SAN ANTONIO -- SBC Communications Inc. (NYSE:SBC - News) today announced that concurrent with its fourth-quarter earnings it now recognizes the fair value of stock options as an expense. This expense is included in reported results for both current and prior-year periods. For the fourth quarter ended Dec. 31, 2002, SBC's reported earnings totaled $2.4 billion, or $0.71 per diluted share, compared with $1.2 billion, or $0.35 per diluted share, in the fourth quarter of 2001. Before special items and the impacts of expensed stock options, SBC's fourth-quarter 2002 earnings were $0.62 per diluted share compared with $0.64 in the year-ago period. Fourth-quarter reported revenues totaled $11.2 billion, down 5.8 percent from $11.9 billion in the year-ago period. Together with proportionate revenues from Cingular Wireless, the nationwide wireless company 60 percent owned by SBC, revenues totaled $13.3 billion, down 5.3 percent from $14.0 billion in the year-ago period. Total operating expenses declined 7.2 percent to $9.0 billion on a reported basis and 5.7 percent to $10.2 billion before special items and including proportionate results from Cingular. "Our results reflect a continued difficult environment marked by a struggling economy, a tough competitive market and an uneven regulatory landscape," said Edward E. Whitacre Jr., chairman and CEO. "Revenues continued to be under intense pressure, with earnings driven by very effective cost discipline. "Despite these challenges, we made progress in a number of key areas during the fourth quarter, including significant growth in DSL subscribers, launching new product bundles, and successful entry into our largest long-distance market, California."SBC Communications Inc.