Verizon Communications (VZ)

Positioned to Deliver Long-Term Growth

“In last year’s turbulent economy, we took significant steps to strengthen Verizon going forward,” said Chairman and CEO Ivan Seidenberg. “We focused on expanding wireless data and set the stage to deploy a nationwide 4G network later this year. We also expanded the scale of FiOS and our global IP network. We saw growth in all these areas in 2009, and we expect continued growth in 2010 and beyond, with a goal of delivering long-term shareowner value.”

In the fourth quarter, Verizon continued streamlining its wireline operations. The company also incurred costs in preparation for the spinoff of wireline access lines to Frontier Communications, a transaction that Seidenberg said was on track to close in the second quarter of 2010.

Verizon News Release, page 3

Seidenberg added: “Our fourth-quarter earnings reflect costs to re-size and simplify our wireline business. This transformation is realigning our wireline cost structure, improving productivity, and focusing resources on sales of FiOS and strategic business services. Verizon Wireless also underwent a successful transformation in 2009. Our customer base moved more toward data-centric devices and services, and we are successfully integrating Alltel operations and capturing merger synergies.”