The Verizon Value Creation Model

1. We changed our profile by investing in growth.

2007 Revenue Mix

With all of the changes taking place in the telecom industry, we developed a strategy to simplify our operations and focus our investments in growth products. We streamlined our portfolio by divesting our directory business and selling some access lines and international equity holdings. The capital from these transactions helped to further change our corporate profile, through the acquisition of MCI and investments in our broadband wireless and fiber networks.

Collectively, these moves have diversified our revenue base, provided new growth opportunities and created shareowner value. Today a larger percentage of our revenue stream comes from our growth businesses. By focusing on the power of our advanced wireless, fiber and global IP networks — along with offering a superior set of products, services and distribution capabilities — we have created a strong platform for continued growth.