April 18, 2006
Sprint Nextel Elects Directors, Announces Action on Second and Third Quarter Dividends
RESTON, Va. — 04/18/2006
Sprint Nextel Corp. (NYSE: S) today announced its plans to declare - subject to approval at a future board meeting -- a second quarter cash dividend payable on June 30, 2006, to Sprint Nextel common stock shareholders of record on the earlier of the date that shares of EMBARQ™ common stock are distributed to Sprint Nextel's shareholders, or June 9, 2006. The aggregate amount of the second quarter cash dividend is expected to be approximately $75 million, which is equivalent to the quarterly dividend amount that EMBARQ is expected to pay to its shareholders beginning in its first full calendar quarter of operation following the spin-off.
The company also announced that, beginning with the third quarter of 2006, it intends to continue to declare and pay - subject to board approval in the future - quarterly cash dividends at the rate of $0.025 per share to Sprint Nextel's common stock shareholders.
The announcement came at the 2006 Annual Meeting during which, according to preliminary results, shareholders voted to elect each of the following nominees for a one-year term: Keith J. Bane, Gordon M. Bethune, Timothy M. Donahue, Frank M. Drendel, Gary D. Forsee, James H. Hance, V. Janet Hill, Irvine O. Hockaday, Jr., William E. Kennard, Linda Koch Lorimer, Stephanie M. Shern and William H. Swanson. Shareholders also ratified the appointment of KPMG, LLP, as independent auditor.
Of two shareholder proposals, both of which the company opposed, a proposal for majority voting in the election of directors passed, and a proposal concerning cumulative voting failed. All of the vote tallies are preliminary until certified by an independent election inspector.
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, plans for the declaration and payment of dividends by Sprint Nextel and Embarq. 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 the financial condition, earnings and cash flows from operations, growth prospects, funding requirements, applicable law and any other factors that the respective boards of directors of the two companies deem relevant; and the risks that have been described from time to time in Sprint Nextel's and Embarq's respective reports filed with the SEC. 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.