4th Quarter Earnings

Bellsouth Corp
22 January 2001


For More Information
Jeff Battcher  (404-713-0274)
Pattie Kushner (404-249-2365)


BellSouth 2000 EPS Highlights Growth Areas 


* Normalized EPS increases 10% for year 
* Data, wireless and international continue to boost revenues 
* DSL customers increase over 60% in three months, exceeding target 
* Domestic wireless revenues grow 33% 
* Consolidated international revenues rise 26% 

Atlanta, Georgia - With solid performance continuing in its growth areas of
data, wireless and international, BellSouth Corporation (NYSE: BLS) reported
earnings per share (EPS) of 59 cents in the fourth quarter of 2000, compared to
reported EPS of 55 cents in the fourth quarter of 1999. For the year, reported
EPS was $2.23 in 2000 compared to $1.80 in 1999. 

Normalized for special items, EPS in the fourth quarter of 2000 was 57 cents
compared to normalized EPS of 53 cents in the same quarter a year ago. For the
year, normalized EPS was $2.20 in 2000, a 10 percent increase compared to $2.00
in 1999. (See 'Special Items' below.) In addition to the special items,
normalized EPS in the fourth quarter of 2000 reflected a three-cent reduction
related to recently acquired wireless properties in Colombia. The full year
reflected a five-cent reduction from Colombia. Without the impact of Columbia,
EPS was 60 cents for the quarter and $2.25 for the year. 

Revenues were $7.4 billion in the fourth quarter of 2000, adjusted to include
BellSouth's 40 percent share of Cingular Wireless. This was a gain of 9.8
percent compared to the same three months of the previous year. Strong growth in
data represented nearly one-third of revenue growth. For the year, revenues were
$27.6 billion, including Cingular, up 9.3 percent compared to 1999. (Beginning
in the fourth quarter of 2000, BellSouth's consolidated income statement no
longer reflects revenues from domestic wireless. Net earnings from BellSouth's
40 percent share of Cingular are included in Other Income.) 

'Our focus on data and wireless strategies continues to result in consistent
growth,' said Duane Ackerman, Chairman and CEO of BellSouth. 'While we continue
to grow, we have not lost sight of what this business is really all about. It's
about service. It's about succeeding one customer at a time. And it's about
execution.' 

In data services, BellSouth is rapidly accelerating broadband deployment and
finished 2000 with more than 215,000 customers for DSL high-speed Internet
access, exceeding its target of 200,000. In the fourth quarter alone, the
company added more than 81,000 DSL customers - an increase of 60.4 percent in
three months. Total data revenues of $965 million in the fourth quarter
increased 27 percent compared to the same quarter of 1999. 

Domestic wireless revenues were $1.2 billion in the fourth quarter of 2000,
adjusted to include BellSouth's 40 percent share of Cingular Wireless. This was
a gain of 33.2 percent compared to BellSouth's domestic wireless revenues in the
fourth quarter of 1999. Cingular, the nation's second largest wireless provider,
ended the year with 19.7 million total customers. 

In international, BellSouth added 561,000 wireless customers in the fourth
quarter, bringing customers to more than 9.3 million on a proportionate basis,
an annual growth rate of 58.9 percent. Consolidated international revenues
climbed 25.9 percent, to $740 million in the fourth quarter of 2000 from $588
million in the same quarter of the previous year. BellSouth's mid-2000
acquisition in Colombia and the fourth quarter launch of wireless service in
Guatemala boosted customer growth. Guatemala is the 11th market served by the
company in Central and South America. 

Special Items 

In the fourth quarter of 2000, the difference between reported EPS of 59 cents
and normalized EPS of 57 cents is the result of four special items: 

Los Angeles cellular        15 cents         Gain 
Pension settlements         12 cents         Gain 

Restructuring               18 cents         Charge 
Contract termination         7 cents         Charge 


Los Angeles cellular - In connection with establishing Cingular Wireless's
nationwide footprint, BellSouth exercised its option to redeem the 55.6%
partnership interest of AT&T in AB Cellular Holding, LLC by distributing to AT&T
the Los Angeles area cellular business. BellSouth then contributed to Cingular
the remaining assets of AB Cellular - 100% of the Houston area cellular market;
87.35% of the Galveston, Texas, area market; and more than $1 billion cash. 

Pension settlements - As required by accounting rules, BellSouth recognized
income as a result of the number of employees in 2000 who elected a lump sum
payment to settle their pension benefits. 

Restructuring - These charges relate primarily to the previously announced
restructuring of BellSouth's consumer wireless video entertainment business. 

Contract termination - BellSouth has settled previously disclosed litigation
with a distributor of customer telephone equipment. BellSouth paid $200 million
to the distributor for the termination of their existing agreement, and has
entered into a new agreement with the distributor. 

2001 Guidance

BellSouth reaffirmed its previous guidance for certain key financial and
business metrics in 2001 as follows: 

Earnings per share                                 7-9% growth 
Total operating revenue-including Cingular         9-11% growth 
Data Revenue                                       30% growth (approx.)
Capital expenditures                               $5.5-6.0 billion
DSL high-speed Internet customers                  600,000 at 12/31/01 

About BellSouth Corporation 

BellSouth Corporation is a Fortune 100 communications services company
headquartered in Atlanta, GA, serving more than 44 million customers in the
United States and 16 other countries. 

Consistently recognized for customer satisfaction, BellSouth provides a full
array of broadband data and e-commerce solutions to business customers,
including Web hosting and other Internet services. In the residential market,
BellSouth offers DSL high-speed Internet access, advanced voice features and
other services. BellSouth also provides online and directory advertising
services, including BellSouth(R) Real PagesSM.com. 

BellSouth owns 40 percent of Cingular Wireless, the nation's second largest
wireless company, which provides innovative wireless data and voice services. 

Further information about BellSouth's fourth quarter earnings release can be
accessed at the company's Investor Relations Web site at
www.bellsouth.com/investor. The press release, earnings commentary summarizing
highlights of the quarter and financial statements will be available on the
BellSouth Web site starting today at 8 a.m. Eastern Time. In addition, the audio
of the earnings commentary can be accessed by calling the BellSouth Investor
Newsline at 404-523-0214, beginning today shortly after 8 a.m. Eastern Time and
continuing through Friday, January 26. 

In addition to historical information, this document contains forward-looking
statements regarding events and financial trends.  Factors that could affect
future results and could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include: (i) a change in
economic conditions in domestic or international markets where we operate or
have material investments which would affect demand for our services; (ii) the
intensity of competitive activity and its resulting impact on pricing strategies
and new product offerings; and (iii) higher than anticipated cash requirements
for investments, new business initiatives and acquisitions.  The forward-looking
information in this document is given as of this date only, and BellSouth
assumes no duty to update this information.