Lumen (LUMN) 8-K CenturyTel Announces Increased Dividend and Acceleration of Share Repurchase Program; Raises Annual Dividend to $2.80 Per Share

Safe Harbor Language

Included in our presentation materials are
certain estimates and other forward-
looking statements. They are subject to
uncertainties that could cause the actual
results to differ materially. These and other
important uncertainties related to our
business are described in the Company’s
filings with the Securities and Exchange
Commission.All information contained
herein is current as of June 24, 2008, and is
to be considered valid only as of June 24,
2008, regardless of the date reviewed.

Non-GAAP Financial Measures

Also, included in our presentation
materials are certain non-GAAP financial
measures. These measures are provided
and valid as of June 24, 2008, only and
should not be relied upon beyond such
date. Reconciliation of such non-GAAP
measures to the most directly
comparable GAAP measure or measures
are available on our company Web site
at www.centurytel.com.

CenturyTel, Inc.
Increases Cash Dividend
&
Accelerates Current Share
Repurchase Program

Glen Post
Chairman & CEO

June 24, 2008

New Dividend and Leverage Targets Should Allow CenturyTel Share
Price to Better Reflect the Strength of our Operational Performance

CenturyTel Increases Dividend…

öIncreased Annual Cash Dividend to $2.80 from
$.27 Per Share

öQuarterly Dividend of $.70 Per Share

öPayout of Approximately 52% of Free Cash
Flow

öDeclared a One-Time Cash Dividend of $.6325 Per
Share, Payable July 21, 2008, to Shareholders of
Record on July 7, 2008

öEffectively Adjusts the Total Second Quarter
Dividend to the New Quarterly Dividend Rate

We Remain Committed to Returning Substantially All
of Our Free Cash Flow to Shareholders

CenturyTel Accelerates Share
Repurchase Program…

ö$385 Million Remaining Under Current $750
Million Share Repurchase Program

öAccelerate Purchases to Complete By Year End
2008 or Early 2009

öContinue to Distribute Substantially All of
CenturyTel’s Free Cash Flow to Shareholders
Consistent with New Leverage Policy

öExpect Future Share Repurchases With a Target
Leverage of 2.75 Times

Returning Significant Cash to Shareholders While Maintaining
Flexibility to Grow Long-Term Shareholder Value

CenturyTel’s Leverage Targets…

öTarget Leverage at 2.75 Times From Current
Leverage of 2.3 Times Net Debt to Operating
Cash Flow

öExpect to Retain Financial Flexibility and
Investment Grade Credit Rating

Cash Flow
Generation

&

Utilization

($MM)

Cumulative FCF

Excludes Non-Recurring Items

Strong Performance Generates Free Cash Flow
Growth Among Best in the Industry

Cash Flow Generation

Cumulative 2004 - 1Q 2008

Dividends

ASR Programs

Open Market
Share
Repurchases

$MM

Continued Commitment to Returning Substantially All Free
Cash Flow to Shareholders

Return of Free Cash Flow

CenturyTel’s
Comparative

Performance

Note: CTL Legacy numbers used for all periods

Source: Analysis of public reports and transcripts of the peer companies

CenturyTel Ranks At or Near Top of
Industry Peer Group-
HSI Penetration Trends

Source: Analysis of public reports and transcripts of the peer companies

Note: CTL Legacy numbers used for all periods

CenturyTel Ranks At or Near Top of
Industry Peer Group-
Incremental HSI Penetration Growth

Source: Analysis of public reports and transcripts of the peer companies

OCF Margins - As Reported

Source: Analysis of public reports and transcripts of the peer companies

NOTE: Respective peer results adjusted for a one-time royalty payment
and to reflect bad debt as an expense instead of a contra-revenue.

OCF Margins - Adjusted to
Eliminate SFAS 71

Source: FirstCall as of June 20, 2008

EV/EBITDA - - CTL vs. Peers

Sources: Stifel Nicolaus June 16, 2008 Telecom Services Weekly Valuation
Update and Thomson Reuters

FCF Multiple - CTL vs. Peers

Well-Positioned
For the Future

Broadband Deployment
% of Total Access Lines

(Thousands)

*

*Includes Madison River Acquisition

*

High-Speed Internet Customers &
Penetration Rates

Customers-Mar. 31, 2008

Wireline2,108,000

LD Lines1,282,000

DSL586,000

Dial-up62,600

LightCore Lit Fiber

LightCore Dark Fiber

Competitive Market

Wireline

ONE Network

Cash Return Strategy Provides Flexibility to
Pursue 700 MHz Deployment

700 MHz Opportunity…

öStrong Cash Flows and Solid Balance Sheet Provide
Financial Flexibility to Return Significant Cash to
Shareholders While Continuing to Invest in Our
Broadband Networks, Including Deployment of our
700 Megahertz (MHz) Spectrum

öCombination of Our Up-to-10 Megabit and Gig-E Data
Capabilities With the Wireless Broadband Services
Enabled by Our 700 MHz Spectrum Should Provide Us a
Unique Opportunity to Grow Broadband Revenues and
Retain and Grow our Broadband Customer Base

öCapital and Start-up Operating Costs Necessary to
Deploy 700 MHz and Other Broadband Initiatives can
be Accomplished Within the Context of the New Cash
Return and Leverage Strategy

CenturyTel is Well Positioned

öHigh-Quality, Broadband Networks Capable of
Meeting Growing Bandwidth Demand and Delivering
Emerging Services

öStrong Cash Flows and Financial Flexibility to Invest
In and Acquire Strategic Assets

öQuality OSS and Dedicated, Knowledgeable
Employees Enable High-Quality Customer Experience

öPoised to Participate in High-Demand, Broadband
Services - - Video, Home Networking, Managed
Services, Advertising, Etc.

öHistory of Consistently Executing Business Plans,
Adapting to Industry Changes and Driving
Shareholder Value

* Excluding nonrecurring items

In Summary, CenturyTel…

öAnnounced Significant Restructuring of Cash Return to
Shareholders

öIncreased Annual Dividend to $2.80 from $.27 Per Share

öRepresents Quarterly Dividend Rate of $.70 Per Share

öPayout of Approximately 52% of Free Cash Flow

öAccelerates Completion of the $750 Million Share
Repurchase Program, Commits to Future Share
Repurchases

öSets Net Debt to Operating Cash Flow Target of 2.75X

öExpects to Meet or Exceed 2Q 2008 Revenue & Diluted EPS
Guidance*

öRemains Well Positioned to Take Advantage of Strategic
Opportunities As They Arise