PRO FORMA CONSOLIDATED STATEMENTS OF INCOME (1)(2) U S WEST, INC. (UNAUDITED) Quarter Ended In millions, except March 31, % per share amounts 2000 1999 Change - ----------------------------------- ------- -------- OPERATING REVENUES Local services $ 2,040 $ 1,863 9.5 Access services 709 671 5.7 Directory services 347 326 6.4 Long-distance services 107 174 (38.5) Other services 174 134 29.9 ------- -------- Total operating revenues 3,377 3,168 6.6 ------- -------- OPERATING EXPENSES Employee-related 1,167 1,122 4.0 Other operating 717 656 9.3 Depreciation & amort 586 602 (2.7) -------- -------- Total operating expenses 2,470 2,380 3.8 -------- -------- Operating Income 907 788 15.1 OTHER INCOME\EXPENSE Interest expense 211 153 37.9 Change in market value of Global Crossing derivatives 129 - - Gain on sales of investments (79) - - Other (income)expense (1) 1 (200.0) -------- -------- Income before income taxes 647 634 2.1 Income tax provision 243 240 1.3 -------- -------- NET INCOME $ 404 $ 394 2.5 ======== ======== Basic earnings per share $ 0.80 $ 0.78 2.6 ======== ======== Basic average shares outstanding 507.2 503.3 0.8 ======== ======== Diluted earnings per share $ 0.79 $ 0.78 1.3 ======== ======== Diluted average shares outstanding 514.3 508.1 1.2 ======== ======== <FN> <F1> (1) Certain reclassifications have been made to 1999 amounts to conform with the current presentation. <F2> (2) The results for 1999 include pro forma adjustments for the change in accounting principle to recognize revenues and expenses for directory publishing under the "point of publication" method from the "amortization" method, as if the company had always used this method. 6 </FN>