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Verizon to Spin-Off U.S. Print and Internet Yellow Pages Directories

Thursday, October 19, 2006

Press release from the issuing company

NEW YORK -- Verizon Communications Inc. today announced that its Board of Directors has approved the proposed spin-off of Verizon's U.S. print and Internet yellow pages directories company to its stockholders. The spin-off will result in a new public company that will be separate from Verizon and that will be called Idearc Inc. (pronounced EYE'-dee-ark). The Verizon Board declared a dividend of one share of Idearc common stock for every 20 shares of Verizon common stock held as of the close of business on Nov. 1, 2006. Subject to the satisfaction of certain conditions, the distribution will occur on Nov. 17, 2006, and is expected to qualify as a tax-free distribution. Stockholders who own fewer than 20 shares of Verizon common stock (or who do not own multiples of 20 shares) will receive a taxable cash payment in lieu of a fractional share to which they would be entitled. As previously announced, when the Board next considers the Verizon dividend, management expects to recommend that the Board not reduce Verizon's quarterly dividend of 40.5 cents per share as a result of the spin-off. Verizon currently expects that a "when issued" public market for Idearc common stock will begin on or about Nov. 2 on the New York Stock Exchange (NYSE) under the symbol "IAR wi." Following the spin-off, Idearc common stock will trade under the symbol "IAR." If a Verizon stockholder sells shares of his or her Verizon common stock (which trades on the NYSE under the symbol "VZ") in the regular way market on or prior to the distribution date, the shareholder will also be selling the right to receive shares of Idearc common stock in connection with those shares. Investors are encouraged to consult with their financial advisors regarding the specific implications of selling shares of their Verizon common stock on or before the distribution date. Details of New Name Following the spin-off, the company will operate under the trademarks IDEARC, IDEARC MEDIA and the arc design logo. These trademarks will be used in promoting the company's multi-platform print and online publishing and advertising services, including Yellow Pages, White Pages, business directories and magazines, an online directory and search services, website design and hosting services, and directory and information services for wireless subscribers. Idearc was selected as the new company's name to differentiate it from other publishers in the industry. A combination of the words "idea" and "arc," Idearc symbolizes how the company connects buyers and sellers through robust content available across multiple media. Idearc's logo incorporates the name with three, interconnected arcs that each tie to facets of Idearc's strategic portfolio: Gray links with its print product design, green to its industry-leading SuperPages.com service, and blue to the future. Idearc's name and logo were created by Landor Associates, the branding and design consultancy that also created the Verizon name and logo in 2000. Idearc will be headquartered in the Dallas/Fort Worth area and have approximately 7,100 employees. After the spin-off, Idearc and its subsidiaries will continue to operate the domestic directories publishing business previously operated by Verizon.




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