006 have been reported before transfers from the
    affiliate subscriber base totaling 1,605,000.
   Direct post-paid additions for the second quarter 2006 have been
    reported before acquisitions of subscribers from Nextel Partners
    totaling 2,092,000. Direct post-paid additions for the third
    quarter 2006 have been reported before transfers from the
    affiliate subscriber base totalling 458,000.

(2)Direct post-paid end of period subscribers reflect a decrease in
    the first quarter and year-to-date 2006 due to a reclassification
    of 42,000 employee phone rate plans from revenue-generating to
    non-revenue-generating.

(3)Direct prepaid end of period subscribers for the first quarter 2006
    and year-to-date 2006 reflect a beginning balance adjustment of
    59,000 subscribers to exclude prepaid subscribers acquired from
    affiliates in the third and fourth quarters 2005.

(4)Represents prepaid churn normalized for a change in the first
    quarter 2006 in the treatment of low-balance customers.

(5)See Tables 10 and 11 for Adjusted OIBDA* reconciliation.
Long Distance

Financial and Other Statistics (dollars in millions, except where
 stated)
----------------------------------------------------------------------

Total Long Distance Net
 Operating Revenues           $  1,669  $  1,641  $  1,626  $   4,936
  Voice net operating revenue $  1,009  $  1,003  $    989  $   3,001
  Data net operating revenue  $    375  $    366  $    346  $   1,087
  Internet net operating
   revenue                    $    225  $    217  $    237  $     679
  Other net operating revenue $     60  $     55  $     54  $     169

Total Operating Expenses      $  1,565  $  1,486  $  1,553  $   4,604
  Costs of services and
   products                   $  1,098  $  1,085  $  1,141  $   3,324
  Selling, general and
   administrative             $    335  $    281  $    279  $     895
  Depreciation                $    122  $    113  $    124  $     359
  Severance, lease exit costs
   and asset impairments      $     10  $      7  $      9  $      26

Operating income              $    104  $    155  $     73  $     332
Operating income margin            6.2%      9.4%      4.5%       6.7%

Adjusted OIBDA*               $    236  $    275  $    206  $     717
Adjusted OIBDA margin*            14.1%     16.8%     12.7%      14.5%

Capital expenditures          $     92  $    200  $    255  $     547
Adjusted OIBDA* less capital
 expenditures                 $    144  $     75  $    (49) $     170

YOY voice volume growth             10%        5%        5%         7%

                      Sprint Nextel Corporation
                 NOTES TO FINANCIAL DATA (Unaudited)

(1)In the third quarter 2006, we recorded merger and integration costs
    of $107 million (pre-tax). All merger costs were related to the
    Sprint-Nextel merger and the acquisition of PCS Affiliates. Merger
    and integration costs are considered to be non-recurring in
    nature, and have been reflected as unallocated corporate costs and
    therefore excluded from segment results.

(2)In the third quarter 2006, we recorded severance, lease exit costs
    and asset impairment charges of $50 million (pre-tax), which
    consists of about $31 million related to work force reductions and
    lease termination charges, and $19 million of asset impairments
    primarily related to the abandonment of various assets including
    certain cell sites under construction. Severance, lease exit costs
    and asset impairment charges are allocated to the appropriate
    segment results.

(3)In May 2006 we entered into a separation and distribution agreement
    with Embarq Corporation, which consists primarily of the business
    that we had reported as the Local segment in our consolidated
    financial statements in prior periods, and, at the time, was a
    wholly owned subsidiary, and on May 17, 2006, we completed the
    spin off of Embarq. The results of the discontinued operations
    (net of tax), have been reclassified out of the operating results
    as of the first day of each period presented.

    CONTACT: Sprint Nextel Corp.
             Media Relations
             James Fisher, 703-433-8677
             james.w.fisher@sprint.com
             or
             Investor Relations
             Kurt Fawkes, 800-259-3755
             Investorrelations@sprint.com

    SOURCE: Sprint Nextel Corp.


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