2. Sprint internal use only Forces impacting Sprint Todd Waletzki May 16, 2002

3. Sprint internal use only Overview Negativity prevalent in economy, stock market and telecommunications industry Today I’ll discuss these areas including Sprint’s current position and future outlook What you can do to elevate Sprint’s destiny -- and your own career

4. Sprint internal use only Economic climate “Crisis-in-confidence” created for many companies These are hardly normal economic times Timing and extent of market recovery is uncertain

5. Sprint internal use only Impact on telecom Similar to implosion of high-tech and Internet sectors in 2000 and 2001 Elimination of competitors Capital issues, work force reductions and budget cuts Reflection of accounting concerns and disappointing 4Q 2001 numbers

6. Sprint internal use only Telecom critical for economy Telecom is 2 percent of $10 trillion U.S. economy Total revenues estimated to grow faster than most other segments by 2005 Strong outlook for local, long distance, wireless, and Internet/IP revenues

7. Sprint internal use only Enron intensifying challenges Enron accounting irregularities casting unfair doubt on other companies Qwest, Global Crossing had attention before Enron scandal Sprint accounting practices are conservative and sound

8. Sprint internal use only Financial flexibility and liquidity Sprint took these steps in March: Secured bank line of credit using SPA assets Bond offering raising $5 billion Plans to expand accounts receivable financing program to include PCS Lowered anticipated spending for the year

9. Sprint internal use only Looking over the horizon FON expected earnings per share: $1.40; EBITDA expected to approach $4.6 billion for 2002 PCS subscriber growth forecasted at approximately 3 million net adds PCS EBITDA expected to be approximately $3 billion -- about double 2001 levels

10. Sprint internal use only Wireless: untapped potential Source: The Strategis Group

11. Sprint internal use only 2002 charge: maintain focus 1. Delight customers 2. Grow profitably 3. Target valued customers 4. Make our services indispensable 5. Be a great place to work

12. Sprint internal use only 3G update Technology upgrades underway On track for mid-year nationwide 3G launch A full suite of exciting applications available with 3G Opportunity to sell only increases with 3G -- we have a great line up today

13. Sprint internal use only Top performers reap rewards New Sprint performance management tools distinguish and reward high performing employees LINK alpha ratings and performance MIP Your support and feedback is needed to make the new system a success

14. Sprint internal use only Closing comments and final challenge Employee speculation on layoffs and mergers is understandable, but not productive Sprint has the right assets to succeed Your ability to execute will allow Sprint to thrive and continue the legacy of innovation and leadership

15. Sprint internal use only PCS Customer Solutions Results for First Quarter

16. Sprint internal use only AHT improved in Q1 2002 due to in large part to the thrive incentive program. First Quarter AHT was at 5:39 compared to a target of 5:43 for the enterprise. This is an improvement of one minute and two seconds from the 6:45 AHT result from first Quarter 2001.

17. Sprint internal use only Through increased focus on accessibility performance improved from 76% from first quarter 2001 to 86% for first quarter 2002. Service levels in 1Q 2002 are ran 7% lower than 2001 first quarter but remain above target for the enterprise.

18. Sprint internal use only Core Calls per Subscriber performed exceptionally well in first quarter 2002 at 7.07. The target for 1Q2002 was 7.58 and in 2001 Q1 there were 8.83. Cost per Supported Subscriber was at $4.73 compared to a target of $4.84 due to decreased calls per subscriber and more carefully managing accessibility and service levels and customer facing time. Specialist Attrition was considerably under target at 15.7% compared to the target of 18.5%. In part due to the weakness of the economy and the job market and also due in part to efforts to appreciate employees such as Thrive and other incentives. Challenges exist in the area of Service Revenue Fees where 1Q performance was at $6.38M with an objective of $17.3M. An action plan is in place get us on target and to the $90M budget by the end of 2002.

19. Sprint internal use only Questions and Answers