Cingular Wireless' Expected Operating Synergies From AT&T Wireless Acquisition Up Substantially From Previous Guidance

Parent SBC Expects Significantly Improved Impacts on Reported Earnings; Excluding Accounting Costs, Expects Positive Earnings Impact by 2006 - 1 Year Earlier Than Previously Forecast

San Antonio, Texas, December 1, 2004

Cingular Wireless, the nation's largest wireless provider and a joint venture between SBC Communications Inc. (NYSE: SBC) and BellSouth Corp. (NYSE: BLS), will report today that it completed key integration activities ahead of schedule following its acquisition of AT&T Wireless. In addition, based on analysis completed since the acquisition, Cingular now expects to realize substantially increased operating synergies and reduced accounting impacts compared with the outlook it provided when the acquisition agreement was announced in February.

As a result, SBC, which owns 60 percent of Cingular, expects the AT&T Wireless acquisition to have significantly improved impacts on 2005-2007 earnings than earlier forecast. SBC also expects that excluding accounting costs, the acquisition will be earnings positive starting in 2006 — one year earlier than forecast in February.

On a reported basis, SBC expects the diluted earnings per share impact from the acquisition to be $(0.07) to $(0.09) in the fourth quarter of 2004; $(0.19) to $(0.21) in 2005; $(0.01) to $(0.03) in 2006; and a positive $0.27 to $0.30 in 2007. The expected impacts are significantly improved compared with SBC's earlier estimates, which forecast a 2007 earnings impact of $0.01 to $0.03 per share.

SBC expects earnings per share impacts before accounting costs to be $(0.05) to $(0.07) in the fourth quarter of 2004; $(0.09) to $(0.11) in 2005; $0.05 to $0.07 in 2006; and $0.29 to $0.32 in 2007. The expected positive impact in 2007 is up substantially from SBC's earlier forecast of $0.12 to $0.14 per share.

Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in SBC's filings with the Securities and Exchange Commission. SBC disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.

SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves more than 46 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation's leading providers of Internet services. SBC companies also now offer satellite TV service. Additional information about SBC and SBC products and services is available at