BellSouth Restructures

ATLANTA -- Continuing its transformation from a narrowband to a broadband company, today BellSouth announces a new operational structure effective January 1, 2006.

The new operational structure aligns around two customer units. David Scobey is named president Retail Markets which will focus on BellSouth's residential and small business customers. Reporting to Scobey will be William Pate, Chief Marketing Officer-Retail Markets, and Paulino Barros, Chief Product Officer-Retail Markets.

Business Markets will provide support for enterprise and wholesale customers and will be led by Dick Anderson, vice chairman and president, Business Markets. Reporting to Anderson will be Donna Lee, Chief Marketing Officer-Business Markets.

Within each operating unit sales, product development, marketing, and customer service functions will work together to deliver innovative products with superior customer service.

In outlining the changes, Mark Feidler, BellSouth President and Chief Operating Officer noted, "As competitive pressures intensify, speed to market is critical to success in the communications marketplace. This new alignment is designed to simplify our organization, provide focus on these two markets, and streamline the process for delivering customer solutions. This will better enable us to get the right products to the right customers more quickly."

Also announced today, Keith Cowan joins the Network Services organization, as Chief Field Operations Officer, reporting to Rod Odom, President, Network Services.

Web Development officer named

Rex Adams is named Web Development Officer, and will now report to Fran Dramis, CIO, E-Commerce and Security Officer. In his new role, Adams will lead BellSouth's on-line strategy.

Funderburg, Shaftman announce their retirement

Jan Funderburg, president, Consumer Services, and Fred Shaftman, president, BellSouth Business, have elected to retire effective January 1, 2006.

"Jan has made tremendous contributions to BellSouth's success over the course of her 39 years with the company," said BellSouth Chairman and CEO Duane Ackerman. "We wish her all the best."

"Fred's contributions to the telecommunications industry - both during his BellSouth career and as a leader at Universal Communications Systems - have been outstanding. His sales expertise has been invaluable as we faced intensifying competition in the large business market and we are grateful for his years of service," Ackerman said.

BellSouth Corp.