The Verizon Value Creation Model

4. We used our improved cash flow to provide strong returns to our investors, while continuing to invest in future growth.

2007 Use of Cash

Our strong cash position and balance sheet give us the financial flexibility to continue investing for growth and at the same time return capital to our shareowners. The confidence that our business model can generate top-line and bottom-line performance allowed us to increase our dividend payment and repurchase $2.8 billion of Verizon stock last year. By creating sustainable growth in our broadband, wireless and enterprise markets, we are able to reward our shareowners today while we continue to invest in the future growth of the business.