Exhibit 99

NEWS RELEASE

FOR IMMEDIATE RELEASE
January 27, 2009	Media contacts:
	Peter Thonis
	212-395-2355
	peter.thonis@verizon.com
	Bob Varettoni
	908-559-6388
	robert.a.varettoni@verizon.com

Verizon Reports Sustained Revenue Growth and Continued Strong Cash Flows for 4Q and Full-Year 2008

4Q Results Fueled by Record Growth in FiOS Internet and TV Customers, Continued Strong Sales of Verizon Wireless and Strategic Business Services

4Q 2008 HIGHLIGHTS

Consolidated Results

• 43 cents in diluted EPS and 61 cents in adjusted EPS (non-GAAP), compared with 4Q 2007 diluted EPS of 37 cents reported and 62 cents adjusted.

• $24.6 billion in 4Q revenues, up 3.4 percent, or adjusted growth (non-GAAP) of 4.6 percent.

Wireless

• 1.4 million organic (non-acquisition-related) net customer additions, almost all retail; 1.2 million total net customer additions, including a net customer loss under a previously announced exchange agreement related to the 3Q 2008 acquisition of Rural Cellular.

• 72.1 million total customers; 70.0 million retail customers, up 9.9 percent, not including customers added with the Jan. 9, 2009, acquisition of Alltel.

• 12.3 percent increase in total revenues; data revenues up 41.4 percent; ARPU growth for 11th consecutive quarter; strong 47.2 percent EBITDA margin on service revenues (non-GAAP).

Wireline

• 303,000 net new FiOS TV customers and 282,000 net new FiOS Internet customers, the highest ever for the company.

• 14.3 percent increase in consumer ARPU in legacy telecom markets.

• 8.4 percent increase in revenues from strategic business services.

Verizon News Release, Page 2

YEAR-END 2008 HIGHLIGHTS

• $2.26 in 2008 diluted EPS from continuing operations and $2.54 in adjusted EPS, compared with 2007 earnings of $1.90 per share and $2.36 per share, respectively.

• $97.4 billion in 2008 revenues, up 4.2 percent, or adjusted growth of 5.1 percent.

• $26.6 billion in cash flows from operating activities; $17.2 billion in capital expenditures.

Note: Comparisons are year over year unless otherwise noted. See the accompanying schedules and www.verizon.com/investor for reconciliations to generally accepted accounting principles (GAAP) for non-GAAP financial measures cited in this news release. Discontinued operations relate to the disposition of Telecomunicaciones de Puerto Rico, Inc. that was completed on March 30, 2007. Reclassifications of prior-period amounts have been made, where appropriate, to reflect comparable operating results for the spinoff of the Wireline segment’s non-strategic local exchange and related business assets in Maine, New Hampshire and Vermont in the first quarter of 2008.

NEW YORK — Verizon Communications Inc. (NYSE:VZ) today reported that it continued to grow sales of broadband, wireless and strategic business services in the fourth quarter 2008. Strong customer and revenue growth contributed to 43 cents in diluted earnings per share (EPS) in the quarter, compared with 37 cents per share in the fourth quarter 2007.

On an adjusted basis (non-GAAP), fourth-quarter 2008 EPS was 61 cents, compared with 62 cents in the fourth quarter 2007.

On an annual basis, Verizon reported $2.26 in 2008 EPS from continuing operations, compared with $1.90 in 2007. On an adjusted annual basis, 2008 EPS from continuing operations was $2.54, a 7.6 percent increase, compared with 2007 EPS of $2.36.

‘Able to Compete Effectively in This Economic Environment’

“Verizon has shown that it is able to compete effectively in this economic environment,” said Chairman and CEO Ivan Seidenberg. “We grew profits and maintained strong cash flows throughout 2008. In the fourth quarter, we continued to produce top-line growth, fueled by strong sales volumes for broadband, wireless and strategic business services.

“The Verizon story in 2008 was one of customer growth and product innovation, based on the strategic technology and broadband infrastructure investments we have made year after

Verizon News Release, Page 3

year,” Seidenberg said. “We have built a solid foundation to continue to create value for our customers and shareholders in 2009 and beyond.”

Consolidated Revenue Growth

Verizon’s total operating revenues grew 3.4 percent in the fourth quarter 2008, increasing to $24.6 billion from $23.8 billion in the fourth quarter 2007. After adjusting for the spinoff of non-strategic local exchange and related Wireline business assets early in 2008 (non-GAAP), this represents an increase of 4.6 percent. Total operating expenses in the fourth quarter 2008 increased 1.9 percent to $20.8 billion, or 4.1 percent on an adjusted basis, compared with the fourth quarter 2007.

For 2008, annual operating revenues were $97.4 billion, an increase of 4.2 percent from 2007 on a reported basis and 5.1 percent on an adjusted basis. Operating expenses totaled $80.5 billion in 2008, an increase of 3.3 percent from 2007 on a reported basis and 4.2 percent on an adjusted basis.

Continued Strong Cash Flows

Cash flows from operations totaled $26.6 billion in 2008, compared with $25.7 billion in 2007. Dividends and share repurchases totaled $6.4 billion in 2008. Capital expenditures totaled $17.2 billion in 2008, compared with $17.5 billion in 2007. For 2009, Verizon is targeting capital spending, excluding amounts related to the acquisition of Alltel Corporation, to be less than the 2008 total.

At year-end 2008, total debt was $52.0 billion, compared with $44.8 billion at the end of the third quarter 2008. Verizon ended 2008 with $9.8 billion in cash and cash equivalents, most of which was held for use in completing the acquisition of Alltel in January 2009.

Verizon News Release, Page 4

Details of 4Q Adjustments

Adjusted earnings in the fourth quarter 2008 excluded the following after-tax amounts: $424 million, or 15 cents per share, for severance, pension and benefit charges related to pension settlements from previously announced workforce reductions and severance charges associated with workforce reductions that began in the fourth quarter and will continue in 2009; $35 million, or 1 cent per share, for merger integration costs; and $31 million, or 1 cent per share, for an other-than-temporary decline in the fair value of investments in certain marketable securities.

Adjusted earnings in the fourth quarter 2007 excluded the following after-tax amounts: 16 cents per share for severance and other related expenses; 5 cents per share for taxes and expenses associated with an increase in the distributable earnings from the company’s Vodafone Omnitel N.V. investment; 2 cents per share for merger integration costs; and 1 cent per share for costs related to the spinoff of non-strategic local exchange and related Wireline business assets.

Wireless Delivers Another Strong Performance

In the fourth quarter 2008, Verizon Wireless continued to deliver service ARPU growth, strong customer loyalty, and sustained high margins:

• Organic growth totaled 1.4 million net customer additions, essentially all of which were retail.

• Retail net customer additions totaled 1.2 million. This included a net loss of 122,000 retail customers, resulting primarily from the closing of a previously announced exchange agreement with another carrier. Verizon Wireless had entered into this agreement to

Verizon News Release, Page 5

comply with conditions imposed in connection with regulatory approval of the company’s acquisition of Rural Cellular Corporation, which closed in August 2008.

• Verizon Wireless added 5.8 million organic net new retail customers in 2008 — expected to be the most of any U.S. wireless carrier.

• At the end of the quarter, Verizon Wireless had 72.1 million total customers.

• Verizon Wireless continued to have a high-quality customer base, with 70.0 million retail customers (not including Alltel) — the most of any U.S. wireless brand. Following the recently completed Alltel acquisition, Verizon Wireless now serves more than 80 million customers, excluding markets to be divested.

• Verizon Wireless continued to have low churn — 1.35 percent churn among all customers, and 1.05 percent among the company’s retail post-paid customers.

• Verizon Wireless continued its double-digit revenue growth, with total quarterly revenues of $12.8 billion, up 12.3 percent year over year. Full-year revenues were $49.3 billion, up 12.4 percent. Service revenues in the fourth quarter were $11.1 billion, up 12.0 percent year over year, and $42.6 billion for the full year, up 12.2 percent.

• This revenue growth was driven by accretion in ARPU (average monthly revenue per customer), which increased year over year for the 11th consecutive quarter. Total service ARPU of $51.72 was up 1.4 percent year over year, reflecting strong growth in total data ARPU, which was up 27.9 percent over the same period.

• Wireless operating income margin reached 29.7 percent, up 350 basis points on a year- over-year basis. EBITDA (earnings before interest, taxes, depreciation and amortization) margin on service revenues reached 47.2 percent.

Verizon News Release, Page 6

Record FiOS Customer Growth at Wireline

Verizon Wireline reported record growth in the number of new customers of FiOS TV and FiOS Internet, and it continued to increase sales of enterprise strategic services year over year. In the fourth quarter (with prior-period comparisons adjusted to reflect the impact of the spinoff of non-strategic Wireline assets):

• Verizon added 303,000 net new FiOS TV customers, compared with 226,000 in the fourth quarter 2007. The company had 1.9 million FiOS TV customers at year-end 2008, adding nearly 1 million FiOS TV customers since year-end 2007.

• FiOS TV sales penetration (sales as a percentage of potential customers) increased to 20.8 percent, compared with 16.0 percent in the fourth quarter 2007. FiOS TV service was available for sale to 9.2 million premises by year-end 2008. This represented a 57 percent increase in the availability of FiOS TV — and, by extension, of “triple play” bundles of FiOS TV, Internet and voice services — since year-end 2007.

• Verizon added 282,000 net new FiOS Internet customers, compared with 244,000 in the fourth quarter 2007. The company had nearly 2.5 million FiOS Internet customers at year-end 2008, adding nearly 1 million FiOS Internet customers since year-end 2007.

• FiOS Internet sales penetration increased to 24.9 percent, compared with 20.7 percent in the fourth quarter 2007. FiOS Internet was available for sale to nearly 10 million premises by year-end 2008.

• Broadband and video revenues from consumer customers totaled nearly $1.2 billion in the fourth quarter 2008 — representing year-over-year quarterly growth of 42.0 percent.

• Growing revenue from broadband and video services drove consumer ARPU in legacy Verizon wireline markets (which excludes consumer markets served by the former MCI)

Verizon News Release, Page 7

to $68.46 for the fourth quarter 2008, a 14.3 percent increase compared with the fourth quarter 2007.

• Sales of strategic business services — such as IP (Internet protocol), managed services, Ethernet and optical ring services — generated $1.5 billion in revenue in the quarter, up 8.4 percent from the fourth quarter 2007.

Additional Highlights

Wireless

• The Alltel acquisition expanded the Verizon Wireless network to cover nearly the entire U.S. population and made Verizon Wireless the nation’s largest carrier in terms of total customers — in addition to its traditional position of being the leading carrier in terms of retail customers, revenues and margins.

• At the end of 2008, retail customers (postpaid and prepaid) represented 97 percent of the company’s base.

• Verizon Wireless continued to lead the industry in cost efficiency. Monthly cash expense per customer (non-GAAP) decreased in the fourth quarter and for the full year to $27.29 and $28.12 in 2008 from $28.75 and $28.24 in 2007, respectively.

• Data revenues of $10.7 billion for the full year were up 44 percent over 2007. In the fourth quarter, data revenues were 26.8 percent of all service revenues, up from 21.3 percent in the fourth quarter 2007. Verizon Wireless had 55.1 million retail data customers at year-end — 79 percent of the retail customer base and a 16.8 percent increase over year-end 2007.

• More than 65 percent of the company’s retail customers — 45.5 million — had 3G broadband-capable devices by year-end. The company continued to extend the reach of the nation’s largest and most reliable 3G (third generation) network, which now covers more than 274 million people after the Alltel acquisition.

• Customers across the country lined up to purchase the new BlackBerry Storm, available exclusively in the U.S. from Verizon Wireless and launched in November. Designed for both consumers and business customers, the BlackBerry Storm offers customers the reliability of the Verizon Wireless 3G network and the full power of a revolutionary touch-screen, multimedia smartphone with global connectivity.

• Verizon Wireless, with the most global data coverage of any U.S. wireless carrier, received top honors during the quarter for its global services and international solutions that help travelers stay connected around the globe. Readers of Global Traveler magazine selected Verizon Wireless as the world’s best wireless service provider for the second consecutive

Verizon News Release, Page 8

year. Business Traveler magazine readers chose Verizon Wireless as the world’s best wireless data service provider in the 2008 “Best in Business Travel” awards.

• During the quarter, Verizon Wireless customers sent or received more than 90 billion text messages — more than double the number of text messages sent in the same period a year ago. Customers also sent 1.8 billion picture/video messages and completed 50 million music and video downloads during the quarter.

Wireline

• Wireline total operating revenues were $11.9 billion. Verizon Telecom, which serves domestic consumer and small-business customers, and Verizon Business, which serves large-business and government customers worldwide, each had 2.3 percent year-over-year quarterly revenue declines. At Verizon Telecom, this was the smallest decrease in 12 quarters. Wireline total operating expenses were $11.2 billion, a 1.3 percent increase compared with the fourth quarter 2007.

• By the end of 2008, Verizon’s FiOS fiber-to-the-premises network passed 12.7 million premises throughout the company’s wireline service territory — greater than the company’s target of 12 million by year-end 2008. Fiber-to-the-home now passes approximately 40 percent of the total households in Verizon’s landline footprint.

• Total broadband connections were 8.7 million, a net increase of 214,000 over the third quarter 2008. This includes a decrease of 68,000 DSL-based Verizon High Speed Internet connections, which was more than offset by the increase in FiOS Internet customers. The 8.7 million is an increase of 8.2 percent year over year.

• Broadband and TV products now account for more than 31 percent of consumer ARPU in legacy markets, compared with 22.7 percent in the fourth quarter 2007. The ARPU among FiOS customers continues to grow and is more than $133 per month.

• Wireline data revenues — which represented 43.6 percent of total Wireline revenues — were $5.2 billion in the fourth quarter 2008, an increase of 10.9 percent compared with the fourth quarter 2007. This includes revenues from consumer broadband services, wholesale data transport and Verizon Business data services.

• Verizon Business continued to announce significant new capabilities: enhancements to its voice-over-Internet-protocol portfolio; a new managed telepresence (video-meeting) solution; a service that enables managed hosting customers to easily and securely change online content; a solution for more efficiently providing essential applications to employees worldwide; and a managed unified communications and collaboration (UC&C) solution aimed at helping employees of global enterprises work more closely with one another.

• Verizon Business also continued to expand its global network reach and capabilities, announcing the installation of 26 Private IP (PIP) edge switches, including new nodes in Morocco and Pakistan. The company now has edge switches deployed in 59 countries and supports PIP services in more than 120 countries. Additional network enhancements

Verizon News Release, Page 9

included installation of eight Converged Packet Access nodes and further mesh network expansion in Asia-Pacific and North America, including the deployment of nodes in Singapore, Toronto, Montreal and several U.S. cities. In an additional seven U.S. markets, the company deployed multiplexers that enable remote provisioning and trouble isolation while providing reduced latency.

• New agreements with multinational customers included Nikon Corporation, NSG Group, Ingenico and Johnson Controls. Verizon Business also signed new contracts with several U.S. government agencies, including the U.S. Department of Veterans Affairs.

Verizon Communications Inc. (NYSE:VZ), headquartered in New York, is a leader in delivering broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America’s most reliable wireless network, serving more than 80 million customers nationwide. Verizon’s Wireline operations include Verizon Business, which delivers innovative and seamless business solutions to customers around the world, and Verizon Telecom, which brings customers the benefits of converged communications, information and entertainment services over the nation’s most advanced fiber-optic network. A Dow 30 company, Verizon employs a diverse workforce of nearly 224,000 and last year generated consolidated operating revenues of more than $97 billion. For more information, visit www.verizon.com.

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VERIZON’S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contacts, high-quality video and images, and other information are available at Verizon’s News Center on the World Wide Web at www.verizon.com/news. To receive news releases by e-mail, visit the News Center and register for customized automatic delivery of Verizon news releases.

NOTE: This news release 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: the effects of adverse conditions in the U.S. and international economies; the effects of competition in our markets; materially adverse changes in 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; the effect of material changes in available technology; any disruption of our suppliers’ provisioning of critical products or services; significant increases in benefit plan costs or lower investment returns on plan assets; the impact of natural or man-made disasters or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing; any changes in the regulatory environments in which we operate, including any loss of or inability to renew wireless licenses, and the final results of federal and state regulatory proceedings and judicial review of those results; the timing, scope and financial impact of our deployment of fiber-to-the-premises broadband technology; 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; our ability to successfully integrate Alltel Corporation into Verizon Wireless’s business and achieve anticipated benefits of the acquisition; and the inability to implement our business strategies.

Verizon Communications Inc.

Condensed Consolidated Statements of Income

(dollars in millions, except per share amounts)

Unaudited	3 Mos. Ended 12/31/08			3 Mos. Ended 12/31/07			% Change		12 Mos. Ended 12/31/08			12 Mos. Ended 12/31/07			% Change
Operating Revenues	$	24,645		$	23,840		3.4		$	97,354		$	93,469		4.2
Operating Expenses
Cost of services and sales		9,976			9,796		1.8			39,007			37,547		3.9
Selling, general & administrative expense		7,090			6,955		1.9			26,898			25,967		3.6
Depreciation and amortization expense		3,747			3,666		2.2			14,565			14,377		1.3
Total Operating Expenses		20,813			20,417		1.9			80,470			77,891		3.3
Operating Income		3,832			3,423		11.9			16,884			15,578		8.4
Equity in earnings of unconsolidated businesses		109			93		17.2			567			585		(3.1	)
Other income and (expense), net		62			87		(28.7	)		282			211		33.6
Interest expense		(517	)		(439	)	17.8			(1,819	)		(1,829	)	(0.5	)
Minority interest		(1,696	)		(1,333	)	27.2			(6,155	)		(5,053	)	21.8
Income Before Provision for Income Taxes, Discontinued Operations and Extraordinary Item		1,790			1,831		(2.2	)		9,759			9,492		2.8
Provision for income taxes		(555	)		(759	)	(26.9	)		(3,331	)		(3,982	)	(16.3	)
Income Before Discontinued Operations and Extraordinary Item		1,235			1,072		15.2			6,428			5,510		16.7
Income from discontinued operations, net of tax (1)		—			—		*			—			142		(100.0	)
Extraordinary item, net of tax		—			—		*			—			(131	)	(100.0	)
Net Income	$	1,235		$	1,072		15.2		$	6,428		$	5,521		16.4
Basic Earnings per Common Share (2)
Income before discontinued operations and extraordinary item	$	.43		$	.37		16.2		$	2.26		$	1.90		18.9
Income from discontinued operations, net of tax		—			—		*			—			.05		(100.0	)
Extraordinary item, net of tax		—			—		*			—			(.05	)	(100.0	)
Net income	$	.43		$	.37		16.2		$	2.26		$	1.91		18.3
Weighted average number of common shares (in millions)		2,841			2,886					2,849			2,898
Diluted Earnings per Common Share (2) (3)
Income before discontinued operations and extraordinary item	$	.43		$	.37		16.2		$	2.26		$	1.90		18.9
Income from discontinued operations, net of tax		—			—		*			—			.05		(100.0	)
Extraordinary item, net of tax		—			—		*			—			(.05	)	(100.0	)
Net income	$	.43		$	.37		16.2		$	2.26		$	1.90		18.9
Weighted average number of common shares-assuming dilution (in millions)		2,841			2,891					2,850			2,902

Footnotes:

(1) Discontinued operations includes a gain on the sale of Telecomunicaciones de Puerto Rico, Inc. (TELPRI) of $70 million, net of tax. The disposition of this non-strategic business was completed on March 30, 2007.

(2) EPS totals may not add due to rounding.

(3) Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution.

* Not meaningful

Verizon Communications Inc.

Condensed Consolidated Statements of Income Before Special Items

(dollars in millions, except per share amounts)

Unaudited	3 Mos. Ended 12/31/08			3 Mos. Ended 12/31/07			% Change		12 Mos. Ended 12/31/08			12 Mos. Ended 12/31/07			% Change
Operating Revenues (1)
Wireline	$	11,917		$	12,249		(2.7	)	$	48,214		$	49,129		(1.9	)
Domestic Wireless		12,846			11,443		12.3			49,332			43,882		12.4
Other		(118	)		(121	)	(2.5	)		(450	)		(636	)	(29.2	)
Total Operating Revenues		24,645			23,571		4.6			97,096			92,375		5.1
Operating Expenses (1)
Cost of services and sales		9,905			9,676		2.4			38,801			37,090		4.6
Selling, general & administrative expense		6,417			5,999		7.0			25,723			24,620		4.5
Depreciation and amortization expense		3,747			3,602		4.0			14,505			14,120		2.7
Total Operating Expenses		20,069			19,277		4.1			79,029			75,830		4.2
Operating Income		4,576			4,294		6.6			18,067			16,545		9.2
Operating income impact of divested operations(1)		—			33		(100.0	)		44			182		(75.8	)
Equity in earnings of unconsolidated businesses		109			93		17.2			567			585		(3.1	)
Other income and (expense), net		110			87		26.4			330			211		56.4
Interest expense		(517	)		(439	)	17.8			(1,819	)		(1,829	)	(0.5	)
Minority interest		(1,698	)		(1,333	)	27.4			(6,157	)		(5,053	)	21.8
Income Before Provision for Income Taxes and Discontinued Operations		2,580			2,735		(5.7	)		11,032			10,641		3.7
Provision for income taxes		(855	)		(953	)	(10.3	)		(3,797	)		(3,787	)	0.3
Income Before Discontinued Operations		1,725			1,782		(3.2	)		7,235			6,854		5.6
Income from discontinued operations, net of tax		—			—		*			—			72		(100.0	)
Net Income Before Special Items	$	1,725		$	1,782		(3.2	)	$	7,235		$	6,926		4.5
Basic Adjusted Earnings per Common Share(2)
Income before discontinued operations	$	.61		$	.62		(1.6	)	$	2.54		$	2.37		7.2
Income from discontinued operations, net of tax		—			—		*			—			.02		(100.0	)
Net income	$	.61		$	.62		(1.6	)	$	2.54		$	2.39		6.3
Weighted average number of common shares (in millions)		2,841			2,886					2,849			2,898
Diluted Adjusted Earnings per Common Share(2) (3)
Income before discontinued operations	$	.61		$	.62		(1.6	)	$	2.54		$	2.36		7.6
Income from discontinued operations, net of tax		—			—		*			—			0.2		(100.0	)
Net income	$	.61		$	.62		(1.6	)	$	2.54		$	2.39		6.3
Weighted average number of common shares-assuming dilution (in millions)		2,841			2,891					2,850			2,902
Footnotes: (1)    Reclassifications of prior period amounts have been made, where appropriate, to reflect comparable operating results for the spin-off of the wireline segment's non-strategic local exchange and related business assets in Maine, New Hampshire and Vermont in the first quarter of 2008. Reclassifications were determined using specific information, where available, and allocations where data is not maintained on a state-specific basis within the Company's books and records, as follows:
Revenues	$	—		$	269				$	258		$	1,094
Expenses	$	—		$	236				$	214		$	912

(2) EPS totals may not add due to rounding.

(3) Diluted Earnings per Share includes the dilutive effect of shares issuable under our stock-based compensation plans, which represent the only potential dilution.

* Not meaningful

Verizon Communications Inc.

Condensed Consolidated Statements of Income - Reconciliations

(dollars in millions, except per share amounts)

				Special and Non-Recurring Items
Unaudited	3 Mos. Ended 12/31/08 Reported (GAAP)			Merger Integration Costs			Severance, Pension and Benefit Charges			Investment - Related Charges			3 Mos. Ended 12/31/08 Before Special Items
Operating Revenues	$	24,645		$	—		$	—		$	—		$	24,645
Operating Expenses
Cost of services and sales		9,976			(6	)		(65	)		—			9,905
Selling, general & administrative expense		7,090			(53	)		(620	)		—			6,417
Depreciation and amortization expense		3,747			—			—			—			3,747
Total Operating Expenses		20,813			(59	)		(685	)		—			20,069
Operating Income		3,832			59			685			—			4,576
Equity in earnings of unconsolidated businesses		109			—			—			—			109
Other income and (expense), net		62			—			—			48			110
Interest expense		(517	)		—			—			—			(517	)
Minority interest		(1,696	)		(2	)		—			—			(1,698	)
Income Before Provision for Income Taxes		1,790			57			685			48			2,580
Provision for income taxes		(555	)		(22	)		(261	)		(17	)		(855	)
Net Income	$	1,235		$	35		$	424		$	31		$	1,725
Basic Earnings per Common Share (1)
Net income	$	.43		$	.01		$	.15		$	.01		$	.61
Diluted Earnings per Common Share (1)
Net income	$	.43		$	.01		$	.15		$	.01		$	.61

(dollars in millions, except per share amounts)

				Special and Non-Recurring Items
Unaudited	3 Mos. Ended 12/31/07 Reported (GAAP)			Merger Integration Costs			Access Line Spin-Off Related Charges			International Taxes			Severance, Pension and Benefit Charges			Impact of Divested Operations			3 Mos. Ended 12/31/07 Before Special Items
Operating Revenues	$	23,840		$	—		$	—		$	—		$	—		$	(269	)	$	23,571
Operating Expenses
Cost of services and sales		9,796			(16	)		—			—			—			(104	)		9,676
Selling, general & administrative expense		6,955			(76	)		(38	)		(2	)		(772	)		(68	)		5,999
Depreciation and amortization expense		3,666			—			—			—			—			(64	)		3,602
Total Operating Expenses		20,417			(92	)		(38	)		(2	)		(772	)		(236	)		19,277
Operating Income		3,423			92			38			2			772			(33	)		4,294
Operating income impact of divested operations		—			—			—			—			—			33			33
Equity in earnings of unconsolidated businesses		93			—			—			—			—			—			93
Other income and (expense), net		87			—			—			—			—			—			87
Interest expense		(439	)		—			—			—			—			—			(439	)
Minority interest		(1,333	)		—			—			—			—			—			(1,333	)
Income Before Provision for Income Taxes		1,831			92			38			2			772			—			2,735
Provision for income taxes		(759	)		(34	)		(2	)		137			(295	)		—			(953	)
Net Income	$	1,072		$	58		$	36		$	139		$	477		$	—		$	1,782
Basic Earnings per Common Share (1)
Net income	$	.37		$	.02		$	.01		$	.05		$	.17		$	—		$	.62
Diluted Earnings per Common Share (1)
Net income	$	.37		$	.02		$	.01		$	.05		$	.16		$	—		$	.62

Footnote:

(1) EPS totals may not add due to rounding.

Note: See www.verizon.com/investor for a reconciliation of other non-GAAP measures.

Verizon Communications Inc.

Condensed Consolidated Statements of Income - Reconciliations

(dollars in millions, except per share amounts)

				Special and Non-Recurring Items
Unaudited	12 Mos. Ended 12/31/08 Reported (GAAP)			Merger Integration Costs			Access Line Spin-Off Related Charges			Investment- Related Charges			Severance, Pension and Benefit Charges			Impact of Divested Operations			12 Mos. Ended 12/31/08 Before Special Items
Operating Revenues	$	97,354		$	—		$	—		$	—		$	—		$	(258	)	$	97,096
Operating Expenses
Cost of services and sales		39,007			(24	)		(16	)		—			(65	)		(101	)		38,801
Selling, general & administrative expense		26,898			(150	)		(87	)		—			(885	)		(53	)		25,723
Depreciation and amortization expense		14,565			—			—			—			—			(60	)		14,505
Total Operating Expenses		80,470			(174	)		(103	)		—			(950	)		(214	)		79,029
Operating Income		16,884			174			103			—			950			(44	)		18,067
Operating income impact of divested operations		—			—			—			—			—			44			44
Equity in earnings of unconsolidated businesses		567			—			—			—			—			—			567
Other income and (expense), net		282			—			—			48			—			—			330
Interest expense		(1,819	)		—			—			—			—			—			(1,819	)
Minority interest		(6,155	)		(2	)		—			—			—			—			(6,157	)
Income Before Provision for Income Taxes		9,759			172			103			48			950			—			11,032
Provision for income taxes		(3,331	)		(65	)		(22	)		(17	)		(362	)		—			(3,797	)
Net Income	$	6,428		$	107		$	81		$	31		$	588		$	—		$	7,235
Basic Earnings per Common Share (1)
Net income	$	2.26		$	.03		$	.03		$	.01		$	.21		$	—		$	2.54
Diluted Earnings per Common Share (1)
Net income	$	2.26		$	.03		$	.03		$	.01		$	.21		$	—		$	2.54

(dollars in millions, except per share amounts)

				Special and Non-Recurring Items
Unaudited	12 Mos. Ended 12/31/07 Reported (GAAP)			Merger Integration Costs			Sale of Puerto Rico, Net			Loss on CANTV		Access Line Spin-Off Related Charges			International Taxes			Severance, Pension and Benefit Charges			Impact of Divested Operations			12 Mos. Ended 12/31/07 Before Special Items
Operating Revenues	$	93,469		$	—		$	—		$	—	$	—		$	—		$	—		$	(1,094	)	$	92,375
Operating Expenses
Cost of services and sales		37,547			(32	)		—			—		—			—			—			(425	)		37,090
Selling, general & administrative expense		25,967			(146	)		(100	)		—		(84	)		(15	)		(772	)		(230	)		24,620
Depreciation and amortization expense		14,377			—			—			—		—			—			—			(257	)		14,120
Total Operating Expenses		77,891			(178	)		(100	)		—		(84	)		(15	)		(772	)		(912	)		75,830
Operating Income		15,578			178			100			—		84			15			772			(182	)		16,545
Operating income impact of divested operations		—			—			—			—		—			—			—			182			182
Equity in earnings of unconsolidated businesses		585			—			—			—		—			—			—			—			585
Other income and (expense), net		211			—			—			—		—			—			—			—			211
Interest expense		(1,829	)		—			—			—		—			—			—			—			(1,829	)
Minority interest		(5,053	)		—			—			—		—			—			—			—			(5,053	)
Income Before Provision for Income Taxes, Discontinued Operations and Extraordinary Item		9,492			178			100			—		84			15			772			—			10,641
Provision for income taxes		(3,982	)		(66	)		(35	)		—		(4	)		595			(295	)		—			(3,787	)
Income Before Discontinued Operations and Extraordinary Item		5,510			112			65			—		80			610			477			—			6,854
Income from discontinued operations, net of tax		142			—			(70	)		—		—			—			—			—			72
Extraordinary item, net of tax		(131	)		—			—			131		—			—			—			—			—
Net Income	$	5,521		$	112		$	(5	)	$	131	$	80		$	610		$	477		$	—		$	6,926
Basic Earnings per Common Share (1)
Income before discontinued operations and extraordinary item	$	1.90		$	.04		$	.02		$	—	$	.03		$	.21		$	.17		$	—		$	2.37
Income from discontinued operations, net of tax		.05			—			(.02	)		—		—			—			—			—			.02
Extraordinary item, net of tax		(.05	)		—			—			.05		—			—			—			—			—
Net income	$	1.91		$	.04		$	—		$	.05	$	.03		$	.21		$	.17		$	—		$	2.39
Diluted Earnings per Common Share (1)
Income before discontinued operations and extraordinary item	$	1.90		$	.04		$	.02		$	—	$	.03		$	.21		$	.16		$	—		$	2.36
Income from discontinued operations, net of tax	$	.05			—			(.02	)		—		—			—			—			—			.02
Extraordinary item, net of tax		(.05	)		—			—			.05		—			—			—			—			—
Net income	$	1.90		$	.04		$	—		$	.05	$	.03		$	.21		$	.16		$	—		$	2.39

Footnote:

(1) EPS totals may not add due to rounding.

Note: See www.verizon.com/investor for a reconciliation of other non-GAAP measures.

Verizon Communications Inc.

Selected Financial and Operating Statistics

(dollars in millions, except per share amounts)

Unaudited					12/31/08			12/31/07
Debt to debt and shareowners’ equity ratio-end of period						55.5	%		38.1	%
Book value per common share					$	14.68		$	17.58
Common shares outstanding (in millions)
End of period						2,841			2,877
Total employees (1)						223,880			232,417
Unaudited	3 Mos. Ended 12/31/08		3 Mos. Ended 12/31/07		12 Mos. Ended 12/31/08			12 Mos. Ended 12/31/07
Capital expenditures (including capitalized software)
Wireline	$	2,479	$	3,083	$	9,797		$	10,956
Domestic Wireless		1,787		1,600		6,510			6,503
Other		397		63		931			79
Total	$	4,663	$	4,746	$	17,238		$	17,538
Cash dividends declared per common share	$	0.460	$	0.430	$	1.780		$	1.670

Footnote:

(1) Prior period has been reclassified to reflect comparable amounts.

Verizon Communications Inc.

Condensed Consolidated Balance Sheets

(dollars in millions)

Unaudited	12/31/08			12/31/07			$ Change
Assets
Current assets
Cash and cash equivalents	$	9,782		$	1,153		$	8,629
Short-term investments		509			2,244			(1,735	)
Accounts receivable, net		11,703			11,736			(33	)
Inventories		2,092			1,729			363
Prepaid expenses and other		1,989			1,836			153
Total current assets		26,075			18,698			7,377
Plant, property and equipment		215,605			213,994			1,611
Less accumulated depreciation		129,059			128,700			359
		86,546			85,294			1,252
Investments in unconsolidated businesses		3,393			3,372			21
Wireless licenses		61,974			50,796			11,178
Goodwill		6,035			5,245			790
Other intangible assets, net		5,199			4,988			211
Other investments		4,781			—			4,781
Other assets		8,349			18,566			(10,217	)
Total Assets	$	202,352		$	186,959		$	15,393
Liabilities and Shareowners’ Investment
Current liabilities
Debt maturing within one year	$	4,993		$	2,954		$	2,039
Accounts payable and accrued liabilities		13,814			14,462			(648	)
Other		7,099			7,325			(226	)
Total current liabilities		25,906			24,741			1,165
Long-term debt		46,959			28,203			18,756
Employee benefit obligations		32,512			29,960			2,552
Deferred income taxes		11,769			14,784			(3,015	)
Other liabilities		6,301			6,402			(101	)
Minority interest		37,199			32,288			4,911
Shareowners’ investment
Common stock		297			297			—
Contributed capital		40,291			40,316			(25	)
Reinvested earnings		19,250			17,884			1,366
Accumulated other comprehensive loss		(13,372	)		(4,506	)		(8,866	)
Common stock in treasury, at cost		(4,839	)		(3,489	)		(1,350	)
Deferred compensation - employee stock ownership plans and other		79			79			—
Total shareowners’ investment		41,706			50,581			(8,875	)
Total Liabilities and Shareowners’ Investment	$	202,352		$	186,959		$	15,393

The unaudited consolidated balance sheets are based on preliminary information.

Verizon Communications Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in millions)

Unaudited	12 Mos. Ended 12/31/08			12 Mos. Ended 12/31/07			$ Change
Cash Flows From Operating Activities
Net income	$	6,428		$	5,521		$	907
Adjustments to reconcile net income to net cash provided by operating activities - continuing operations:
Depreciation and amortization expense		14,565			14,377			188
Employee retirement benefits		1,955			1,720			235
Deferred income taxes		2,183			408			1,775
Provision for uncollectible accounts		1,085			1,047			38
Equity in earnings of unconsolidated businesses, net of dividends received		212			1,986			(1,774	)
Extraordinary item, net of tax		—			131			(131	)
Changes in current assets and liabilities, net of effects from acquisition/disposition of businesses		(3,033	)		(2,893	)		(140	)
Other, net		3,225			4,012			(787	)
Net cash provided by operating activities - continuing operations		26,620			26,309			311
Net cash used in operating activities - discontinued operations		—			(570	)		570
Net cash provided by operating activities		26,620			25,739			881
Cash Flows From Investing Activities
Capital expenditures (including capitalized software)		(17,238	)		(17,538	)		300
Acquisitions of licenses, investments and businesses, net of cash acquired		(15,904	)		(763	)		(15,141	)
Net change in short-term investments		1,677			169			1,508
Other, net		(114	)		1,267			(1,381	)
Net cash used in investing activities - continuing operations		(31,579	)		(16,865	)		(14,714	)
Net cash provided by investing activities - discontinued operations		—			757			(757	)
Net cash used in investing activities		(31,579	)		(16,108	)		(15,471	)
Cash Flows From Financing Activities
Proceeds from long-term borrowings		21,598			3,402			18,196
Repayments of long-term borrowings and capital lease obligations		(4,146	)		(5,503	)		1,357
Increase (decrease) in short-term obligations, excluding current maturities		2,389			(3,252	)		5,641
Dividends paid		(4,994	)		(4,773	)		(221	)
Proceeds from sale of common stock		16			1,274			(1,258	)
Purchase of common stock for treasury		(1,368	)		(2,843	)		1,475
Other, net		93			(2	)		95
Net cash provided by (used in) financing activities - continuing operations		13,588			(11,697	)		25,285
Net cash provided by (used in) financing activities - discontinued operations		—			—			—
Net cash provided by (used in) financing activities		13,588			(11,697	)		25,285
Increase (decrease) in cash and cash equivalents		8,629			(2,066	)		10,695
Cash and cash equivalents, beginning of period		1,153			3,219			(2,066	)
Cash and cash equivalents, end of period	$	9,782		$	1,153		$	8,629

Verizon Communications Inc.

Wireline – Selected Financial Results

(dollars in millions)

Unaudited	3 Mos. Ended 12/31/08			3 Mos. Ended 12/31/07			% Change		12 Mos. Ended 12/31/08			12 Mos. Ended 12/31/07			% Change
Wireline Operating Revenues (1)
Verizon Telecom
Mass Markets	$	5,226		$	5,257		(0.6	)	$	20,974		$	21,289		(1.5	)
Wholesale		1,882			1,932		(2.6	)		7,571			7,774		(2.6	)
Other		300			397		(24.4	)		1,367			1,717		(20.4	)
Verizon Business
Enterprise Business		3,607			3,688		(2.2	)		14,411			14,550		(1.0	)
Wholesale		810			815		(0.6	)		3,341			3,345		(0.1	)
International and Other		800			838		(4.5	)		3,374			3,214		5.0
Eliminations		(708	)		(678	)	4.4			(2,824	)		(2,760	)	2.3
Total Operating Revenues		11,917			12,249		(2.7	)		48,214			49,129		(1.9	)
Operating Expenses (1)
Cost of services and sales		6,041			6,188		(2.4	)		24,274			24,181		0.4
Selling, general & administrative expense		2,854			2,584		10.4			11,047			11,527		(4.2	)
Depreciation and amortization expense		2,309			2,288		0.9			9,031			8,927		1.2
Total Operating Expenses		11,204			11,060		1.3			44,352			44,635		(0.6	)
Operating Income	$	713		$	1,189		(40.0	)	$	3,862		$	4,494		(14.1	)
Operating Income Margin		6.0	%		9.7	%				8.0	%		9.1	%
Verizon Communications Inc. Wireline – Selected Operating Statistics
Unaudited									12/31/08			12/31/07			% Change
Switched access lines in service (000) (2)
Residence										20,956			23,880		(12.2	)
Business										14,966			15,713		(4.8	)
Public										239			290		(17.6	)
Total										36,161			39,883		(9.3	)
Wholesale voice connections (000)										2,367			2,817		(16.0	)
Broadband connections (000)										8,673			8,013		8.2
													(dollars in millions)
Unaudited	3 Mos. Ended 12/31/08			3 Mos. Ended 12/31/07			% Change		12 Mos. Ended 12/31/08			12 Mos. Ended 12/31/07			% Change
High capacity and digital data revenues (1)	$	5,200		$	4,691		10.9		$	20,280		$	17,779		14.1

Footnotes:

The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company's chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.

Intersegment transactions have not been eliminated.

(1) Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

(2) Prior period amounts adjusted to reflect current period reporting methodologies.

Verizon Communications Inc.

Verizon Wireless – Selected Financial Results

(dollars in millions)

	3 Mos. Ended			3 Mos. Ended					12 Mos. Ended			12 Mos. Ended
Unaudited	12/31/08			12/31/07			% Change		12/31/08			12/31/07			% Change
Revenues
Service revenues	$	11,063		$	9,874		12.0		$	42,635		$	38,016		12.2
Equipment and other		1,783			1,569		13.6			6,697			5,866		14.2
Total Revenues		12,846			11,443		12.3			49,332			43,882		12.4
Operating Expenses
Cost of services and sales		4,153			3,613		14.9			15,660			13,456		16.4
Selling, general & administrative expense		3,467			3,521		(1.5	)		14,273			13,477		5.9
Depreciation and amortization expense		1,416			1,306		8.4			5,405			5,154		4.9
Total Operating Expenses		9,036			8,440		7.1			35,338			32,087		10.1
Operating Income	$	3,810		$	3,003		26.9		$	13,994		$	11,795		18.6
Operating Income Margin		29.7	%		26.2	%				28.4	%		26.9	%
Verizon Communications Inc. Verizon Wireless – Selected Operating Statistics
Unaudited									12/31/08			12/31/07			% Change
Total Customers (000)										72,056			65,707		9.7
Retail Customers (000)										70,021			63,735		9.9
	3 Mos. Ended			3 Mos. Ended					12 Mos. Ended			12 Mos. Ended
Unaudited	12/31/08			12/31/07			% Change		12/31/08			12/31/07			% Change
Total Customer net adds in period (1) (000)		1,248			2,008		(37.8	)		6,349			6,655		(4.6	)
Retail Customer net adds in period (2) (000)		1,214			1,895		(35.9	)		6,286			6,923		(9.2	)
Total churn rate		1.35	%		1.20	%				1.25	%		1.21	%
Retail churn rate		1.34	%		1.21	%				1.24	%		1.14	%

Footnotes:

The segment financial results above are adjusted to exclude the effects of special and non-recurring items. The company’s chief decision makers exclude these items in assessing business unit performance, primarily due to their non-operational nature.

Intersegment transactions have not been eliminated.

Certain reclassifications have been made, where appropriate, to reflect comparable operating results.

(1) Includes acquisitions and adjustments of 9,000 customers for the year ended December 31, 2007, and (122,000) and 570,000 customers for the 3 and 12 months ended December 31, 2008.

(2) Includes acquisitions and adjustments of 9,000 customers for the year ended December 31, 2007, and (139,000) and 534,000 customers for the 3 and 12 months ended December 31, 2008.

Verizon Communications Inc.

Other Reconciliations-Wireless

										(dollars in millions)
Unaudited										3 Mos. Ended 12/31/08
Segment operating income:
Wireline										$	713
Verizon Wireless											3,810
Total segments											4,523
Corporate and other											53
Consolidated operating income										$	4,576
Verizon Wireless EBITDA
Operating income										$	3,810
Add depreciation and amortization expense											1,416
Verizon Wireless EBITDA										$	5,226
Verizon Wireless total revenues										$	12,846
Verizon Wireless service revenues										$	11,063
Verizon Wireless operating income margin											29.7	%
Verizon Wireless EBITDA service revenues margin											47.2	%
	(dollars in millions, except Cash Expense per Customer)
Unaudited	3 Mos. Ended 12/31/08			3 Mos. Ended 12/31/07			12 Mos. Ended 12/31/08			12 Mos. Ended 12/31/07
Domestic Wireless Cash Expense Per Customer
Domestic Wireless Cost of Services and Sales	$	4,153		$	3,613		$	15,660		$	13,456
Domestic Wireless Selling, General & Administrative Expense		3,467			3,521			14,273			13,477
Less Equipment and Other Revenue		(1,783	)		(1,569	)		(6,697	)		(5,866	)
Cash Expense	$	5,837		$	5,565		$	23,236		$	21,067
Cumulative average customers (millions)		213.89			193.59			826.34			745.94
Cash Expense Per Customer	$	27.29		$	28.75		$	28.12		$	28.24