Financial Data

SBC Communications Inc.

Consolidated Statements of Income
Dollars in millions except per share amounts Unaudited

	Three Months Ended				Nine Months Ended
	9/30/04	9/30/03	% Chg		9/30/04	9/30/03	% Chg
Operating Revenues
Voice	$  5,308	$  5,462	-2.8	%	$15,765	$16,792	-6.1	%
Data	2,733	2,576	6.1	%	8,107	7,546	7.4	%
Long-distance voice	865	668	29.5	%	2,429	1,858	30.7	%
Directory advertising	926	957	-3.2	%	2,808	2,874	-2.3	%
Other	460	487	-5.5	%	1,391	1,452	-4.2	%
Total Operating Revenues	10,292	10,150	1.4	%	30,500	30,522	-0.1	%
Operating Expenses
Cost of sales (exclusive of depreciation
and amortization shown separately below)	4,284	4,261	0.5	%	12,803	12,385	3.4	%
Selling, general and administrative	2,421	2,376	1.9	%	7,343	7,098	3.5	%
Depreciation and amortization	1,889	1,952	-3.2	%	5,700	5,925	-3.8	%
Total Operating Expenses	8,594	8,589	0.1	%	25,846	25,408	1.7	%
Operating Income	1,698	1,561	8.8	%	4,654	5,114	-9.0	%
Interest Expense	238	280	-15.0	%	705	973	-27.5	%
Interest Income	140	126	11.1	%	376	405	-7.2	%
Equity in Net Income of Affiliates	210	337	-37.7	%	1,171	1,173	-0.2	%
Other Income (Expense) - Net	45	21	-		862	1,686	-48.9	%
Income Before Income Taxes	1,855	1,765	5.1	%	6,358	7,405	-14.1	%
Income Taxes	610	579	5.4	%	2,067	2,434	-15.1	%
Income From Continuing Operations	1,245	1,186	5.0	%	4,291	4,971	-13.7	%
Income From Discontinued Operations, net of tax	849	30	-		908	88	-
Income Before Cumulative Effect of Accounting Changes	2,094	1,216	72.2	%	5,199	5,059	2.8	%
Cumulative Effect of Accounting Changes, net of tax	-	-	-		-	2,541	-
Net Income	$  2,094	$  1,216	72.2	%	$  5,199	$  7,600	-31.6	%
Basic Earnings Per Share:
Income from Continuing Operations	$    0.38	$    0.36	5.6	%	$    1.30	$    1.50	-13.3	%
Income Before Cumulative Effect of Accounting Changes	$    0.63	$    0.37	70.3	%	$    1.57	$    1.52	3.3	%
Net Income	$    0.63	$    0.37	70.3	%	$    1.57	$    2.29	-31.4	%
Weighted Average Common Shares Outstanding (000,000)	3,314	3,319	-0.2	%	3,311	3,321	-0.3	%
Diluted Earnings Per Share:
Income from Continuing Operations	$    0.38	$    0.36	5.6	%	$    1.29	$    1.49	-13.4	%
Income Before Cumulative Effect of Accounting Changes	$    0.63	$    0.37	70.3	%	$    1.57	$    1.52	3.3	%
Net Income	$    0.63	$    0.37	70.3	%	$    1.57	$    2.28	-31.1	%
Weighted Average Common Shares Outstanding with Dilution (000,000)	3,325	3,331	-0.2	%	3,324	3,333	-0.3	%

Financial Data

SBC Communications Inc.

Statements of Segment Income
Dollars in millions Unaudited

	Three Months Ended				Nine Months Ended
Wireline	9/30/2004	9/30/2003	% Chg		9/30/2004	9/30/2003	% Chg
Segment Operating Revenues
Voice	$  5,286	$  5,447	-3	.0%	$15,705	$16,752	-6	.3%
Data	2,733	2,576	6	.1%	8,107	7,546	7	.4%
Long-distance voice	865	668	29	.5%	2,429	1,858	30	.7%
Other	430	466	-7	.7%	1,340	1,404	-4	.6%
Total Segment Operating Revenues	9,314	9,157	1	.7%	27,581	27,560	0	.1%
Segment Operating Expenses
Cost of sales	4,090	4,055	0	.9%	12,202	11,796	3	.4%
Selling, general and administrative
Selling	1,633	1,499	8	.9%	4,940	4,645	6	.4%
General and administrative	645	645		-	1,839	1,833	0	.3%
Selling, general and administrative	2,278	2,144	6	.3%	6,779	6,478	4	.6%
Depreciation and amortization	1,857	1,928	-3	.7%	5,618	5,850	-4	.0%
Total Segment Operating Expenses	8,225	8,127	1	.2%	24,599	24,124	2	.0%
Segment Income	$  1,089	$  1,030	5	.7%	$  2,982	$  3,436	-13	.2%

Cingular *
Segment Operating Revenues
Service revenues	$  3,838		$  3,676		4	.4%	$11,197		$10,689		4	.8%
Equipment sales	419		383		9	.4%	1,157		882		31	.2%
Total Segment Operating Revenues	4,257		4,059		4	.9%	12,354		11,571		6	.8%
Segment Operating Expenses
Cost of services and equipment sales	1,657		1,609		3	.0%	4,564		4,167		9	.5%
Selling, general and administrative	1,567		1,441		8	.7%	4,401		3,927		12	.1%
Depreciation and amortization	572		521		9	.8%	1,689		1,517		11	.3%
Total Segment Operating Expenses	3,796		3,571		6	.3%	10,654		9,611		10	.9%
Segment Operating Income	461		488		-5	.5%	1,700		1,960		-13	.3%
Other Income (Expense) - Net	(316	)	(305	)	-3	.6%	(973	)	(934	)	-4	.2%
Segment Income	$    145		$    183		-20	.8%	$    727		$  1,026		-29	.1%

* Results reflect 100% of Cingular Wireless' actual results

Directory
Segment Operating Revenues	$    935	$    937	-0	.2%	$  2,806	$  2,825	-0	.7%
Segment Operating Expenses
Cost of sales	216	215	0	.5%	665	628	5	.9%
Selling, general and administrative
Selling	70	100	-30	.0%	252	302	-16	.6%
General and administrative	95	92	3	.3%	294	288	2	.1%
Selling, general and administrative	165	192	-14	.1%	546	590	-7	.5%
Depreciation and amortization	2	5	-60	.0%	7	16	-56	.3%
Total Segment Operating Expenses	383	412	-7	.0%	1,218	1,234	-1	.3%
Segment Income	$    552	$    525	5	.1%	$  1,588	$  1,591	-0	.2%

International
Segment Operating Revenues	$       6	$       9		-33	.3%	$     17		$     23		-26	.1%
Segment Operating Expenses	1	10		-90	.0%	19		42		-54	.8%
Segment Operating Income (Loss)	5	(1	)		-	(2	)	(19	)	89	.5%
Equity in Net Income of Affiliates	112	227		-50	.7%	713		555		28	.5%
Segment Income	$    117	$    226		-48	.2%	$    711		$    536		32	.6%

Financial Data

SBC Communications Inc.

Consolidated Balance Sheets
Dollars in Millions, Except per share amounts Unaudited

	9/30/2004		12/31/2003
Assets
Current Assets
Cash and cash equivalents	$   13,290		$     4,806
Accounts receivable - net of allowances for
uncollectibles of $968 and $908	5,685		6,160
Short-term investments	204		378
Prepaid expenses	827		760
Deferred income taxes	251		741
Other current assets	855		926
Assets of discontinued operations	-		252
Total current assets	21,112		14,023
Property, plant and equipment - at cost	135,454		133,923
Less: accumulated depreciation and amortization	85,398		81,795
Property, Plant and Equipment - Net	50,056		52,128
Goodwill- Net	1,625		1,611
Investments in Equity Affiliates	2,182		6,924
Investments in and Advances to Cingular Wireless	11,398		11,003
Other Assets	15,613		14,507
Total Assets	$ 101,986		$ 100,196
Liabilities and Shareowners' Equity
Current Liabilities
Debt maturing within one year	$     1,703		$     1,879
Accounts payable and accrued liabilities	9,272		10,658
Accrued taxes	697		402
Dividends payable	1,036		1,033
Liabilities of discontinued operations	697		328
Total current liabilities	13,405		14,300
Long-Term Debt	16,539		16,060
Deferred Credits and Other Noncurrent Liabilities
Deferred income taxes	15,928		15,070
Postemployment benefit obligation	11,746		12,691
Unamortized investment tax credits	198		220
Other noncurrent liabilities	3,960		3,607
Total deferred credits and other noncurrent liabilities	31,832		31,588
Shareowners' Equity
Common shares issued ($1 par value)	3,433		3,433
Capital in excess of par value	12,890		13,010
Retained earnings	29,728		27,635
Treasury shares (at cost)	(4,252	)	(4,698	)
Additional minimum pension liability adjustment	(1,132	)	(1,132	)
Accumulated other comprehensive income	(457	)	-
Total shareowners' equity	40,210		38,248
Total Liabilities and Shareowners' Equity	$ 101,986		$ 100,196

Financial Data

SBC Communications Inc.

Consolidated Statements of Cash Flows
Dollars in millions, increase (decrease) in cash and cash equivalents

Unaudited                                  Nine Months Ended

	9/30/04		9/30/03
Operating Activities
Net income	$   5,199		$ 7,600
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization	5,700		5,925
Undistributed earnings from investments
in equity affiliates	(856	)	(913	)
Provision for uncollectible accounts	549		700
Amortization of investment tax credits	(22	)	(28	)
Deferred income tax expense	1,596		1,118
Gain on sale of investments	(900	)	(1,678	)
Cumulative effect of accounting changes, net of tax	-		(2,541	)
Income from discontinued operations, net of tax	(908	)	(88	)
Retirement benefit funding	(2,232	)	(945	)
Changes in operating assets and liabilities:
Accounts receivable	(75	)	(176	)
Other current assets	5		(151	)
Accounts payable and accrued liabilities	(1,104	)	1,636
Other - net	583		(602	)
Total adjustments	2,336		2,257
Net Cash Provided by Operating Activities	7,535		9,857
Investing Activities
Construction and capital expenditures	(3,462	)	(3,235	)
Purchases of held-to-maturity securities	(134	)	(578	)
Maturities of held-to-maturity securities	393		164
Dispositions	5,233		2,855
Acquisitions	(9	)	-
Proceeds from note repayment	50		-
Purchase of other investments	-		(436	)
Proceeds from sales of other investments	50		-
Net Cash Provided by (Used in) Investing Activities	2,121		(1,230	)
Financing Activities
Net change in short-term borrowings with
original maturities of three months or less	(610	)	(77	)
Repayment of other short-term borrowings	-		(1,070	)
Issuance of long-term debt	1,487		-
Repayment of long-term debt	(623	)	(2,826	)
Purchase of treasury shares	-		(299	)
Issuance of treasury shares	151		63
Dividends paid	(3,105	)	(3,271	)
Net Cash Used in Financing Activities	(2,700	)	(7,480	)
Net increase in cash and cash equivalents
from continuing operations	6,956		1,147
Net increase in cash and cash equivalents
from discontinued operations	1,528		222
Net increase in cash and cash equivalents	8,484		1,369
Cash and cash equivalents beginning of year	4,806		3,571
Cash and Cash Equivalents End of Period	$ 13,290		$ 4,940