<PAGE>


                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q
(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE QUARTER ENDED JUNE 30, 2003.

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934



                         COMMISSION FILE NUMBER: 0-32357

                             ALAMOSA HOLDINGS, INC.
             (Exact name of registrant as specified in its charter)

       DELAWARE                                                75-2890997

 (State or other jurisdiction of                           (I.R.S. Employer
 Incorporation or organization)                            Identification No.)


                         5225 SOUTH LOOP 289, SUITE 120
                              LUBBOCK, TEXAS 79424
          (Address of principal executive offices, including zip code)


                                 (806) 722-1100
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

YES [X]  NO [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

YES [X ] NO [ ]

As of August 14, 2003, 94,650,963 shares of common stock, $0.01 par value per
share, were issued and outstanding.




<PAGE>




                             ALAMOSA HOLDINGS, INC.

                                TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                                                                              PAGE
PART I     FINANCIAL INFORMATION

<S>       <C>                                                                                                                 <C>
Item 1.    Financial Statements

           Consolidated Balance Sheets at June 30, 2003 (unaudited) and December 31, 2002                                        3

           Consolidated Statements of Operations for the three months and six months ended June 30, 2003 and 2002 (unaudited)    4

           Consolidated Statements of Cash Flows for the six months ended June 30, 2003 and 2002 (unaudited)                     5

           Notes to the Consolidated Financial Statements                                                                        6

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations                                17

Item 3.    Quantitative and Qualitative Disclosures About Market Risk                                                           29

Item 4.    Controls and Procedures                                                                                              31


PART II    OTHER INFORMATION

Item 1.    Legal Proceedings                                                                                                    32

Item 2.    Changes in Securities and Use of Proceeds                                                                            32

Item 3.    Defaults Upon Senior Securities                                                                                      32

Item 4.    Submission of Matters to a Vote of Security Holders                                                                  33

Item 5.    Other Information                                                                                                    33

Item 6.    Exhibits and Reports on Form 8-K                                                                                     33

SIGNATURES                                                                                                                      34


<PAGE>


PART I - FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS

                             ALAMOSA HOLDINGS, INC.
                           CONSOLIDATED BALANCE SHEETS
                                   (UNAUDITED)
                (dollars in thousands, except share information)

                                                                            JUNE 30, 2003     DECEMBER 31, 2002
                                                                            -------------    ------------------
ASSETS

Current assets:
   Cash and cash equivalents                                                 $    88,904        $    61,737
   Restricted cash                                                                 9,748             34,725
   Customer accounts receivable, net                                              27,656             27,926
   Receivable from Sprint                                                         22,704             30,322
   Interest receivable                                                               404                973
   Inventory                                                                       5,421              7,410
   Prepaid expenses and other assets                                               7,618              7,239
   Deferred customer acquisition costs                                             8,414              7,312
   Deferred tax asset                                                              5,988              5,988
                                                                             -------------      -------------

     Total current assets                                                        176,857            183,632

   Property and equipment, net                                                   434,187            458,946
   Debt issuance costs, net                                                       30,916             33,351
   Intangible assets, net                                                        468,388            488,421
   Other noncurrent assets                                                         7,699              7,802
                                                                             -------------      -------------

     Total assets                                                            $ 1,118,047        $ 1,172,152
                                                                             =============      =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable                                                          $     9,698        $    27,203
   Accrued expenses                                                               36,777             34,903
   Payable to Sprint                                                              25,921             24,649
   Interest payable                                                               22,317             22,242
   Deferred revenue                                                               21,892             18,901
   Current maturities of long term debt                                            7,500                 --
   Current installments of capital leases                                            698              1,064
                                                                             -------------      -------------
     Total current liabilities                                                   124,803            128,962
                                                                             -------------      -------------
Long term liabilities:
   Capital lease obligations                                                         973              1,355
   Other noncurrent liabilities                                                    9,598             10,641
   Deferred tax liability                                                         17,642             27,694
   Senior secured debt                                                           192,500            200,000
   12 7/8% senior discount notes                                                 286,239            268,862
   12 1/2% senior notes                                                          250,000            250,000
   13 5/8% senior notes                                                          150,000            150,000
                                                                             -------------      -------------
     Total long term liabilities                                                 906,952            908,552
                                                                             -------------      -------------
     Total liabilities                                                         1,031,755          1,037,514
                                                                             -------------      -------------
Commitments and contingencies (see Note 11)                                           --                 --

Stockholders' equity:
   Preferred stock, $.01 par value; 10,000,000 shares authorized; no
     shares issued                                                                    --                 --
   Common stock, $.01 par value; 290,000,000 shares authorized,
     94,650,963 and 94,171,938 shares issued and outstanding, respectively           947                942
   Additional paid-in capital                                                    800,543            800,260
   Accumulated deficit                                                          (713,914)          (664,720)
   Unearned compensation                                                            (215)              (294)
   Accumulated other comprehensive loss, net of tax                               (1,069)            (1,550)
                                                                             -------------      -------------
     Total stockholders' equity                                                   86,292            134,638
                                                                             -------------      -------------
     Total liabilities and stockholders' equity                              $ 1,118,047        $ 1,172,152
                                                                             =============      =============

           The accompanying notes are an integral part of the consolidated financial statements.
</TABLE>

                                       3

<PAGE>


                             ALAMOSA HOLDINGS, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                (dollars in thousands, except per share amounts)


<TABLE>
<CAPTION>
                                                          FOR THE THREE MONTHS ENDED       FOR THE SIX MONTHS ENDED
                                                                   JUNE 30,                        JUNE 30,
                                                          ----------------------------   ------------------------------
                                                              2003           2002            2003             2002
                                                          ------------    ------------   -------------    -------------
<S>                                                       <C>             <C>            <C>              <C>
Revenues:
   Subscriber revenues                                    $   114,550     $   92,580     $   218,574      $     186,078
   Roaming revenues                                            35,040         33,457          66,830             60,025
                                                          ------------    ------------   -------------    -------------

     Service revenues                                         149,590        126,037         285,404            246,103
   Product sales                                                5,804          4,752          11,098             13,073
                                                          ------------    ------------   -------------    -------------

     Total revenue                                            155,394        130,789         296,502            259,176
                                                          ------------    ------------   -------------    -------------

Costs and expenses:
   Cost of service and operations (excluding non-cash
      compensation of $4 and $0 for the three months
      ended June 30, 2003 and 2002, respectively, and
      $8 and $0 for the six months ended June 30, 2003
      and 2002, respectively)                                  80,282         85,289         159,599            163,818
   Cost of products sold                                       12,399          9,113          25,243             23,230
   Selling and marketing (excluding non-cash
      compensation of $4 and $0 for the three months
      ended June 30, 2003 and 2002, respectively and $8
      and $0 for the six months ended June 30, 2003 and
      2002, respectively)                                      26,584         26,960          54,730             55,857
   General and administrative expenses (excluding non-cash
      compensation of $191 and $0 for the three months
      ended June 30, 2003 and 2002,
      respectively, and $224 and $0 for the six months
      ended June 30, 2003 and 2002, respectively)               5,918          3,053           9,583              6,788
   Depreciation and amortization                               27,419         26,344          54,301             51,207
   Impairment of property and equipment                            34          1,332             394              1,332
   Non-cash compensation                                          199             --             240                 --
                                                          ------------    ------------   -------------    -------------

     Total costs and expenses                                 152,835        152,091         304,090            302,232
                                                          ------------    ------------   -------------    -------------

     Income (loss) from operations                              2,559        (21,302)         (7,588)           (43,056)
Interest and other income                                         249            871             634              2,204
Interest expense                                              (25,951)       (25,820)        (52,488)           (50,674)
                                                          ------------    ------------   -------------    -------------

   Loss before income tax benefit                             (23,143)       (46,251)        (59,442)           (91,526)

Income tax benefit                                              4,480         17,515          10,248             34,657
                                                          ------------    ------------   -------------    -------------

   Net loss                                               $   (18,663)    $  (28,736)    $   (49,194)     $     (56,869)
                                                          ============    ============   =============    =============

Net loss per common share, basic and diluted              $    (0.20)     $    (0.31)    $     (0.53)     $      (0.61)
                                                          ============    ============   =============    =============

Weighted average common shares outstanding,
   basic and diluted                                       93,747,117     92,915,638      93,626,690         92,874,226
                                                          ============    ============   =============    =============

              The accompanying notes are an integral part of the consolidated financial statements.

                                       4

</TABLE>


<PAGE>


                             ALAMOSA HOLDINGS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                             (dollars in thousands)


<TABLE>
<CAPTION>
                                                                            FOR THE SIX MONTHS ENDED JUNE 30,
                                                                                2003               2002
                                                                            --------------    ---------------
<S>                                                                         <C>                <C>
Cash flows from operating activities:
Net loss                                                                      $(49,194)          $ (56,869)
Adjustments to reconcile net loss to net cash provided by
   (used in) operating activities:
   Non-cash compensation                                                           240                  --
   Provision for bad debts                                                      10,000              19,265
   Non-cash interest expense (benefit) on derivative instruments                  (261)                113
   Depreciation and amortization of property and equipment                      34,268              31,072
   Amortization of intangible assets                                            20,033              20,135
   Amortization of financing costs included in interest expense                  2,237               2,081
   Amortization of discounted interest                                             198                 198
   Deferred tax benefit                                                        (10,248)            (34,657)
   Interest accreted on discount notes                                          17,377              15,332
   Impairment of property and equipment                                            394               1,332
   Increase (decrease) in:
     Receivables                                                                (1,543)            (24,713)
     Inventory                                                                   1,989                 (58)
     Prepaid expenses and other assets                                          (1,378)             (2,420)
   Increase (decrease) in:
     Accounts payable and accrued expenses                                      (4,608)              4,361
                                                                              --------           ----------

     Net cash provided by (used in) operating activities                        19,504             (24,828)
                                                                              --------           ----------

Cash flows from investing activities:
   Proceeds from sale of assets                                                  2,454                 379
   Purchases of property and equipment                                         (19,196)            (67,001)
   Other                                                                            --                  41
                                                                              --------           ----------

     Net cash used in investing activities                                     (16,742)            (66,581)
                                                                              --------           ----------

Cash flows from financing activities:
   Borrowings under senior secured debt                                             --              12,838
   Stock options exercised                                                          --                   1
   Shares issued to employee stock purchase plan                                   127                 401
   Payments on capital leases                                                     (699)               (337)
   Change in restricted cash                                                    24,977              35,535
                                                                              --------           ----------

     Net cash provided by financing activities                                  24,405              48,438
                                                                              --------           ----------

Net increase (decrease) in cash and cash equivalents                            27,167             (42,971)
Cash and cash equivalents at beginning of period                                61,737             104,672
                                                                              --------           ----------

Cash and cash equivalents at end of period                                    $ 88,904           $  61,701
                                                                              ========           ==========

Supplemental disclosure of non-cash financing and
   investing activities:
   Capitalized lease obligations incurred                                     $     73           $     365
   Change in accounts payable for purchases of
     property and equipment                                                   $ (6,790)          $ (20,759)



              The accompanying notes are an integral part of the consolidated financial statements.

                                       5

</TABLE>

<PAGE>


                             ALAMOSA HOLDINGS, INC.
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)


1.       BASIS OF PRESENTATION OF UNAUDITED INTERIM FINANCIAL INFORMATION

         The unaudited consolidated balance sheet as of June 30, 2003, the
         unaudited consolidated statements of operations for the three months
         and six months ended June 30, 2003 and 2002, the unaudited consolidated
         statements of cash flows for the six months ended June 30, 2003 and
         2002, and related footnotes, have been prepared in accordance with
         accounting principles generally accepted in the United States of
         America for interim financial information and Article 10 of Regulation
         S-X. Accordingly, they do not include all of the information and
         footnotes required by accounting principles generally accepted in the
         United States of America. The financial information presented should be
         read in conjunction with the audited consolidated financial statements
         as of and for the year ended December 31, 2002. In the opinion of
         management, the interim data includes all adjustments (consisting of
         only normally recurring adjustments) necessary for a fair statement of
         the results for the interim periods. Operating results for the three
         months and six months ended June 30, 2003 are not necessarily
         indicative of results that may be expected for the year ending December
         31, 2003.

         Basic and diluted net loss per share of common stock is computed by
         dividing net loss for each period by the weighted-average outstanding
         number of common shares. No conversion of common stock equivalents has
         been assumed in the calculations since the effect would be
         antidilutive. As a result, the number of weighted-average outstanding
         common shares as well as the amount of net loss per share are the same
         for basic and diluted net loss per share calculations for all periods
         presented. Common stock equivalents excluded from diluted net loss per
         share calculations consisted of options to purchase 8,440,710 and
         5,834,359 shares of common stock at June 30, 2003 and 2002,
         respectively. In addition, 800,000 shares of restricted stock that were
         awarded in October and December of 2002 have been excluded from the
         weighted-average outstanding number of common shares for the three and
         six months ended June 30, 2003. These shares will be included in the
         weighted-average outstanding number of common shares as the
         restrictions lapse.

         Certain reclassifications have been made to prior period balances to
         conform to current period presentation.


2.       ORGANIZATION AND BUSINESS OPERATIONS

         Alamosa Holdings, Inc. ("Alamosa Holdings") is a PCS Affiliate of
         Sprint with the exclusive right to provide wireless personal
         communications service under the Sprint brand name in a territory
         encompassing approximately 15.8 million residents. Alamosa Holdings was
         formed in July 2000. Alamosa Holdings is a holding company and through
         its subsidiaries provides wireless personal communications services,
         commonly referred to as PCS, in the Southwestern, Northwestern and
         Midwestern United States. Alamosa (Delaware), Inc. ("Alamosa
         (Delaware)"), a subsidiary of Alamosa Holdings, was formed in October
         1999 under the name "Alamosa PCS Holdings, Inc." to operate as a
         holding company in anticipation of its initial public offering. On
         February 3, 2000, Alamosa (Delaware) completed its initial public
         offering. Immediately prior to the initial public offering, shares of
         Alamosa (Delaware) were exchanged for Alamosa PCS LLC's ("Alamosa LLC")
         membership interests, and Alamosa LLC became wholly owned by Alamosa
         (Delaware). Alamosa Holdings and its subsidiaries are collectively
         referred to in these financial statements as the "Company."

         On December 14, 2000, Alamosa (Delaware) formed a new holding company
         pursuant to Section 251(g) of the Delaware General Corporation Law. In
         that transaction, each share of Alamosa (Delaware) was converted into
         one share of the new holding company, and the former public company,
         which was renamed "Alamosa (Delaware), Inc." became a wholly owned
         subsidiary of the new holding company, which was renamed "Alamosa PCS
         Holdings, Inc."


                                       6

<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

         On February 14, 2001, Alamosa Holdings became the new public holding
         company of Alamosa PCS Holdings, Inc. ("Alamosa PCS Holdings") and its
         subsidiaries pursuant to a reorganization transaction in which a wholly
         owned subsidiary of Alamosa Holdings was merged with and into Alamosa
         PCS Holdings. As a result of this reorganization, Alamosa PCS Holdings
         became a wholly owned subsidiary of Alamosa Holdings, and each share of
         Alamosa PCS Holdings common stock was converted into one share of
         Alamosa Holdings common stock. Alamosa Holdings' common stock is quoted
         on the Over-the-Counter Bulletin Board under the symbol "ALMO."


3.       LIQUIDITY AND CAPITAL RESOURCES

         Since inception, the Company has financed its operations through
         capital contributions from owners, through debt financing and through
         proceeds generated from public offerings of common stock. The Company
         has incurred substantial net losses and negative cash flow from
         operations since inception. Expenses are expected to exceed revenues
         until the Company establishes a sufficient subscriber base. Management
         expects operating losses to continue for the foreseeable future.
         However, management expects operating losses to decrease in the future
         as the Company obtains more subscribers.

         As of June 30, 2003, the Company had $88,904 in cash and cash
         equivalents plus an additional $9,748 in restricted cash held in escrow
         for debt service requirements. The Company also had $25,000 remaining
         on the revolving portion of the Senior Secured Credit Facility subject
         to the restrictions discussed below.

         On September 26, 2002 the Company entered into the sixth amendment to
         the amended and restated credit agreement relative to the Senior
         Secured Credit Facility, which among other things, modified certain
         financial and statistical covenants as discussed in Note 8. As a result
         of the amendment, the Company is required to maintain a minimum cash
         balance of $10,000.

         The September 26, 2002 amendment also placed restrictions on the
         ability to draw on the $25,000 revolving portion of the Senior Secured
         Credit Facility. The first $10,000 can be drawn if cash balances fall
         below $15,000 and the Company substantiates through tangible evidence
         the need for such advances. The remaining $15,000 is available only at
         such time as the leverage ratio is less than or equal to 5.5 to 1. As
         of June 30, 2003, the Company's leverage ratio was 9.35 to 1.

         Although management does not currently anticipate the need to raise
         additional capital in the upcoming year, the Company's funding status
         is dependent on a number of factors influencing projections of earnings
         and operating cash flows including average monthly revenue per user
         ("ARPU"), cash cost per user ("CCPU"), customer churn and cost per
         gross addition ("CPGA").

         Should actual results differ significantly from these assumptions, the
         Company's liquidity position could be adversely affected and the
         Company could be in a position that would require it to raise
         additional capital which may or may not be available on terms
         acceptable to the Company, if at all, and could have a material adverse
         effect on the Company's ability to achieve its intended business
         objectives.


4.       STOCK-BASED COMPENSATION

         The Company has elected to follow Accounting Principles Board Opinion
         ("APB") No. 25, "Accounting for Stock Issued to Employees" and related
         interpretations in accounting for its employee stock options. No
         stock-based employee compensation cost is reflected in the consolidated
         statements of operations for the three months or six months ended June
         30, 2003 or 2002, as all options granted by the Company had an exercise
         price equal to or greater than the market value of the underlying
         common stock on the date of grant. Non-cash compensation expense
         reflected in the consolidated statements of operations for the three
         and six month periods ended June 30, 2003 relate to shares of
         restricted stock awarded to officers and are not related to the
         granting of stock options. The following table illustrates the effect
         on net loss and net loss per share if the Company had


                                       7

<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

         applied the fair value recognition provisions of Statement of
         Financial Accounting Standards ("SFAS") No. 123, "Accounting for
         Stock-Based Compensation," to stock-based employee compensation.


<TABLE>
<CAPTION>
                                    FOR THE THREE MONTHS ENDED  FOR THE SIX MONTHS ENDED
                                                JUNE 30,                JUNE 30,
                                    --------------------------  ------------------------
                                        2003          2002          2003          2002
                                    -----------   ------------  -----------   ----------
                                    (unaudited)   (unaudited)   (unaudited)   (unaudited)
<S>                                 <C>           <C>           <C>           <C>
Net loss -- as reported              $(18,663)     $(28,736)     $(49,194)     $(56,869)
Less stock-based employee
   compensation expense
   determined under fair value
   method for all awards, net of
   related tax effects                 (1,917)       (1,200)       (3,348)       (2,225)
                                     --------      --------      --------      --------

Net loss -- pro forma                $(20,580)     $(29,936)     $(52,542)     $(59,094)
                                     ========      ========      ========      ========

Net loss per share -- as reported
   Basic and diluted                 $  (0.20)     $  (0.31)     $  (0.53)     $  (0.61)
                                     ========      ========      ========      ========

Net loss per share -- pro forma
   Basic and diluted                 $  (0.22)     $  (0.32)     $  (0.56)     $  (0.64)
                                     ========      ========      ========      ========
</TABLE>


5.       ACCOUNTS RECEIVABLE

         CUSTOMER ACCOUNTS RECEIVABLE - Customer accounts receivable represent
         amounts owed to the Company by subscribers for PCS service. The amounts
         presented in the consolidated balance sheets are net of an allowance
         for uncollectible accounts of $7.8 million and $8.5 million at June 30,
         2003 and December 31, 2002, respectively.

         RECEIVABLE FROM SPRINT - Receivable from Sprint in the accompanying
         consolidated balance sheets consists of the following:

<TABLE>
<CAPTION>
                                                                     JUNE 30, 2003   DECEMBER 31, 2002
                                                                     -------------   -----------------
                                                                      (unaudited)

<S>                                                                   <C>               <C>
        Net roaming receivable                                        $   7,136         $  3,554
        Access and interconnect revenue receivable (payable)               (181)            (188)
        Accrued service revenue                                           3,203            3,345
        Customer payments due from Sprint                                11,959           21,136
        Other amounts due from Sprint                                       587            2,475
                                                                      -----------       ---------

                                                                      $  22,704         $ 30,322
                                                                      ===========       =========
</TABLE>

         Net roaming receivable includes net travel revenue due from Sprint
         relative to PCS subscribers based outside of the Company's licensed
         territory who utilize the Company's portion of the PCS network of
         Sprint. The travel revenue receivable is net of amounts owed to Sprint
         relative to the Company's subscribers who utilize the PCS network of
         Sprint outside of the Company's licensed territory. In addition, net
         roaming receivable also includes amounts due from Sprint which have
         been collected from other PCS providers for their customers' usage of
         the Company's portion of the PCS network of Sprint.


                                       8

<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

         Access and interconnect revenue receivable represents net amounts due
         from Sprint for calls originated by a local exchange carrier ("LEC") or
         an interexchange carrier ("IXC") that terminate on the Company's
         network. Under the Company's affiliation agreements with Sprint, Sprint
         collects this revenue from other carriers and remits 92% of those
         collections to the Company. The $181 and $188 amounts owed to Sprint at
         June 30, 2003 and December 31, 2002, respectively, are the result of
         rate adjustments on previously collected amounts.

         Accrued service revenue receivable represents the Company's estimate of
         airtime usage and other charges that have been earned but not billed at
         the end of the period.

         Customer payments due from Sprint relate to amounts that have been
         collected by Sprint at the end of the period which were not remitted to
         the Company until the subsequent period. Customer payments are
         processed daily by Sprint and the Company receives its share of such
         collections on a weekly basis under the terms of the affiliation
         agreements.

         Included in the December 31, 2002 balance of customer payments due from
         Sprint is $12,209 in amounts that were due to the Company related to
         payments that Sprint had collected from customers from April 2000 to
         December 2002 that had not been passed on to the Company due to the
         methodology that had been previously used by Sprint to allocate cash
         received from customers. These amounts were collected in January and
         February 2003.

         Included in the June 30, 2003 balance of customer payments due from
         Sprint is $3,907 in amounts that were due to the Company related to
         payments that Sprint had collected from customers from April 2002 to
         June 2003 that had not been passed on to the Company due to the
         methodology that had been used by Sprint to allocate cash received from
         customers.


6.       PROPERTY AND EQUIPMENT

         Property and equipment are stated net of accumulated depreciation of
         $156.5 million and $122.9 million at June 30, 2003 and December 31,
         2002, respectively.


7.       INTANGIBLE ASSETS

         In connection with acquisitions completed during 2001, the Company
         allocated portions of the respective purchase prices to identifiable
         intangible assets consisting of (i) the value of the Sprint agreements
         in place at the acquired companies and (ii) the value of the subscriber
         base in place at the acquired companies.

         The value assigned to the Sprint agreements is being amortized using
         the straight-line method over the remaining original terms of the
         agreements that were in place at the time of acquisition or
         approximately 17.6 years. The value assigned to the subscriber bases
         acquired is being amortized using the straight-line method over the
         estimated life of the acquired subscribers or approximately 3 years.





















                                       9


<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

<TABLE>
<CAPTION>
         Intangible assets consist of:
                                                                       JUNE 30, 2003   DECEMBER 31, 2002
                                                                       -------------   -----------------
                                                                        (unaudited)

<S>                                                                      <C>               <C>
        Sprint affiliate and other agreements                            $ 532,200         $ 532,200
        Accumulated amortization                                           (70,575)          (55,458)
                                                                         -----------       ----------

            Subtotal                                                       461,625           476,742
                                                                         -----------       ----------

        Subscriber base acquired                                            29,500            29,500
        Accumulated amortization                                           (22,737)          (17,821)
                                                                         -----------       ----------

            Subtotal                                                         6,763            11,679
                                                                         -----------       ----------

        Intangible assets, net                                           $ 468,388         $ 488,421
                                                                         ===========       ==========
</TABLE>

         Amortization expense relative to intangible assets was $20,033 for the
         six months ended June 30, 2003 and will be $20,034 for the remainder of
         2003.

         Aggregate amortization expense relative to intangible assets for the
         periods shown will be as follows:

                         YEAR ENDED DECEMBER 31,
                         -----------------------
                                   2003                $  40,067
                                   2004                   32,079
                                   2005                   30,234
                                   2006                   30,234
                                   2007                   30,234
                                Thereafter               325,573
                                                       ---------
                                                       $ 488,421
                                                       =========

8.       LONG-TERM DEBT

         Long-term debt consists of the following:

<TABLE>
<CAPTION>
                                                    JUNE 30, 2003   DECEMBER 31, 2002
                                                    -------------   -----------------
                                                     (unaudited)

<S>     <C>  <C>                                      <C>               <C>
        12 7/8% senior discount notes                 $ 286,239         $ 268,862
        12 1/2% senior notes                            250,000           250,000
        13 5/8% senior notes                            150,000           150,000
        Senior secured debt                             200,000           200,000
                                                      -----------       ----------

            Total debt                                  886,239           868,862
        Less current maturities                          (7,500)               --
                                                      -----------       ----------

        Long-term debt, excluding current maturities  $ 878,739         $ 868,862
                                                      ===========       ==========
</TABLE>


         SENIOR UNSECURED OBLIGATIONS

         SENIOR DISCOUNT NOTES - On December 23, 1999, Alamosa (Delaware) filed
         a registration statement with the Securities and Exchange Commission
         for the issuance of $350 million face amount of Senior Discount Notes
         (the "12 7/8% Notes Offering"). The 12 7/8% Notes Offering was
         completed on February 8, 2000 and generated net proceeds of
         approximately $181 million after underwriters' commissions and expenses
         of approximate $6.1 million. The 12 7/8% senior discount notes ("12
         7/8% Senior Discount Notes") mature in ten years (February 15, 2010)
         and carry a coupon rate of 12 7/8% Senior Discount Notes, and provide
         for interest deferral for the first five years. The 12 7/8% Senior
         Discount Notes will accrete to their $350 million face


                                       10

<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

         amount by February 8, 2005, after which, interest will be paid in cash
         semiannually. The proceeds of the 12 7/8% Senior Discount Notes
         Offering were used to prepay the existing credit facility, to pay
         costs to build out additional areas within the Company's existing
         territories, to fund operating working capital needs and for other
         general corporate purposes.

         12 1/2% SENIOR NOTES - On January 31, 2001, Alamosa (Delaware)
         consummated the offering (the "12 1/2% Notes Offering") of $250 million
         aggregate principal amount of senior notes (the "12 1/2% Senior
         Notes"). The 12 1/2% Senior Notes mature in ten years (February 1,
         2011), carry a coupon rate of 12 1/2%, and are payable semiannually on
         February 1 and August 1, beginning on August 1, 2001. The net proceeds
         from the sale of the 12 1/2% Senior Notes were approximately $241
         million, after deducting the commissions and estimated offering
         expenses.

         Approximately $59.0 million of the proceeds of the 12 1/2% Senior Notes
         Offering were used by Alamosa (Delaware) to establish a security
         account (with cash or U.S. government securities) to secure on a pro
         rata basis the payment obligations under the 12 1/2% Senior Notes and
         the 12 7/8% Senior Discount Notes, and the balance was used for general
         corporate purposes of Alamosa (Delaware), including, accelerating
         coverage within the existing territories of Alamosa (Delaware); the
         build-out of additional areas within its existing territories;
         expanding its existing territories; and pursuing additional
         telecommunications business opportunities or acquiring other
         telecommunications businesses or assets.

         13 5/8% SENIOR NOTES - On August 15, 2001, Alamosa (Delaware) issued
         $150 million face amount of Senior Notes (the "13 5/8% Senior Notes").
         The 13 5/8% Senior Notes mature in ten years (August 15, 2011) and
         carry a coupon rate of 13 5/8% payable semiannually on February 15 and
         August 15, beginning on February 15, 2002. The net proceeds from the
         sale of the 13 5/8% Senior Notes were approximately $141.5 million,
         after deducting the commissions and estimated offering expenses.
         Approximately $66 million of the proceeds were used to pay down a
         portion of the Senior Secured Credit Facility discussed below.
         Approximately $39.1 million of the proceeds of the 13 5/8% Senior Notes
         were used by Alamosa (Delaware) to establish a security account to
         secure on a pro rata basis the payment obligations under all of the
         Company's unsecured borrowings. The balance was used for general
         corporate purposes.


         SENIOR SECURED OBLIGATIONS

         SENIOR SECURED CREDIT FACILITY - On February 14, 2001, the Company,
         Alamosa (Delaware) and Alamosa Holdings, LLC, as borrower, entered into
         a $280 million senior secured credit facility (the "Senior Secured
         Credit Facility") with Citicorp USA, as administrative agent, and
         collateral agent, Toronto Dominion (Texas), Inc., as syndication agent;
         Export Development Corporation ("EDC") as co-documentation agent; First
         Union National Bank, as documentation agent, and a syndicate of banking
         and financial institutions. On March 30, 2001, the Senior Secured
         Credit Facility was amended to increase the facility to $333 million.
         The Senior Secured Credit Facility was again amended in August 2001
         concurrent with the issuance of the 13 5/8% Senior Notes to reduce the
         maximum borrowing to $225 million consisting of a 7-year senior secured
         12-month delayed draw term loan facility of $200 million and a 7-year
         senior secured revolving credit facility in an aggregate principal
         amount of up to $25 million.

         On September 26, 2002, the Company further amended the Senior Secured
         Credit Facility, to among other things, modify certain financial and
         statistical covenants. Under the Senior Secured Credit Facility,
         interest will accrue, at Alamosa Holdings, LLC's option: (i) at the
         London Interbank Offered Rate adjusted for any statutory reserves
         ("LIBOR"), or (ii) the base rate which is generally the higher of the
         administrative agent's base rate, the federal funds effective rate plus
         0.50% or the administrative agent's base CD rate plus 0.50%, in each
         case plus an interest margin which was initially 4.00% for LIBOR
         borrowings and 3.00% for base rate borrowings. The applicable interest
         margins are subject to reductions under a pricing grid based on ratios
         of Alamosa Holdings, LLC's total debt to its earnings before interest,
         taxes, depreciation and amortization ("EBITDA"). The interest rate
         margins will increase by an additional 200 basis points in the event
         Alamosa Holdings, LLC fails to pay principal, interest or other amounts
         as they become due and payable under the Senior Secured Credit

                                       11

<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

         Facility. As of June 30, 2003 the interest margin was 4.00% for LIBOR
         borrowings and 3.00% for base rate borrowings.

         The weighted average interest rate on the outstanding borrowings under
         this facility at June 30, 2003 is 5.35%. Alamosa Holdings, LLC is also
         required to pay quarterly in arrears a commitment fee on the unfunded
         portion of the commitment of each lender. The commitment fee accrues at
         a rate per annum equal to (i) 1.50% on each day when the utilization
         (determined by dividing the total amount of loans plus outstanding
         letters of credit under the Senior Secured Credit Facility by the total
         commitment amount under the Senior Secured Credit Facility) of the
         Senior Secured Credit Facility is less than or equal to 33.33%, (ii)
         1.25% on each day when utilization is greater than 33.33% but less than
         or equal to 66.66% and (iii) 1.00% on each day when utilization is
         greater than 66.66%. The Company has entered into derivative hedging
         instruments to hedge a portion of the interest rate risk associated
         with borrowings under the Senior Secured Credit Facility as discussed
         in Note 10.

         Alamosa Holdings, LLC is also required to pay a separate annual
         administration fee and a fee on the aggregate face amount of
         outstanding letters of credit, if any, under the revolving credit
         facility.

         As of June 30, 2003, Alamosa Holdings, LLC had drawn $200 million under
         the term portion of the Senior Secured Credit Facility. Any amount
         outstanding at the end of the 12-month period will amortize quarterly
         beginning May 14, 2004. The first such quarterly principal reduction of
         $7,500 will be due in May 2004 and is presented as a current liability
         in the accompanying balance sheet. The September 26, 2002 amendment
         placed restrictions on the ability to draw the $25 million revolving
         portion. The first $10 million can be drawn if cash balances fall below
         $15 million and the Company substantiates through tangible evidence the
         need for such advances. The remaining $15 million is available only at
         such time as the leverage ratio is less than or equal to 5.5 to 1. No
         advances have been drawn on the revolving portion of the Senior Secured
         Credit Facility. Any balance outstanding under the revolving portion of
         the Senior Secured Credit Facility will begin reducing quarterly in
         amounts to be agreed beginning May 14, 2004.

         Pursuant to the Senior Secured Credit Facility, the Company is subject
         to financial and statistical covenants, including covenants with
         respect to the ratio of EBITDA to total cash interest expense. Stage I
         covenants were applicable through March 31, 2003 and provided for:
         o    minimum numbers of subscribers;
         o    providing coverage to a minimum number of residents;
         o    minimum service revenue;
         o    minimum EBITDA;
         o    ratio of senior debt to total capital;
         o    ratio of total debt to total capital; and
         o    maximum capital expenditures.

         As of March 31, 2003, the Company became subject to the following Stage
         II covenants:
         o    ratio of senior debt to EBITDA; and
         o    ratio of total debt to EBITDA.

         Beginning April 1, 2003, the Company became subject to the following
         additional Stage II covenants:
         o    ratio of EBITDA to consolidated cash interest expense;
         o    ratio of EBITDA to total fixed charges (the sum of debt service,
              capital expenditures and taxes); and
         o    ratio of EBITDA to pro forma debt service.


9.       INCOME TAXES

         The income tax benefit represents the anticipated recognition of the
         Company's deductible net operating loss carry forwards. This benefit is
         being recognized based on an assessment of the combined expected future
         taxable income of the Company and expected reversals of the temporary
         differences from acquisitions closed in

                                       12

<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

         2001. Due to the Company's limited operating history and lack of
         positive taxable earnings, a valuation allowance has been established
         during 2003 as the deferred tax asset is expected to exceed the
         deferred tax liabilities. The establishment of this valuation
         allowance in the six months ended June 30, 2003 has resulted in an
         effective tax rate of 17.24 percent compared to 37.87 percent for the
         six months ended June 30, 2002.


10.      HEDGING ACTIVITIES AND COMPREHENSIVE INCOME

         The Company follows the provisions of SFAS No. 133, "Accounting for
         Derivatives and Hedging Activities" in its accounting for hedging
         activities. The statement requires the Company to record all
         derivatives on the balance sheet at fair value. Derivatives that are
         not hedges must be adjusted to fair value through earnings. If the
         derivative is a hedge, depending on the nature of the hedge, changes in
         the fair value of the derivatives are either recognized in earnings or
         are recognized in other comprehensive income until the hedged item is
         recognized in earnings. Approximately $1,289 in cash settlements under
         derivative instruments classified as hedges is included in interest
         expense for the six months ended June 30, 2003.

         As of June 30, 2003, the Company has recorded $2,679 in "other
         noncurrent liabilities" relative to the fair value of derivative
         instruments including $1,829 representing derivative instruments that
         qualify for hedge accounting under SFAS No. 133. During the six month
         period ended June 30, 2003, the Company recognized gains of $481 (net
         of income tax benefit of $195) in other comprehensive income. During
         the six month period ended June 30, 2002, the Company recognized losses
         of $248 (net of income tax benefit of $151) in other comprehensive
         income. Other comprehensive income appears as a separate component of
         Stockholders' Equity as "Accumulated other comprehensive income," as
         illustrated below:

<TABLE>
<CAPTION>
                                          FOR THE THREE MONTHS ENDED    FOR THE SIX MONTHS ENDED
                                                    JUNE 30,                    JUNE 30,
                                          --------------------------    ------------------------
                                             2003           2002           2003          2002
                                          -----------    -----------    ----------    ----------
<S>                                        <C>           <C>            <C>           <C>
        Net loss                           $ (18,663)    $ (28,736)     $ (49,194)    $ (56,869)
        Change in fair values of
           derivative instruments,
           net of income tax expense
           (benefit) of $80, $(330),
           $195 and $(151),
           respectively                          293          (540)           481          (248)
                                           ----------    -----------    ----------    -----------

        Comprehensive loss                 $ (18,370)    $ (29,276)     $ (48,713)    $ (57,117)
                                           ==========    ===========    ==========    ===========
</TABLE>


11.      COMMITMENTS AND CONTINGENCIES

         ACCESS REVENUE REFUND - On July 3, 2002, the Federal Communications
         Commission issued a ruling on a dispute between AT&T, as an
         interexchange carrier ("IXC"), and Sprint Spectrum L.P., a Commercial
         Mobile Radio Service ("wireless carrier"). This ruling addressed the
         wireless carrier charging terminating access fees to the IXC for calls
         terminated on a wireless network indicating such fees could be
         assessed; however the IXC would only be obligated to pay such fees if a
         contract was in place providing for the payment of access charges.
         As a result of this ruling, Sprint has requested that the Company
         refund approximately $1.4 million of a total $5.6 million in amounts
         that had been previously paid to the Company by Sprint relative to
         terminating access fees. Although the Company has contested the refund
         of these amounts, a liability has been recorded relative to this
         contingency in the consolidated financial statements as of June 30,
         2003.

         LITIGATION - The Company has been named as a defendant in a number of
         purported securities class actions in the United States District Court
         for the Southern District of New York, arising out of its initial
         public offering (the "IPO"). Various underwriters of the IPO also are
         named as defendants in the actions. The action against the Company is
         one of more than 300 related class actions which have been consolidated
         and are pending in the same court. The complainants seek to recover
         damages and allege, among other things, that the registration statement
         and prospectus filed with the Securities and Exchange Commission for
         purposes of the IPO were false


                                       13

<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)


         and misleading because they failed to disclose that the underwriters
         allegedly (i) solicited and received commissions from certain
         investors in exchange for allocating to them shares of common stock in
         connection with the IPO, and (ii) entered into agreements with their
         customers to allocate such stock to those customers in exchange for
         the customers agreeing to purchase additional Company shares in the
         aftermarket at pre-determined prices. On February 19, 2003, the Court
         granted motions by the Company and 115 other issuers to dismiss the
         claims under Rule 10b-5 of the Exchange Act which had been asserted
         against them. The Court denied the motions by the Company and
         virtually all of the other issuers to dismiss the claims asserted
         against them under Section 11 of the Securities Act. The Company
         maintains insurance coverage which may mitigate its exposure to loss
         in the event that this claim is not resolved in the Company's favor.

         On January 23, 2001, the board of directors, in a unanimous decision,
         terminated the employment of Jerry Brantley, then President and COO of
         the Company. On April 29, 2002, Mr. Brantley initiated litigation
         against the Company and the Chairman of the Company, David E. Sharbutt
         in the District Court of Lubbock County, Texas, 22nd Judicial District,
         alleging wrongful termination among other things. On September 27,
         2002, the Court entered an Agreed Order Compelling Arbitration. The
         parties are in the process of selecting a panel of three arbitrators.
         The Company believes that there is no basis for Mr. Brantley's claim
         and intends to vigorously defend the lawsuit.

         On January 8, 2003, a claim was made against the Company by Southwest
         Antenna and Tower, Inc. ("SWAT") in the Second Judicial District Court,
         County of Bernalillo, State of New Mexico, for monies due on an open
         account. SWAT sought to recover approximately $2.0 million from the
         Company relative to work performed by SWAT during 2000 for Roberts
         Wireless Communications, LLC which was acquired by the Company in the
         first quarter of 2001. This claim was settled for $0.875 million during
         the second quarter of 2003.

         In addition to the above, the Company is involved in various claims and
         legal actions arising in the ordinary course of business. The ultimate
         disposition of these matters are not expected to have a material
         adverse impact on the Company's financial position, results of
         operations or liquidity.


12.      EFFECTS OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

         In June 2001, the Financial Accounting Standards Board ("FASB") issued
         SFAS No. 143, "Accounting for Asset Retirement Obligations." SFAS No.
         143 requires the fair value of a liability for an asset retirement
         obligation to be recognized in the period that it is incurred if a
         reasonable estimate of fair value can be made. The associated asset
         retirement costs are capitalized as part of the carrying amount of the
         long-lived asset. SFAS No. 143 is effective for fiscal years beginning
         after June 15, 2002. For the Company's leased telecommunication
         facilities, primarily consisting of cell sites and switch site
         operating leases, the Company has evaluated the impact of the adoption
         of SFAS No. 143 as of January 1, 2003 and determined that a liability
         cannot be reasonably estimated due to (1) the Company's inability to
         reasonably assess the probability of the likelihood that a lessor would
         enforce the remediation requirements upon expiration of the lease term
         and therefore its impact on future cash outflows, (2) the Company's
         inability to estimate a potential range of settlement dates due to its
         ability to renew site leases after the initial lease expiration and (3)
         the Company's limited experience in abandoning cell site locations and
         actually incurring remediation costs. In addition to cell sites and
         switch site operating leases, the Company also has leases for office
         and retail locations that are subject to the provisions of SFAS No.
         143. The adoption of SFAS No. 143 to leased office and retail locations
         did not have a material impact on the Company's consolidated results of
         operations, financial position or cash flows.

         In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB
         Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and
         Technical Corrections as of April 2002," which rescinded or amended
         various existing standards. One change addressed by this standard
         pertains to treatment of extinguishments of debt as an extraordinary
         item. SFAS No. 145 rescinds SFAS No. 4, "Reporting Gains and Losses
         from Extinguishment of Debt" and states that an extinguishment of debt
         cannot be classified as an extraordinary item unless it meets the
         unusual or infrequent criteria outlined in Accounting Principles Board
         Opinion No. 30 "Reporting the Results of Operations -- Reporting the
         Effects of Disposal of a Segment of a Business, and Extraordinary,


                                       14
<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

         Unusual and Infrequently Occurring Events and Transactions." The
         provisions of this statement are effective for fiscal years beginning
         after May 15, 2002 and extinguishments of debt that were previously
         classified as an extraordinary item in prior periods that do not meet
         the criteria in Opinion 30 for classification as an extraordinary item
         shall be reclassified. The adoption of SFAS No. 145 in the quarter
         ending March 31, 2003 has resulted in a reclassification of the loss on
         extinguishment of debt that the Company previously reported as an
         extraordinary item for the year ended December 31, 2001.

         In June 2002, the FASB issued SFAS No. 146 "Accounting for Costs
         Associated with Exit or Disposal Activities," which requires companies
         to recognize costs associated with exit or disposal activities when
         they are incurred rather than at the date of a commitment to an exit or
         disposal plan. The provisions of this statement are effective for exit
         or disposal activities initiated after December 31, 2002 and the
         adoption of this statement did not have a material impact on the
         Company's results of operations, financial position or cash flows.

         In December 2002, the FASB issued SFAS No. 148 "Accounting for
         Stock-Based Compensation-Transition and Disclosure," which is an
         amendment of SFAS No. 123 "Accounting for Stock-Based Compensation."
         This statement provides alternative methods of transition for a
         voluntary change to the fair value based method of accounting for
         stock-based employee compensation. In addition, this statement amends
         the disclosure requirements of SFAS No. 123 to require prominent
         disclosures in both annual and interim financial statements about the
         method of accounting for stock-based employee compensation and the
         effect of the method used on reported results. The provisions of this
         statement are effective for fiscal years ending after and interim
         periods beginning after December 15, 2002. As the Company continues to
         account for stock-based employee compensation using the intrinsic value
         method under APB Opinion No. 25, the Company, as required, has only
         adopted the revised disclosure requirements of SFAS No. 148 as of
         December 31, 2002 as discussed in Note 4.

         In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement
         133 on Derivative Instruments and Hedging Activities," which amends and
         clarifies financial accounting and reporting for derivative
         instruments, including certain derivative instruments embedded in other
         contracts and for hedging activities under SFAS No. 133, "Accounting
         for Derivative Instruments and Hedging Activities." This statement is
         effective for contracts entered into or modified after June 30, 2003
         and for hedging relationships designated after June 30, 2003 and is not
         expected to have a material impact on the Company's results of
         operations, financial position or cash flows.

         In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
         Financial Instruments with Characteristics of both Liabilities and
         Equity." This statement requires that an issuer classify a financial
         instrument that is within its scope as a liability (or an asset in some
         circumstances) and is effective for financial instruments entered into
         or modified after May 31, 2003, and otherwise is effective at the
         beginning of the first interim period beginning after June 15, 2003,
         except for mandatorily redeemable financial instruments of nonpublic
         entities. The adoption of this statement is not expected to have a
         material impact on the Company's results of operations, financial
         position or cash flows.

         The Emerging Issues Task Force ("EITF") of the FASB issued EITF
         Abstract No. 00-21 "Accounting for Revenue Arrangements with Multiple
         Deliverables" in January 2003. This abstract addresses certain aspects
         of the accounting by a vendor for arrangements under which it will
         perform multiple revenue-generating activities. Specifically, it
         addresses how consideration should be measured and allocated to the
         separate units of accounting in the arrangement. The guidance in this
         abstract is effective for revenue arrangements entered into in fiscal
         periods beginning after June 15, 2003 and the Company has evaluated the
         impact of the adoption of the provisions of this abstract as of July 1,
         2003.

         The Company has elected to apply the accounting provisions of this
         abstract on a prospective basis beginning July 1, 2003. Under the
         accounting provisions of this abstract, the Company will allocate
         amounts charged to customers between the sale of handsets and other
         equipment and the sale of wireless telecommunication services. In many
         cases, this will result in all amounts collected from the customer upon
         activation of the handset being allocated to the sale of the handset.
         As a result of this treatment, activation fees included in the
         consideration at the time of sale will be recorded as handset revenue.
         Prior to the adoption of the provisions of


                                       15
<PAGE>


                             ALAMOSA HOLDINGS, INC.
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
                                   (UNAUDITED)
                     (dollars in thousands, except as noted)

         this abstract the Company had deferred activation fee revenue as well
         as activation costs in a like amount and amortized these revenues and
         costs over the average life of the Company's subscribers. The existing
         deferred revenue and costs at July 1, 2003 will continue to be
         amortized.

         In November 2002, the FASB issued FASB Interpretation No. 45 ("FIN
         45"), "Guarantor's Accounting and Disclosure Requirements for
         Guarantees, Including Indirect Guarantees of Indebtedness of Others."
         FIN 45 requires that upon issuance of a guarantee, a guarantor must
         recognize a liability for the fair value of an obligation assumed under
         a guarantee. FIN 45 also requires additional disclosures by a guarantor
         in its interim and annual financial statements about the obligations
         associated with guarantees issued. The recognition provisions of FIN 45
         are effective for guarantees issued after December 31, 2002, while the
         disclosure requirements were effective for financial statements for
         periods ending after December 15, 2002. At December 31, 2002, the
         Company had not entered into any material arrangement that would be
         subject to the disclosure requirements of FIN 45. The adoption of FIN
         45 did not have a material impact on the Company's consolidated
         financial statements.

         On January 17, 2003, the FASB issued FASB Interpretation No. 46 ("FIN
         46" or the "Interpretation"), "Consolidation of Variable Interest
         Entities, an interpretation of ARB 51." The primary objectives of FIN
         46 are to provide guidance on the identification of entities for which
         control is achieved through means other than through voting rights
         ("variable interest entities" or "VIEs") and how to determine when and
         which business enterprise should consolidate the VIE (the "primary
         beneficiary"). This new model for consolidation applies to an entity
         which either (1) the equity investors (if any) do not have a
         controlling financial interest or (2) the equity investment at risk is
         insufficient to finance that entity's activities without receiving
         additional subordinated financial support from other parties. In
         addition, FIN 46 requires that both the primary beneficiary and all
         other enterprises with a significant variable interest in a VIE make
         additional disclosures. For public entities with VIEs created before
         February 1, 2003, the implementation and disclosure requirements of FIN
         46 are effective no later than the beginning of the first interim or
         annual reporting period beginning after June 15, 2003. For VIEs created
         after January 31, 2003, the requirements are effective immediately. The
         Company does not believe that the adoption of FIN 46 will have a
         material impact on its consolidated financial statements.



                                       16

<PAGE>


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS


FORWARD-LOOKING STATEMENTS

         This quarterly report on Form 10-Q includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), which can be identified by the use of
forward-looking terminology such as "may," "might," "could," "would," "believe,"
"expect," "intend," "plan," "seek," "anticipate," "estimate," "project" or
"continue" or the negative thereof or other variations thereon or comparable
terminology. All statements other than statements of historical fact included in
this quarterly report on Form 10-Q regarding our financial position and
liquidity are forward-looking statements. These forward-looking statements also
include:

        o   forecasts of growth in the number of consumers using wireless
            personal communications services and in estimated populations;

        o   statements regarding our anticipated revenues, expense levels,
            liquidity, capital resources and operating losses; and

        o   statements regarding expectations or projections about markets in
            our territories.

         Although we believe that the expectations reflected in such
forward-looking statements are reasonable, we can give no assurance that such
expectations will prove to have been correct. Important factors with respect to
any such forward-looking statements, including certain risks and uncertainties
that could cause actual results to differ materially from our expectations
("Cautionary Statements") are further disclosed in our annual report on Form
10-K for the year ended December 31, 2002 under the sections "Item 1. Business"
and "Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations." Important factors that could cause actual results to
differ materially from those in the forward-looking statements included herein
include, but are not limited to:

        o   our dependence on our affiliation with Sprint;

        o   the ability of Sprint to alter fees paid or charged to us under our
            affiliation agreements;

        o   our limited operating history and anticipation of future losses;

        o   our dependence on back office services provided by Sprint;

        o   potential fluctuations in our operating results;

        o   changes or advances in technology;

        o   competition in the industry and markets in which we operate;

        o   our ability to attract and retain skilled personnel;

        o   our potential need for additional capital or the need for
            refinancing existing indebtedness;

        o   our potential inability to expand our services and related products
            in the event of substantial increases in demand for these services
            and related products;

        o   changes in government regulation;

        o   future acquisitions;

        o   general economic and business conditions; and




                                       17

<PAGE>


        o   effects of mergers and consolidations within the telecommunications
            industry and unexpected announcements or developments from others in
            the telecommunications industry.

         All subsequent written and oral forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in their entirety
by the Cautionary Statements.

DEFINITIONS OF OPERATING AND NON-GAAP FINANCIAL MEASURES

         We provide reader's financial measures generated using generally
accepted accounting principles ("GAAP") and using adjustments to GAAP
("Non-GAAP"). These financial measures reflect industry conventions or standard
measures of liquidity, profitability or performance commonly used by the
investment community for comparability purposes. The Non-GAAP financial measures
and other operating metrics used in this document include the following:

        o   Earnings before interest, taxes, depreciation and amortization
            ("EBITDA") is defined as net income (loss) plus net interest
            expense, depreciation expense, amortization expense and other
            non-cash expense items. EBITDA is a measure used by the investment
            community for comparability as well as in our debt covenants for
            compliance purposes and is not intended to represent the results of
            our operations in accordance with GAAP.

        o   Free cash flow is defined as EBITDA less net cash requirements for
            capital expenditures and debt service requirements.

        o   Average monthly revenue per user ("ARPU") is a measure used to
            determine the monthly subscriber revenue earned for subscribers
            based in our territory. This measure is determined based on
            subscriber revenues in our consolidated statement of operations and
            our average subscribers during the period.

        o   Cash cost per user ("CCPU") is a measure of the costs to operate our
            business on a per user basis consisting of costs of service and
            operations and general and administrative expenses in our
            consolidated statement of operations, plus handset subsidies on
            equipment sold to existing subscribers. These costs are allocated
            across average subscribers during the period to calculate this
            measure.

        o   Customer churn is used to measure the rate at which subscribers
            based in our territory deactivate service on a voluntary or
            involuntary basis. We calculate churn based on the number of
            subscribers deactivated (net of transfers out of our service area
            and those who deactivated within 30 days of activation) as a
            percentage of our average subscriber base during the period.

        o   Cost per gross addition ("CPGA") is used to measure the costs
            incurred to add new subscribers in our territory. This measure
            includes handset subsidies on new subscriber activations,
            commissions, rebates and other selling and marketing costs and is
            calculated based on product sales revenue, cost of products sold and
            selling and marketing expenses in our consolidated statement of
            operations net of handset subsidies on equipment sold to existing
            subscribers allocated over the total number of subscribers activated
            in our territory during the period.


GENERAL

         Since our inception in 1998, we have incurred substantial costs in
connection with negotiating our contracts with Sprint, obtaining our debt
financing, completing our public equity offerings, engineering our wireless PCS
network, developing our business infrastructure and building out our portion of
the PCS network of Sprint. Prior to the launch of our first market in June 1999,
we did not have any markets in operation and we had no customers. At June 30,
2003, we had approximately 677,000 subscribers. As of June 30, 2003, our
accumulated deficit is $713.9 million and we have incurred a significant amount
of capital expenditures in connection with constructing our portion of the PCS
network of Sprint and developing our business infrastructure including the
establishment of our retail distribution channels. While we anticipate losses to
continue, we expect revenue to continue to increase as our subscriber base
increases.


                                       18

<PAGE>


         On July 17, 1998, we entered into our original affiliation agreements
with Sprint. We subsequently amended our original agreements in 1999 to add
additional territories to our licensed area. In the first quarter of 2001, we
completed the acquisitions of three additional PCS Affiliates of Sprint,
bringing our total licensed POPs to approximately 15.8 million at June 30, 2003.

         As a PCS Affiliate of Sprint, we have the exclusive right to provide
wireless, mobility communications network services under the Sprint brand name
in our licensed territory. We are responsible for building, owning and managing
the portion of the PCS network of Sprint located in our territory. We offer
national plans designed by Sprint and intend to offer local plans tailored to
our market demographics. Our portion of the PCS network of Sprint is designed to
offer a seamless connection with the 100% digital PCS nationwide wireless
network of Sprint. We market wireless products and services through a number of
distribution outlets located in our territories, including our own retail
stores, major national distributors and local third party distributors.

         We recognize revenues from our subscribers, proceeds from the sales of
handsets and accessories through channels controlled by us and fees from Sprint
and other wireless service providers when their customers roam onto our portion
of the PCS network of Sprint. Sprint retains 8% of all collected service revenue
from our subscribers (not including products sales) and fees collected from
other wireless service providers when their customers roam onto our portion of
the PCS network of Sprint. We report the amount retained by Sprint as an
operating expense. In addition, Sprint bills our subscribers for taxes, handset
insurance, equipment and Universal Service Fund charges which we do not record.
Sprint collects these amounts from the subscribers and remits them to the
appropriate entity.

         As part of our affiliation agreements with Sprint, we have the option
of contracting with Sprint to provide back office services such as customer
activation, handset logistics, billing, customer care and network monitoring
services. We have elected to delegate the performance of these services to
Sprint to take advantage of their economies of scale, to accelerate our
build-out and market launches and to lower our initial capital requirements. The
cost for these services is primarily on a per subscriber and per transaction
basis and is recorded as an operating expense.


CRITICAL ACCOUNTING POLICIES

         The fundamental objective of financial reporting is to provide useful
information that allows a reader to comprehend the business activities of an
entity. To aid in that understanding, we have identified our "critical
accounting policies." These policies have the potential to have a more
significant impact on our consolidated financial statements, either because of
the significance of the financial statement item to which they relate, or
because they require judgment and estimation due to the uncertainty involved in
measuring, at a specific point in time, events which are continuous in nature.

         ALLOWANCE FOR DOUBTFUL ACCOUNTS - Estimates are used in determining our
allowance for bad debts and are based on our historical collection experience,
current trends, credit policy, a percentage of our accounts receivable by aging
category and expectations of future bad debts based on current collection
activities. In determining the allowance, we consider historical write-offs of
our receivables and our history is somewhat limited due to the number of changes
that have historically been made to credit policies. We also look at current
trends in the credit quality of our customer base as well as changes in the
credit policies. Under PCS service plans from Sprint, customers who do not meet
certain credit criteria can nevertheless select any plan offered, subject to an
account spending limit, referred to as ASL, to control credit exposure. Account
spending limits range from $125 to $200 and generally require deposits in the
amount of the limit that could be credited against future billings. In May 2001,
the deposit requirement was eliminated on certain, but not all, credit classes
("NDASL"). As a result, a significant amount of our customer additions during
2001 were under the NDASL program. The NDASL program was replaced by the "Clear
Pay" program in November 2001, which reinstated the deposit requirement for
certain of the lowest credit class customers, and features increased back office
controls with respect to collection efforts. We reinstated the deposit for
customers in other credit classes on the Clear Pay program as of February 24,
2002 and we believe that this program, referred to as Clear Pay II, has reduced
our bad debt exposure.

         REVENUE RECOGNITION - We record equipment revenue for the sale of
handsets and accessories to customers in our retail stores and to local
resellers in our territories. We do not record equipment revenue on handsets and
accessories purchased by our customers from national resellers or directly from
Sprint. Our customers pay an activation fee when they initiate service. In the
past, we have deferred this activation fee and recorded the activation fee
revenue over the



                                       19

<PAGE>


estimated average life of our customers which ranges from 12 to 36 months
depending on credit class and based on our past experience. We recognize revenue
from our customers as they use the service. Additionally, we provide a reduction
of recorded revenue for billing adjustments and billing corrections.

         We recognize revenue for product sales in connection with our sales of
handsets and accessories through our retail stores and our local indirect
retailers. The cost of handsets sold generally exceeds the retail sales price as
we subsidize the price of handsets for competitive reasons. For handsets sold
through channels controlled by Sprint that are activated by a subscriber in our
territory, we reimburse Sprint for the amount of subsidy incurred by them in
connection with the sale of these handsets.

         Effective July 1, 2003, we have adopted the accounting provisions of
Emerging Issues Task Force ("EITF") Abstract No. 00-21 "Accounting for Revenue
Arrangements with Multiple Deliverables." See further discussion under Recently
Issued Accounting Pronouncements in this section.

         LONG-LIVED ASSET RECOVERY - Long-lived assets, consisting primarily of
property, equipment and intangibles, comprise approximately 81 percent of our
total assets as of June 30, 2003. Changes in technology or in our intended use
of these assets may cause the estimated period of use or the value of these
assets to change. In addition, changes in general industry conditions such as
increased competition, lower ARPU, etc., could cause the value of certain of
these assets to change. We monitor the appropriateness of the estimated useful
lives of these assets. Whenever events or changes in circumstances indicate that
the carrying amounts of these assets may not be recoverable, we review the
respective assets for impairment. In performing this test, assets are grouped
according to identifiable cash flow streams and the undiscounted cash flow over
the life of the asset group is compared to the carrying value of the asset
group. Estimates and assumptions used in both estimating the useful life and
evaluating potential impairment issues require a significant amount of judgment.

         INCOME TAXES - We utilize an asset and liability approach to accounting
for income taxes, wherein deferred taxes are provided for book and tax basis
differences for assets and liabilities. In the event differences exist between
book and tax basis of our assets and liabilities that result in deferred assets,
an evaluation of the probability of being able to realize the future benefits
indicated by such assets is made. A valuation allowance is provided for the
portion of deferred tax assets for which there is sufficient uncertainty
regarding our ability to recognize the benefits of those assets in future years.

         Deferred taxes are provided for those items reported in different
periods for income tax and financial reporting purposes. The net deferred tax
asset was fully reserved through December 31, 2000 because of uncertainty
regarding our ability to recognize the benefit of the asset in future years. In
connection with the acquisitions completed by the Company in 2001, a significant
deferred tax liability was recorded relative to intangibles. The reversal of the
timing differences which gave rise to the deferred tax liability will allow us
to benefit from the deferred tax asset. As such, the valuation allowance against
the deferred tax asset was reduced in 2001 to account for the expected benefit
to be realized. Prior to February 1, 2000, our predecessor operated as a limited
liability company ("LLC") under which losses for income tax purposes were
utilized by the LLC members on their income tax returns. Subsequent to January
31, 2000, we became a C-corp for federal income tax purposes and therefore
subsequent losses became net operating loss carryforwards to us. We continue to
evaluate the likelihood of realizing the benefits of deferred tax items. Should
events or circumstances indicate that it is warranted, a valuation allowance
will again be established. During the first quarter of 2003 we reinstated a
valuation allowance due to the fact that the timing differences that give rise
to the deferred tax asset are expected to exceed the timing differences that
give rise to the deferred tax liabilities and there is uncertainty as to whether
we will recognize the benefit of those deferred taxes in future periods.

         RELIANCE ON THE TIMELINESS AND ACCURACY OF DATA RECEIVED FROM SPRINT -
We place significant reliance on Sprint as a service provider in terms of the
timeliness and accuracy of financial and statistical data related to customers
based in our service territory that we receive on a periodic basis from Sprint.
We make significant estimates in terms of cash flow, revenue, cost of service,
selling and marketing costs and the adequacy of our allowance for uncollectible
accounts based on this data we receive from Sprint. We obtain assurance as to
the accuracy of this data through analytic review and reliance on the service
auditor report on Sprint's internal control processes prepared by Sprint's
external service auditor. Inaccurate or incomplete data from Sprint could have a
material adverse effect on our results of operations and cash flow.


                                       20

<PAGE>


CONSOLIDATED RESULTS OF OPERATIONS (DOLLARS IN THOUSANDS)


FOR THE THREE AND SIX MONTH PERIOD ENDED JUNE 30, 2003 COMPARED TO THE THREE AND
SIX MONTH PERIOD ENDED JUNE 30, 2002

         SUBSCRIBER GROWTH AND KEY PERFORMANCE INDICATORS - We had total
subscribers of approximately 677,000 at June 30, 2003 compared to approximately
571,000 at June 30, 2002. This growth of approximately 106,000 subscribers or 19
percent year over year compares to 81 percent growth from June 30, 2001 to June
30, 2002. The decline in the rate of growth from 2002 to 2003 is due to the fact
that markets were being launched during 2001 where our coverage area increased
from 4.5 million to 11.2 million covered POPs. During 2002 our coverage area
increased from 11.2 million to 11.8 million covered POPs as we had substantially
completed the build-out of our network by the end of 2001. During the second
quarter of 2003 our coverage area increased to 11.9 million covered POPs.

         Monthly churn for the second quarter of 2003 was approximately 2.5
percent compared to approximately 3.2 percent for the second quarter of 2002.
This level of churn in the second quarter of 2003 also represented an
improvement over the first quarter of 2003 where we experienced monthly churn of
3.0 percent. Increases in churn negatively impact our operations as we incur
significant up front costs in acquiring customers. Churn increased significantly
during 2002 as the result of a significantly higher level of involuntary
deactivations of subscribers for non-payment. This was driven by the addition of
a significant number of sub-prime credit quality subscribers in 2001 under the
Clear Pay/NDASL program. We reinstated deposit requirements for sub-prime credit
quality subscribers in our markets in February 2002 and began to see the impact
of this change in the form of decreasing churn beginning in the fourth quarter
of 2002 where churn declined to 3.4 percent from 3.8 percent in the third
quarter of 2002. This trend has continued through the first six months of 2003.

         Our CPGA includes handset subsidies on new subscriber activations, and
selling and marketing costs and was approximately $375 per gross addition in the
second quarter of 2003, which was consistent with the $377 per gross addition in
the second quarter of 2002. Our CPGA increased $33 in the second quarter of 2003
over the $342 per gross addition we experienced in the first quarter of 2003. As
overall subscriber growth on a national basis has declined, competition among
the wireless communications providers has become more intense. As a result of
this competition for both new subscribers and existing subscribers from other
carriers, promotional efforts have increased in terms of handset rebates and
other promotional activities which increases the up front costs in acquiring
customers.

         SERVICE REVENUE - Service revenues consist of revenue from subscribers
and roaming revenue earned when customers from other carriers roam onto our
portion of the PCS network of Sprint. Subscriber revenue consists of payments
received from our subscribers for monthly service under their service plans.
Subscriber revenue also includes activation fees and charges for the use of
various features including PCS Vision, the wireless web, voice activated
dialing, etc.

         Subscriber revenues were $114,550 for the quarter ended June 30, 2003
compared to $92,580 for the quarter ended June 30, 2002. This increase of 24
percent was primarily due to the 19 percent increase in our subscriber base
discussed above. The percentage increase in revenue was more than the percentage
increase in subscribers due to a one time revenue adjustment of $5.4 million in
the second quarter of 2002 relative to an FCC ruling regarding terminating
access charges. Subscriber revenues were $218,574 for the six months ended June
30, 2003 compared to $186,078 for the six months ended June 30, 2002. This
increase of 17 percent was also primarily due to the increase in the subscriber
base after considering the one time revenue adjustment in the second quarter of
2002. ARPU decreased in the second quarter of 2003 to $57 compared to $59
(before the one time revenue adjustment discussed previously) in the second
quarter of 2002. ARPU decreased in the first six months of 2003 to $56 compared
to $59 (before the one time revenue adjustment discussed previously) in the
first six months of 2002. This decrease is attributable to lower monthly
recurring charges for plans with larger buckets of minutes being offered as a
result of the increased level of competition in the marketplace. The larger
buckets of minutes result in fewer minutes over plan and less revenue from those
overage minutes.

         Roaming revenue is comprised of revenue from Sprint and other PCS
subscribers based outside of our territories that roam onto our portion of the
PCS network of Sprint. We have a reciprocal roaming rate arrangement with Sprint
where per minute charges for inbound and outbound roaming relative to Sprint
subscribers are identical. This rate was 10 cents per minute during 2002. During
2003 this reciprocal rate decreased to 5.8 cents per minute. The decline in


                                       21

<PAGE>


rates was offset by increases in roaming minutes due to the fact that we added
additional base stations after the second quarter of 2002 which allowed us to
capture additional roaming traffic as well as the growth in the customer bases
of Sprint and other PCS providers. Sprint has indicated that the reciprocal rate
for 2003 of 5.8 cents per minute represents a fair and reasonable return on the
cost of the underlying network based on an agreement in principle reached with
Sprint in 2001. This rate went into effect on January 1, 2003. We have not
agreed that 5.8 cents per minute represents a fair and reasonable return on the
underlying network and are currently in discussions with Sprint as to the
determination of this rate. The toll rate for long distance charges associated
with Sprint roaming is expected to remain at approximately 2 cents per minute.
We have also experienced a significant increase in the volume of inbound roaming
traffic from PCS providers other than Sprint which traffic is settled at rates
separately negotiated by Sprint on our behalf with the other PCS providers. We
had approximately 395 million minutes of inbound roaming traffic in the second
quarter of 2003 compared to approximately 265 million minutes of inbound roaming
traffic in the second quarter of 2002. The increase in minutes offset by the
decrease in rates accounted for the 5 percent overall increase in roaming
revenue to $35,040 in the second quarter of 2003 from $33,457 in the second
quarter of 2002. We had approximately 735 million minutes of inbound roaming
traffic in the first six months of 2003 compared to approximately 476 million
minutes of inbound roaming traffic in the first six months of 2002. The increase
in minutes offset by the decrease in rates accounted for the 11 percent overall
increase in roaming revenue to $66,830 in the first six months of 2003 from
$60,025 in the first six months of 2002.

         PRODUCT SALES AND COST OF PRODUCTS SOLD - We record revenue from the
sale of handsets and accessories, net of an allowance for returns, as product
sales. Product sales revenue and costs of products sold are recorded for all
products that are sold through our retail stores as well as those sold to our
local indirect agents. The cost of handsets sold generally exceeds the retail
sales price as we subsidize the price of handsets for competitive reasons.
Sprint's handset return policy allows customers to return their handsets for a
full refund within 14 days of purchase. When handsets are returned to us, we may
be able to reissue the handsets to customers at little additional cost to us.
However, when handsets are returned to Sprint for refurbishing, we receive a
credit from Sprint, which is less than the amount we originally paid for the
handset.

         Product sales revenue for the second quarter of 2003 was $5,804
compared to $4,752 for the second quarter of 2002. Cost of products sold for the
second quarter of 2003 was $12,399 compared to $9,113 for the second quarter of
2002. As such the subsidy on handsets sold through our retail and local indirect
channels was $6,595 in the second quarter of 2003 and $4,361 in the second
quarter of 2002. On a per activation basis (excluding handsets sold to existing
subscribers), the subsidy was approximately $117 per activation in the second
quarter of 2003 and approximately $94 per activation in the second quarter of
2002. Product sales revenue for the first six months of 2003 was $11,098
compared to $13,073 for the first six months of 2002. Cost of products sold for
the first six months of 2003 was $25,243 compared to $23,230 for the first six
months of 2002. As such the subsidy on handsets sold through our retail and
local indirect channels was $14,145 in the first six months of 2003 and $10,157
in the first six months of 2002. On a per activation basis (excluding handsets
sold to existing subscribers), the subsidy was approximately $116 per activation
in the first six months of 2003 and approximately $97 per activation in the
first six months of 2002. The increase in subsidy per activation in 2003
compared to 2002 is due to more aggressive promotional efforts, which involved a
higher level of instant rebates and other discounts on handset prices for
competitive reasons.

         COST OF SERVICE AND OPERATIONS (EXCLUDING NON-CASH COMPENSATION) - Cost
of service and operations includes the costs of operating our portion of the PCS
network of Sprint. These costs include items such as outbound roaming fees, long
distance charges, tower leases and maintenance as well as backhaul costs. In
addition, it includes the fees we pay to Sprint for our 8 percent affiliation
fee, back office services such as billing and customer care as well as our
provision for estimated uncollectible accounts. Expenses of $81,454 in the
second quarter of 2003 were approximately 4 percent less than the $85,289
incurred in the second quarter of 2002. Expenses of $160,771 in the first six
months of 2003 were approximately 2 percent less than the $163,818 incurred in
the first six months of 2002. Network operating costs remained relatively stable
as our network build-out is substantially complete and we are beginning to
realize the benefits of our capital investment as we continue to add subscribers
to the network. The improvements noted in overall cost of service and operations
were primarily driven by reduced bad debt expense in 2003 compared to 2002 as we
begin to see the benefit of reinstating deposits requirements in 2002. Total
minutes of use on our network were 1.5 billion minutes in the second quarter of
2003 compared to 1,005 million minutes in the second quarter of 2002 for an
increase in traffic of 49 percent. Total minutes of use on our network were 2.8
billion minutes in the first six months of 2003 compared to 1.9 billion minutes
in the first six months of 2002 for an increase in traffic of 47 percent.


                                       22

<PAGE>


         SELLING AND MARKETING (EXCLUDING NON-CASH COMPENSATION) - Selling and
marketing expenses include advertising, promotion, sales commissions and
expenses related to our distribution channels including our retail store
expenses. In addition, we reimburse Sprint for the subsidy on handsets sold
through national retail stores due to the fact that these retailers purchase
their handsets from Sprint. This subsidy is recorded as a selling and marketing
expense. The amount of handset subsidy included in selling and marketing was
$3,826 and $4,462 in the second quarter of 2003 and 2002, respectively. The
amount of handset subsidy included in selling and marketing was $8,172 and
$7,865 in the first six months of 2003 and 2002, respectively. Total selling and
marketing expenses of $26,584 in the second quarter of 2003 were consistent with
the $26,960 incurred in the second quarter of 2002. Total selling and marketing
expenses of $54,730 in the first six months of 2003 were consistent with the
$55,857 incurred in the first six months of 2002.

         GENERAL AND ADMINISTRATIVE EXPENSES (EXCLUDING NON-CASH COMPENSATION) -
General and administrative expenses include corporate costs and expenses such as
administration and finance. General and administrative expenses of $5,918 in the
second quarter of 2003 were 94 percent higher than the $3,053 incurred in the
second quarter of 2002. General and administrative expenses of $9,583 in the
first six months of 2003 were 41 percent higher than the $6,788 incurred in the
first six months of 2002. The increase in 2003 has been the result of increased
professional fees related to various efforts in preparing for the reporting
requirements under the Sarbanes-Oxley Act of 2002 and professional fees and
other expenses associated with advisory services in the evaluation of strategic
business opportunities and long-term business planning.

         DEPRECIATION AND AMORTIZATION - Depreciation and amortization includes
depreciation of our property, plant and equipment as well as amortization of
intangibles. Depreciation is calculated on the straight line method over the
estimated useful lives of the underlying assets and totaled $17,403 in the
second quarter of 2003 which was 8 percent higher than the $16,141 recorded in
the second quarter of 2002. Depreciation totaled $34,268 in the first six months
of 2003 which was 10 percent higher than the $31,072 recorded in the first six
months of 2002. The increase in 2003 is due to the increase in depreciable costs
as a result of our capital expenditures in the last half of 2002 and the first
half of 2003.

         Amortization expense relates to intangible assets recorded in
connection with the acquisitions closed in the first quarter of 2001. We
recorded two identifiable intangibles in connection with each of the
acquisitions consisting of values assigned to the agreements with Sprint and the
customer base acquired. Amortization expense of $10,016 in the second quarter of
2003 was consistent with the $10,203 in the second quarter of 2002. Amortization
expense of $20,033 in the first six months of 2003 was consistent with the
$20,135 in the first six months of 2002.

         IMPAIRMENT OF PROPERTY AND EQUIPMENT - We recorded impairments of
property and equipment in the second quarter and first six months of 2003 of $34
and $394, respectively, compared to $1,332 in the second quarter and first six
months of 2002. The decrease in 2003 is attributable to a switch site location
that was abandoned in 2002 resulting in a charge of $1,332 in the second quarter
of 2002.

         NON-CASH COMPENSATION - Non-cash compensation expense of $199 in the
second quarter of 2003 included $161 in compensation to directors in the form of
the issuance of 105,000 shares of our common stock. The remaining $38 in
non-cash compensation for the quarter related to shares of restricted stock that
were awarded to our officers in October and December of 2002. Certain of our
officers received a total of 800,000 shares of restricted stock at a discount to
market price that will vest over a three-year period. Compensation expense
relative to the difference between the market price of the stock and the price
the officers paid for the stock will be recognized over the vesting period
during which the restrictions lapse. Non-cash compensation expense of $240 in
the first six months of 2003 includes the $161 related to director compensation
discussed above as well as $79 relative to the vesting of restricted stock. We
had no non-cash compensation expense in the second quarter or first six months
of 2002.

         OPERATING INCOME (LOSS) - Our operating income for the second quarter
of 2003 was $2,559 compared to a loss of $21,302 for the second quarter of 2002
representing an improvement of $23,861. Our operating loss for the first six
months of 2003 was $7,588 compared to $43,056 for the first six months of 2002
representing an improvement of $35,468. This improvement is primarily
attributable to the leverage we are beginning to experience in spreading our
fixed costs over a larger base of subscribers.

         INTEREST AND OTHER INCOME - Interest and other income represents
amounts earned on the investment of excess equity and debt offering proceeds.
Income of $249 in the second quarter of 2003 was 71 percent less than the $871


                                       23

<PAGE>


earned in the second quarter of 2002. Income of $634 in the first six months of
2003 was 71 percent less than the $2,204 earned in the first six months of 2002.
The decrease in interest earned is due to the fact that excess cash and
investments were liquidated during 2002 in connection with funding our capital
expenditures and operating cash flow losses as well as making interest payments
from restricted cash.

         INTEREST EXPENSE - Interest expense for the second quarter and first
six months of 2003 includes non-cash interest accreted on our 12 7/8% Senior
Discount Notes of $8,825 and $17,377, respectively, as well as interest accrued
on the two senior notes issued during 2001 and interest on our senior secured
debt. Total interest expense of $25,951 in the second quarter of 2003 is
consistent with the expense of $25,820 in the second quarter of 2002. Total
interest expense of $52,488 in the first six months of 2003 is 4 percent higher
than expense of $50,674 in the first six months of 2002 primarily due to the
increased level of advances under senior secured borrowings.


INCOME TAXES

         We account for income taxes in accordance with SFAS No. 109 "Accounting
for Income Taxes." As of December 31, 2000, the net deferred tax asset consisted
primarily of temporary differences related to the treatment of organizational
costs, unearned compensation, interest expense and net operating loss carry
forwards. The net deferred tax asset was fully offset by a valuation allowance
as of December 31, 2000 because there was sufficient uncertainty as to whether
we would recognize the benefit of those deferred taxes in future periods. In
connection with the mergers completed in the first quarter of 2001, we recorded
significant deferred tax liabilities due to differences in the book and tax
basis of the net assets acquired particularly due to the intangible assets
recorded in connection with the acquisitions.

         The reversal of the timing differences which gave rise to these
deferred tax liabilities will allow us to realize the benefit of timing
differences which gave rise to the deferred tax asset. As a result, we released
the valuation allowance during the second quarter of 2001. Prior to 2001, all
deferred tax benefit had been fully offset by an increase in the valuation
allowance such that there was no financial statement impact with respect to
income taxes. With the reduction of the valuation allowance in 2001, we began to
reflect a net deferred tax benefit in our consolidated statement of operations.
During the first quarter of 2003 we reinstated a valuation allowance due to the
fact that the timing differences that give rise to the deferred tax asset are
expected to exceed the timing differences that give rise to the deferred tax
liabilities and there is uncertainty as to whether we will recognize the benefit
of those deferred taxes in future periods.


LIQUIDITY AND CAPITAL RESOURCES

         OPERATING ACTIVITIES - Operating cash flows were $19,504 in the first
six months of 2003 and negative $24,828 in the first six months of 2002. The
increase in operating cash flows of $44,332 is primarily related to a decrease
in net loss before non-cash items of $27,042 coupled with working capital
changes of $17,290.

         INVESTING ACTIVITIES - Our investing cash flows were a negative $16,742
in the first six months of 2003 compared to a negative $66,581 in the first six
months of 2002. Our cash capital expenditures for the first six months of 2003
totaled $19,196 while our cash capital expenditures for the first six months of
2002 totaled $67,001.

         FINANCING ACTIVITIES - Our financing cash flows decreased in the first
six months of 2003 to $24,405 from $48,438 in the first six months of 2002. In
2003, we received $24,977 in restricted cash which was released from escrow to
make interest payments on the 12 1/2% Senior Notes and the 13 5/8% Senior Notes.
In 2002 we received $12,838 in proceeds representing the remaining borrowings
under the term portion of our Senior Secured Credit Facility as well as $35,535
in restricted cash which was released from escrow to make interest payments on
the 12 1/2% Senior Notes and the 13 5/8% Senior Notes.


CAPITAL REQUIREMENTS

         Our capital expenditure requirements for 2003 are expected to be
approximately $40 to $50 million. Operating cash flow is expected to continue to
increase in 2003 as we continue to realize the benefits of the subscriber growth
that we have experienced over the past three years. We expect to generate free
cash flow in 2003 and believe we have sufficient liquidity as discussed below.


                                       24

<PAGE>


LIQUIDITY

         Since inception, we have financed our operations through capital
contributions from our owners, through debt financing and through proceeds
generated from public offerings of our common stock. We have incurred
substantial net losses and negative cash flow from operations since inception.
Expenses are expected to exceed revenues until we establish a sufficient
subscriber base. We expect operating losses to continue for the foreseeable
future. However, we expect operating losses to decrease in the future as we
obtain more subscribers.

         EDC CREDIT FACILITY - We entered into a credit agreement with Nortel
effective June 10, 1999, which was amended and restated on February 8, 2000. On
June 23, 2000, Nortel assigned the entirety of its loans and commitments to
Export Development Corporation ("EDC"), and Alamosa and EDC entered into the
credit facility with EDC (the "EDC Credit Facility"). The EDC Credit Facility
was paid in full in the first quarter of 2001 with proceeds from the Senior
Secured Credit Facility described below.

         COMMON STOCK - On October 29, 1999, we filed a registration statement
with the Securities and Exchange Commission for the sale of 10,714,000 shares of
our common stock (the "Initial Offering"). The Initial Offering became effective
and the shares were issued on February 3, 2000 at the initial price of $17.00
per share. Subsequently, the underwriters exercised their over-allotment option
for an additional 1,607,100 shares. We received net proceeds of approximately
$193.8 million after commissions of $13.3 million and expenses of approximately
$1.5 million. The proceeds of the Initial Offering were used for the build out
of our portion of the PCS network of Sprint, to fund operating capital needs and
for other corporate purposes.

         On November 13, 2001, we completed an underwritten secondary offering
of our common stock pursuant to which certain of our stockholders sold an
aggregate of 4,800,000 shares at a public offering price of $14.75 per share. We
did not receive any proceeds from the sale of these shares, but the underwriters
were granted an option to purchase up to 720,000 additional shares of common
stock to cover over-allotments. This option was exercised on November 16, 2001
and we received net proceeds from the sale of these shares after offering costs
of approximately $9.1 million which will be used for general corporate purposes.

         SENIOR NOTES - On February 8, 2000, Alamosa (Delaware) issued $350.0
million face amount of senior discount notes (the "12 7/8% Senior Discount
Notes"). The 12 7/8% Senior Discount Notes mature in ten years (February 15,
2010), carry a coupon rate of 12 7/8%, and provide for interest deferral for the
first five years. The 12 7/8% Senior Discount Notes will accrete to their $350
million face amount by February 8, 2005, after which interest will be paid in
cash semiannually.

         On January 31, 2001, Alamosa (Delaware) issued $250.0 million face
amount of senior notes (the "12 1/2% Senior Notes"). The 12 1/2% Senior Notes
mature in ten years (February 1, 2011), carry a coupon rate of 12 1/2%, payable
semiannually on February 1 and August 1, beginning on August 1, 2001.

         On August 15, 2001, Alamosa (Delaware) issued $150.0 million face
amount of senior notes (the "13 5/8% Senior Notes"). The 13 5/8% Senior Notes
mature in ten years (August 15, 2011), carry a coupon rate of 13 5/8%, payable
semiannually on February 15 and August 15, beginning on February 15, 2002.

         SENIOR SECURED CREDIT FACILITY - On February 14, 2001, we entered into
a $280.0 million Senior Secured Credit Facility with Citicorp USA, as
administrative agent and collateral agent; Toronto Dominion (Texas), Inc., as
syndication agent; First Union National Bank, as documentation agent; EDC as
co-documentation agent; and a syndicate of banking and financial institutions.
The Senior Secured Credit Facility was closed and initial funding of $150
million was made on February 14, 2001 in connection with the completion of the
acquisitions of two PCS Affiliates of Sprint. A portion of the proceeds of the
Senior Secured Credit Facility were used (i) to pay the cash portion of the
merger consideration for the acquisitions, (ii) to refinance existing
indebtedness under our credit facility with EDC and under the existing credit
facilities of the acquired companies, and (iii) to pay transaction costs This
facility was amended in March 2001 to increase the maximum borrowings to $333
million as a result of the acquisition of another PCS Affiliate of Sprint. The
facility was again amended in August 2001 to, among other things, modify
financial covenants and reduce the maximum borrowing to $225 million of which
$200 million is outstanding as of June 30, 2003. The remaining proceeds will be
used for general corporate purposes, including funding capital expenditures,
subscriber acquisition and marketing costs, purchase of spectrum and working
capital needs.


                                       25

<PAGE>


         On September 26, 2002 we entered into the sixth amendment to the
amended and restated credit agreement relative to the Senior Secured Credit
Facility which among other things, modified certain financial and statistical
covenants. As a result of the amendment, we are required to maintain a minimum
cash balance of $10 million.

         The September 26, 2002 amendment also placed restrictions on the
ability to draw on the $25 million revolving portion of the Senior Secured
Credit Facility. The first $10 million can be drawn if cash balances fall below
$15 million and we substantiate through tangible evidence the need for such
advances. The remaining $15 million is available only at such time as the
leverage ratio is less than or equal to 5.5 to 1. As of June 30, 2003, our
leverage ratio was 9.35 to 1.

         The terms of this credit facility contain numerous financial and other
covenants the violation of which could be deemed an event of default by the
lenders. Should we be deemed to be in default, the lenders can declare the
entire outstanding borrowings immediately due and payable or exercise other
rights and remedies. Such an event would likely have a material adverse impact
to us.

         As of June 30, 2003, we had $88,904 in cash and cash equivalents plus
an additional $9,748 in restricted cash held in escrow for debt service
requirements. We also had $25,000 remaining on the revolving portion of the
Senior Secured Credit Facility subject to the restrictions discussed previously.
We believe that this $123,652 in cash and available borrowings is sufficient to
fund our working capital, capital expenditure and debt service requirements
through the point where such requirements will be funded through free cash flow.

         Although, we do not anticipate the need to raise additional capital in
the upcoming year, our funding status is dependent on a number of factors
influencing our projections of operating cash flows including those related to
subscriber growth, ARPU, churn and CPGA. Should actual results differ
significantly from these assumptions, our liquidity position could be adversely
affected and we could be in a position that would require us to raise additional
capital which may or may not be available on terms acceptable to us, if at all,
and could have a material adverse effect on our ability to achieve our intended
business objectives.

         INFLATION - We believe that inflation has not had a significant impact
in the past and is not likely to have a significant impact in the foreseeable
future on our results of operations.


FUTURE TRENDS THAT MAY AFFECT OPERATING RESULTS, LIQUIDITY AND CAPITAL RESOURCES

         We may not be able to sustain our planned growth or obtain sufficient
revenue to achieve and sustain profitability. Recently, we have experienced
slowing net customer growth. Net customer growth was approximately 48,000 net
subscribers in the first quarter of 2002, 20,000 net subscribers in the second
quarter of 2002, 20,000 net subscribers in the third quarter of 2002 and
improved to 31,000 net subscribers in the fourth quarter of 2002 due to seasonal
activity. We added 24,000 net subscribers in the second quarter of 2003, which
was less than the 31,000 net subscribers added in the first quarter of 2003. The
trend of slowing subscriber growth experienced during 2002 is attributable to
increased churn and competition, slowing wireless subscriber growth and weakened
consumer confidence. The improvement in the first half of 2003 is primarily
attributable to decreased churn resulting from measures put in place in 2002 to
slow the addition of subscribers with sub-prime credit characteristics. We are
currently experiencing net losses as we continue to add subscribers, which
requires a significant up-front investment in acquiring those subscribers. If
the current trend of slowing net customer growth does not improve, it will
lengthen the amount of time it will take for us to reach a sufficient number of
customers to achieve free cash flow, which in turn will have a negative impact
on liquidity and capital resources. Our business plan reflects continuing growth
in subscribers and eventual free cash flow in 2003 as the cash flow generated by
the growing subscriber base exceeds costs incurred to acquire new customers.

         We may continue to experience higher costs to acquire customers. For
the second quarter of 2003, our CPGA was $375 per activation compared to $342
per activation in the first quarter of 2003. The fixed costs in our sales and
marketing organization are being allocated among a smaller number of activations
due to the slowdown in subscriber growth. In addition, handset subsidies have
been increasing due to more aggressive promotional efforts. With a higher CPGA,
customers must remain on our network for a longer period of time at a stable
ARPU to recover those acquisitions costs.


                                       26

<PAGE>


         We may continue to experience a higher churn rate. Our average customer
monthly churn (net of deactivations that take place within 30 days of the
activation date) for 2002 was 3.4 percent. This rate of churn is the highest
that we have experienced on an annual basis since the inception of the Company
and compares to 2.7 percent in 2001. We expect that in the near term churn will
remain higher than historical levels as a result of a greater percentage of
sub-prime versus prime credit class customers imbedded in the subscriber base in
our territory as a result of various programs that were run during 2001 and the
first two months of 2002 which encouraged sub-prime credit individuals to
subscribe to our service. We have experienced a significantly higher rate of
involuntary deactivations due to non-payment relative to these customers. During
the second quarter of 2003 we experienced an improvement in our churn rate to
2.5 percent compared to 3.0 percent in the first quarter of 2003. If the
improvement in churn we experienced in the first six months of 2003 does not
continue or if churn increases over the long-term, we would lose the cash flow
attributable to these customers and have greater than projected losses.

         We may experience a significantly lower reciprocal roaming rate with
Sprint in 2003 and thereafter. Under our original agreements with Sprint, Sprint
had the right to change the reciprocal roaming rate. On April 27, 2001, we
entered into an agreement with Sprint which reduced the reciprocal roaming rate
from 20 cents per minute to 15 cents per minute beginning June 1, 2001, and to
12 cents per minute on October 1, 2001. For 2002, the rate was 10 cents per
minute. On January 1, 2003, the reciprocal rate was reduced to 5.8 cents per
minute which Sprint has indicated represents a fair and reasonable return on the
cost of the underlying network based on an agreement in principle reached with
Sprint in 2001. We have not agreed that 5.8 cents per minute represents a fair
and reasonable return on the cost of the underlying network and are currently in
discussions with Sprint as to the determination of this rate. We are currently a
net receiver of roaming with Sprint meaning that other PCS customers roam onto
our network at a higher rate than our customers roam onto other portions of the
PCS network of Sprint. The ratio of inbound to outbound Sprint PCS travel
minutes was 1.1 to 1 for the second quarter of 2003 and we expect this margin to
trend close to 1 to 1 over time.

         Our ability to borrow funds under the revolving portion of the Senior
Secured Credit Facility may be limited due to our failure to maintain or comply
with the restrictive financial and operating covenants contained in the
agreements covering our Senior Secured Credit Facility. We amended our credit
agreement on September 26, 2002 and modified certain of the financial and
operating covenants and are in compliance with the lending agreement at June 30,
2003. We believe we will meet the requirements of these covenants in future
periods, however, if we do not, our ability to access the remaining $25,000 in
the form of the revolving portion of the Senior Secured Credit Facility could be
limited which could have a material adverse impact on our liquidity.

         We may incur significant handset subsidy costs for existing customers
who upgrade to a new handset. As our customer base matures and technological
advances in our services take place, more existing customers will begin to
upgrade to new handsets to take advantage of these services. We have limited
historical experience regarding the rate at which existing customers upgrade
their handsets and if more customers upgrade than we are currently anticipating,
it could have a material adverse impact on our earnings and cash flows.

         We may not be able to access the credit or equity markets for
additional capital if the liquidity discussed above is not sufficient for the
cash needs of our business. We continually evaluate options for additional
sources of capital to supplement our liquidity position and maintain maximum
financial flexibility. If the need for additional capital arises due to our
actual results differing significantly from our business plan or for any other
reason, we may be unable to raise additional capital.


RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

         In June 2001, the FASB issued SFAS No. 143, "Accounting for Asset
Retirement Obligations." SFAS No. 143 requires the fair value of a liability for
an asset retirement obligation to be recognized in the period that it is
incurred if a reasonable estimate of fair value can be made. The associated
asset retirement costs are capitalized as part of the carrying amount of the
long-lived asset. SFAS No. 143 is effective for fiscal years beginning after
June 15, 2002. For our leased telecommunication facilities, primarily consisting
of cell sites and switch site operating leases, we have evaluated the impact of
the adoption of SFAS No. 143 as of January 1, 2003 and determined that a
liability cannot be reasonably estimated due to (1) our inability to reasonably
assess the probability of the likelihood that a lessor would enforce the
remediation requirements upon expiration of the lease term and therefore its
impact on future cash outflows, (2) our inability to estimate a potential range
of settlement dates due to our ability to renew site leases after the initial
lease expiration and (3) our limited experience in abandoning cell site
locations and actually incurring remediation costs.


                                       27

<PAGE>


In addition to cell sites and switch site operating leases, we also have leases
for office and retail locations that are subject to the provisions of SFAS No.
143. The adoption of SFAS No. 143 to leased office and retail locations did not
have a material impact on our consolidated results of operations, financial
position or cash flows.

         In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB
Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical
Corrections as of April 2002," which rescinded or amended various existing
standards. One change addressed by this standard pertains to treatment of
extinguishments of debt as an extraordinary item. SFAS No. 145 rescinds SFAS No.
4, "Reporting Gains and Losses from Extinguishment of Debt" and states that an
extinguishment of debt cannot be classified as an extraordinary item unless it
meets the unusual or infrequent criteria outlined in Accounting Principles Board
Opinion No. 30 "Reporting the Results of Operations -- Reporting the Effects of
Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently
Occurring Events and Transactions." The provisions of this statement are
effective for fiscal years beginning after May 15, 2002 and extinguishments of
debt that were previously classified as an extraordinary item in prior periods
that do not meet the criteria in Opinion 30 for classification as an
extraordinary item shall be reclassified. The adoption of SFAS No. 145 in the
quarter ending March 31, 2003 has resulted in a reclassification of the loss on
extinguishment of debt that we previously reported as an extraordinary item for
the year ended December 31, 2001.

         In June 2002, the FASB issued SFAS No. 146 "Accounting for Costs
Associated with Exit or Disposal Activities," which requires companies to
recognize costs associated with exit or disposal activities when they are
incurred rather than at the date of a commitment to an exit or disposal plan.
The provisions of this statement are effective for exit or disposal activities
initiated after December 31, 2002 and the adoption of this statement did not
have a material impact on our results of operations, financial position or cash
flows.

         In December 2002, the FASB issued SFAS No. 148 "Accounting for
Stock-Based Compensation-Transition and Disclosure," which is an amendment of
SFAS No. 123 "Accounting for Stock-Based Compensation." This statement provides
alternative methods of transition for a voluntary change to the fair value based
method of accounting for stock-based employee compensation. In addition, this
statement amends the disclosure requirements of SFAS No. 123 to require
prominent disclosures in both annual and interim financial statements about the
method of accounting for stock-based employee compensation and the effect of the
method used on reported results. The provisions of this statement are effective
for fiscal years ending after and interim periods beginning after December 15,
2002. As we continue to account for stock-based employee compensation using the
intrinsic value method under APB Opinion No. 25, we, as required, have only
adopted the revised disclosure requirements of SFAS No. 148 as of December 31,
2002.

         In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement
133 on Derivative Instruments and Hedging Activities," which amends and
clarifies financial accounting and reporting for derivative instruments,
including certain derivative instruments embedded in other contracts and for
hedging activities under SFAS No. 133, "Accounting for Derivative Instruments
and Hedging Activities." This Statement is effective for contracts entered into
or modified after June 30, 2003 and for hedging relationships designated after
June 30, 2003 and is not expected to have a material impact on our results of
operations, financial position or cash flows.

         In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity." This
statement requires that an issuer classify a financial instrument that is within
its scope as a liability (or an asset in some circumstances) and is effective
for financial instruments entered into or modified after May 31, 2003, and
otherwise is effective at the beginning of the first interim period beginning
after June 15, 2003, except for mandatorily redeemable financial instruments of
nonpublic entities. The adoption of this statement is not expected to have a
material impact on our results of operations, financial position or cash flows.

         The Emerging Issues Task Force ("EITF") of the FASB issued EITF
Abstract No. 00-21 "Accounting for Revenue Arrangements with Multiple
Deliverables" in January 2003. This abstract addresses certain aspects of the
accounting by a vendor for arrangements under which it will perform multiple
revenue-generating activities. Specifically, it addresses how consideration
should be measured and allocated to the separate units of accounting in the
arrangement. The guidance in this abstract is effective for revenue arrangements
entered into in fiscal periods beginning after June 15, 2003 and we have
evaluated the impact of the adoption of the provisions of this abstract as of
July 1, 2003.

         We have elected to apply the accounting provisions of this abstract on
a prospective basis beginning July 1, 2003. Under the accounting provisions of
this abstract, we will allocate amounts charged to customers between the sale


                                       28

<PAGE>


of handsets and other equipment and the sale of wireless telecommunication
services. In many cases, this will result in all amounts collected from the
customer upon activation of the handset being allocated to the sale of the
handset. As a result of this treatment, activation fees included in the
consideration at the time of sale will be recorded as handset revenue. Prior to
the adoption of the provisions of this abstract, we had deferred activation fee
revenue as well as activation costs in a like amount and amortized these
revenues and costs over the average life of our subscribers. The existing
deferred revenue and costs at July 1, 2003 will continue to be amortized.

         In November 2002, the FASB issued FASB Interpretation No. 45 ("FIN
45"), "Guarantor's Accounting and Disclosure Requirements for Guarantees,
Including Indirect Guarantees of Indebtedness of Others." FIN 45 requires that
upon issuance of a guarantee, a guarantor must recognize a liability for the
fair value of an obligation assumed under a guarantee. FIN 45 also requires
additional disclosures by a guarantor in its interim and annual financial
statements about the obligations associated with guarantees issued. The
recognition provisions of FIN 45 are effective for guarantees issued after
December 31, 2002, while the disclosure requirements were effective for
financial statements for periods ending after December 15, 2002. At December 31,
2002, we had not entered into any material arrangement that would be subject to
the disclosure requirements of FIN 45. The adoption of FIN 45 did not have a
material impact on our consolidated financial statements.

         On January 17, 2003, the FASB issued FASB Interpretation No. 46 ("FIN
46" or the "Interpretation"), "Consolidation of Variable Interest Entities, an
interpretation of ARB 51." The primary objectives of FIN 46 are to provide
guidance on the identification of entities for which control is achieved through
means other than through voting rights ("variable interest entities" or "VIEs")
and how to determine when and which business enterprise should consolidate the
VIE (the "primary beneficiary"). This new model for consolidation applies to an
entity which either (1) the equity investors (if any) do not have a controlling
financial interest or (2) the equity investment at risk is insufficient to
finance that entity's activities without receiving additional subordinated
financial support from other parties. In addition, FIN 46 requires that both the
primary beneficiary and all other enterprises with a significant variable
interest in a VIE make additional disclosures. For public entities with VIEs
created before February 1, 2003, the implementation and disclosure requirements
of FIN 46 are effective no later than the beginning of the first interim or
annual reporting period beginning after June 15, 2003. For VIEs created after
January 31, 2003, the requirements are effective immediately. We do not believe
that the adoption of FIN 46 will have a material impact on our consolidated
financial statements.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         We do not engage in commodity futures trading activities and do not
enter into derivative financial instrument transactions for trading or other
speculative purposes. We also do not engage in transactions in foreign
currencies that could expose us to market risk.

         We are subject to some interest rate risk on our senior Secured Credit
Facility and any future floating rate financing.

         GENERAL HEDGING POLICIES - We enter into interest rate swap and collar
agreements to manage our exposure to interest rate changes on our variable rate
term portion of our Senior Secured Credit Facility. We seek to minimize
counterparty credit risk through stringent credit approval and review processes,
the selection of only the most creditworthy counterparties, continual review and
monitoring of all counterparties, and through legal review of contracts. We also
control exposure to market risk by regularly monitoring changes in interest rate
positions under normal and stress conditions to ensure that they do not exceed
established limits. Our derivative transactions are used for hedging purposes
only and comply with Board-approved policies. Senior management receives
frequent status updates of all outstanding derivative positions.

         INTEREST RATE RISK MANAGEMENT - Our interest rate risk management
program focuses on minimizing exposure to interest rate movements by setting an
optimal mixture of floating and fixed-rate debt. We utilize interest rate swaps
and collars to adjust our risk profile relative to our floating rate Senior
Secured Credit Facility. We have hedges in place on approximately 42 percent of
the outstanding advances under our Senior Secured Credit Facility at June 30,
2003.

         The following table presents the estimated future outstanding long-term
debt at the end of each year and future required annual principal payments for
each year then ended associated with the senior discount notes, capital leases
and



                                       29

<PAGE>


the credit facility financing based on our projected level of long-term
indebtedness:

<TABLE>
<CAPTION>
                                                                   YEARS ENDING DECEMBER 31,
                                           ------------------------------------------------------------------------------
                                              2003          2004       2005         2006           2007       THEREAFTER
                                           ---------      --------   --------     --------      --------     ------------
                                                                      (DOLLARS IN MILLIONS)
<S>                                        <C>            <C>        <C>          <C>           <C>           <C>
   Fixed Rate Instruments
     12 7/8% senior discount notes (4)     $     305      $    345   $    350     $   350       $    350      $     --
       Fixed interest rate                    12.875%       12.875%    12.875%     12.875%        12.875%       12.875%
       Principal payments                         --            --         --          --             --           350
     12 1/2% senior notes                        250           250        250         250            250            --
       Fixed interest rate                    12.500%       12.500%    12.500%     12.500%        12.500%       12.500%
       Principal payments                         --            --         --          --             --           250
     13 5/8% senior notes                        150           150        150         150            150            --
       Fixed interest rate                    13.625%       13.625%    13.625%     13.625%        13.625%       13.625%
       Principal payments                         --            --         --          --             --           150
   Capital leases
     Annual minimum lease payments (1)     $   1.332      $   .596   $   .170     $  .150       $   .144     $    .744
     Average Interest Rate                    12.000%       12.000%    12.000%     12.000%        12.000%       12.000%
   Variable Rate Instruments:
     Senior Secured Credit Facility (2)    $     200      $    178   $    133        $ 83       $     18            --
     Average Interest Rate (3)                 7.25%          7.25%      7.25%       7.25%          7.25%         7.25%
       Principal payments                        --             22         45          50             65            18
</TABLE>

(1)      These amounts represent the estimated minimum annual payments due under
         our estimated capital lease obligations for the periods presented.

(2)      The amounts represent estimated year-end balances under the credit
         facility based on a projection of the funds borrowed under that
         facility pursuant to our current plan of network build-out.

(3)      Interest rate on the Senior Secured Credit Facility advances equal, at
         our option, either (i) the London Interbank Offered Rate adjusted for
         any statutory reserves ("LIBOR"), or (ii) the base rate which is
         generally the higher of the administrative agent's base rate, the
         federal funds effective rate plus 0.50% or the administrative agent's
         base CD rate plus 0.50%, in each case plus an interest margin which is
         initially 4.00% for LIBOR borrowings and 3.00% for base rate borrowings
         as of June 30, 2003. The applicable interest margins are subject to
         reductions under a pricing grid based on ratios of our total debt to
         our earnings before interest, taxes, depreciation and amortization
         ("EBITDA"). The interest rate margins will increase by an additional
         200 basis points in the event we fail to pay principal, interest or
         other amounts as they become due and payable under the Senior Secured
         Credit Facility.

(4)      Interest will accrete on the senior discount notes through February
         2005 at which time the notes will begin to require cash payments of
         interest with the first semi-annual cash interest payment due in August
         2005.

         We are also required to pay quarterly in arrears a commitment fee on
the unfunded portion of the commitment of each lender. The commitment fee
accrues at a rate per annum equal to (i) 1.50% on each day when the utilization
(determined by dividing the total amount of loans plus outstanding letters of
credit under the Senior Secured Credit Facility by the total commitment amount
under the Senior Secured Credit Facility) of the Senior Secured Credit Facility
is less than or equal to 33.33%, (ii) 1.25% on each day when utilization is
greater than 33.33% but less than or equal to 66.66% and (iii) 1.00% on each day
when utilization is greater than 66.66%. We have entered into derivative hedging
instruments to hedge a portion of the interest rate risk associated with
borrowings under the Senior Secured Credit Facility. For purposes of this table,
we have used an assumed average interest rate of 7.25%.


         Our primary market risk exposure relates to:

         o   the interest rate risk on long-term and short-term borrowings;

         o   our ability to refinance our senior discount notes at maturity at
             market rates; and

         o   the impact of interest rate movements on our ability to meet
             interest expense requirements and meet financial covenants.



                                       30

<PAGE>


         As a condition to the Senior Secured Credit Facility, we must maintain
one or more interest rate protection agreements in an amount equal to a portion
of the total debt under the credit facility. We do not hold or issue financial
or derivative financial instruments for trading or speculative purposes. While
we cannot predict our ability to refinance existing debt or the impact that
interest rate movements will have on our existing debt, we continue to evaluate
our financial position on an ongoing basis.

         At June 30, 2003, we had entered into the following interest rate
swaps:

<TABLE>
<CAPTION>
           INSTRUMENT                        NOTIONAL               TERM       FAIR VALUE
        ---------------                    -------------         -----------   ----------
<S>                                      <C>                    <C>           <C>
        4.9475% Interest rate swap         $    21,690            3 years       $   (836)
        4.9350% Interest rate swap         $    28,340            3 years           (993)
                                                                                ----------
                                                                                $ (1,829)
                                                                                ==========
</TABLE>

         These swaps are designated as cash flow hedges such that the fair value
is recorded as a liability in the June 30, 2003 consolidated balance sheet with
changes in fair value (net of tax) shown as a component of other comprehensive
income.

         We also entered into an interest rate collar with the following terms:

<TABLE>
<CAPTION>
         NOTIONAL          MATURITY      CAP STRIKE PRICE       FLOOR STRIKE PRICE      FAIR VALUE
         --------          --------      ----------------       ------------------      ----------
<S>     <C>              <C>               <C>                      <C>                 <C>
         $28,340           5/15/04           7.00%                    4.12%               $  (850)
</TABLE>

         This collar does not receive hedge accounting treatment such that the
fair value is reflected as a liability in the June 30, 2003 consolidated balance
sheet and the change in fair value has been reflected as an adjustment to
interest expense.

         In addition to the swaps and collar discussed above, we purchased an
interest rate cap in February 2002 with a notional amount of $5,000 and a strike
price of 7.00%. This cap does not receive hedge accounting treatment and the
fair value reflected in the consolidated balance sheet at June 30, 2003 is less
than $1.

         These fair value estimates are subjective in nature and involve
uncertainties and matters of considerable judgment and therefore, cannot be
determined with precision. Changes in assumptions could significantly affect
these estimates.


ITEM 4. CONTROLS AND PROCEDURES

         (a) Disclosure Controls and Procedures. The Company's management, with
the participation of the Company's Chief Executive Officer and Chief Financial
Officer, has evaluated the effectiveness of the Company's disclosure controls
and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under
the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the
end of the period covered by this report. Based on such evaluation, the
Company's Chief Executive Officer and Chief Financial Officer have concluded
that, as of the end of such period, the Company's disclosure controls and
procedures are effective in recording, processing, summarizing and reporting, on
a timely basis, information required to be disclosed by the Company in the
reports that it files or submits under the Exchange Act.

         (b) Internal Control Over Financial Reporting. There have not been any
changes in the Company's internal control over financial reporting (as such term
is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the
fiscal quarter to which this report relates that have materially affected, or
are reasonably likely to materially affect, the Company's internal control over
financial reporting.



                                       31


<PAGE>


PART II - OTHER INFORMATION


ITEM 1. LEGAL PROCEEDINGS

         We have been named as a defendant in a number of purported securities
class actions in the United States District Court for the Southern District of
New York, arising out of our initial public offering (the "IPO"). Various
underwriters of the IPO also are named as defendants in the actions. The action
against us is one of more than 300 related class actions which have been
consolidated and are pending in the same court. The complainants seek to recover
damages and allege, among other things, that the registration statement and
prospectus filed with the Securities and Exchange Commission for purposes of the
IPO were false and misleading because they failed to disclose that the
underwriters allegedly (i) solicited and received commissions from certain
investors in exchange for allocating to them shares of common stock in
connection with the IPO, and (ii) entered into agreements with their customers
to allocate such stock to those customers in exchange for the customers agreeing
to purchase additional Company shares in the aftermarket at pre-determined
prices. On February 19, 2003, the Court granted motions by us and 115 other
issuers to dismiss the claims under Rule 10b-5 of the Exchange Act which had
been asserted against them. The Court denied the motions by us and virtually all
of the other issuers to dismiss the claims asserted against them under Section
11 of the Securities Act. We maintain insurance coverage which may mitigate our
exposure to loss in the event that this claim is not resolved in our favor.

         On January 23, 2001, the board of directors, in a unanimous decision,
terminated the employment of Jerry Brantley, then President and COO of the
Company. On April 29, 2002, Mr. Brantley initiated litigation against us and our
Chairman, David E. Sharbutt in the District Court of Lubbock County, Texas, 22nd
Judicial District, alleging wrongful termination among other things. On
September 27, 2002, the Court entered an Agreed Order Compelling Arbitration.
The parties are in the process of selecting a panel of three arbitrators. We
believe that there is no basis for Mr. Brantley's claim and intend to vigorously
defend the lawsuit.

         On January 8, 2003, a claim was made against us by Southwest Antenna
and Tower, Inc. ("SWAT") in the Second Judicial District Court, County of
Bernalillo, State of New Mexico, for monies due on an open account. SWAT sought
to recover approximately $2.0 million from the Company relative to work
performed by SWAT during 2000 for Roberts Wireless Communications, LLC which was
acquired by us in the first quarter of 2001. This claim was settled for $0.875
million during the second quarter of 2003.


ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.

         None.


ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

         None.


                                       32


<PAGE>


ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

            At the Annual Meeting of Stockholders held on May 29, 2003, the
stockholders voted on:

1)    the election of four directors for a term of three years expiring in 2006:

                                          For          Withheld
                                      ----------     -----------
      Scotty Hart                     78,651,847         242,635
      Dr. Allen T. McInnes            76,623,328       2,271,154
      Michael V. Roberts              77,796,514       1,097,968
      David E. Sharbutt               78,620,628         273,854

2)    the approval of an amendment to our Amended and Restated Employee Stock
      Purchase Plan to authorize for issuance an additional 2,500,000 shares of
      common stock

             For           Against         Abstain
      --------------     ------------    -----------
        76,583,741        2,179,108       131,633

3)    ratification of the appointment of PricewaterhouseCoopers LLP as our
      independent auditors for the year ending December 31, 2003

            For            Against         Abstain
      --------------    ------------     -----------
        72,634,675        6,217,837        41,971


ITEM 5. OTHER INFORMATION.

         None.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

(a)    The following set forth those exhibits filed pursuant to Item 601 of
       Regulation S-K:


       EXHIBIT INDEX

       Exhibit Number      Exhibit Title
       --------------      -------------
       31.1                Certification of CEO Pursuant to Section 302 of the
                           Sarbanes-Oxley Act of 2002.

       31.2                Certification  of CFO Pursuant to Section 302 of the
                           Sarbanes-Oxley Act of 2002.

       32.1                Certification  of CEO  Pursuant  to 18 U.S.C.
                           Section 1350, as adopted Pursuant to Section 906 of
                           the Sarbanes-Oxley Act of 2002.

       32.2                Certification  of CFO  Pursuant  to 18 U.S.C.
                           Section 1350, as Adopted Pursuant to Section 906 of
                           the Sarbanes-Oxley Act of 2002.

(b)    The following sets forth the reports on Form 8-K that have been filed
       during the quarter for which this report is filed:

       Current Report on Form 8-K filed on May 19, 2003 (Items 7 and 12).



                                       33

<PAGE>


SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                       ALAMOSA HOLDINGS, INC.
                                       Registrant


                                       /s/ DAVID E. SHARBUTT
                                       -----------------------------------------
                                       David E. Sharbutt
                                       Chairman of the Board of Directors and
                                       Chief Executive Officer
                                       (Principal Executive Officer)



                                       /s/ KENDALL W. COWAN
                                       -----------------------------------------
                                       Kendall W. Cowan
                                       Chief Financial Officer
                                       (Principal Financial and Accounting
                                       Officer)



                                       34

<PAGE>


EXHIBIT INDEX

Exhibit Number      Exhibit Title
--------------      -------------
31.1                Certification of CEO Pursuant to Section 302 of the
                    Sarbanes-Oxley Act of 2002.

31.2                Certification of CFO Pursuant to Section 302 of the
                    Sarbanes-Oxley Act of 2002.

32.1                Certification of CEO Pursuant to 18 U.S.C. Section 1350, as
                    adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
                    2002.

32.2                Certification of CFO Pursuant to 18 U.S.C. Section 1350, as
                    adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
                    2002.