MEMO: SBC HAS STRONG THIRD-QUARTER RESULTS

SBC Communications, Inc., reports that its rapidly expanding data services business, wireless operations and successful entry into the Texas long-distance market highlighted strong third-quarter results.

Normalized third-quarter revenues grew 8 percent to $13.5 billion, excluding the impacts of shifts in directory publication dates, normalized third-quarter revenues increased 8.4 percent. Diluted earnings per share before one-time items were $0.57, the same as the year-ago quarter, reflecting SBC's investment in broadband capabilities as well as increased marketing expenses to support its July launch of long-distance services in Texas.

Highlights of SBC's third-quarter growth include:

* 46.1 percent growth in data revenues during the third quarter, to $2 billion.

* 516,000 Digital Subscriber Line customers at the end of the quarter, with a current run rate of more than 4,000 net adds a day.

* 862,000 long-distance customers in Texas at the end of the quarter, and 1 million by Oct. 18.

* A 486,000 net gain in wireless customers, SBC's best-ever third quarter.