Subject: [NEXTEL-1] DJ Salomon Cuts Rating On Nextel, Raises AT&T Wireless >AWE

From: Marcel <[email-masked]>
Date: Mon, 09 Dec 2002 16:49:24 -0500

DJ Salomon Cuts Rating On Nextel, Raises AT&T Wireless >AWE

Dow Jones News Service ~ December 9, 2002 ~ 3:31 pm EST

NEW YORK (Dow Jones)--Salomon Smith Barney analyst Michael Rollins cut his rating on
wireless service provider Nextel Communications Inc.'s (NXTL) stock Monday to inline and
raised his view on AT&T Wireless Services Inc.'s (AWE) to outperform as part of a stock
"rebalancing."

In a note dated Sunday, Rollins maintained his underweight sector weighting, saying that
the "near-term performance for the stocks will likely be influenced by the potential for
(capital spending) reductions to stabilize (the free cash flow) outlook for 2003."

Rollins lowered his rating on Nextel's stock from outperform, and raised AT&T Wireless'
from inline.

"We are choosing to rebalance our stock recommendations to reflect recent stock price
performance, relative valuation, and our prospective free cash flow outlooks for each of
the carriers," he wrote. "We are recommending AT&T Wireless to outperform the sector with
the potential to improve their free cash flow outlook from our expectations. Meanwhile,
AT&T Wireless has a healthy financial liquidity with an investment-grade-rated balance
sheet."

As for Nextel, Rollins said, "We believe Nextel's differentiated strategy should still
offer a solid return to investors, but we find Nextel is being fairly valued relative to
its peers at around 6.5 (times) 2003 (estimated earnings before interest, taxes,
depreciation and amortization)."

Salomon has performed investment banking services for Nextel and AT&T Wireless, and it or
its affiliates own 1% or more of any class of common stock of AT&T Wireless. The firm
disclosed no stock ownership of either company by Rollins or members of his research team.

AT&T Wireless recently traded down 5.5%, or 39 cents, to $6.69 with volume at 7.1 million,
compared with the daily average of 10.5 million. Nextel recently dropped 8.8%, or $1.14,
to $11.76 with volume approaching 18.4 million, compared with the daily average of 31
million.

   -By Johnathan Burns, Dow Jones Newswires; 201-938-2020;
[email-masked]

(END) Dow Jones Newswires

12-09-02 1531ET

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