Sprint Nextel Completes Merger

OVERLAND PARK, Kan. and RESTON, Va. -- Sprint (NYSE:FON) and Nextel Communications Inc. (NASDAQ:NXTL) today announced that they have completed their merger transaction, forming Sprint Nextel Corporation. Sprint Nextel common stock will begin trading on the New York Stock Exchange Monday, Aug. 15, 2005, under the symbol "S."

Gary Forsee, chief executive officer and president of Sprint Nextel, said, "This is a great day for our investors, customers, employees and partners. Through a broad portfolio of product and service offerings and a passion for meeting the needs of our customers, Sprint Nextel expects to win in the market. As we look to the future, Sprint Nextel will provide customers innovative wireless data services with media and entertainment content augmented by a global IP network that provides consumer, business and government customers compelling integrated communications solutions."

Tim Donahue, executive chairman of Sprint Nextel, commented, "Communication is changing, and we are not only ready for it, we will lead it. In solid, tangible, measurable ways Sprint Nextel will put points on the scoreboard as we drive growth and profitability in a wireless world. The leadership team has worked tirelessly over the past several months to position the combined company for a seamless integration and Sprint Nextel is ready to hit the ground running to deliver on its promise to all of its customers."

Merger Transaction

Each outstanding share of Nextel common stock will be converted into a combination of Sprint Nextel common stock and cash with a value equal to 1.3 shares of Sprint Nextel common stock. The amount of stock and cash consideration will be computed in accordance with the adjustments set forth in the Sprint Nextel merger agreement and will be based on, among other things, the actual number of shares of Sprint and Nextel stock outstanding immediately before the completion of the merger. The preliminary calculations of the stock exchange ratio, cash ratio and per share cash merger consideration for Nextel common stock are expected to be announced prior to market open Monday, Aug. 15, 2005.

Sprint Corp.