Sprint Nextel Reports Second Quarter 2012 Results and Updates Full Year Forecast

  Sprint Nextel Reports Second Quarter 2012 Results and Updates Full Year
  Forecast

  *Best ever Sprint platform postpaid ARPU of $63.38 drives Sprint platform
    wireless service revenue growth of 16 percent year-over-year
  *Best ever Sprint platform postpaid churn of 1.69 percent
  *Continued strong iPhone sales of nearly 1.5 million – 40 percent to new
    postpaid customers
  *Network Vision deployment continues on track

       *Launched 4G LTE in five major markets and 15 cities on July 15
       *Continue to expect 12,000 sites on air by the end of 2012
       *Shutdown of 9,600 Nextel sites now complete
       *60 percent of postpaid subscribers leaving Nextel platform recaptured
         on Sprint platform

  *Operating loss of $629 million; Adjusted OIBDA* of $1.45 billion increases
    10 percent year-over-year and includes Network Vision and iPhone dilution

       *Year-over-year increase in Adjusted OIBDA* is the highest in more
         than five years
       *Sequential quarterly increase in Adjusted OIBDA* of 20 percent

  *2012 Adjusted OIBDA* forecast increased to between $4.5 billion and $4.6
    billion

The company’s second quarter 2012 earnings conference call will be held at 8
a.m. ET today. Participants may dial 800-938-1120 in the U.S. or Canada
(706-634-7849 internationally) and provide the following ID: 83798759 or may
listen via the Internet at www.sprint.com/investors.

Business Wire

OVERLAND PARK, Kan. -- July 26, 2012

Sprint Nextel Corp. (NYSE: S) today reported a net loss of $1.4 billion and a
diluted net loss of $.46 per share for the second quarter of 2012 as compared
to a net loss of $847 million and a diluted net loss of $.28 per share in the
second quarter of 2011. Sprint’s second quarter 2012 results include
accelerated depreciation of $782 million, or negative $.26 per share
(pre-tax), primarily related to Network Vision, including the expected
shutdown of the Nextel platform; $184 million, or negative $.06 per share
(pre-tax), for the recognition of lease exit costs for the remaining lease
obligations associated with certain Nextel sites shut down; and an impairment
of $204 million, or negative $.07 per share (pre-tax), related to Sprint’s
investment in Clearwire.

The company reported wireless service revenues of $7.3 billion during the
quarter, an increase of more than 8 percent year-over-year, driven primarily
by Sprint platform postpaid ARPU growth of $4.31 – the largest quarterly
year-over-year increase on record for the U.S. wireless industry.

Sprint platform postpaid net additions of 442,000 improved by 68 percent
sequentially driven by best ever quarterly churn performance of 1.69 percent,
a Nextel postpaid recapture rate of 60 percent and the continued strength of
iPhone^® sales. Sprint recorded nearly 1.5 million iPhone sales in the second
quarter with 40 percent going to new postpaid customers.

“The Sprint platform achieved best ever postpaid ARPU and customer churn that,
combined with disciplined customer acquisition and cost management,
contributed to our Adjusted OIBDA* of $1.45 billion,” said Dan Hesse, Sprint
CEO. “Based on this performance, we are raising the 2012 Adjusted OIBDA*
forecast to between $4.5 billion and $4.6 billion.”

NETWORK VISION HIGHLIGHTS

Sprint’s Network Vision initiative remains on track. The company has taken
9,600 Nextel sites off air to date – earlier than previous guidance. To date,
the company has completed leasing agreements for more than 12,700 Network
Vision sites and zoning requirements are completed for nearly 13,900 sites. In
addition, nearly 6,300 sites are either ready for construction or already
underway and more than 2,000 sites are on air and meeting speed and coverage
enhancement targets. Sprint expects to bring 12,000 sites on air by the end of
2012 and to complete the majority of its Network Vision roll-out by the end of
2013.

As part of Network Vision, Sprint launched 4G LTE in five major markets and 15
cities on July 15 including Houston, Dallas, San Antonio, Atlanta and Kansas
City. Sprint launched its first four 4G LTE smartphones during the second
quarter – Galaxy Nexus™, LG Viper™ 4G LTE, HTC EVO 4G LTE™ and Samsung Galaxy
S^® III. Sprint also significantly expanded the coverage area of its Sprint
Direct Connect push-to-talk service with the addition of roaming and Sprint
1xRTT coverage areas.

LIQUIDITY

During the second quarter, Sprint entered into a new $1 billion secured credit
facility contingent on equipment-related purchases from Ericsson for Network
Vision with a cost of funding of approximately 6 percent based on expected
drawdowns. This followed debt offerings of $2 billion raised in the first
quarter of 2012 and $4 billion raised in the fourth quarter of 2011 to help
fund the Network Vision deployment, debt maturities and working capital
requirements. The company also retired $1 billion of 2013 debt maturities
during the quarter. Sprint’s next scheduled debt maturities include $300
million due in May 2013 and $473 million due in October 2013. As of June 30,
2012, the company’s liquidity was approximately $8 billion consisting of $6.8
billion in cash, cash equivalents and short-term investments and $1.2 billion
of undrawn borrowing capacity available under its revolving bank credit
facility. Additionally, the company had $1 billion of undrawn availability
under the equipment financing credit facility. Sprint generated $1.2 billion
of net cash provided by operating activities and $209 million of Free Cash
Flow* in the quarter.

CUSTOMER EXPERIENCE AND BRAND HIGHLIGHTS

Sprint’s leading customer experience continued to garner third-party
accolades. In particular, the American Customer Satisfaction Index ranked
Sprint number one among all national carriers in customer satisfaction and
most improved, across all 47 industries, over the last four years. Sprint is
the only U.S. company to go from last place to first place in its industry
during this time. Sprint was the only telecom provider ranked in the top 50 by
the Environmental Protection Agency Green Power Partners Fortune 500 list and
for the third consecutive year Sprint won the International Electronics
Recycling Conference and Expo Sustainability Leadership Award.

In addition to the new 4G LTE device launches, Sprint continued to strengthen
its portfolio of products and services during the second quarter. Sprint’s
Virgin Mobile USA brand began offering the iPhone to prepaid customers. Virgin
Mobile also launched HTC EVO™ V 4G and Boost Mobile launched HTC EVO Design
4G™ bringing the combination of 4G WiMax and the award-winning EVO family of
devices to prepaid customers. Sprint also announced Sprint Wholesale Cloud
Services, a unique combination of platform services, a full suite of
enablement applications and one-on-one support for wireless resellers.
Additionally, earlier this month Sprint announced an exclusive relationship
with CSC to deliver cloud computing, cloud-based email, managed hosting and
co-location services in the U.S. to commercial customers. The company also
introduced Sprint Guardian, a collection of mobile safety and device security
bundles that provide families relevant tools to help stay safe and secure.

CONSOLIDATED RESULTS

TABLE NO. 1 Selected Consolidated Financial Data (Unaudited) (dollars in
millions, except per share data)
               Quarter To Date                 Year To Date            
                 June 30,    June 30,    %       June 30,    June 30,     %
Financial Data   2012         2011        ∆       2012         2011         ∆
                                                                            
  Net
  operating      $ 8,843      $ 8,311     6   %   $ 17,577     $ 16,624     6   %
  revenues
  Operating
  (loss)         $ (629   )   $ 79        NM      $ (884   )   $ 338        NM
  income
  Adjusted       $ 1,451      $ 1,314     10  %   $ 2,664      $ 2,828      (6  )
  OIBDA*                                                                        %
  Adjusted
  OIBDA            17.9   %     17.2  %             16.6   %     18.6   %
  margin*
  Net loss ^     $ (1,374 )   $ (847  )   (62 )   $ (2,237 )   $ (1,286 )   (74 )
  (1)                                         %                                 %
  Diluted net
  loss per       $ (0.46  )   $ (0.28 )   (64 )   $ (0.75  )   $ (0.43  )   (74 )
  common share                                %                                 %
  ^ (1)
                                                                            
  Capital
  expenditures   $ 1,158      $ 640       81  %   $ 1,958      $ 1,195      64  %
  ^(2)
  Net cash
  provided by    $ 1,177      $ 1,075     9   %   $ 2,155      $ 1,994      8   %
  operating
  activities
  Free Cash      $ 209        $ 267       (22 )   $ 347        $ 445        (22 )
  Flow*                                       %                                 %
                                                         

  *Consolidated net operating revenues of $8.8 billion for the quarter were 6
    percent higher than in the second quarter of 2011 and 1 percent higher
    than the first quarter of 2012. The quarterly year-over-year improvement
    was primarily due to higher wireless service revenues, partially offset by
    a reduction in wireline revenues. Revenue grew sequentially primarily due
    to higher Sprint platform wireless service revenues.
  *Operating loss was $629 million compared to operating income of $79
    million for the second quarter of 2011 and an operating loss of $255
    million for the first quarter of 2012. The quarterly year-over-year and
    sequential impacts to operating loss were driven by items identified below
    in Adjusted OIBDA* coupled with a second quarter 2012 increase in
    depreciation expense resulting primarily from accelerated depreciation
    related to the expected shut down of the Nextel network. Additionally,
    quarterly operating loss was increased by the recognition of lease exit
    expenses associated with the remaining lease obligations related to
    certain Nextel cell sites taken off air in the second quarter.
    Sequentially, the change in operating loss was due to a one-time net gain
    in the first quarter of 2012 associated with the termination of our
    spectrum hosting contract.
  *Adjusted OIBDA* was $1.45 billion for the quarter, compared to $1.3
    billion for the second quarter of 2011 and $1.2 billion in the first
    quarter of 2012. The quarterly year-over-year increase in Adjusted OIBDA*
    was primarily due to higher postpaid and prepaid wireless service
    revenues, partially offset by an increase in equipment net subsidy and
    lower wireline revenues. Sequentially, Adjusted OIBDA* increased primarily
    as a result of higher wireless service revenues and lower equipment net
    subsidy expense primarily associated with fewer handset sales.
  *Capital expenditures^(2), excluding capitalized interest of $102 million,
    were $1.2 billion in the quarter, compared to $640 million in the second
    quarter of 2011 and $800 million in the first quarter of 2012. Wireless
    capital expenditures were $1 billion in the second quarter of 2012,
    compared to $546 million in the second quarter of 2011 and $710 million in
    the first quarter of 2012. During the quarter, the company invested $704
    million for Network Vision and approximately $230 million in data capacity
    related to both legacy network and Network Vision equipment. Wireline
    capital expenditures were $79 million in the second quarter of 2012,
    compared to $35 million in the second quarter of 2011 and $45 million in
    the first quarter of 2012. Corporate capital expenditures were $67 million
    in the second quarter of 2012, compared to $59 million in the second
    quarter of 2011 and $45 million in the first quarter of 2012, primarily
    related to IT infrastructure to support our Wireless and Wireline
    businesses.
  *Net cash provided by operating activities was $1.2 billion for the
    quarter, compared to $1.1 billion for the second quarter of 2011 and $978
    million for the first quarter of 2012.
  *Free Cash Flow* was $209 million for the quarter, compared to $267 million
    for the second quarter of 2011 and $138 million for the first quarter of
    2012.

WIRELESS RESULTS

Wireless Customers

  *The company served more than 56 million customers at the end of the second
    quarter of 2012. This includes nearly 32.6 million postpaid subscribers
    (29.4 million on the Sprint platform and 3.1 million on the Nextel
    platform), 15.4 million prepaid subscribers (14.1 million on  the  Sprint
    platform and 1.3 million on the Nextel platform) and approximately 8.4
    million wholesale and affiliate subscribers, all of whom utilize the
    Sprint platform.
  *The Sprint platform added 442,000 net postpaid customers during the
    quarter. The Nextel platform lost 688,000 net postpaid customers in the
    quarter. Sprint platform postpaid net additions and Nextel platform
    postpaid net subscriber losses include 431,000 net subscribers from the
    Nextel platform acquired on the Sprint platform.
  *The company added 141,000 net prepaid subscribers during the quarter,
    which includes net additions of 451,000 prepaid Sprint platform customers,
    offset by net losses of 310,000 prepaid Nextel platform customers. Sprint
    platform prepaid net additions and Nextel platform prepaid net losses
    include 143,000 net subscribers from the Nextel platform acquired on the
    Sprint platform.
  *For the quarter, the company reported net additions of 388,000 wholesale
    and affiliate subscribers (all of whom are on the Sprint platform) as a
    result of growth in MVNOs reselling prepaid services.
  *The credit quality of Sprint’s end-of-period postpaid customers was 82
    percent prime compared to approximately 83 percent for the year-ago period
    and flat as compared to the first quarter of 2012.

Sprint Platform Churn and Nextel Recapture

  *For the quarter, the company reported Sprint platform postpaid churn of
    1.69 percent, compared to 1.72 percent for the year-ago period and 2.00
    percent for the first quarter of 2012. Sprint platform quarterly postpaid
    churn decreased year-over-year primarily due to a reduction in voluntary
    churn. The sequential decrease in Sprint platform postpaid churn was
    driven primarily by seasonality as well as a reduction in both voluntary
    and involuntary deactivation rates. Involuntary deactivations occur when
    Sprint disconnects a customer due to lack of payment or violations of
    terms and conditions. Higher levels of involuntary deactivations were
    realized during the first quarter of 2012 largely due to pricing actions
    taken in the second and third quarters of 2011, primarily through indirect
    channels. Sprint tightened its credit standards during the third and
    fourth quarters of 2011 to stem further impacts of these types of
    promotional activities by our indirect dealers.
  *60 percent of total subscribers who left the postpaid Nextel platform
    during the period were recaptured on the postpaid Sprint platform as
    compared to 27 percent in the second quarter of 2011 and 46 percent in the
    first quarter of 2012.
  *Approximately 9 percent of Sprint platform postpaid customers upgraded
    their handsets during the second quarters of 2012 and 2011 and 8 percent
    in the first quarter of 2012. The sequential increase was primarily driven
    by new device launches and subscribers who left the Nextel platform and
    were acquired on the Sprint platform. The year-over-year period was
    relatively flat due to changes in our upgrade eligibility policies offset
    by an increase in subscribers leaving the Nextel platform and being
    acquired on the Sprint platform.
  *Sprint platform prepaid churn for the second quarter was 3.16 percent,
    compared to 3.25 percent for the year-ago period and 2.92 percent for the
    first quarter of 2012. The quarterly year-over-year improvement in Sprint
    platform prepaid churn was primarily a result of improvements in the
    Virgin Mobile and Boost brands, partially offset by higher churn for
    Assurance Wireless^®. The sequential increase in churn was also primarily
    related to higher Assurance Wireless churn.

TABLE NO. 2 Wireless Operating Statistics (Unaudited)
               Quarter To Date                       Year To Date
                June 30,    March 31,   June 30,     June 30,    June 30,
                2012         2012         2011         2012         2011
                                                                    
Net Additions
(Losses) (in
thousands)
Sprint
platform:
Postpaid ^        442          263          226         705          479
(a)
Prepaid ^ (b)     451          870          1,149        1,321        2,555
Wholesale and    388        785        519        1,173      908    
affiliate
Total Sprint      1,281        1,918        1,894        3,199        3,942
platform
Nextel
platform:
Postpaid ^        (688   )     (455   )     (327   )    (1,143 )     (694   )
(a)
Prepaid ^ (b)    (310   )    (381   )    (475   )    (691   )    (1,035 )
Total Nextel      (998   )     (836   )     (802   )     (1,834 )     (1,729 )
platform
                                                                    
Total retail
postpaid net      (246   )     (192   )     (101   )    (438   )     (215   )
losses
Total retail
prepaid net       141          489          674         630          1,520
additions
Total
wholesale and    388        785        519        1,173      908    
affiliate net
additions
Total
Wireless Net     283        1,082      1,092     1,365      2,213  
Additions
                                                                    
End of Period
Subscribers
(in
thousands)
Sprint
platform:
Postpaid ^        29,434       28,992       27,925      29,434       27,925
(a)
Prepaid ^ (b)     14,149       13,698       11,090       14,149       11,090
Wholesale and    8,391      8,003      5,429      8,391      5,429  
affiliate
Total Sprint      51,974       50,693       44,444       51,974       44,444
platform
Nextel
platform:
Postpaid ^        3,142        3,830        4,972       3,142        4,972
(a)
Prepaid ^ (b)    1,270      1,580      2,707      1,270      2,707  
Total Nextel      4,412        5,410        7,679        4,412        7,679
platform
                                                                    
Total retail
postpaid end      32,576       32,822       32,897      32,576       32,897
of period
subscribers
Total retail
prepaid end       15,419       15,278       13,797      15,419       13,797
of period
subscribers
Total
wholesale and
affiliate end    8,391      8,003      5,429      8,391      5,429  
of period
subscribers
Total End of
Period           56,386     56,103     52,123    56,386     52,123 
Subscribers
                                                                    
Supplemental
Data -
Connected
Devices
End of Period
Subscribers
(in
thousands)
Retail            809          791          727         809          727
postpaid
Wholesale and    2,361      2,217      1,920      2,361      1,920  
affiliate
Total            3,170      3,008      2,647      3,170      2,647  
                                                                    
Churn
Sprint
platform:
Postpaid          1.69   %     2.00   %     1.72   %     1.85   %     1.75   %
Prepaid           3.16   %     2.92   %     3.25   %     3.04   %     3.32   %
Nextel
platform:
Postpaid          2.56   %     2.09   %     1.92   %     2.31   %     1.93   %
Prepaid           7.18   %     8.73   %     7.29   %     8.04   %     7.10   %
                                                                    
Total retail
postpaid          1.79   %     2.01   %     1.75   %     1.90   %     1.78   %
churn
Total retail      3.53   %     3.61   %     4.14   %     3.57   %     4.25   %
prepaid churn
                                                                    
ARPU ^(c)
Sprint
platform:
Postpaid        $ 63.38      $ 62.55      $ 59.07     $ 62.96      $ 58.80
Prepaid         $ 25.49      $ 25.64      $ 25.53     $ 25.57      $ 25.64
Nextel
platform:
Postpaid        $ 40.25      $ 40.94      $ 43.68     $ 40.62      $ 44.03
Prepaid         $ 37.20      $ 35.68      $ 34.63     $ 36.37      $ 35.08
                                                                    
Total retail    $ 60.88      $ 59.88      $ 56.67     $ 60.38      $ 56.42
postpaid ARPU
Total retail    $ 26.59      $ 26.82      $ 27.53     $ 26.70      $ 27.95
prepaid ARPU
                                                                    
Postpaid
Nextel            60     %     46     %     27     %     55     %     27     %
Recapture
Rate ^(d)
Prepaid
Nextel            32     %     23     %     21     %     27     %     24     %
Recapture
Rate ^(d)
                                                                             
^(a) Postpaid subscribers on the Sprint platform are defined as retail
postpaid subscribers on the CDMA network, including subscribers with
PowerSource devices, and those utilizing WiMax technology. Postpaid
subscribers on the Nextel platform are defined as retail postpaid subscribers
on the iDEN network.
^(b) Prepaid subscribers on the Sprint platform are defined as retail prepaid
subscribers who utilize CDMA technology via our multi-brand offerings. Prepaid
subscribers on the Nextel platform are defined as retail prepaid subscribers
who utilize iDEN technology via our multi-brand offerings.
^(c) ARPU is calculated by dividing service revenue by the sum of the average
number of subscribers in the applicable service category. Changes in average
monthly service revenue reflect subscribers for either the postpaid or prepaid
service category who change rate plans, the level of voice and data usage, the
amount of service credits which are offered to subscribers, plus the net
effect of average monthly revenue generated by new subscribers and
deactivating subscribers.
^(d) The Postpaid and Prepaid Nextel Recapture Rates are defined as the
portion of total subscribers that left the postpaid or prepaid Nextel
platform, as applicable, during the quarter and were retained on the postpaid
or prepaid Sprint platform, respectively.

TABLE NO. 3 Selected Wireless Financial Data (Unaudited) (dollars in millions)
              Quarter To Date                Year To Date            
               June 30,   June 30,      %      June 30,    June 30,     %
Financial      2012        2011         ∆      2012         2011         ∆
Data
                                                                          
Net
operating      $ 8,067     $ 7,452       8  %   $ 16,017     $ 14,865     8  %
revenues
Operating
(loss)         $ (681  )   $ (27   )     NM     $ (1,012 )   $ 113        NM
income
Adjusted       $ 1,299     $ 1,102       18 %   $ 2,351      $ 2,385      (1 )
OIBDA*                                                                       %
Adjusted
OIBDA            17.8  %     16.3  %              16.2   %     17.7   %
margin*
                                                                          
Capital
expenditures   $ 1,012     $ 546         85 %   $ 1,722      $ 995        73 %
^(2)
                                                      

Wireless Service Revenues

  *Wireless retail service revenues of $7.2 billion for the quarter represent
    an increase of 7 percent compared to the second quarter of 2011 and an
    increase of 1 percent compared to the first quarter of 2012. The quarterly
    year-over-year improvement was primarily due to higher postpaid ARPU as
    well as an increased number of net prepaid subscribers due to continued
    growth of Assurance Wireless customers, partially offset by lower Nextel
    postpaid subscribers. Sequentially, wireless retail service revenues
    increased, primarily as a result of higher postpaid ARPU, partially offset
    by a decreased number of Nextel postpaid subscribers.
  *Wireless postpaid ARPU increased year-over-year from $56.67 to $60.88, the
    largest quarterly year-over-year postpaid ARPU growth in the company’s
    history, while sequentially ARPU increased from $59.88 to $60.88.
    Quarterly year-over-year and sequential ARPU benefited from higher monthly
    recurring revenues primarily as a result of the premium data add-on
    charges for smartphones introduced in the first quarter of 2011 and a
    reduction in the mix of customers eligible for certain plan discounts due
    to policy changes.
  *Prepaid ARPU of $26.59 for the quarter declined from $27.53 in the second
    quarter of 2011 and declined slightly from $26.82 in the first quarter of
    2012. The decline in the year-over-year period is a result of a greater
    mix of Assurance Wireless customers who on average have lower ARPU than
    the remainder of our prepaid subscriber base, partially offset by
    improvements in Boost and Virgin Mobile ARPU.
  *Quarterly wholesale, affiliate and other revenues of $124 million
    increased by $70 million, compared to the year-ago period and increased by
    $21 million sequentially, resulting primarily from growth in MVNOs
    reselling prepaid services.

Wireless Operating Expenses

  *Total wireless net operating expenses were $8.7 billion in the second
    quarter, compared to $7.5 billion in the year-ago period and $8.3 billion
    in the first quarter of 2012.
  *Wireless equipment net subsidy in the second quarter was approximately
    $1.5 billion (equipment revenue of $753 million, less cost of products of
    $2.2 billion), compared to approximately $1.1 billion in the year-ago
    period and approximately $1.6 billion in the first quarter of 2012. The
    quarterly year-over-year increase in net subsidy is primarily due to the
    launch of the iPhone, which on average carries a higher subsidy rate per
    handset as compared to other handsets. The sequential decline in net
    subsidy is primarily due to lower postpaid and prepaid gross additions.
  *Wireless cost of service increased approximately 2 percent year-over-year
    primarily due to higher costs associated with increased data volume and
    Network Vision related expenses, partially offset by lower service and
    repair expenses. Wireless cost of service was flat sequentially, primarily
    due to lower service and repair expenses, offset by seasonally higher
    roaming expenses.
  *Wireless SG&A expenses were flat year-over-year and decreased by
    approximately 2 percent sequentially. Quarterly year-over-year increases
    in sales expenses were offset by reductions in customer care and marketing
    expenses. Sales expenses increased year-over-year primarily due to iPhone
    point-of-sale discounts (subsidy) for devices directly sold by the
    manufacturer to indirect dealers in which Sprint does not take device
    title. Sequentially, SG&A expenses decreased primarily as a result of
    lower customer care expenses. Customer care expense declined
    year-over-year and sequentially due primarily to lower call volumes.
  *Wireless depreciation and amortization expense increased $667 million
    year-over-year and $232 million sequentially, primarily related to
    accelerated depreciation expense associated with the expected shutdown of
    the Nextel platform.

WIRELINE RESULTS

TABLE NO. 4 Selected Wireline Financial Data (Unaudited) (dollars in millions)
               Quarter To Date               Year To Date          
                 June 30,  June 30,     %       June 30,   June 30,    %
Financial Data   2012       2011         ∆       2012        2011        ∆
                                                                          
  Net                                         )                               )
  operating      $ 995      $ 1,090       (9  %   $ 1,993     $ 2,210     (10 %
  revenues
  Operating      $ 45       $ 105         (57 )   $ 123       $ 224       (45 )
  income                                      %                               %
  Adjusted       $ 149      $ 210         (29 )   $ 310       $ 438       (29 )
  OIBDA*                                      %                               %
  Adjusted
  OIBDA            15.0 %     19.3  %               15.6  %     19.8  %
  margin*
                                                                          
  Capital
  expenditures   $ 79       $ 35          NM      $ 124       $ 88        41  %
  ^(2)
                                                      

  *Wireline revenues of $1 billion for the quarter declined 9 percent
    year-over-year primarily as a result of an intercompany rate reduction
    based on current market prices for voice and IP services sold to the
    wireless segment as well as the migration of wholesale cable VoIP
    customers off of Sprint’s IP platform. Sequentially, second quarter
    wireline revenues were flat.
  *Total wireline net operating expenses were $950 million in the second
    quarter of 2012. Net operating expenses declined approximately 4 percent
    year-over-year due to lower cost of service from continued declines in
    voice and cable IP volumes and improvement in SG&A expenses. Sequentially,
    net operating expenses increased 3 percent as a result of cost of service.

Forecast

The company is raising the 2012 Adjusted OIBDA* forecast to between $4.5
billion and $4.6 billion. Within that Adjusted OIBDA* expectation, we continue
to anticipate full year consolidated net service revenue growth of 4 to 6
percent (consolidated revenue less wireless equipment revenue). Sprint
continues to expect full year capital expenditures of approximately $6 billion
in 2012, excluding capitalized interest.

Sprint Nextel Corporation
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(Millions, except per Share Data)
TABLE NO. 5                                          
                 Quarter To Date                     Year To Date
                  June 30,    March 31,  June 30,    June 30,    June 30,
                  2012         2012        2011        2012         2011
                                                                    
Net Operating     $ 8,843     $ 8,734    $ 8,311    $ 17,577    $ 16,624 
Revenues
Net Operating
Expenses
Cost of             2,788        2,787       2,751       5,575        5,335
services
Cost of             2,223        2,298       1,838       4,521        3,650
products
Selling,
general and         2,381        2,436       2,408       4,817        4,811
administrative
Depreciation
and                 1,896        1,666       1,235       3,562        2,490
amortization
Other, net         184        (198  )    -         (14    )    -      
Total net
operating          9,472      8,989     8,232     18,461     16,286 
expenses
Operating           (629   )     (255  )     79          (884   )     338
(Loss) Income
Interest            (321   )     (298  )     (239  )     (619   )     (488   )
expense
Equity in
losses of
unconsolidated     (398   )    (273  )    (588  )    (671   )    (1,000 )
investments and
other, net ^(3)
Loss before         (1,348 )     (826  )     (748  )     (2,174 )     (1,150 )
Income Taxes
Income tax         (26    )    (37   )    (99   )    (63    )    (136   )
expense
Net Loss ^ (1)    $ (1,374 )   $ (863  )   $ (847  )   $ (2,237 )   $ (1,286 )
                                                                    
Basic and
Diluted Net       $ (0.46  )   $ (0.29 )   $ (0.28 )   $ (0.75  )   $ (0.43  )
Loss Per Common
Share ^ (1)
Weighted
Average Common     3,000      2,999     2,994     3,000      2,993  
Shares
outstanding
Effective Tax     -1.9   %   -4.5  %   -13.2 %   -2.9   %   -11.8  %
Rate
                                                                    
                                                                    
NON-GAAP RECONCILIATION - NET LOSS TO ADJUSTED OIBDA* (Unaudited)
(Millions)
TABLE NO. 6                                                
                  Quarter To Date                      Year To Date
                  June 30,     March 31,   June 30,    June 30,     June 30,
                  2012         2012        2011        2012         2011
                                                                    
Net Loss ^ (1)    $ (1,374 )   $ (863  )   $ (847  )   $ (2,237 )   $ (1,286 )
Income tax         (26    )    (37   )    (99   )    (63    )    (136   )
expense
Loss before         (1,348 )     (826  )     (748  )     (2,174 )     (1,150 )
Income Taxes
Equity in
losses of
unconsolidated      398          273         588         671          1,000
investments and
other, net ^(3)
Interest           321        298       239       619        488    
expense
Operating           (629   )     (255  )     79          (884   )     338
(Loss) Income
Depreciation
and                1,896      1,666     1,235     3,562      2,490  
amortization
OIBDA*              1,267        1,411       1,314       2,678        2,828
Lease exit          184          -           -           184          -
costs ^(4)
Gains from
asset
dispositions        -            (29   )     -           (29    )     -
and exchanges ^
(5)
Asset
impairments and     -            18          -           18           -
abandonments
^(6)
Spectrum
hosting
contract            -            (170  )     -           (170   )     -
termination,
net ^(7)
Access costs ^     -          (17   )    -         (17    )    -      
(8)
Adjusted OIBDA*     1,451        1,213       1,314       2,664        2,828
Capital
expenditures       1,158      800       640       1,958      1,195  
^(2)
Adjusted OIBDA*   $ 293       $ 413      $ 674      $ 706       $ 1,633  
less Capex
                                                                    
Adjusted OIBDA      17.9   %     15.2  %     17.2  %     16.6   %     18.6   %
Margin*
                                                                    
Selected item:
Deferred tax
asset valuation  $ 554      $ 348     $ 337     $ 902      $ 533    
allowance

Sprint Nextel Corporation
WIRELESS STATEMENTS OF OPERATIONS (Unaudited)
(Millions)
TABLE NO. 7                                                  
                Quarter To Date                     Year To Date
                 June 30,   March 31,  June 30,      June 30,    June 30,
                 2012        2012        2011          2012         2011
Net Operating
Revenues
Service
revenue
Sprint
platform:
Postpaid ^(a)    $ 5,540     $ 5,408     $ 4,922       $ 10,948     $ 9,764
Prepaid ^(b)       1,064       1,016       806           2,080        1,518
Wholesale,
affiliate and     124       103       54          227        123    
other
Total Sprint       6,728       6,527       5,782         13,255       11,405
platform
Nextel
platform:
Postpaid ^(a)      425         500         672           925          1,401
Prepaid ^(b)      161       188       308         349        674    
Total Nextel       586         688         980           1,274        2,075
platform
                                                                    
Equipment         753       735       690         1,488      1,385  
revenue
Total net
operating         8,067     7,950     7,452       16,017     14,865 
revenues
                                                                    
Net Operating
Expenses
Cost of            2,279       2,289       2,237         4,568        4,284
services
Cost of            2,223       2,298       1,838         4,521        3,650
products
Selling,
general and        2,266       2,311       2,275         4,577        4,546
administrative
Depreciation
and                1,796       1,564       1,129         3,360        2,272
amortization
Other, net        184       (181  )    -           3          -      
Total net
operating         8,748     8,281     7,479       17,029     14,752 
expenses
Operating        $ (681  )   $ (331  )   $ (27   )     $ (1,012 )   $ 113    
(Loss) Income
                                                                    
Supplemental
Revenue Data
Total retail
service          $ 7,190     $ 7,112     $ 6,708       $ 14,302     $ 13,357
revenue
Total service    $ 7,314     $ 7,215     $ 6,762       $ 14,529     $ 13,480
revenue
                                                                    
^(a) Postpaid subscribers on the Sprint platform are defined as retail
postpaid subscribers on the CDMA network, including subscribers with
PowerSource devices, and those utilizing WiMax technology. Postpaid
subscribers on the Nextel platform are defined as retail postpaid subscribers
on the iDEN network.
^(b) Prepaid subscribers on the Sprint platform are defined as retail prepaid
subscribers who utilize CDMA technology via our multi-brand offerings. Prepaid
subscribers on the Nextel platform are defined as retail prepaid subscribers
who utilize iDEN technology via our multi-brand offerings.
                                                                    
                                                         
NON-GAAP         Quarter To Date                       Year To Date
RECONCILIATION
                 June 30,    March 31,   June 30,      June 30,     June 30,
                 2012        2012        2011          2012         2011
                                                                    
Operating        $ (681  )   $ (331  )   $ (27   )     $ (1,012 )   $ 113
(Loss) Income
Lease exit         184         -           -             184          -
costs ^(4)
Gains from
asset
dispositions       -           (29   )     -             (29    )     -
and exchanges
^ (5)
Asset
impairments
and                -           18          -             18           -
abandonments
^(6)
Spectrum
hosting
contract           -           (170  )     -             (170   )     -
termination,
net ^(7)
Depreciation
and               1,796     1,564     1,129       3,360      2,272  
amortization
Adjusted           1,299       1,052       1,102         2,351        2,385
OIBDA*
Capital
expenditures      1,012     710       546         1,722      995    
^(2)
Adjusted
OIBDA* less      $ 287      $ 342      $ 556        $ 629       $ 1,390  
Capex
                                                                    
Adjusted OIBDA   17.8  %   14.6  %   16.3  %    16.2   %   17.7   %
Margin*

Sprint Nextel Corporation
WIRELINE STATEMENTS OF OPERATIONS (Unaudited)
(Millions)
TABLE NO. 8                                                 
                     Quarter To Date                   Year To Date
                      June 30,  March 31,  June 30,    June 30,   June 30,
                      2012       2012        2011        2012        2011
Net Operating
Revenues
Voice                 $ 426      $  417      $ 480       $ 843       $ 966
Data                    99          108        117         207         233
Internet                449         453        475         902         972
Other                  21        20       18        41        39    
Total net operating    995       998      1,090     1,993     2,210 
revenues
                                                                     
Net Operating
Expenses
Costs of services       730         716        747         1,446       1,506
and products
Selling, general        116         121        133         237         266
and administrative
Depreciation            104         100        105         204         214
Other, net             -         (17  )    -         (17   )    -     
Total net operating    950       920      985       1,870     1,986 
expenses
Operating Income     $ 45     $  78     $ 105     $ 123     $ 224   
                                                                     
                                                                     
                                                           
NON-GAAP              Quarter To Date                    Year To Date
RECONCILIATION
                      June 30,   March 31,   June 30,    June 30,    June 30,
                      2012       2012        2011        2012        2011
Operating Income      $ 45       $  78       $ 105       $ 123       $ 224
Access costs ^ (8)      -           (17  )     -           (17   )     -
Depreciation           104       100      105       204       214   
Adjusted OIBDA*         149         161        210         310         438
Capital                79        45       35        124       88    
expenditures ^(2)
Adjusted OIBDA*       $ 70      $  116     $ 175      $ 186      $ 350   
less Capex
                                                                     
Adjusted OIBDA        15.0 %    16.1 %   19.3  %   15.6  %   19.8  %
Margin*
                                                                             

Sprint Nextel Corporation                                        
CONDENSED CONSOLIDATED CASH FLOW
INFORMATION (Unaudited)
(Millions)
TABLE NO. 9                              
                Year to Date
                 June 30,    June 30,
               2012        2011
Operating
Activities
Net loss         $ (2,237 )   $ (1,286 )
Asset              18           -
impairments
Depreciation
and                3,562        2,490
amortization
Provision for
losses on          269          199
accounts
receivable
Share-based
compensation       39           37
expense
Deferred           84           115
income taxes
Equity in
losses of
unconsolidated     671          1,000
investments
and other, net
^(3)
Gains from
asset              (29    )     -
dispositions
and exchanges
Contribution
to pension         (92    )     (112   )
plan
Spectrum
hosting
contract           (170   )     -
termination,
net ^ (7)
Other working
capital            (33    )     (610   )
changes, net
Other, net        73         161    
Net cash
provided by       2,155      1,994  
operating
activities
                                                                    
Investing
Activities
Capital
expenditures       (1,711 )     (1,403 )
^(2)
Expenditures
relating to        (107   )     (128   )
FCC licenses
Change in
short-term         (752   )     (15    )
investments,
net
Investment in      (128   )     -
Clearwire
Other, net        10         (18    )
Net cash used
in investing      (2,688 )    (1,564 )
activities
                                                                    
Financing
Activities
Proceeds from
debt and           2,000        -
financings
Debt financing     (57    )     (3     )
costs
Repayments of
debt and           (1,004 )     (1,653 )
capital lease
obligations
Other, net        7          9      
Net cash
provided by
(used in)         946        (1,647 )
financing
activities
                                                                    
Net Increase
(Decrease) in      413          (1,217 )
Cash and Cash
Equivalents
                                                                    
Cash and Cash
Equivalents,      5,447      5,173  
beginning of
period
                                                                    
Cash and Cash
Equivalents,    $ 5,860    $ 3,956   
end of period
                                                                    
                                                                    
                                                                    
                                                                    
RECONCILIATION TO FREE CASH FLOW* (NON-GAAP) (Unaudited)
(Millions)
TABLE NO. 10                                               
                Quarter Ended                        Year to Date
                 June 30,     March 31,    June 30,    June 30,     June 30,
                 2012        2012        2011        2012         2011
                                                                    
Net Cash
Provided by      $ 1,177      $ 978        $ 1,075     $ 2,155      $ 1,994
Operating
Activities
                                                                    
Capital
expenditures       (928   )     (783   )     (759  )     (1,711 )     (1,403 )
^(2)
Expenditures
relating to        (51    )     (56    )     (54   )     (107   )     (128   )
FCC licenses,
net
Other
investing         11         (1     )    5         10         (18    )
activities,
net
Free Cash          209          138          267         347          445
Flow*
                                                                    
Debt financing     (21    )     (36    )     -           (57    )     (3     )
costs
(Decrease)
increase in        (1,002 )     1,998        (1    )     996          (1,653 )
debt and
other, net
Investment in      -            (128   )     -           (128   )     -
Clearwire
Other
financing         4          3          7         7          9      
activities,
net
Net (Decrease)
Increase in
Cash, Cash
Equivalents      $ (810   )   $ 1,975     $ 273      $ 1,165     $ (1,202 )
and

Short-Term
Investments
                                                          

Sprint Nextel Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(Millions)
TABLE NO. 11                                                   
                                                   June 30,     December 31,
                                                    2012          2011
Assets
Current assets
Cash and cash equivalents                           $ 5,860       $  5,447
Short-term investments                                902            150
Accounts and notes receivable, net                    3,320          3,206
Device and accessory inventory                        766            913
Deferred tax assets                                   87             130
Prepaid expenses and other current assets            669          491     
Total current assets                                  11,604         10,337
                                                                  
Investments and other assets                          2,042          2,609
Property, plant and equipment, net                    12,961         14,009
Goodwill                                              359            359
FCC licenses and other                                20,588         20,453
Definite-lived intangible assets, net                1,470        1,616   
                                                                  
Total                                               $ 49,024     $  49,383  
                                                                  
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable                                    $ 3,387       $  2,495
Accrued expenses and other current liabilities        3,669          3,996
Current portion of long-term debt, financing and     307          8       
capital lease obligations
Total current liabilities                             7,363          6,499
                                                                  
Long-term debt, financing and capital lease           20,957         20,266
obligations
Deferred tax liabilities                              7,038          6,986
Other liabilities                                    4,439        4,205   
Total liabilities                                    39,797       37,956  
                                                                  
Shareholders' equity
Common shares                                         5,999          5,992
Paid-in capital                                       46,735         46,716
Accumulated deficit                                   (42,726 )      (40,489 )
Accumulated other comprehensive loss                 (781    )     (792    )
Total shareholders' equity                           9,227        11,427  
                                                                  
Total                                               $ 49,024     $  49,383  
                                                              
                                                                  
                                                                  
                                                                  
NET DEBT* (NON-GAAP) (Unaudited)
(Millions)
TABLE NO. 12                                                   
                                                    June 30,      December 31,
                                                    2012          2011
Total Debt                                          $ 21,264      $  20,274
Less: Cash and cash equivalents                       (5,860  )      (5,447  )
Less: Short-term investments                         (902    )     (150    )
Net Debt*                                           $ 14,502     $  14,677  
                                                                     
                                                                             

Sprint Nextel Corporation
SCHEDULE OF DEBT (Unaudited)
(Millions)
TABLE NO. 13
                                                                 June 30,
                                                              2012
                                                                     
ISSUER                                      COUPON     MATURITY      PRINCIPAL
Sprint Nextel Corporation
Export Development Canada Facility          5.486  %   12/15/2015    $  500
(Tranche 2)
6% Senior Notes due 2016                    6.000  %   12/01/2016       2,000
9.125% Senior Notes due 2017                9.125  %   03/01/2017       1,000
8.375% Senior Notes due 2017                8.375  %   08/15/2017       1,300
9% Guaranteed Notes due 2018                9.000  %   11/15/2018       3,000
7% Guaranteed Notes due 2020                7.000  %   03/01/2020       1,000
11.5% Senior Notes due 2021                 11.500 %   11/15/2021       1,000
9.25% Debentures due 2022                   9.250  %   04/15/2022      200
Sprint Nextel Corporation                                               10,000
                                                                     
Sprint Capital Corporation
6.9% Senior Notes due 2019                  6.900  %   05/01/2019       1,729
6.875% Senior Notes due 2028                6.875  %   11/15/2028       2,475
8.75% Senior Notes due 2032                 8.750  %   03/15/2032      2,000
Sprint Capital Corporation                                              6,204
                                                                     
Nextel Communications Inc.
6.875% Senior Serial Redeemable Notes       6.875  %   10/31/2013       473
due 2013
5.95% Senior Serial Redeemable Notes        5.950  %   03/15/2014       1,170
due 2014
7.375% Senior Serial Redeemable Notes       7.375  %   08/01/2015      2,137
due 2015
Nextel Communications Inc.                                              3,780
                                                                     
iPCS Inc.
First Lien Senior Secured Floating Rate     2.591  %   05/01/2013       300
Notes due 2013
Second Lien Senior Secured Floating         3.716  %   05/01/2014      181
Rate Notes due 2014
iPCS Inc.                                                               481
                                                                     
Tower financing obligation                  9.500  %   01/15/2030       698
                                                                     
Capital lease obligations and other                    2014 - 2022      81
                                                                     
TOTAL PRINCIPAL                                                         21,244
                                                                     
Net premiums                                                            20
                                                                     
TOTAL DEBT                                                           $  21,264
                                                              
                                                                     

Supplemental information:

The Company had $1.2 billion of borrowing capacity available under our
revolving bank credit facility as of June 30, 2012. Our revolving bank credit
facility expires in October 2013.

In May 2012, certain of our subsidiaries entered into a $1.0 billion secured
equipment credit facility to finance equipment-related purchases for Network
Vision. The facility is equally divided into two consecutive tranches of $500
million, with the drawdown availability contingent upon Sprint's acquisition
of equipment-related purchases from Ericsson, up to the maximum of each
tranche, ending on May 31, 2013 and May 31, 2014, for the first and second
tranche, respectively. Interest and principal are payable semi-annually with a
final maturity of March 2017 for both tranches.



Sprint Nextel Corporation
NOTES TO THE FINANCIAL INFORMATION (Unaudited)
     
       Results include pre-tax, non-cash "Equity in losses of unconsolidated
       investments and other, net" of $398 million ($.13 per share), $273
^(1)   million ($.09 per share) and $671 million ($.22 per share) in the
       second and first quarters and year-to-date periods of 2012,
       respectively, and $588 million ($.20 per share) and $1.0 billion ($.33
       per share) in the second quarter and year-to-date periods of 2011.
       
       Capital expenditures is an accrual based amount that includes the
       changes in unpaid capital expenditures and excludes capitalized
       interest. Cash paid for capital expenditures includes total capitalized
       interest of $102 million, $115 million and $217 million for the second
^(2)   and first quarters and year-to-date periods of 2012, respectively, and
       $102 million and $201 million for the second quarter and year-to-date
       periods of 2011, and can be found in the condensed consolidated cash
       flow information on Table No. 9 and the reconciliation to Free Cash
       Flow* on Table No. 10.
       
       The second quarter 2012 includes a non-cash impairment of $204 million
^(3)   to reflect a reduction of our investment in Clearwire to its estimated
       fair value.
       
^(4)   For the second quarter 2012, lease exit costs are primarily associated
       with the shutdown of Nextel platform sites.
       
^(5)   For the first quarter 2012, gains from asset dispositions and exchanges
       are primarily due to spectrum exchange transactions.
       
       For the first quarter 2012, asset impairments and abandonments relate
^(6)   to a change in our backhaul architecture in connection to our Network
       Vision design from microwave to a more cost effective fiber backhaul.
       
       On March 16, 2012, we elected to terminate the arrangement with
       LightSquared LP and LightSquared, Inc. (LightSquared). As we have no
       future service obligations with respect to the arrangement with
^(7)   LightSquared, we recognized $236 million of the advanced payments as
       other operating income in the first quarter of 2012. As a result of the
       termination of the hosting agreement, we impaired capitalized costs
       specific to LightSquared's 1.6 GHz spectrum that the Company no longer
       intends to deploy which totaled $66 million.
       
       Favorable developments during the first quarter of 2012 relating to
^(8)   disagreements with local exchange carriers resulted in a reduction in
       expected access costs of $17 million.
       

*FINANCIAL MEASURES

Sprint Nextel provides financial measures determined in accordance with
accounting principles generally accepted in the United States (GAAP) and
adjusted GAAP (non-GAAP). The non-GAAP financial measures reflect industry
conventions, or standard measures of liquidity, profitability or performance
commonly used by the investment community for comparability purposes. These
measurements should be considered in addition to, but not as a substitute for,
financial information prepared in accordance with GAAP. We have defined below
each of the non-GAAP measures we use, but these measures may not be synonymous
to similar measurement terms used by other companies.

Sprint Nextel provides reconciliations of these non-GAAP measures in its
financial reporting. Because Sprint Nextel does not predict special items that
might occur in the future, and our forecasts are developed at a level of
detail different than that used to prepare GAAP-based financial measures,
Sprint Nextel does not provide reconciliations to GAAP of its forward-looking
financial measures.

The measures used in this release include the following:

OIBDA is operating income/(loss) before depreciation and amortization.
Adjusted OIBDA is OIBDA excluding severance, exit costs, and other special
items. Adjusted OIBDA Margin represents Adjusted OIBDA divided by
non-equipment net operating revenues for Wireless and Adjusted OIBDA divided
by net operating revenues for Wireline. We believe that Adjusted OIBDA and
Adjusted OIBDA Margin provide useful information to investors because they are
an indicator of the strength and performance of our ongoing business
operations, including our ability to fund discretionary spending such as
capital expenditures, spectrum acquisitions and other investments and our
ability to incur and service debt. While depreciation and amortization are
considered operating costs under GAAP, these expenses primarily represent
non-cash current period costs associated with the use of long-lived tangible
and definite-lived intangible assets. Adjusted OIBDA and Adjusted OIBDA Margin
are calculations commonly used as a basis for investors, analysts and credit
rating agencies to evaluate and compare the periodic and future operating
performance and value of companies within the telecommunications industry.

Free Cash Flow is the cash provided by operating activities less the cash used
in investing activities other than short-term investments and equity method
investments during the period. We believe that Free Cash Flow provides useful
information to investors, analysts and our management about the cash generated
by our core operations after interest and dividends, if any, and our ability
to fund scheduled debt maturities and other financing activities, including
discretionary refinancing and retirement of debt and purchase or sale of
investments.

Net Debt is consolidated debt, including current maturities, less cash and
cash equivalents, short-term investments and if any, restricted cash. We
believe that Net Debt provides useful information to investors, analysts and
credit rating agencies about the capacity of the company to reduce the debt
load and improve its capital structure.

SAFE HARBOR

This release includes “forward-looking statements” within the meaning of the
securities laws. The words “may,” “could,” “should,” “estimate,” “project,”
“forecast,” “intend,” “expect,” “anticipate,” “believe,” “target,” “plan,”
“providing guidance,” and similar expressions are intended to identify
information that is not historical in nature. All statements that address
operating performance, events or developments that we expect or anticipate
will occur in the future — including statements relating to network
performance, subscriber growth, and liquidity, and statements expressing
general views about future operating results — are forward-looking statements.
Forward-looking statements are estimates and projections reflecting
management’s judgment based on currently available information and involve a
number of risks and uncertainties that could cause actual results to differ
materially from those suggested by the forward-looking statements. With
respect to these forward-looking statements, management has made assumptions
regarding, among other things, development and deployment of new technologies;
efficiencies and cost savings of multimode technologies; customer and network
usage; customer growth and retention; service, coverage and quality;
availability of devices; the timing of various events and the economic
environment. Sprint Nextel believes these forward-looking statements are
reasonable; however, you should not place undue reliance on forward-looking
statements, which are based on current expectations and speak only as of the
date when made. Sprint Nextel undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from our company's historical
experience and our present expectations or projections. Factors that might
cause such differences include, but are not limited to, those discussed in the
company’s Annual Report on Form 10-K for the year ended December 31, 2011
filed with the U.S. Securities and Exchange Commission, which are incorporated
herein by reference and when filed, Part II, Item 1A, “Risk Factors,” of our
Form 10-Q for the quarter ended June 30, 2012. You should understand that it
is not possible to predict or identify all such factors. Consequently, you
should not consider any such list to be a complete set of all potential risks
or uncertainties.

Clearwire’s second quarter 2012 results from operations have not yet been
finalized. As a result, the amount reflected for Sprint’s share of Clearwire’s
results of operations for the quarter ended June 30, 2012, is an estimate and,
based upon the finalization of Clearwire’s results, may need to be revised if
our estimate materially differs from Clearwire’s actual results. Changes in
our estimate, if any, would affect the carrying value of our investment in
Clearwire, net loss, basic and diluted net loss per common share, and
comprehensive loss but would have no effect on Sprint’s operating income,
OIBDA*, Adjusted OIBDA* or consolidated statement of cash flows.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline
communications services bringing the freedom of mobility to consumers,
businesses and government users. Sprint Nextel served more than 56 million
customers at the end of the second quarter of 2012 and is widely recognized
for developing, engineering and deploying innovative technologies, including
the first wireless 4G service from a national carrier in the United States;
offering industry-leading mobile data services, leading prepaid brands
including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant
national and international push-to-talk capabilities; and a global Tier 1
Internet backbone. The American Customer Satisfaction Index rated Sprint No. 1
among all national carriers in customer satisfaction and most improved, across
all 47 industries, during the last four years. Newsweek ranked Sprint No. 3 in
its 2011 Green Rankings, listing it as one of the nation’s greenest companies,
the highest of any telecommunications company. You can learn more and visit
Sprint at www.sprint.com or www.facebook.com/sprint and
www.twitter.com/sprint.

Contact:

Sprint Nextel Corp.
Media Relations
Scott Sloat, 240-855-0164
scott.sloat@sprint.com
or
Investor Relations
Brad Hampton, 800-259-3755
investor.relations@sprint.com
 
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