Sprint Reports Q1 676634Sprint Reports Q1 676634

OVERLAND PARK, Kan. -- Sprint Nextel Corp. (NYSE: S) today reported first quarter 2010 financial results. The company announced first quarter consolidated net operating revenues of approximately $8.1 billion, a net loss of $865 million, which includes a non-cash $365 million (12 cents per share) increase in valuation allowance on deferred tax assets resulting from net operating loss carryforwards generated during the first quarter, and a diluted loss per share of 29 cents. Excluding the increased valuation allowance on deferred tax assets, the diluted loss per share would have been 17 cents for the quarter. The company generated $506 million of Free Cash Flow* in the quarter. As of March 31, 2010, Sprint had approximately $4.4 billion in cash, cash equivalents and short-term investments.

Sprint lost a total of 75,000 net subscribers in the quarter. Driven by the best year-over-year improvement in post-paid gross subscriber additions and the highest prepaid gross subscriber additions in five years, the company achieved the best total company net subscriber results since the third quarter of 2007. Net post-paid subscriber losses improved year-over-year as the company lost 670,000 fewer subscribers than in the first quarter of 2009.

"Sprint's first quarter results, including increased net operating revenues and significant year-over-year net post-paid subscriber improvements show we continue to make progress in improving the business," said Dan Hesse, Sprint Nextel CEO.

Consumers and businesses alike are beginning to recognize that Sprint offers what others don't - simple and predictable value-pricing, cutting-edge devices, a growing 4G network that provides download speeds up to 10 times faster than 3G networks, and now the industry's leading money-back guarantee.

In addition, Sprint's prepaid offerings continue to grow with the new $50 unlimited offer on its CDMA network and increased handset selection including the introduction of the first BlackBerry device on Boost. Sprint also continued with the successful launch of the Assurance Wireless brand, now available in five states, and introduced an enhanced Virgin Mobile broadband offer.

"Our ongoing focus on improving the customer experience, generating cash and strengthening the brand continues to pay off. Customer satisfaction has improved for the ninth consecutive quarter and we generated more than $500 million in Free Cash Flow.* The January launch of the award-winning and critically acclaimed Sprint Overdrive TM 3G/4G Mobile Hotspot, the upcoming launch of the world's first 3G/4G Android TM handset, HTC EVO TM 4G, and the introduction of the industry's first true money-back guarantee demonstrate Sprint's innovation," Hesse said.

Beyond the Overdrive and HTC EVO 4G, since the beginning of 2010 Sprint has launched or announced several additional new devices including, Motorola i1, the world's first push-to-talk Android-powered smartphone, and Motorola Brute TM i680, which combines ultra-rugged durability with the best-in-class push-to-talk services of Nextel Direct Connect(R). Sprint also announced the latest additions to its growing portfolio of eco-friendly devices - LG Remarq TM and Samsung Restore TM, as well as the new BlackBerry(R) Bold TM 9650 smartphone with multimedia features and international roaming capabilities. Sprint launched the fashionable LG Lotus Elite TM and LG Rumor TouchTM, and Boost Mobile(R) launched its first-ever QWERTY clamshell phone, the Sanyo Incognito TM by Kyocera, and the BlackBerry Curve TM 8330.

Sprint launched 4G service in Houston in first quarter 2010 and Sprint 4G is now available in 28 markets serving nearly 40 million people. As previously announced by Clearwire Corp. (NASDAQ: CLWR), coverage is expected to reach up to 120 million people by the end of 2010 including deployments in Boston, New York, San Francisco, Kansas City and Washington, D.C.

Sprint Corp. (NYSE: S)