May 18, 2006

Sprint Nextel Completes Spin-off of Local Telephone Business to Focus on Mobility Products and Services

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James Fisher, 703-433-8677

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For more information including consumer FAQs, visit www.embarq.com.  

RESTON, Va. — 05/18/2006

Sprint Nextel Corp. (NYSE: S) has completed the spin-off of its local telephone operations - which will now operate as Embarq Corp., an independent publicly traded company - allowing Sprint Nextel to focus primarily on building its position in the market for mobile communications products and services.

The spin-off was completed yesterday when each Sprint Nextel shareholder of record on May 8, 2006, received one share of Embarq (NYSE: EQ) common stock for every 20 shares of Sprint Nextel voting and non-voting common stock held. No action was required by Sprint Nextel shareholders to receive the Embarq stock. Sprint Nextel stockholders receive cash instead of fractional shares of Embarq common stock, as no fraction shares will be distributed.

"Completing the spin-off of Embarq - a new company with a strong balance sheet and promising future - marks another major milestone in the strategy that drove the merger of Sprint and Nextel," said Sprint Nextel president and CEO Gary Forsee. "Our company is now positioned to focus on our vision of converging our unique wireless and Internet wireline assets to create an entirely new suite of mobility and IP-based products and services for our customers.

"With each month since our merger concluded last August, we've announced steps that support our strategy to become a data services company with the ability to erase the barriers between wireless and wireline services for consumer and business customers. In the months ahead, we'll build on that momentum as we bring greater innovation to the marketplace, allowing customers to do what they want, where they want, when they want," Forsee said.

Sprint's progress and plans include:

  • Continued to enhance the Sprint Power Vision(SM) network, the industry's most powerful wireless network for mobile broadband services, by extending our high-speed footprint to more wireless users than any other carrier. By year-end 2006, the network is expected to reach 190 million people. Sprint will implement second-generation technology upgrades later this year, with additional mobility benefits to users planned to begin in 2007.
  • Formed a joint venture with four of the nation's leading cable companies to offer integrated wireless and cable based services leading to the development of next-generation converged video entertainment, wireline and wireless data and communications products and services. The venture will bring consumers new devices that combine the power and content of cable with the mobility of wireless. Initial launch of integrated services is planned for seven pilot cities in the second half of 2006, with next-generation services scheduled to be available on a national scale in 2007.
  • Enhanced our relationships with various cable companies through continued growth in providing services that support the wireline voice-over-the-Internet services offered by cable companies to their customers.
  • Continued development of a dual-mode phone designed to combine Nextel walkie-talkie features and the power of Sprint voice and data services in the second half of 2006.
  • Continued industry leadership in wireless data, with the highest data revenue per user, and plans to introduce more products, services and features to enhance the benefits of mobility for business and consumer customers.
  • Plan to announce a technology selection in mid-2006 for the provision of fourth generation wireless broadband services in the 2.5 GHz spectrum. Sprint Nextel plans to offer integrated wireless solutions by incorporating devices, applications and smart network technologies.

Each of these developments brings together Sprint Nextel's strong spectrum holdings, powerful wireless CDMA and iDEN networks and global IP backbone - a suite of assets unmatched in the industry - for applications that will allow customers access to data, voice and video at work, at home or on the go.

"We have the strategy, we have the best assets and we are focusing on serving our customers better and better every day," Forsee said. "As we move into this next phase of our company's mission, I couldn't be more excited about what lies ahead."

Goldman Sachs & Co. and Lehman Brothers Inc. acted as financial advisors to Sprint Nextel on this transaction.

About Sprint Nextel
Sprint Nextel offers a comprehensive range of communications services bringing mobility to consumer, business and government customers. Sprint Nextel is widely recognized for developing, engineering and deploying innovative technologies, including two robust wireless networks offering 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.

Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
A number of the matters discussed in this document that are not historical or current facts deal with potential future circumstances and developments, in particular, information regarding expected investment, network capability and expansion, and the availability of applications and services. The discussion of such matters is qualified by the inherent risks and uncertainties surrounding future expectations generally and also may materially differ from actual future experience involving any one or more of such matters. Such risks and uncertainties include: competitive conditions and market acceptance of Sprint Nextel's products and services; costs and business risks associated with providing new services; uncertainties related to investments in networks, systems and other businesses; economic conditions in targeted markets; performance of our technologies; timely development and delivery of new technologies; actions by regulatory agencies and the risks that have been described from time to time in Sprint Nextel's reports filed with the SEC, including its annual report on Form 10-K for the year ended December 31, 2005, as amended, and its quarterly report on Form 10-Q for the period ended March 31, 2006. Forward-looking statements speak only as of the date they were made, and Sprint Nextel has no intention or obligation to update or revise any forward-looking statements in light of new information or future events.

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