OVERLAND PARK, Kan. (BUSINESS WIRE), April 29, 2014 – Sprint Corporation (NYSE:S) today reported operating results for the quarter ended March 31, 2014, including consolidated operating income of $420 million, the company’s best performance in over seven years. Adjusted EBITDA* of over $1.84 billion in the quarter grew 22 percent over the prior year period, and Adjusted EBITDA* margin of 23.4 percent was the highest in almost six years.

“In the quarter, operating revenue and Adjusted EBITDA* both grew year-over-year even as investments in our network improvements continued,” said Dan Hesse, Sprint CEO. “With the expected mid-year completion of the rip and replacement of our core 3G and voice network, the ongoing roll-out of Sprint SparkTM, and the evolution of Sprint FramilySM, we plan to build the best customer experience in the industry.”

Net Loss Narrows as Adjusted EBITDA* Grows

Quarterly net loss was $151 million in the quarter, a 77 percent improvement from the first quarter of 2013, driven by growth in Adjusted EBITDA* of 22 percent compared to last year. Quarterly Adjusted EBITDA* of $1.84 billion improved by over $300 million compared to the first quarter of 2013, driven by growth in wireless Adjusted EBITDA*, partially offset by a decline in wireline. The growth in wireless Adjusted EBITDA* was primarily attributable to lower wireless expenses such as postpaid subsidy associated with impacts of the newly launched Sprint Easy Pay installment billing plan and device sales mix, lower customer care and cost of service expenses.

Subscriber Results

At the end of the quarter, the Sprint platform served nearly 54 million subscribers. During the quarter, Sprint platform postpaid gross additions grew by over 16 percent compared to the year-ago quarter, and retail smartphone sales were just under 5 million, representing 84 percent of total retail handset device sales in the quarter. Sprint reported a net loss of 231,000 Sprint platform postpaid customers during the quarter largely due to expected elevated churn levels related to service disruption associated with the company’s ongoing network overhaul. Sprint platform prepaid net loss of 364,000 customers was primarily caused by changes in the Lifeline program recertification process that impacted the Assurance Wireless® subscriber base. Sprint added 212,000 wholesale and affiliate customers during the quarter.

4G LTE, Sprint Spark and High-Definition Voice Deployment Continue to Expand

Sprint 4G LTE coverage is now available to more than 225 million people. The company continues to expect that by the middle of this year 4G LTE coverage will reach 250 million people. Additionally, Sprint’s replacement of its entire 3G and voice network and the nationwide roll-out of high-definition voice service are both expected to be largely complete by mid-year.

Deployment of Sprint Spark is also progressing with today’s launches in six more cities, including, Orlando, Fla. and Oakland, Calif. Sprint Spark is now available in 24 markets across the country and 14 Sprint Spark-capable devices are currently available, including the recently launched Samsung Galaxy S® 5 and HTC One (M8).

Sprint Spark is an innovative combination of advanced network and device technology with the potential to surpass wireless speeds of any U.S. network provider, capable of delivering 50-60 Megabits per second peak speeds today with potential speeds three times as fast by late 2015. Sprint Spark leverages the company’s 800MHz, 1.9GHz and 2.5GHz spectrum together with devices offering tri-band capability and high-definition voice1.

Sprint plans to deploy Sprint Spark in about 100 of America’s largest cities during the next three years.

Join the Framily

Early in the quarter, Sprint introduced Sprint Framily, a revolutionary new pricing program that lets customers build their own group plans bringing together their family and friends. This offering uniquely addresses the changing demographics of American society.

Although Sprint Framily was only available in Sprint-branded stores during the quarter, it has grown faster than any new Sprint rate plan on record. Nearly 3 million customers are already enjoying the benefits of Sprint Framily and additional growth is anticipated as availability expands to other distribution channels.

Sprint Leadership and Innovation Gains Third-Party Recognition

For the fourth consecutive year, Sprint received a Best-In-Class Award from ATLANTIC-ACM, which named Sprint Wholesale Solutions as No. 1 for performance in the Voice Value category. In April, Sprint was the winner of the Informa Telecoms & Media MVNO’s Industry Awards 2013 Best Wholesale Operator for the second consecutive year. Sprint also received the 2014 Compass Intelligence A-List in M2M Award for its Sprint VelocitySM solution, winning in the Enabling Software or Technology for Automotive category.

Boost Mobile received its third consecutive highest ranking for Non-Contract Providers from J.D. Power in the 2014 U.S. Wireless Purchase Experience Non-Contract StudySM, Volume 1. It was the seventh J.D. Power award since 2011 for Boost, which was also named as a J.D. Power 2014 Customer Champion – one of 50 companies across many industries to earn this distinction. Additionally, Sprint CEO Dan Hesse was named a Highest Rated CEO by Glassdoor, and was the only telecommunications executive to be named by employees in the CEO rankings.

Sprint also received multiple awards for its corporate responsibility efforts. For the third straight year, Sprint was recognized as having the best phone buyback program among all major U.S. carriers by Compass Intelligence and, for the second consecutive year, Frost & Sullivan awarded Sprint its 2014 North American Award for Green Excellence. Sprint received the Supply Chain Leadership and Organizational Leadership awards from the U.S. Environmental Protection Agency for its supply chain engagement practices and the company’s continued focus to reduce greenhouse gas emissions. Finally, earlier this month PR News named Sprint as the 2014 best CSR corporation with more than 25,000 employees.

Forecast

The company now expects calendar 2014 Adjusted EBITDA* to be between $6.7 billion and $6.9 billion.

The company expects calendar 2014 capital expenditures of approximately $8 billion.

Quarter To Date 3/31/14 12/31/13 3/31/13Sprint platform: Postpaid(231 ) 58 12 Prepaid(364 ) 322 568 Wholesale and affiliate 212 302 (224 ) Total Sprint platform (383 ) 682 356 Nextel platform:

Postpaid (3)

– – (572 )

Prepaid (4)

– – (199 ) Total Nextel platform – – (771 ) Transactions: Postpaid(102 ) (127 ) – Prepaid(51 ) (103 ) – Wholesale 69 25 – Total transactions (84 ) (205 ) – Total retail postpaid net losses (333 ) (69 ) (560 ) Total retail prepaid net (losses) additions (415 ) 219 369 Total wholesale and affiliate net additions (losses) 281 327 (224 )Sprint platform: Postpaid29,918 30,149 30,257 Prepaid15,257 15,621 15,701 Wholesale and affiliate 8,376 8,164 7,938 Total Sprint platform 53,551 53,934 53,896 Nextel platform: Postpaid– – 1,060 Prepaid– – 255 Total Nextel platform – – 1,315 Transactions:Postpaid586 688 – Prepaid550 601 – Wholesale 200 131 – Total transactions 1,336 1,420 – Total retail postpaid end of period subscribers 30,504 30,837 31,317 Total retail prepaid end of period subscribers 15,807 16,222 15,956 Total wholesale and affiliate end of period subscribers 8,576 8,295 7,938Retail postpaid 968 922 824 Wholesale and affiliate 3,882 3,578 2,803Sprint platform: Postpaid 2.11 % 2.07 % 1.84 % Prepaid 4.33 % 3.01 % 3.05 % Nextel platform: Postpaid – – 7.57 % Prepaid – – 12.46 % Transactions:Postpaid 5.48 % 5.48 % – Prepaid 5.11 % 8.18 % – Total retail postpaid churn 2.18 % 2.15 % 2.09 % Total retail prepaid churn 4.35 % 3.22 % 3.26 %Subscribers (in thousands): Postpaid – – 264 Prepaid – – 67 Rate: Postpaid – – 46 % Prepaid – – 34 %

(a) We acquired approximately 352,000 postpaid subscribers and 59,000 prepaid subscribers through the acquisition of assets from U.S. Cellular when the transaction closed on May 17, 2013. We acquired approximately 788,000 postpaid subscribers, 721,000 prepaid subscribers, 93,000 wholesale subscribers and transferred 29,000 Sprint wholesale subscribers that were originally recognized through our Clearwire MVNO arrangement to Transactions postpaid subscribers as a result of the Clearwire acquisition when the transaction closed on July 9, 2013.

Quarter Quarter Quarter To To To Date Date Date 3/31/14 12/31/13 3/31/13Sprint platform: Postpaid $ 63.52 $ 64.11 $ 63.67 Prepaid $ 26.45 $ 26.78 $ 25.95 Nextel platform: Postpaid $ – $ – $ 35.43 Prepaid $ – $ – $ 31.75 Transactions:Postpaid $ 37.26 $ 36.30 $ – Prepaid $ 43.80 $ 40.80 $ – Total retail postpaid ARPU $ 62.98 $ 63.44 $ 62.47 Total retail prepaid ARPU $ 27.07 $ 27.34 $ 26.08

(a) We acquired approximately 352,000 postpaid subscribers and 59,000 prepaid subscribers through the acquisition of assets from U.S. Cellular when the transaction closed on May 17, 2013. We acquired approximately 788,000 postpaid subscribers, 721,000 prepaid subscribers, 93,000 wholesale subscribers and transferred 29,000 Sprint wholesale subscribers that were originally recognized through our Clearwire MVNO arrangement to Transactions postpaid subscribers as a result of the Clearwire acquisition when the transaction closed on July 9, 2013.

(b) ARPU is calculated by dividing service revenue by the sum of the average number of subscribers in the applicable service category. Changes in average monthly service revenue reflect subscribers for either the postpaid or prepaid service category who change rate plans, the level of voice and data usage, the amount of service credits which are offered to subscribers, plus the net effect of average monthly revenue generated by new subscribers and deactivating subscribers.

Predecessor

Quarter Quarter Quarter Quarter Quarter To To To To To Date Date Date Date Date 3/31/14 12/31/13 3/31/13 3/31/13 3/31/13Cost of services 2,622 2,704 – 2,640 2,640 Cost of products 2,038 2,731 – 2,293 2,293 Selling, general and administrative 2,371 2,546 14 2,336 2,350 Depreciation and amortization 1,297 1,531 – 1,492 1,492 Other, net 127 206 – 3 3 Total net operating expenses 8,455 9,718 14 8,764 8,778Interest expense (516 ) (502 ) – (432 ) (432 ) Equity in earnings (losses) of unconsolidated investments and other, net 1 55 6 (202 )