Verizon's First Annual Meeting of Shareowners

Ivan Seidenberg
Annual Meeting of Shareowners
April 25, 2001

Thanks, Chuck, and good afternoon, everyone.

We did have a good year operationally in 2000, and, as we reported yesterday, that record of solid execution continued in the first quarter. You’ve read about 2000 in the Annual Report, but let me give you the highlights:

• 540,000 DSL customers, exceeding our target of half a million.

• Close to 5 million long distance customers nationwide; 20 percent of the New York market in less than a year.

• 2000 was our third straight year of 30 percent revenue growth in data.

• 15.6 percent customer growth in wireless; and we gained a foothold in the emerging market for wireless data.

• We enjoyed more than $2 billion in cash flow from Information Services -- our directory business; 75 percent growth from Super Pages.

• And more than 15 percent growth in international revenues, to $2 billion; with 4 million access lines and 8 million wireless subscribers.

• We maintained cash expense growth below 4 percent.

• And we met our EPS target of $2.91 for the year.

Our first quarter results for 2001 announced yesterday show that we’re continuing this solid record of performance.

• We saw continued strong volumes in telecom.

• We enjoyed sustained demand in our growth businesses -- wireless, data, DSL, and long distance.

• We posted 7 percent adjusted revenue growth

• Our adjusted EPS growth of 72 cents was at the high end of our target range; and we're on track to meet our year-end objectives.

In addition to posting good operating results, we continued our growth initiatives in the first quarter:

• We obtained valuable spectrum in the wireless auctions conducted in February, increasing our spectrum in the top 50 markets by nearly 30 percent.

• We announced our plan to develop an international data network for global customers to connect key commercial centers around the globe.

• We won approval to offer long distance service in Massachusetts; and filed for LD in Connecticut on Monday.

So, to sum up, after nine months as a merged company, we are seeing the power of our new combination.

Of course, investors want to know about our stock performance. As you know, the telecom industry is coming through a sorting-out period in which investors are trying to identify which companies have sustainable business models and the ability to grow in the face of competition.

Large-cap telecom companies trailed the broader market in 2000, and Verizon was no exception. However, in 2001, we’ve begun to see a change in our relative performance. Our stock is up 5.4 percent for the year, in a market where the Dow has lost more than 3 percent of its value, the S&P is down by 8.4 percent, and the NASDAQ is off over 18 percent. Many of our competitors and peers are in negative territory.

We’re not declaring victory here. But we are encouraged that our combination of a strong balance sheet, premier assets, steady cash flow, and proven track record is proving attractive to investors seeking both growth and stability in a turbulent market. And we’re confident that we have put together an engine for growth that will create shareowner value over the long haul.

On behalf of Chuck, the board of directors, and the entire executive team, I’d like to thank our employees for a sensational year and our shareowners for their support as we launch this great new enterprise.

We intend to reward you by making this a great place to work -- and a great investment -- for many, many years to come.

###