LITTLE ROCK, Ark. - Alltel today announced that the company achieved double-digit growth in revenues and net income during the fourth quarter and for all of 2005, driven by its wireless business. Fully diluted earnings per share under Generally Accepted Accounting Principles (GAAP) was 66 cents for the quarter, including several one-time items such as integration and hurricane-related expenses. Fully diluted earnings per share under GAAP was $3.87 for the year. Fully diluted earnings per share from current businesses was 77 cents for the quarter, which includes a weighted average share count of 389 million, and $3.41 for the year.

"This was a busy year strategically for our company and I am very proud of the entire team for all that we accomplished," said Scott Ford, Alltel president and chief executive officer. "We delivered a strong increase in wireless net customer additions and gains in average revenue per customer for the fourth quarter, capping a year where Alltel accelerated wireless growth by expanding our customer base and creating the nation's largest wireless network. This year we also launched a new brand with proof points that are resonating with our wireless customers."

In 2005, Alltel completed transactions with Western Wireless, Cingular, PSC Wireless and U.S. Cellular. That expansion added parts of nine new states to the Alltel network: California, Idaho, Minnesota, Montana, Nevada, North Dakota, South Dakota, Utah and Wyoming. The transactions also significantly expanded Alltel's wireless operations in several other states, including Arizona, Colorado, New Mexico, Oklahoma and Texas.

With those transactions, Alltel's wireless customer base increased to more than 10 million for the first time - a 24 percent year-over-year increase - and the company now serves a population of nearly 76 million, a 22 percent increase from 2004. Alltel is the nation's fifth-largest wireless carrier. In addition, Alltel is the largest independent roaming partner for the nation's top four wireless carriers.

Alltel closed the year by announcing it would spin off its wireline business and merge it with VALOR Communications Group Inc. in a $9.1 billion transaction. "In 2006, we will create two companies - separate wireless and wireline businesses - that will be positioned to capitalize on strategic, operational and financial opportunities," Ford said.

Among the financial highlights for the fourth quarter:

• Total revenues were $2.6 billion, a 21 percent increase from a year ago. Total operating income under GAAP was $523 million, a 4 percent increase. Operating income from current businesses was $572 million, a 14 percent increase. Net income under GAAP was $255 million. Net income from current businesses was $301 million, an 11 percent increase.
• Wireless revenues were $1.8 billion, a 33 percent increase from a year ago. Segment income was $300 million, a 15 percent increase.
• Total wireless ARPU was $52.13, a 6 percent increase year-over-year. Post-pay churn companywide was 1.83 percent. Within Alltel's heritage markets, ARPU was $50.54, a 3 percent increase. Post-pay churn in the heritage markets was 1.73 percent.
• The company added 147,000 net new wireless customers. Within the heritage markets, Alltel added 166,000 customers, including 76,000 post-paid and 90,000 pre-paid. Alltel added 18,000 net customers in the former Western Wireless markets. The company lost 37,000 customers in the former Cingular markets.
• Wireline revenues were $598 million, down 2 percent. Segment income was $256 million, an 8 percent increase. Alltel added 38,000 net new broadband customers. Wireline average revenue per customer was $68.72, a 3 percent increase. Feature revenue per eligible line increased 5 percent.
• Equity free cash flow from current businesses was $309 million, a 37 percent increase. Net cash from operations was $830 million.

In the fourth quarter, Alltel agreed to purchase Midwest Wireless, which is expected to add about 400,000 wireless customers in southern Minnesota, northern and eastern Iowa, and western Wisconsin. The company also completed or announced transactions that will allow it to meet all divestiture requirements related to the merger with Western Wireless.

"Alltel delivered fourth-quarter and annual results that were driven by solid performances in both our wireless and wireline businesses," Ford said. "We continue to improve our wireless customer growth and again delivered year-over-year increases in ARPU while the wireline business continued to grow our broadband customer base."

Among the financial highlights for the year:

• Total revenues were $9.5 billion, a 15 percent increase from year-end 2004. Total operating income under GAAP was $2.1 billion, a 1 percent increase. Operating income from current businesses was $2.2 billion, an 11 percent increase. Net income under GAAP was $1.3 billion. Net income from current businesses was $1.2 billion, a 13 percent increase.
• Wireless revenues were $6.3 billion, a 24 percent increase. Segment income was $1.3 billion, a 23 percent increase. Alltel added 2 million new wireless customers, driven mainly by the acquisition of Western Wireless.
• Total wireless ARPU was $51.44, a 7 percent increase. Post-pay churn companywide was 1.8 percent. ARPU in Alltel's heritage markets was $50.42, a 5 percent increase. Post-pay churn in those markets was 1.7 percent.
• Wireline revenues were $2.4 billion, down 2 percent. Segment income was $904 million, also down 2 percent.  The company added 154,000 broadband customers, a 71 percent increase that brings its broadband customer base to 398,000.  Wireline average revenue per customers was $67.21, a 2 percent increase. Feature revenue per eligible line increased 5 percent.
• Equity free cash flow from current businesses was $1.3 billion, an 11 percent increase from a year ago. Net cash from operations was $2.7 billion.

Alltel is a customer-focused communications company with more than 15 million customers in 36 states and nearly $10 billion in annual revenues.