Acquisition(s)

Verizon Projects Higher Margins and Sustained Revenue Growth in 2014 Acquisition of Vodafone's Interest in Verizon Wireless Has Enhanced Verizon's Ability to DeliverIntegrated Products and Solutions Across All Networks NEW YORK, Feb. 24, 2014 -- With the best wireless asset in the U.S. now under completeownership of Verizon Communications Inc. (NYSE, Nasdaq: VZ), the company is poised to expand margins andgrow revenues in 2014. Verizon completed its acquisition of Vodafone Group Plc's 45 percent minority interest in Verizon Wireless on Feb.21 - and today, on the first full day of trading for the new Verizon, the company announced additional detailsrelated to its 2014 financial outlook. "Full ownership of our wireless asset is a major milestone for Verizon customers and shareholders," said LowellMcAdam, Verizon chairman and CEO. "We see a new phase of wireless growth and expanding opportunities asmobile networks become the platform for most of the world's digital traffic. No company is in a better position totake advantage of these opportunities than the new Verizon." McAdam added: "This acquisition also enhances Verizon's ability to deliver integrated wireless and wirelineproducts and solutions across all networks and platforms. We are very excited about the future and extremelyconfident that sole ownership of Verizon Wireless will enhance our overall growth prospects." 2014 Financial OutlookVerizon posted $4.00 in earnings per share in 2013, or $2.84 in adjusted earnings per share (non-GAAP). Aspreviously announced, Verizon expects full ownership of Verizon Wireless to be immediately accretive toearnings per share by about 10 percent, excluding non-operational adjustments. Verizon expects to sustain consolidated revenue growth rates. The company is targeting 4 percent consolidatedrevenue growth in 2014, compared with 4.1 percent in 2013. In 2014, Verizon expects to expand its adjusted consolidated EBITDA margin (non-GAAP, based on earnings beforeinterest, taxes, depreciation and amortization). In 2013, Verizon posted consolidated operating income margin of26.5 percent and adjusted consolidated EBITDA margin of 34.9 percent. Supporting this expansion, Verizon istargeting increases in EBITDA and EBITDA margin in both its Wireless and Wireline business segments. The company expects to deliver continued strong cash flows to fund network investments, reduce debt and supportthe dividend policy of Verizon's Board of Directors. The new Verizon is also positioned to deliver integrated products and solutions to customers even faster. A recentlyformed companywide Product Development and Management organization will leverage all of Verizon's assets todevelop innovative products quickly across the company's wireless, wireline, IP and cloud networks and platforms. McAdam has named Marni Walden, formerly chief operating officer of Verizon Wireless, to lead this neworganization. NOTE: See the accompanying schedules and www.verizon.com/investor for reconciliations to generally acceptedaccounting principles (GAAP) for non-GAAP financial measures cited in this document. Verizon Communications Inc. (NYSE, Nasdaq: VZ), headquartered in New York, is a global leader in deliveringbroadband and other wireless and wireline communications services to consumer, business, government andwholesale customers. Verizon Wireless operates America's most reliable wireless network, with nearly 103 millionretail connections nationwide. Verizon also provides converged communications, information and entertainmentservices over America's most advanced fiber-optic network, and delivers integrated business solutions to customersin more than 150 countries. A Dow 30 company with more than $120 billion in 2013 revenues, Verizon employs adiverse workforce of 176,800. For more information, visit www.verizon.com. VERIZON'S ONLINE NEWS CENTER: Verizon news releases, executive speeches and biographies, media contactsand other information are available at Verizon's online News Center at newscenter.verizon.com. The news releasesare available through an RSS feed. To subscribe, visit newscenter.verizon.com/corporate/feeds. Forward-Looking StatementsIn this communication we have made forward-looking statements. These statements are based on our estimatesand assumptions and are subject to risks and uncertainties. Forward-looking statements include the informationconcerning our possible or assumed future results of operations. Forward-looking statements also include thosepreceded or followed by the words "anticipates," "believes," "estimates," "hopes" or similar expressions. For thosestatements, we claim the protection of the safe harbor for forward-looking statements contained in the PrivateSecurities Litigation Reform Act of 1995. The following important factors, along with those discussed in our filingswith the Securities and Exchange Commission (the "SEC"), could affect future results and could cause those resultsto differ materially from those expressed in the forward-looking statements: the ability to realize the expectedbenefits of our transaction with Vodafone in the timeframe expected or at all; an adverse change in the ratingsafforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit marketsaffecting the cost, including interest rates, and/or availability of further financing; significantly increased levels ofindebtedness as a result of the Vodafone transaction; changes in tax laws or treaties, or in their interpretation;adverse conditions in the U.S. and international economies; material adverse changes in labor matters, includinglabor negotiations, and any resulting financial and/or operational impact; material changes in technology ortechnology substitution; disruption of our key suppliers' provisioning of products or services; changes in theregulatory environment in which we operate, including any increase in restrictions on our ability to operate ournetworks; breaches of network or information technology security, natural disasters, terrorist attacks or acts of waror significant litigation and any resulting financial impact not covered by insurance; the effects of competition in themarkets in which we operate; changes in accounting assumptions that regulatory agencies, including the SEC, mayrequire or that result from changes in the accounting rules or their application, which could result in an impact onearnings; significant increases in benefit plan costs or lower investment returns on plan assets; and the inability toimplement our business strategies. Verizon Communications Inc.Reconciliations - Consolidated Verizon (dollars in millions) 12 Mos. EndedUnaudited 12/31/13--------- -------- Consolidated Operating Revenues $120,550 Adjusted EBITDA (dollars in millions) 3 Mos. Ended 3 Mos. Ended 3 Mos. Ended 3 Mos. EndedUnaudited 3/31/13 6/30/13 9/30/13 12/31/13--------- ------- ------- ------- -------- Verizon Consolidated EBITDAConsolidated net income $4,855 $5,198 $5,578 $7,916Add/(Subtract): Provision for income taxes 864 988 1,034 2,844 Interest expense 537 514 555 1,061 Other (income) and expense, net (39) (25) (20) 250 Equity in earnings of unconsolidated businesses 5 (120) (19) (8) --- ---- --- ---Operating income 6,222 6,555 7,128 12,063Add Depreciation and amortization expense 4,118 4,151 4,154 4,183 ----- ----- ----- -----Consolidated EBITDA $10,340 $10,706 $11,282 $16,246 ------- ------- ------- -------Operating income margin - YTD(1) 26.5% Consolidated EBITDA margin-YTD(1) 40.3% Operating income $6,222 $6,555 $7,128 $12,063 Severance, Pension, and Benefit Credits - (237) - (5,995) Gain on Spectrum License Transactions - - (278) - --- --- ---- ---Adjusted operating income 6,222 6,318 6,850 6,068 Add Depreciation and amortization expense 4,118 4,151 4,154 4,183 ----- ----- ----- -----Consolidated Adjusted EBITDA $10,340 $10,469 $11,004 $10,251 ------- ------- ------- -------Consolidated Adjusted EBITDA Margin-YTD(1) 34.9% (1)Year-to-date Operating income, Consolidated EBITDA and Consolidated Adjusted EBITDA represent the sum of the quarterly results. Adjusted EPS 12 Mos. EndedUnaudited 12/31/13--------- -------- Earnings Per Common Share, Reported $4.00 Severance, Pension, and Benefit Credits (1.35) Gain on Spectrum License Transactions (0.02) Wireless Transaction Costs 0.20 ----Adjusted EPS $2.84 ----- Note: EPS may not add due to rounding. SOURCE Verizon Communications Inc.

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