SBC Grows Q3 Revenues

SAN ANTONIO -- SBC Communications Inc. (NYSE:SBC - News):

SBC Communications Inc. (NYSE:SBC - News) today reported strong third-quarter results driven by the continued success of its bundling strategy and by solid momentum in key growth products such as DSL and long distance.

SBC reported third-quarter 2004 earnings of $2.1 billion, or $0.63 per diluted share, and earnings from continuing operations of $1.2 billion, or $0.38 per diluted share. Reported revenues from continuing operations grew 1.4 percent, and revenues including proportionate results from Cingular Wireless grew 2.1 percent.

"Our strategic focus and our execution continue to produce solid results," said Edward E. Whitacre Jr., SBC chairman and chief executive officer. "We delivered our second consecutive quarter of positive revenue growth, with an operating margin above our full-year outlook. We accelerated DSL growth and are solidly on track to reach our target of more than 5 million DSL lines in service by year's end. And we continue to lead the industry in long distance growth, as we added 1.3 million or more long distance lines for the seventh quarter in a row.

"We have tremendous opportunities ahead - in nationwide wireless, the large-business market and next-generation consumer services such as video," Whitacre said. "The major steps we're taking today will be key to SBC's leadership in high-growth markets for years to come.

"Soon, Cingular Wireless expects to receive approvals and close its proposed acquisition of AT&T Wireless," Whitacre said. "This will create a strong nationwide platform for high-quality service and innovation, and customers will benefit from superior coverage and new services. I am confident that Cingular's management team will do an outstanding job as they integrate the two companies, deploy new technologies and build one of the world's great wireless businesses.

"In another important move for SBC's future, the Federal Communications Commission this month provided clarity on rules for fiber deployment in our networks" Whitacre said. "As a result of this positive development, we are moving forward aggressively to deploy an advanced network to deliver next-generation, integrated all-digital TV, super-high-speed broadband and IP voice services. This initiative, called Project Lightspeed, has the potential to redefine the future for our consumer business."

SBC Communications Inc.