#1Verizon Wireless Update Denny Strigl President and CEO verizon#2"Safe Harbor" Statement This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: materially adverse changes in economic and industry conditions and labor matters, including workforce levels and labor negotiations, and any resulting financial and/or operational impact, in the markets served by us or by companies in which we have substantial investments; material changes in available technology; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations; the final results of federal and state regulatory proceedings concerning our provision of retail and wholesale services and judicial review of those results; the effects of competition in our markets; the timing, scope and financial impacts of our deployment of fiber-to-the-premises broadband technology; the ability of Verizon Wireless to continue to obtain sufficient spectrum resources; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; a significant change in the timing of, or the imposition of any government conditions to, the closing of our business combination transaction with MCI, Inc., if consummated; actual and contingent liabilities in connection with the MCI transaction; and the extent and timing of our ability to obtain revenue enhancements and cost savings following the MCI transaction. verizon This presentation includes certain non-GAAP financial measures as defined under SEC rules. As required by those rules we have provided a reconciliation of those measures to the most directly comparable GAAP measure in materials on our website at www.verizon.com/investor.#3verizon Note In connection with the proposed acquisition of MCI, Verizon filed, with the SEC on August 15, 2005, an amended proxy statement and prospectus on Form S-4 (Registration No. 333-124008), that contain important information about the proposed acquisition. These materials are not yet final and will be amended. Investors are urged to read the proxy statement and prospectus filed, and any other relevant materials filed by Verizon or MCI because they contain, or will contain, important information about Verizon, MCI and the proposed acquisition. The preliminary materials filed on August 15, 2005, the definitive versions of these materials and other relevant materials (when they become available) and any other documents filed by Verizon or MCI with the SEC, may be obtained for free at the SEC's website at www.sec.gov. Investors may also obtain free copies of these documents at www.verizon.com/investor, or by request to Verizon Communications Inc., Investor Relations, 1095 Avenue of the Americas, 36th Floor, New York, NY 10036. Free copies of MCI's filings are available at www.mci.com/about/investor relations, or by request to MCI, Inc., Investor Relations, 22001 Loudoun County Parkway, Ashburn, VA 20147. Investors are urged to read the proxy statement and prospectus and the other relevant materials when such other materials become available before making any voting or investment decision with respect to the proposed acquisition. Verizon, MCI, and their respective directors, executive officers, and other employees may be deemed to be participants in the solicitation of proxies from MCI shareowners with respect to the proposed transaction. Information about Verizon's directors and executive officers is available in Verizon's proxy statement for its 2005 annual meeting of shareholders, dated March 21, 2005. Information about MCI's directors and executive officers is available in MCI's proxy statement for its 2005 annual meeting of stockholders, dated April 20, 2005. Additional information about the interests of potential participants will be included in the registration statement and proxy statement and other materials filed with the SEC.#4Verizon Wireless Update ■ Performance Distribution Strategy Network Investment H Product Initiatives verizon#5Strong Performance Net Adds (M) Customers (M) 2Q '05 1.9 47.4 1.22% $6.9 $49.42 $28.16 $3.0 43.0% $1.7 Sustained Results 2Q '04 1.5 40.4 1.45% $6.0 $50.80 $27.95 Churn Service Revenue (B) ARPU Cash Exp./Customer EBITDA (B) EBITDA Margin CapEx (B) verizon Y/Y 25% 17% (23 bps) 14% (3%) 1% 9% $2.7 45.0% (200 bps) $1.4 18%#6Record Growth 1,103 390 2,013 2Q04 1,072 Retail Gross Additions (K) 2,181 2004 1,027 1Q05 INDIRECT Retail Net Additions (K) 356 1,187 1Q05 INDIRECT DIRECT 1,154 Net adds: Excludes acquisitions divestitures, and adjustments. DIRECT 553 2,318 2005 1,354 2005 1.72% 1.30% 2004 Retail Churn (%) 1.51% INDIRECT 1.20% 1Q05 DIRECT verizon 1.31% 1.11% 2005 Indirect gross adds up 5% YoY; direct up 15% ▪ Improving customer loyalty#7Industry-Leading Growth & Loyalty - 2Q05 487 Sprint 2.80% T-Mobile Total Net Adds (K)* 763 Retail Nextel T-Mobile Cingular 972 2.20% Sprint Total Churn (%)** 1,071 Wholesale/ Joint Ventures 2.20% Cingular 1.40% Nextel 1,917 Verizon Wireless 1.22% Verizon Wireless VZW Customer Base (%) 47.4M Retail Post-Paid 92.4% *Net adds Excludes acquisitions divestitures, and adjustments. Sprint includes wholesale and Virgin Mobile. Nextel includes Boost Mobile. **Chum as reported: Sprint reflects direct customers, Nextel reflects Nextel-branded verizon Retail Prepaid 3.2% Reseller 4.4%#8LNP Porting Ratio 1.9 2.1 2.2 January February March 2.3 April 2.3 May 2.6 June verizon Customers Increasingly Choosing to Move to VZW#9Direct vs. Indirect Channel ARPU - 2005 June YTD Direct Direct 3% higher Indirect Customer Life - 2005 June YTD Direct > 15 months longer Churn - 2005 June YTD Direct Direct > 25 bps lower verizon Indirect Direct channel - higher ARPU, lower churn, longer customer life Indirect channel - higher acquisition cost Direct Indirect Direct Focus Yielding More Valuable Customers#10Postpaid vs. Prepaid Segment ARPU - 2005 June YTD Postpaid >100% higher Retail Prepaid Retail Postpaid Customer Life - 2005 June YTD Postpaid > 75 months longer Retail Prepaid Retail Postpaid Churn - 2005 June YTD Retail Prepaid Postpaid > 500 bps lower verizon Retail Postpaid Postpaid customers - higher ARPU, lower churn, longer customer life Prepaid customers – lower acquisition cost 10#11Sustained Profitability Leadership - 2Q05 27.6% EBITDA Margin $49.42 35.2% 35.6% Cingular Sprint T-Mobile Nextel $50.43 ARPU 41.0% $54.00 $62.00 Verizon Cingular T-Mobile Sprint Wireless 43.0% Verizon Wireless *Note: ARPU as reported Basis for calculation differs among companies. $73.00 Nextel verizon Cash Expense per Customer $42.80 $42.78 II | Sprint Nextel Cingular T-Mobile $36.52 $34.81 Leader in profitability ▪ Lowest cash expense ▪ ARPU stability $28.16 Verizon Wireless 11#12Balanced Growth 40.4 2004 $2.7 2Q04 Customer (M) 45.5 1Q05 VZW EBITDA ($B) $2.7 1Q05 47.4 2Q05 $3.0 2Q05 $6.0 2004 Service Revenue ($B) $6.6 verizon 1Q05 $6.9 2005 VZW targeting balanced customer and financial growth 12#13Best Brand Among Consumers & Businesses 50% 45% 40% 35% 30% 25% 20% 15% 15 10 Consumer Brand Attribute Wins 1st Place: Overall Brand Attributes 27 of 27 in latest wave Average Margin of Victory Wave Wave Wave Wave Wave 1 2 5 Key Brand Perceptions (Consumer, June, 2005) Reliable Coverage Source: Taylor Nelson Sofres, 2001-2004. VZW Next Best Call Clarity Trustworthy Gap bit VZW and Next Best 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% Business Brand Attribute Wins Mar 2003: Oct 2003: Jun 2004: Dec 2004: Mar 2005: 7 of 20 14 of 20 22 of 24 22 of 24 25 of 26 Most Reliable Network Brand Tracking verizon ..llı 4001 2002 4002 2003 4003 2004 4004 2005 13#14Data Performance VZW Data Customers (M) 19.1 12.7 2Q04 $2.14 17.8 2004 1Q06 VZW Data ARPU ($) $3.11 2Q05 $3.47 2005 ■ VZW Data Revenue ($M) $483 $265 2Q04 $416 1Q05 verizon 1005 Significant Opportunity for Future Growth ▪ Data customers up 50% YoY Data revenue up 89% YoY Data APRU accretion of 62% YOY 2005 14#15EV-DO Performance Broadband Access Customers Business January February March April May January February March April V CAST Customers Consumer June May June July July verizon ▪ Customer growth since end of Q1: 50%+ ✓ Double digit monthly sequential growth ▪ Increasing availability of EV-DO capable PDAs ▪ Customer growth since end of Q1: 400%+ ▪ Increased coverage / handset choices accelerating growth 15#16Verizon Wireless Update Performance Distribution Strategy Network Investment H Product Initiatives verizon 16#17Distribution Plan verizon ■ Continue to leverage our strong network of direct and indirect distribution Develop new sources of direct distribution ✓ New stores & kiosks in key locations ▪ Pursue and implement relationships with new national retailers ✓ Currently negotiating with a number of highly respected household names 17#18Stores ▪ 1,875 direct distribution points 1,300 stores & kiosks Plus 575 VZW-staffed Circuit City kiosks ▪ Highest quality customer additions ✓ Loyalty and lifetime value ▪ Majority of transactions are loyalty-focused *Other includes: Credit applications, equipment repair, and refunds Store Channel Gross Adds (M) 1.6 1.2 2Q03 2Q04 Monthly Transactions by Type Other 1.4 Bill Payments Gross Adds verizon Upgrades Accessories 2Q05 Opportunity for Sales, Service, Upselling, Loyalty 18#19RadioShack verizon Worsening relative performance across several metrics Declining source of gross adds Only 9% of total gross adds YTD; down 8% YoY ✓ Worst sales performance per door of national indirect - 47% below average ▪ Poor customer profile ✓ Churn - 29 bps higher than VZW direct postpaid ▪ High cost channel Bottom line: RadioShack relationship does not justify the cost Strong Direct Combined with Strategic Indirect Channels Enable Choices That Others Don't Have 19#20Strategic Retailers ■ Circuit City ✓ 575 VZW-staffed stores ✓ #3 Consumer Electronics retailer ✓ VZW exclusive wireless provider ▪ Best Buy ✓ 600+ stores through out U.S. ✓ #1 Consumer Electronics retailer ✓ Preferred carrier relationship ■ Costco Start Date July 2004 September 2004 August 2004 verizon curcurt City BEST BUY COSTCO WHOLESALE ✓ 300+ warehouses, 43M members 6th largest retailer Another Large Retailer...Stay Tuned 20#21Verizon Wireless Update ■ 1 Performance Distribution Strategy Network Investment Product Initiatives verizon 21#22Premier Network - Reliability 110 100 90 80 JD Power - Call Quality Index Comparison 102 106 VZW 103104 99 102 101 Source: 2005 wireless call quality performance study by J.D. Power & Associates 102 96 98 2004 2005 Widening the Lead 100 98 100 verizon T-Mobile ALLTEL Sprint Cingular Nextel Industry Average 102 22#23Premier Network - Reliability ▪ Footprint and Reliability Quality and coverage for both wireless voice and data ■ Industry-leading Reliability & Redundancy ✓ Routine communication: 24/7 Extraordinary events: hurricanes, wildfires, blackout ✓Engineered for emergencies ✓ Fleet of portable generators, cell sites Call Success Rate Source: VZW Drive Testing 100% 80% 60% 40% 20% 0% Hurricane Ivan verizon VZW Carrier Carrier Carrier Carrier Carrier D E A Sustaining our 'Best Network' Advantage 23#24Broadband Leader Cost of Service Per Megabyte 1X EV-DO EV-DO will be 80% more cost- efficient Source: VZW Drive Testing 80% 60% 40% 20% 0% EV-DO Coverage as a % of VZW POPS 2003 verizon 2004 Sustaining our 'Best Network' Advantage 2005F Nearly 150M POP coverage by YE '05 24#25Consistent Investment $6,000 $4,000 $2,000 $0 Capital Expenditures (M) 2001 2002 2003 IIEV-DO 2004 2005 June YTD 35% 25% 15% 5% CAPEX as a % of Service Revenue 2001 2002 2003 II EV-DO Funding Growth Efficiently verizon 2004 2005 June YTD 25#26Verizon Wireless Update ■ Performance Distribution Strategy ■ Network Investment Product Initiatives verizon 26#27Key Product Initiatives - Consumer -V Cast Broadband -5 V CAST Handsets ▪ Growing V CAST 3D Games, Video on Demand and Music Video ▪Daily Pre-Pay ▪ Easy Pay Hybrid Pricing -Push-to-Talk Pre- Pay ▪ New America's Choice -IN Pix, Flix, Txt Ringback Tones -MMS Interoperability ▪ Higher Resolution Camera Phones ■ ▪ Blue Tooth-Capable Devices -New Family Share -Int'l LD Value Plan -10-cent In-Flight Calling - Consumer Location- Based Services -V CAST Music-on- Demand verizon 27#28Key Product Initiatives - Business - Broadband Access Expansion - 4 Broadband AirCards -VZ Access Manager *Wireless Sync Workgroup & Enterprise Server - Global Data - PC Cards " Treo 650 Blackberry 7250 ■ ▪ Samsung i730 Pocket PC ▪ Push-to-Talk Expansion -VZ Email Expansion ▪ Corporate IM ▪ Bundled Voice, Data ▪Packaged Fleet Mgt. Svc. - Custom Solutions: ✓ Sales Force Automation Field Force Automation ✓ Fleet Administration ▪ Global Data Roaming verizon 28#29Build on the Best Fundamentals ▪ Premier Network Most reliable network ✓ Largest, fastest wireless broadband network ▪ Customer Service Commitment Highest customer loyalty Building long-term relationships ▪ Distribution Strength Effective balance of direct/ indirect locations New distribution models ▪ Brand Reputation ✓ Best wireless brand among consumers & businesses ▪ Financial Strength ✓ Sustained industry-leading growth and profitability Sources of Differentiation verizon 29