SAN ANTONIO (BUSINESS WIRE) SBC Communications Inc. (NYSE:SBC) today announced a new three-year contract with VHA Inc., a privately-held, Texas-based healthcare cooperative that helps healthcare organizations nationwide enhance operational and clinical performance.

Under the terms of the contract, SBC companies are one of three providers that will offer discounted local and long distance services to 2,200 VHA healthcare organizations in 48 states. The three-year agreement could generate $50 million in annual revenue for SBC companies.

«VHA members rely on us to help them reduce their operating costs, and our new agreements for telecommunications services help members maximize their resources,» said Amy Anthony, vice president, supplier services at VHA.

«We’re committed to providing VHA and its members with high-quality, reliable communications services at compelling values,» said Chuck Rudnick, president, Business Communications Services, SBC Southwest. «Delivering local and long distance voice services to VHA members across the country underscores our growing strength as a premier national communications services provider that can follow large enterprises, wherever they do business.»

About VHA

VHA Inc. is a national cooperative of leading not-for-profit healthcare organizations that work together to improve the health of the communities they serve. VHA leverages the collective strength of the membership to improve clinical, operational, and financial performance. Through the VHA cooperative, members benefit from resources that assess critical needs and identify best practices to create customized solutions that lower costs and improve clinical quality. As a cooperative, VHA distributes income annually to members based on their participation. Based in Irving, Texas, with 18 offices across the U.S., VHA was named one of the «100 Best Companies to Work For» by Fortune in January 2004, for the fifth year in a row.

About SBC

SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves 25 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation’s leading providers of Internet services. SBC companies also now offer satellite TV service. Additional information about SBC companies and SBC products and services is available at www.sbc.com.

Unified Communications Lets Consumers, Small Businesses Use Web Portal or Phones to Manage Messages from Multiple Sources

Consumers and small businesses today have a powerful new tool to help them better manage and more easily access their proliferating wireline and wireless voice mailboxes, e-mail accounts, and faxes.

SBC Communications Inc. (NYSE:SBC) today announced SBC Unified Communications(SM), a new service that harnesses the power of IP (Internet Protocol) to enable customers to gather all of their message services into one easy-to-use system. Rather than check multiple places for messages, customers with Unified Communications can take control of multiple message sources by accessing them through a single gateway.

The new service is a milestone in the company’s emergence as a leader in IP technology. SBC Unified Communications is the first product of its kind available from a major telecommunications provider, giving customers greater control over their communications and increasing personal and business productivity. Voice messages, faxes, and e-mails are integrated into a common mailbox, allowing consumers and small businesses to retrieve, forward, and reply to messages via phone, or online — much like they handle e-mail today. The integrated message mailbox is accessible anywhere Internet access is available or via any phone.

The innovative service, available today in major cities throughout the SBC service territory, is now the flagship messaging service, available as a standalone service or in bundles of SBC residential services, including the popular All Distance(R) unlimited local and long distance calling bundle.

«With Unified Communications, we’re leveraging the power of IP to add new features and benefits to our already world-class voice products and delivering seamless connections that enhance our customers’ communications whether they’re at home, work, school, or on the road,» said Ray Wilkins, president, SBC marketing and sales.

SBC companies are committed to leading the industry in IP technologies. The company also unveiled in June plans to build a next- generation fiber optic-based network — pending regulatory clarity and successful completion of market trials — that would enable integrated digital TV, full-featured VoIP services, and super-high-speed broadband services for consumers and small business.

Unified Communications Features and Capabilities

With Unified Communications, subscribers will no longer have to miss important messages or spend valuable time checking multiple mailboxes. Unified Communications gathers different types of messages in one place and makes them accessible from any place the customer happens to be. Additionally, Unified Communications offers the following features:

-- Cingular Wireless integration. Unified Communications completely integrates with Cingular Wireless, so customers can access wireless messages from the same portal as landline, e-mail, and fax messages.

-- Integrated message center. Unified Communications’ integrated message center allows subscribers to view wireless and wireline voice-mails, e-mail, and fax subject lines all in one inbox. Unified Communications uses an e-mail-like interface, allowing for prioritization of messages and better organization.

-- Here, there, anywhere. The latest text-to-speech technology reads e-mails over the phone. Users can listen to voice-mails over their computers (which also allows for prioritization of voice-mails). Customers can «untie» from the fax machine by checking fax message headers from the phone, and view and print them through the computer.

-- Message indicators. When customers receive a new e-mail, voice-mail or fax, a message indicator alert can be sent to their online mailbox, and wireless and wireline phones (if the customer activates the message indicator alerts). Once messages are checked on one device, the message indicators on the others are updated in real time.

-- Pager notification. For customers who want to be notified immediately about incoming messages, they can activate the pager function, which sends a notification of a new message to their pagers or wireless phones.

-- Online storage. Unified Communications comes with 50 MB of storage for consumers and 100 MB for businesses, and customers can purchase up to 150 MB of additional storage space in 50 MB increments.

-- Separate mailboxes. Users can establish four shared Unified Communications mailboxes under one platform, allowing business colleagues and families to keep their messages separate, each owning a mailbox with separate security codes.

-- Distribution lists. Customers can establish as many as 15 distribution lists, each with up to 25 entries. These entries can be telephone numbers or e-mail addresses.

Residential subscribers to the All Distance service, which provides unlimited direct-dial domestic voice long distance and local calling, can replace the standard voice-mail service with SBC Unified Communications for an additional $3 per month, for a total of $51.95 per month. Pricing for SBC Unified Communications for residential customers when purchased as an a la carte voice messaging service in California and Nevada is $10.95 per month, and $12.95 per month in other SBC states.

For residential customers without Cingular Wireless service, SBC companies offer SBC Unified Communications Lite(SM), a service that incorporates all the features of the standard service, except wireless integration. Pricing for Unified Communications Lite is $1 when purchased with an All Distance package, or for residential customers, when purchased a la carte, the price ranges from $7.95 to $10.95 per month depending on the state. And, both Unified Communications services are available as a «bolt on» service to popular small business bundles, including Business Unlimited.

SBC Family of IP Services

Unified Communications is the latest addition to the company’s rapidly growing portfolio of IP services. IP, the basic language of the Internet, is capable of carrying voice, data and video over a single network infrastructure. SBC companies are taking advantage of this IP- enabled convergence to offer consumers and businesses compelling features and values that previously weren’t possible. SBC companies will continue to enhance the Unified Communications product with features such as an integrated personal address book shared among wireline, wireless, and computers — eliminating the need to keep three separate lists of contacts.

SBC companies already are leaders in business IP services, first introduced to business customers in 1996. Since then, SBC companies have continually introduced new IP services for businesses, including VoIP (Voice over Internet Protocol), and today offer a wide range of innovative solutions designed to meet the needs of almost any enterprise, large or small.

SBC companies have offered CPE-based VoIP services for businesses since 1999 and in Novembers 2003 unveiled an innovative new hosted or network-managed VoIP product called SBC PremierSERV(SM) Hosted IP Communication Service (HIPCS). The hosted VoIP service combines customized productivity features such as a single inbox for voice and e-mail messages and «find me, follow me» call routing options, along with traditional voice services, delivered through a Web browser-based interface. Telecommunications Magazine identified SBC companies as a clear leader in hosted VoIP in the publication’s April 2004 «10 hottest technologies for 2004» article.

For more information or to order Unified Communications, customers can visit www.sbcuc.net.

SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves 25 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation’s leading providers of Internet services. SBC companies also now offer satellite TV service. Additional information about SBC and SBC products and services is available at www.sbc.com.

Unified Communications is provided by SBC Messaging, provided subject to written terms and conditions. PC minimum system requirements and additional limitations and restrictions apply. Prices subject to change and do not include other applicable charges (e.g., taxes and surcharges) which may vary by location. Unified Communications services are not available in all areas or on all classes of service. If your local service is billed on a per-call or per-minute basis, you will be charged for all local calls associated with the use of your Voice Messaging service. You will be charged for a local call every time you retrieve a message or otherwise access your mailbox using your local telephone number. You will also be charged for a local call every time a caller leaves or attempts to leave you a message. For customers on calling plans, calls will be counted against your monthly allowance. If you access your mailbox from outside your local calling area, you will incur applicable local toll or long distance charges.

SBC PremierSERV HIPCS is provided by SBC IP Communications Inc.

SAN ANTONIO New Contract Expands Existing Relationship to Meet Provena Health Voice and Data Communications Needs

SBC Communications Inc. (NYSE: SBC) today announced a new contract with Illinois-based Provena Health, an organization with a network of healthcare facilities and offices located throughout Northern Illinois.

Under the terms of the contract, SBC companies will deliver a comprehensive upgrade of the Provena Health data network infrastructure across the organization’s enterprise, which includes six acute-care hospitals; 16 long-term care and residential centers; 28 primary care, specialty and diagnostic clinics; and five home-health agencies.

The contract also covers a range of long-distance voice and data services, SBC PremierSERV(SM) Managed Service offerings, and the implementation of a Synchronous Optical Network (SONET) backbone. The network upgrade is designed to help position Provena Health for emerging technologies such as IP-based voice and video services, to prepare the organization to adopt centralized Picture Archive and Communication Systems (PACS), and to help address regulatory requirements related to HIPAA and business continuity planning.

«Because of our commitment to clinical quality and advanced clinical applications, we were looking for a single provider that could help us to implement a secure, reliable, and scalable networking infrastructure,» said Jonathan Manis, CIO, Provena Health. «We’ve been extremely pleased with the communications services offered by SBC companies, and our close relationship with SBC companies positions us to take full advantage of our investment in high-bandwidth, mission-critical clinical support applications.»

«We are pleased to have the opportunity to help Provena Health with a comprehensive network upgrade,» said Cathy Coughlin, president, Business Communications Services, SBC Midwest. «Provena Health’s decision to utilize a full range of SBC services demonstrates our ability to deliver a comprehensive and integrated range of managed voice, data, and IP solutions to meet the communications needs of businesses of all sizes.»

About Provena Health

Provena Health is a Catholic health system that includes six hospitals, 16 long-term care and senior residential facilities, 28 clinics, five home-health agencies and other health-related activities operating in Illinois and Indiana.

About SBC

SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves 25 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation’s leading providers of Internet services. SBC companies also now offer satellite TV service. Additional information about SBC and SBC products and services is available at www.sbc.com.

SBC PremierSERV Managed Services provided by SBC DataComm. SBC local service provided by SBC Illinois. SBC, the SBC logo and other product names are trademarks of SBC Knowledge Ventures, L.P. (C) 2004 SBC Knowledge Ventures, L. P. All rights reserved.

The Dallas Morning News

By Roger Yu

DALLAS _ Faced with sinking profit and rising expenses, SBC Communications Inc. said Tuesday that it will lay off between 3,000 and 4,000 employees by the end of the year and take a one-time charge of up to $150 million as a result.

The San Antonio, Texas-based telecommunications giant, which has 172,540 employees, said attrition and «an enhanced retirement program» will eliminate the jobs.

SBC said last month that its payroll cuts will accelerate in 2004 from the 28,000 job cuts the company had in the 12 months ended in September.

An SBC spokesman declined to provide specifics on the locations or departments where the job cuts will occur, but he said the move will probably affect «to some degree most of our geographic markets.»

Larry Solomon, the SBC spokesman, also declined to comment on severance packages or break down how many are expected to leave through the retirement program.

«They’re assuming softness on the top line in cutting their labor force,» said Susan Kalla, an analyst with Friedman, Billings, Ramsey. «They’re cutting the labor cost to compensate for the top line, so the cash flow is likely remain stable.»

Kalla said the company «can cut another 20 percent» of its employees and be able to achieve its objectives.

SBC has been hard hit by the dramatic swoon of the telecommunications industry, and the latest announcement underscores the common fear that the industry would be among the last to undergo the rebound seen in the U.S. economy.

SBC, like other large phone companies, has been struggling as the price of regular phone lines _ its bread-and-butter business _ has dropped severely in the last few years.

Many customers are replacing those lines with mobile phones. But the company’s growing Cingular wireless phone unit and SBC/Yahoo Internet access business have failed to make up for the falling revenue.

SBC’s landline revenue fell 11 percent in the third quarter to $5.5 billion, though it makes up about 54 percent of the company’s total revenue.

SBC’s chief financial officer, Randall Stephenson, said in a conference call with analysts that the company hopes to generate more revenue by bundling more communications services, such as local and long-distance telephone and Internet service under one bill.

Bundling tends to encourage customers’ loyalty and bring in more revenue per user.

In the Southwest and West, where SBC has sold long-distance for several months, the average revenue per customer is about $6 higher per month than in the Midwest, the company said.

SBC is also betting heavily on Cingular Wireless, in which it owns a 60 percent stake.

Stephenson said Cingular’s third-quarter revenue rose about 4 percent from the second quarter. But the company faces stiff competition, and it’s likely to get even more heated now that customers can change carriers without losing their phone numbers.

The digital subscriber line business has been going well for SBC, but it has to fend off competition from other DSL providers and cable companies that also offer broadband service.

SBC’s data business rose 5.5 percent to $2.58 billion in the third quarter from the year-earlier period.

SBC also hopes to focus more on the long-distance service provided to large companies. Its long-distance revenue rose 12.5 percent in the third quarter from the same period last year to $668 million.

Despite several growing segments in its business, SBC hasn’t been able to stem rising expenses. In the third quarter, its operating expenses rose to $8.6 billion from $8.5 billion a year ago.

Meanwhile, its net profit fell 29 percent in the third quarter from a year ago to $1.2 billion.