Subject: [NEXTEL-1] Nextel Earnings-

From: [email-masked]
Date: Wed, 21 Jul 2004 11:19:41 -0400

RESTON, Va.--(BUSINESS WIRE)--July 21, 2004--Nextel Communications, Inc. 
(NASDAQ:NXTL - News)

Revenue of $3.3 Billion, up 29%
Operating Income before Depreciation and Amortization of $1.26 Billion,
up 25%
Income of $1.3 Billion, includes Tax Benefit and Debt Retirement Costs
Earnings per share of $1.17, includes Tax Benefit and Debt Retirement
Costs
Nextel Subscriber Additions of 546,000; Ending Subscribers 13.9 Million
Reaffirms 2004 Guidance

Nextel Communications, Inc. (NASDAQ:NXTL - News) today announced strong 
financial and operating results for the second-quarter 2004, including
record 
revenue, operating income before depreciation and amortization (OIBDA)
and net 
income. Highlights compared with last year's second quarter include
revenue of $3.3 
billion, up 29% from last year's second-quarter revenue of $2.6 billion
and OIBDA of 
$1.26 billion, up 25% from last year's second-quarter OIBDA of $1.0
billion.

Second-quarter 2004 income was $1.3 billion, or $1.17 per share, up
significantly 
from last year's second-quarter income of $281 million, or $0.27 per
share. Second-
quarter 2004 income includes a net tax benefit of $726 million, or $0.65
per share, 
resulting from the release of a significant portion of the accumulated
net operating 
loss valuation allowance and an expense of $34 million, or $0.03 per
share from the 
retirement of convertible debt during the quarter. Adjusting for these
two items, 
second-quarter income was $608 million, or $0.55 per share, up 111% from
last 
year's adjusted second-quarter income of $288 million, or $0.28 per
share.

"Our second-quarter results reflect continued progress on multiple
fronts and we are 
on track to meet or exceed our 2004 guidance," said Tim Donahue,
Nextel's president 
and CEO. "Subscriber quality improved during the second quarter as
reflected by an 
increase in average monthly revenue per subscriber (ARPU) and a
reduction in 
customer churn. I am confident that Nextel will continue to execute our
Smart Growth 
strategy aimed at delivering strong top-line growth and industry-leading 
profitability."

Subscriber additions of 546,000 were 15% greater than in the first
quarter with ARPU 
up $1 to $70 and churn down a tenth of a percent to 1.6% as compared
with the first 
quarter. In addition, Boost Mobile(TM) added 68,000 subscribers during
the second 
quarter. Nextel ended the second quarter with approximately 13.9 million
subscribers 
and Boost Mobile ended the quarter with approximately 605,000
subscribers.

"Nextel is keenly focused on attracting the most valuable subscribers in
the industry 
and enhancing our differentiation," said Tom Kelly, Nextel's EVP and
COO. "During the 
second quarter, we introduced NextMail(SM), which enables subscribers to
send voice 
messages to any email address in the world, as well as International
Direct 
Connect(SM) which allows Nextel customers to instantly hold
walkie-talkie 
conversations across borders into Canada, Mexico, Peru, Brazil and
Argentina. We also 
recently introduced our smallest ever handset, the i830(TM), and we
anticipate the 
upcoming launch of DirectTalk(SM), our first handset with off-network
Push To 
Talk(SM), and our first-camera phone with an extra large screen. These
initiatives are 
consistent with our strategy to be first, better and different."

Nextel ended the second quarter of 2004 with approximately $2.1 billion
in cash, 
cash equivalents and short-term investments. As of June 30, 2004, Nextel
had 
outstanding $9.6 billion of debt, down from $10.3 billion as of March
31, 2004.

"Nextel continues to build on its track record of delivering strong
operating results, 
industry leading margins and the highest lifetime value per subscriber,"
said Paul 
Saleh, Nextel's EVP and CFO. "We are also continuing to take steps to
further enhance 
our financial flexibility and strengthen our balance sheet. During the
second quarter, 
Nextel reduced debt by approximately $700 million and so far this year
has been 
upgraded by all rating agencies. During July, Nextel extended and
refinanced its credit 
facility and increased liquidity to $4.6 billion on a pro forma basis."

Capital expenditures were $581 million in the second quarter of 2004.
Total system 
minutes of use on the Nextel national network increased 30% during the
quarter when 
compared with the same period in 2003 to approximately 31.9 billion.
Monthly 
subscriber usage increased 8% to 780 minutes of use when compared with
last year's 
second-quarter usage of 720 minutes.

"Our iDEN network continues to scale very effectively and we are on
track with our 
network expansion plans," said Barry West, Nextel's EVP and CTO. "I am
also pleased 
to report that we have finalized plans to begin selling handsets
equipped to operate 
using the new voice coder throughout all markets beginning this quarter.
We will 
activate the supporting network software in selected markets immediately
and plan to 
activate all markets by early 2005."

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 income, OIBDA, OIBDA margin,
free cash 
flow 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 notes to the attached financial tables. 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.

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