THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Sprint PCS Group (Retired) (PCS.X)

3/16/2004 Proxy Information

Mr. Ausley, one of Sprint's Outside Directors, is an attorney and former chairman at the law firm of Ausley & McMullen. In 2003, Ausley & McMullen billed Sprint $426,386 for legal services provided to certain affiliates, mainly in the areas of regulatory and litigation-related advice given primarily to the Local Telecommunications Division. Mr. Daniel M. Ausley, the son of Mr. Ausley, owns directly or indirectly a 50 percent interest in four entities that lease space on cellular telephone towers to numerous wireless providers including Sprint's PCS division. In 2003, Sprint paid an aggregate of $214,260 to these entities.

Dwayne Smith, the son of Mr. Smith, one of Sprint's Outside Directors, is a Product Manager, and in 2003 he received $67,067 in salary and other compensation. Dwayne Smith's employment at Sprint preceded his father's election to the Board. William Esrey, Jr., the son of Mr. Esrey, who was Sprint's Chairman until May 12, 2003 and Sprint's Chief Executive Officer until March 18, 2003, is a Vice President, Emerging & Mid-Markets, and in 2003 he received $225,762 in salary and other compensation. William Esrey, Jr. became employed with Sprint when Sprint acquired sole control of Sprint PCS in 1998. The compensation provided to these individuals is consistent with that provided to other employees with equivalent responsibilities at Sprint.

4/15/2003 Proxy Information

Until June 1, 2002, Mr. Ausley, one of Sprint's Outside Directors, was chairman of the law firm of Ausley & McMullen, which provided legal services to certain affiliates of Sprint in 2002 for which Ausley & McMullen billed Sprint $283,377 for legal services provided to certain affiliates, mainly in the areas of regulatory and litigation related advice to the Local Telecommunications Division. Mr. Daniel M. Ausley, the son of Mr. Ausley, owns directly or indirectly a 50 percent interest in three entities that lease space on cellular telephone towers and one entity that provides consulting services regarding cellular telephone towers to numerous wireless providers including Sprint's PCS Division. In 2002, Sprint paid an aggregate of $263,995 to these entities.

William Esrey, Jr., the son of Mr. Esrey, Sprint's Chairman and, until March 19, 2003, Sprint's Chief Executive Officer, is employed by Sprint as an Area Vice President in the PCS division, and in 2002 he received $322,475 in salary and other compensation. William Esrey, Jr.'s employment with Sprint's PCS division predates Sprint acquiring sole control of Sprint PCS in 1998. Dwayne Smith, the son of Mr. Smith, one of Sprint's Outside Directors, is employed as a Product Manager by Sprint in the Global Markets Group, and in 2002 he received $62,190 in salary and other compensation. Dwayne Smith's employment at Sprint preceded his father's election to the Board. The compensation provided to these individuals is consistent with that provided to other employees with equivalent responsibilities at Sprint.

Under Sprint's bylaws, Sprint indemnifies its Directors and officers who, by reason of their position with Sprint, are parties to a lawsuit. The indemnification covers expenses (including attorney's fees) in connection with that lawsuit. Certain of Sprint's current and former Directors and executive officers are parties to lawsuits as described in "Litigation" on page 6 of this proxy statement. In 2002, Sprint paid $528,000 in attorney's fees in connection with the lawsuits on behalf of certain individuals serving as Directors or executive officers during 2002. The Directors were Mr. Ausley, Mr. Esrey, Mr. Hockaday, Mr. LeMay, Ms. Lorimer, Mr. Rice, Mr. Smith, and Mr. Turley and former Director Warren L. Batts. The executive officers were Gene M. Betts, Senior Vice President and Treasurer, Mr. Devlin, Mr. Fuller, Mr. Arthur B. Krause, former Executive Vice President—Chief Financial Officer, Mr. Lauer, John P. Meyer, Senior Vice President and Controller, and I. Benjamin Watson, former Senior Vice President—Human Resources.