RESTON, Va. and LUBBOCK, Texas -- Sprint Nextel Corp. (NYSE: S) and Alamosa Holdings, Inc. (NASDAQ: APCS) today announced an agreement for Sprint Nextel to acquire Alamosa Holdings for approximately $4.3 billion, including the assumption of approximately $900 million of net debt. This transaction value represents 9.8x projected 2006 Adjusted Operating Income Before Depreciation and Amortization ("Adjusted OIBDA" *).

Under the terms of the agreement, Sprint Nextel will acquire all of Alamosa's outstanding common shares for $18.75 per share (including Series B Preferred stock on an "as converted" basis) in an all-cash merger. The acquisition is subject to the approval of Alamosa shareholders and customary regulatory approvals, and is expected to be completed in the first quarter of 2006.

"This acquisition closes a long partnership with the management and shareholders of Alamosa," said Gary Forsee, president and CEO, Sprint Nextel. "As the largest PCS affiliate, we appreciate their efforts over the years to grow Sprint's business and we look forward to continuing a strong relationship with their customers. This transaction will significantly expand our direct customer base and territory, and will provide additional value for our shareholders."

David Sharbutt, chairman and chief executive officer of Alamosa Holdings, Inc., said: "We are pleased to accept Sprint's offer to acquire our company. We have enjoyed a successful business relationship with Sprint that has benefited both companies. We not only helped Sprint build the nation's best nationwide wireless network, but also successfully brought the Sprint suite of products and services to our territories over the past 6 years. Our shareholders and employees can be proud of our results and the value that we have created in Alamosa."

Sprint Nextel Corp.