PRO FORMA EARNINGS NORMALIZATION SCHEDULE U S WEST, INC. (UNAUDITED) Quarter Ended Six Months Ended In millions, except June 30, % June 30, % per share amounts 1998 1997 Change 1998 1997 Change - ----------------------- ------- ------- -------------- ------- ------ NORMALIZED PRO FORMA INCOME: Reported pro forma net income $ 296 $ 375 (21.1) $ 689 $ 755 (8.7) Adjustments: Rural exchange sales - (18) - - (29) - Separation costs 68 - - 68 - - Asset impairment 21 - - 21 - - ---------------- ---------------- Normalized pro forma income $ 385 $ 357 7.8 $ 778 $ 726 7.2 ================ ================ NORMALIZED PRO FORMA BASIC EARNINGS PER SHARE: Reported pro forma basic earnings per share $ 0.59 $ 0.75 (21.3) $ 1.37 $ 1.52 (9.9) Adjustments: Rural exchange sales - (0.04) - - (0.06) - Separation costs 0.13 - - 0.13 - - Asset impairment 0.04 - - 0.04 - - ---------------- ---------------- Normalized pro forma basic earnings per share $ 0.77 #$ 0.72 # 6.9 $ 1.55 #$ 1.46 6.2 ================ ================ NORMALIZED PRO FORMA DILUTED EARNINGS PER SHARE: Reported pro forma diluted earnings per share $ 0.59 $ 0.74 (20.3) $ 1.36 $ 1.50 (9.3) Adjustments: Rural exchange sales - (0.04) - - (0.06) - Separation costs 0.13 - - 0.13 - - Asset impairment 0.04 - - 0.04 - - ---------------- ---------------- Normalized pro forma diluted earnings per share $ 0.76 $ 0.71 # 7.0 $ 1.54 #$ 1.44 6.9 ================ ================ <FN> # Amount does not foot due to rounding of the individual components. </FN>