EXHIBIT 99.2
CINGULAR WIRELESS
CHANGES TO THE
2003 - 2005 LONG TERM INCENTIVE PLAN
February 11, 2004
Standalone legacy Cingular financial statements will not be available on an
going forward basis due to the immediate integration of AT&T Wireless
operations. The following adjustments are recommended to incorporate
expectations of the merged entity in the plan targets.
2003 - 2005 LONG TERM INCENTIVE PLAN
- - Establish individual matrices for each of the three plan years
- 2003 and 2004 remain unchanged; targets based on the original 2003
business plan
- Substitute 2005 targets based on the current business plan for the
post-merger company for the original 2005 target
- - Determine the final payout by averaging the payout percentages earned over
the three years; changes revenue growth from compound average to simple
three-year average
---------------------------------------------
ORIGINAL LTIP TARGETS 2003 2004 2005 AVERAGE
- --------------------------------------------------------------------------------
RETURN ON CAPITAL x% x% x% x%
- --------------------------------------------------------------------------------
REVENUE GROWTH (compound average) x%
- --------------------------------------------------------------------------------
------------------------------------------------
REVISED LTIP TARGETS 2003 2004 2005 AVERAGE
- --------------------------------------------------------------------------------
RETURN ON CAPITAL x% x% x% x%
- --------------------------------------------------------------------------------
REVENUE GROWTH (simple average) x% x% x% x%
- --------------------------------------------------------------------------------
Revised 2005 matrix is shown on next page.
EXHIBIT 99.2
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------------------
ORIGINAL 2005 - 2007 MATRIX
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
AVERAGE 2003-2005 EBIT / CAPITAL
----------------------------------------------------------------------------------------------------
x% x% x% x% x% x% x% x% x%
----------------------------------------------------------------------------------------------------
PAYOUT % 0% 20% 40% 60% 80% 100% 120% 140% 160%
----------------------------------------------------------------------------------------------------
x% 125% 0% 25% 50% 75% 100% 125% 150% 175% 200%
x% 120% 0% 24% 48% 72% 96% 120% 144% 168% 192%
x% 110% 0% 22% 44% 66% 88% 110% 132% 154% 176%
x% 100% 0% 20% 40% 60% 80% 100% 120% 140% 160%
x% 90% 0% 18% 36% 54% 72% 90% 108% 126% 144%
x% 80% 0% 16% 32% 48% 64% 80% 96% 112% 128%
x% 75% 0% 15% 30% 45% 60% 75% 90% 105% 120%
- --------------------------------------------------------------------------------------------------------------------------
2003 EBIT / CAPITAL
----------------------------------------------------------------------------------------------------
x% x% x% x% x% x% x% x% x%
----------------------------------------------------------------------------------------------------
PAYOUT % 0% 20% 40% 60% 80% 100% 120% 140% 160%
----------------------------------------------------------------------------------------------------
x% 125% 0% 25% 50% 75% 100% 125% 150% 175% 200%
x% 120% 0% 24% 48% 72% 96% 120% 144% 168% 192%
x% 110% 0% 22% 44% 66% 88% 110% 132% 154% 176%
x% 100% 0% 20% 40% 60% 80% 100% 120% 140% 160%
x% 90% 0% 18% 36% 54% 72% 90% 108% 126% 144%
x% 80% 0% 16% 32% 48% 64% 80% 96% 112% 128%
x% 75% 0% 15% 30% 45% 60% 75% 90% 105% 120%
----------------------------------------------------------------------------------------------------
2004 EBIT / CAPITAL
----------------------------------------------------------------------------------------------------
x% x% x% x% x% x% x% x% x%
----------------------------------------------------------------------------------------------------
PAYOUT % 0% 20% 40% 60% 80% 100% 120% 140% 160%
----------------------------------------------------------------------------------------------------
x% 125% 0% 25% 50% 75% 100% 125% 150% 175% 200%
x% 120% 0% 24% 48% 72% 96% 120% 144% 168% 192%
x% 110% 0% 22% 44% 66% 88% 110% 132% 154% 176%
x% 100% 0% 20% 40% 60% 80% 100% 120% 140% 160%
x% 90% 0% 18% 36% 54% 72% 90% 108% 126% 144%
x% 80% 0% 16% 32% 48% 64% 80% 96% 112% 128%
x% 75% 0% 15% 30% 45% 60% 75% 90% 105% 120%
----------------------------------------------------------------------------------------------------
2005 EBIT / CAPITAL
----------------------------------------------------------------------------------------------------
x% x% x% x% x% x% x% x% x%
----------------------------------------------------------------------------------------------------
PAYOUT % 0% 20% 40% 60% 80% 100% 120% 140% 160%
----------------------------------------------------------------------------------------------------
x% 125% 0% 25% 50% 75% 100% 125% 150% 175% 200%
x% 120% 0% 24% 48% 72% 96% 120% 144% 168% 192%
x% 110% 0% 22% 44% 66% 88% 110% 132% 154% 176%
x% 100% 0% 20% 40% 60% 80% 100% 120% 140% 160%
x% 90% 0% 18% 36% 54% 72% 90% 108% 126% 144%
x% 80% 0% 16% 32% 48% 64% 80% 96% 112% 128%
x% 75% 0% 15% 30% 45% 60% 75% 90% 105% 120%
----------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
REVISED 2005 MATRIX
--------------------------------------------------------------------------------------------------------------------------
2005 EBIT / CAPITAL
----------------------------------------------------------------------------------------------------
x% x% x% x% x% x% x% x% x%
----------------------------------------------------------------------------------------------------
PAYOUT % 0% 20% 40% 60% 80% 100% 120% 140% 160%
----------------------------------------------------------------------------------------------------
x% 125% 0% 25% 50% 75% 100% 125% 150% 175% 200%
x% 120% 0% 24% 48% 72% 96% 120% 144% 168% 192%
x% 110% 0% 22% 44% 66% 88% 110% 132% 154% 176%
x% 100% 0% 20% 40% 60% 80% 100% 120% 140% 160%
x% 90% 0% 18% 36% 54% 72% 90% 108% 126% 144%
x% 80% 0% 16% 32% 48% 64% 80% 96% 112% 128%
x% 75% 0% 15% 30% 45% 60% 75% 90% 105% 120%
----------------------------------------------------------------------------------------------------
</Table>
Exhibit 99.2
CINGULAR WIRELESS
CHANGES TO THE
2004 - 2006 LONG TERM INCENTIVE PLAN
FEBRUARY 11, 2004
2004 - 2006 LONG TERM INCENTIVE PLAN
- - Establish a revised EBIT return on capital target for the three-year period
- 2004 remains unchanged; targets based on the original 2004 business plan
- Substitute 2005 and 2006 targets based on the current business plan for
the post-merger company for the original 2005 and 2006 targets
---------------------------------------------------
RETURN ON CAPITAL 2004 2005 2006 AVERAGE
------------------------------------------------------------------------------------------------
ORIGINAL PLAN x% x% x% x%
------------------------------------------------------------------------------------------------
REVISED PLAN x% x% x% x%
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------ ------------------------------------------------------
ORIGINAL 2004-2006 LTIP MATRIX REVISED 2004-2006 LTIP MATRIX
------------------------------------------------------------------------ ------------------------------------------------------
AVERAGE AVERAGE
EBIT RETURN ON CAPITAL EBIT RETURN ON CAPITAL
2004 - 2006 2004 - 2006
----------- -----------
PAYOUT % 0.0% < y% PAYOUT % 0.0% < y %
50.0% x to < y% 50.0% x to < y%
62.5% x to < y% 62.5% x to < y%
75.0% x to < y% 75.0% x to < y%
87.5% x to < y% 87.5% x to < y%
100.0% x to < y% 100.0% x to < y%
112.5% x to < y% 112.5% x to < y%
125.0% x to < y% 125.0% x to < y%
137.5% x to < y% 137.5% x to < y%
150.0% x to < y% 150.0% x to < y%
------------------------------------------------------------------------ ------------------------------------------------------
</Table>