Nextel Reports Strong Results

Nextel Communications Inc. (NASDAQ: NXTL):

-- Revenue of $3.8 Billion, up 16%

-- Operating Income before Depreciation and Amortization of $1.4 Billion, up 12%

-- Income of $524 Million; Reported EPS of $0.46; Adjusted EPS of $0.47

-- Total Subscriber Additions of 763,000; Ending Subscribers of 17.8 Million

-- Merger Planning On Track; Guidance Reaffirmed

Nextel Communications Inc. (NASDAQ: NXTL) today announced strong financial and operating results for the second quarter 2005, including a 16% increase in revenue to $3.8 billion and a 12% increase in operating income before depreciation and amortization (OIBDA) to $1.4 billion compared to the second quarter of 2004. Second quarter net subscriber additions totaled 763,000, a 24% increase over last year, and the lifetime revenue per subscriber (LRS) for Nextel branded subscribers increased to approximately $4,900 in the second quarter, its highest level in the last seven quarters, due to an increase in average revenue per subscriber (ARPU) to $68 and a reduction in customer churn to 1.4%.

"Second quarter results may be Nextel's last as a standalone company and prove that we continue to aggressively compete in the marketplace while continuing to find the right balance of growth and profitability even as we plan for the merger with Sprint," said Tim Donahue, Nextel's president and CEO. "Strong demand coupled with consistent execution will enable us to enter our combination with Sprint from a position of strength. Progress in planning for the merger is on-track and now that shareholders have overwhelmingly approved the merger, we eagerly await final regulatory approvals and an exciting, growth-oriented future with Sprint."

Second quarter subscriber additions of 763,000 consisted of 550,000 subscribers of Nextel branded service and 213,000 subscribers of Boost Mobile(TM) branded prepaid service. Nextel ended the second-quarter 2005 with approximately 17.8 million subscribers - 16.1 million Nextel subscribers and 1.7 million Boost Mobile subscribers - up 23% from the 14.5 million total subscribers at the end of second quarter 2004.

"I am proud of the solid results in the second quarter and with strong trends in subscriber quality and quantity," said Tom Kelly, Nextel's executive vice president and COO. "Second quarter results once again prove that our smart growth strategies are working. The seasonal increase in average revenue per subscriber coupled with the increase in customer loyalty allowed our lifetime revenue per customer to increase to an industry leading $4,900 in the second quarter. We continue to work hard in merger planning activities in order to bring the same focus that has driven these results to the merger with Sprint."

Total revenue for the second quarter was up 16% to $3.8 billion and service revenue increased 17% to $3.4 billion as compared with last year's second quarter. Nextel ARPU in the second quarter was $68, an increase of $1 over the first quarter. Customer churn improved to 1.4% in the second quarter, down from 1.5% in the first quarter. OIBDA increased 12% to $1.4 billion in the second quarter as compared with last year's second quarter. Income available to common stockholders was $524 million, or $0.46 per share, and was impacted by approximately $35 million in second-quarter merger related costs. OIBDA before merger related costs was $1.44 billion as shown on Note #7 in the Notes to Financial Data. Adjusted income available to common stockholders was $528 million, or $0.47 per share, as shown on Table 3. Free cash flow before rebanding costs was $347 million.

"Nextel continues to build on its track record of superior performance," said Paul Saleh, Nextel's executive vice president and CFO. "During the second quarter, Nextel improved its OIBDA margin by a full percentage point on a sequential basis. Nextel's cash position increased to $2.8 billion as the company continued to generate high returns on invested capital. We are experiencing strong momentum across the business and are on track to meet or exceed previously issued guidance. We are making progress on the merger, and we eagerly await the many opportunities this merger presents for continued financial success."

Capital expenditures were $908 million in the second quarter and include $796 million in the core business and $112 million in rebanding capital expenditures. Total system minutes of use during the second quarter on the Nextel National Network increased 37% over last year to 44.7 billion.

In addition to the results prepared in accordance with Generally Accepted Accounting Principles (GAAP) provided throughout this press release, Nextel has presented non-GAAP financial measures, such as adjusted net income, adjusted earnings per share, OIBDA, OIBDA margin, free cash flow before rebanding, lifetime revenue per subscriber, and ARPU. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with GAAP. Reconciliations from GAAP results to these non-GAAP financial measures are provided in the attached financial tables and related notes. To view these and other reconciliations and information about how to access the conference call discussing Nextel's second-quarter results visit the 'Investor Relations' link under the 'About Nextel' tab at www.nextel.com.

About Nextel

Nextel Communications, a FORTUNE 200 company based in Reston, Va., is a leading provider of fully integrated wireless communications services and has built the largest guaranteed all-digital wireless network in the country covering thousands of communities across the United States. Today 95 percent of FORTUNE 500(R) companies are Nextel customers. Nextel and Nextel Partners, Inc. currently serve 297 of the top 300 U.S. markets where approximately 264 million people live or work.

Nextel and the Nextel logo are trademarks and/or service marks of Nextel Communications Inc., Boost Mobile, Boost and Re-Boost are trademarks and/or service marks of Boost Worldwide Inc. All other marks are the property of their respective owners.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. A number of the matters discussed in this press release that are not historical or current facts deal with potential future circumstances and developments, in particular, information regarding the merger of Sprint and Nextel. The discussion of such matters is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from actual future experience involving any one or more of such matters. Such risks and uncertainties include: competitive conditions and market acceptances of Nextel's services, economic conditions in our targeted markets, performance of our technologies, timely development and delivery of new technologies, access to sufficient capital to meet financing needs, actions by regulatory agencies, the result of the review of the proposed merger by various regulatory agencies, and any conditions imposed on the new company in connection with consummation of the merger; satisfaction of various conditions to the closing of the merger contemplated by the merger agreement; and the risks that are described from time to time in Sprint's and Nextel's respective reports filed with the SEC, including Sprint's registration statement on Form S-4, and each companies annual report on Form 10-K for the year ended December 31, 2004, any current reports on Form 8-K and quarterly report on Form 10-Q filed thereafter, as any such reports may be amended. This release speaks only as of its date, and Nextel disclaims any duty to update the information herein.

SOURCE: Nextel Communications Inc.

Nextel Communications Inc. Investors: Paul Blalock, 703-433-4300 or Media: Audrey Schaefer, 240-876-1588

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