EXHIBIT 19
<TABLE>
<CAPTION>
                                                      HIGHLIGHTS (UNAUDITED)

                                     Three Months Ended June 30,        Six Months Ended June 30,       Twelve Months Ended June 30,
                                     ---------------------------        -------------------------       ----------------------------

Dollars in thousands                                   % Increase                       % Increase                       % Increase
(except per share amounts)             1998        1997 (Decrease)      1998        1997 (Decrease)      1998        1997 (Decrease)
--------------------------             ----        ---- ----------      ----        ---- ----------      ----        ---- ----------
<S>                                <C>         <C>         <C>    <C>         <C>           <C>    <C>         <C>           <C>
FROM CURRENT BUSINESSES1:
   Revenues and sales:
      Wireline                     $341,067    $311,294    10     $  675,514  $  612,470     10    $1,331,926  $1,201,902     11
      Wireless                      154,877     137,711    12        295,506     261,828     13       576,404     509,969     13
                                   --------    --------           ----------  ----------           ----------  ----------
        Total communications        495,944     449,005    10        971,020     874,298     11     1,908,330   1,711,871     11
      Information services          297,191     247,613    20        564,052     464,777     21     1,072,648     900,682     19
      Product distribution          111,277      81,097    37        193,050     157,157     23       352,748     299,772     18
      Other operations               30,080      27,848     8         53,332      62,106    (14)      110,106     125,499    (12)
                                   --------    --------           ----------  ----------           ----------  ----------
        Total revenues and sales   $934,492    $805,563    16     $1,781,454  $1,558,338     14    $3,443,832  $3,037,824     13
                                   ========    ========           ==========  ==========           ==========  ==========

   Operating income:
      Wireline                     $109,773    $108,638     1     $  225,428  $  214,539      5    $  457,339  $  414,967     10
      Wireless                       50,171      44,399    13         91,181      84,087      8       186,924     164,017     14
      Other                          (4,609)          -     -         (5,556)          -      -        (6,985)          -      -
                                   --------    --------           ----------  ----------           ----------  ----------
        Total communications        155,335     153,037     2        311,053     298,626      4       637,278     578,984     10
      Information services           39,404      35,739    10         76,267      69,403     10       152,086     139,923      9
      Product distribution            4,874       3,879    26          8,455       7,157     18        13,782      13,914     (1)
      Other operations                2,457       1,783    38          4,215       4,711    (11)        8,292      10,444    (21)
      Corporate expenses             (5,568)     (5,739)   (3)       (11,941)    (11,112)     7       (29,749)    (24,860)    20
                                   --------    --------           ----------  ----------           ----------  ----------
        Total operating income     $196,502    $188,699     4     $  388,049  $  368,785      5    $  781,689  $  718,405      9
                                   ========    ========           ==========  ==========           ==========  ========== 

   Net income                      $106,709    $ 97,348    10     $  207,987  $  189,178     10    $  417,706  $  372,064     12
   Basic earning per share             $.58        $.52    12          $1.13       $1.01     12         $2.26       $1.97     15

AS REPORTED:
   Revenues and sales              $934,492    $816,880    14     $1,781,454  $1,601,185     11    $3,443,832  $3,214,884      7
   Operating income                $196,502    $172,159    14     $  388,049  $  353,384     10    $  781,689  $  592,954     32
   Net income                      $196,898    $173,890    13     $  320,449  $  275,598     16    $  552,737  $  391,354     41
   Basic earnings per share           $1.07        $.93    15          $1.74       $1.47     18         $2.99       $2.08     44
Weighted average common shares  184,342,000 186,708,000    (1)   184,208,000 186,775,000     (1)  184,775,000 187,944,000     (2)
Current annual dividend rate
   per common share                   $1.16       $1.10     5

Capital expenditures               $156,436    $102,954    52     $  256,782  $  248,305      3    $  554,050  $  489,095     13
Total assets                                                                                       $5,876,855  $5,411,387      9
Wireline access lines                                                                               1,847,007   1,731,272      7
Wireless customers                                                                                  1,009,556     890,017     13
Long-distance customers                                                                               338,306     188,868     79

<FN>
1From  current  businesses   excludes  the  sold  healthcare,   wire  and  cable operations,  the provision to reduce carrying
 value of certain assets, and gain on disposal of assets.
</FN>
</TABLE>

                                                                19
<PAGE>
<TABLE>
<CAPTION>

                                          CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


                                                             Three Months              Six Months                 Twelve Months
                                                            Ended June 30,           Ended June 30,               Ended June 30,
                                                            --------------           --------------               --------------

(Dollars in thousands, except per share amounts)            1998         1997          1998        1997            1998        1997
-----------------------------------------------             ----         ----          ----        ----            ----        ----
<S>                                                     <C>          <C>         <C>          <C>            <C>          <C>
REVENUES AND SALES:
  Service revenues                                      $767,707     $673,957    $1,485,641   $1,299,771     $2,886,777  $2,593,010
  Product sales                                          166,785      142,923       295,813      301,414        557,055     621,874
                                                        --------     --------    ----------   ----------     ----------  ----------
      Total revenues and sales                           934,492      816,880     1,781,454    1,601,185      3,443,832   3,214,884
                                                        --------     --------    ----------   ----------     ----------  ----------

COSTS AND EXPENSES:
  Operations                                             503,554      425,933       949,746      818,215      1,818,270   1,640,217
  Cost of products sold                                  113,364       93,101       197,444      197,171        362,437     414,441
  Depreciation and amortization                          121,072      108,813       246,215      215,541        481,436     430,118
  Provision to reduce carrying value of  
    certain assets                                             -       16,874             -       16,874              -     137,154
                                                        --------     --------    ----------   ----------     ----------  ----------
      Total costs and expenses                           737,990      644,721     1,393,405    1,247,801      2,662,143   2,621,930
                                                        --------     --------    ----------   ----------     ----------  ----------

OPERATING INCOME                                         196,502      172,159       388,049      353,384        781,689     592,954

Other income, net                                          4,139          590         9,280           17         14,499       2,165
Interest expense                                         (32,417)     (31,884)      (65,916)     (63,886)      (132,211)   (128,519)
Gain on disposal of assets and other                     148,159      155,993       184,743      172,209        219,156     172,209
                                                        --------     --------    ----------   ----------     ----------  ----------

Income before income taxes                               316,383      296,858       516,156      461,724        883,133     638,809
Income taxes                                             119,485      122,968       195,707      186,126        330,396     247,455
                                                        --------     --------    ----------   ----------     ----------  ----------

Net income                                               196,898      173,890       320,449      275,598        552,737     391,354
Preferred dividends                                          231          256           471          514            965       1,037
                                                        --------     --------    ----------   ----------     ----------  ----------

Net income applicable to common shares                  $196,667     $173,634    $  319,978   $  275,084     $  551,772  $  390,317
                                                        ========     ========    ==========   ==========     ==========  ==========

EARNINGS PER SHARE:
    Basic                                                  $1.07         $.93         $1.74        $1.47          $2.99       $2.08
    Diluted                                                $1.06         $.92         $1.72        $1.46          $2.96       $2.06

</TABLE>

                                                                20

<PAGE>
<TABLE>
<CAPTION>

                                        CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)


                                                                  Six Months                                   Twelve Months
                                                                 Ended June 30,                                Ended June 30,
                                                                 --------------                                --------------    
(Dollars in thousands)
----------------------
                                                              1998               1997                      1998               1997
                                                              ----               ----                      ----               ----
<S>                                                       <C>                <C>                       <C>                <C>
NET CASH PROVIDED FROM OPERATIONS                         $397,907           $306,349                  $889,783           $746,740
                                                          --------           --------                  --------           --------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to property, plant and equipment              (256,782)          (248,305)                 (554,050)          (489,095)
  Purchase of property, net of cash acquired                     -            (40,447)                  (10,186)           (40,447)
  Additions to capitalized software development costs      (45,878)           (32,822)                  (87,281)           (80,615)
  Additions to other intangible assets                           -           (146,526)                        -           (146,526)
  Additions to investments                                 (13,733)            (3,503)                  (53,597)           (12,035)
  Proceeds from the sale of/return on investments          222,001            189,330                   232,420            195,544
  Proceeds from the sale of assets                               -            151,958                    48,640            151,958
  Other, net                                                (7,519)           (31,922)                  (62,304)           (85,035)
                                                          --------           --------                  --------           --------

    Net cash used in investing activities                 (101,911)          (162,237)                 (486,358)          (506,251)
                                                          --------           --------                  --------           --------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Dividends on preferred and common stock                 (107,274)          (103,234)                 (210,352)          (202,310)
  Reductions in long-term debt                            (179,929)           (18,935)                  (64,491)           (43,098)
  Purchase of common stock                                       -            (38,262)                 (137,349)          (113,866)
  Preferred stock redemptions and purchases                   (518)              (493)                     (898)              (511)
  Long-term debt issued                                        113             25,070                       113            111,089
  Common stock issued                                       12,122              6,344                    17,798              6,243
                                                          --------           --------                  --------           --------

    Net cash used in financing activities                 (275,486)          (129,510)                 (395,179)          (242,453)
                                                          --------           --------                  --------           --------

Increase (decrease) in cash and short-term investments      20,510             14,602                     8,246             (1,964)

CASH AND SHORT-TERM INVESTMENTS:
  Beginning of period                                       16,212             13,874                    28,476             30,440
                                                          --------           --------                  --------           --------

  End of period                                           $ 36,722           $ 28,476                  $ 36,722           $ 28,476
                                                          ========           ========                  ========           ========

</TABLE>

                                                                21

<PAGE>
<TABLE>
<CAPTION>

                                             CONSOLIDATED BALANCE SHEETS (UNAUDITED)


                                                                          June 30,              Dec. 31,           June 30,
ASSETS (Dollars in thousands)                                                 1998                  1997               1997
-----------------------------                                           ----------            ----------         ----------
<S>                                                                     <C>                   <C>                <C>
CURRENT ASSETS:
   Cash and short-term investments                                      $   36,722            $   16,212         $   28,476
   Accounts receivable (less allowance for
     doubtful accounts of $20,568, $18,562
     and $21,363, respectively)                                            567,208               560,928            513,071
   Materials and supplies                                                   19,425                14,237             16,883
   Inventories                                                              46,601                51,277             46,687
   Prepaid expenses                                                         32,150                23,190             41,251
                                                                        ----------            ----------         ----------
   Total current assets                                                    702,106               665,844            646,368
                                                                        ----------            ----------         ----------

Investments                                                                907,939               775,647            764,948
Goodwill and other intangibles                                             606,196               606,484            589,203

PROPERTY, PLANT AND EQUIPMENT:
   Wireline                                                              4,168,128             4,068,502          3,841,492
   Wireless                                                                747,175               692,490            630,020
   Information services                                                    591,004               539,743            504,131
   Other                                                                    11,589                11,008             12,558
   Under construction                                                      202,354               218,951            257,410
                                                                        ----------            ----------         ----------
   Total property, plant and equipment                                   5,720,250             5,530,694          5,245,611
   Less accumulated depreciation                                         2,503,608             2,340,242          2,163,254
                                                                        ----------            ----------         ----------
   Net property, plant and equipment                                     3,216,642             3,190,452          3,082,357
                                                                        ----------            ----------         ----------

Other assets                                                               443,972               395,018            328,511
                                                                        ----------            ----------         ----------

TOTAL ASSETS                                                            $5,876,855            $5,633,445         $5,411,387
                                                                        ==========            ==========         ==========




                                                                          June 30,              Dec. 31,           June 30,
LIABILITIES AND SHAREHOLDERS' EQUITY                                          1998                  1997               1997
                                                                        ----------            ----------         ----------

CURRENT LIABILITIES:
   Current maturities of long-term debt                                 $   47,950            $   48,028         $   39,754
   Accounts payable                                                        210,093               237,865            195,030
   Advance payments and customer deposits                                  102,637                84,215             71,019
   Accrued taxes                                                           134,048                74,681             59,273
   Accrued dividends                                                        55,491                55,012             52,885
   Other current liabilities                                               112,303               137,480            120,712
                                                                        ----------            ----------         ----------
   Total current liabilities                                               662,522               637,281            538,673
                                                                        ----------            ----------         ----------

Long-term debt                                                           1,694,434             1,874,172          1,767,008
Deferred income taxes                                                      755,215               665,473            647,485
Other liabilities                                                          245,364               242,388            230,120
Preferred stock, redeemable                                                  5,128                 5,625              5,974

SHAREHOLDERS' EQUITY:
   Preferred stock                                                           9,134                 9,155              9,186
   Common stock                                                            184,355               183,673            186,870
   Additional capital                                                      164,376               152,936            266,751
   Unrealized holding gain on investments                                  381,556               300,671            324,334
   Retained earnings                                                     1,774,771             1,562,071          1,434,986
                                                                        ----------            ----------         ----------
   Total shareholders' equity                                            2,514,192             2,208,506          2,222,127
                                                                        ----------            ----------         ----------

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                              $5,876,855            $5,633,445         $5,411,387
                                                                        ==========            ==========         ==========

</TABLE>

                                                                22
<PAGE>
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.    Financial Statement Presentation:
      The  consolidated  financial  statements at June 30, 1998 and 1997 and for
      the three,  six and twelve  month  periods  then ended are  unaudited  and
      reflect all adjustments  (consisting only of normal recurring adjustments)
      which are, in the opinion of management, necessary for a fair presentation
      of the financial  position and operating  results for the interim periods.
      Certain prior year amounts have been reclassified to conform with the 1998
      financial statement presentation.

2.    Subsequent Event-Merger Agreement:
      On July 1,  1998,  ALLTEL  completed  its merger  with 360  Communications
      Company ("360")  under  a  definitive  merger agreement  entered  into  on
      March 16, 1998. The stockholders of  each  company  approved the merger at
      special  meetings  held  on  June 23, 1998.  Under  terms  of  the  merger
      agreement, 360 became  a  wholly-owned  subsidiary  of  ALLTEL,  and  each
      outstanding share  of 360  common  stock was  converted  into the right to
      receive .74 shares  of  ALLTEL common stock.  Accordingly,  ALLTEL  issued
      in aggregate 89.8 million shares to former stockholders of 360. The merger
      qualified as a tax-free reorganization  and  has been  accounted  for as a
      pooling of  interests.  Post-merger  financial  statements  combining  the
      results  of  ALLTEL  and 360  will  first be  presented  as of and for the
      interim  periods  ended  September 30, 1998 and 1997.  Annual  and interim
      financial statements  of  ALLTEL for  periods  prior to the merger will be
      restated  to reflect the merger transaction.  The  following  supplemental
      financial information  presents the combined  operating  results of ALLTEL
      and 360 for the interim periods ended June 30, 1998 and 1997. The combined
      results include certain eliminations and  reclassification  adjustments to
      conform the accounting and financial reporting policies of ALLTEL and 360:
<TABLE>
                                                      Three Months Ended           Six Months Ended           Twelve Months Ended
      (In thousands, except per share amounts)              June 30,                   June 30,                     June 30,
      ----------------------------------------        -------------------          ------------------         --------------------
                                                        1998         1997           1998         1997            1998         1997
                                                        ----         ----           ----         ----            ----         ----
      <S>                                         <C>          <C>            <C>          <C>             <C>          <C>
      Revenues and sales:
         ALLTEL                                   $  934,492   $  816,880     $1,781,454   $1,601,185      $3,443,832   $3,214,884
         360                                         398,613      340,262        753,448      647,108       1,453,512    1,229,112
         Eliminations and reclassifications          (32,807)     (17,296)       (52,032)     (35,074)        (91,007)     (66,464)
                                                  ----------   ----------     ----------   ----------      ----------   ----------
         Combined                                 $1,300,298   $1,139,846     $2,482,870   $2,213,219      $4,806,337   $4,377,532
                                                  ==========   ==========     ==========   ==========      ==========   ==========
      Net income:
         ALLTEL                                   $  196,898   $  173,890     $  320,449   $  275,598      $  552,737   $  391,354
         360                                          37,119       21,807         81,239       31,252         131,482       59,508
         Eliminations and reclassifications                -            -              -            -               -            -
                                                  ----------   ----------     ----------   ----------      ----------   ----------
         Combined                                 $  234,017   $  195,697     $  401,688   $  306,850      $  684,219   $  450,862
                                                  ==========   ==========     ==========   ==========      ==========   ==========
      Combined earnings per share:
         Basic                                          $.85         $.70          $1.46        $1.10           $2.49        $1.62
         Diluted                                        $.84         $.70          $1.45        $1.10           $2.47        $1.61
</TABLE>

3.    Comprehensive Income:
      Effective   January  1,  1998,   ALLTEL  adopted  Statement  of  Financial
      Accounting  Standards  No. 130  "Reporting  Comprehensive  Income"  ("SFAS
      130").  Annual  financial  statements  of ALLTEL for prior periods will be
      reclassified   to  conform  to  SFAS  130's   presentation   requirements.
      Comprehensive  income for the three,  six and twelve month  periods  ended
      June 30, 1998 and 1997 was as follows:
<TABLE>
                                                      Three Months Ended           Six Months Ended            Twelve Months Ended
      (Dollars in thousands)                               June 30,                    June 30,                      June 30,
      ----------------------                          -------------------          ------------------          -------------------
                                                        1998         1997           1998         1997            1998         1997
                                                        ----         ----           ----         ----            ----         ----
      <S>                                           <C>          <C>            <C>          <C>             <C>          <C>
      Net income                                    $196,898     $173,890       $320,449     $275,598        $552,737     $391,354
                                                    --------     --------       --------     --------        --------     --------
      Other comprehensive income (loss):
         Unrealized holding gains on
           investments arising during the period      77,596      207,590        319,263      106,171         282,541       62,498
         Reclassification adjustments for
           gains included in net income             (148,159)    (155,993)      (184,743)    (155,993)       (184,743)    (155,993)
                                                    --------     --------       --------     --------        --------     --------
         Other comprehensive income (loss)
           before taxes                              (70,563)      51,597        134,520      (49,822)         97,798      (93,495)
         Income tax expense (benefit)                (26,621)      13,239         53,635      (22,289)         40,576      (50,587)
                                                    --------     --------       --------     --------        --------     --------
      Other comprehensive income (loss)              (43,942)      38,358         80,885      (27,533)         57,222      (42,908)
                                                    --------     --------       --------     --------        --------     --------
      Comprehensive income                          $152,956     $212,248       $401,334     $248,065        $609,959     $348,446
                                                    ========     ========       ========     ========        ========     ========
</TABLE>
                                          23
<PAGE>
        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

4.    Gain on Disposal of Assets and Other:
      During the second quarter of 1998,  the Company  recorded a pretax gain of
      $148.2  million from the sale of a portion of its  investment in WorldCom,
      Inc.  common stock.  Proceeds  from this sale amounted to $162.6  million.
      This  transaction  increased  net income $90.2  million or $.49 per share.
      During the first  quarter of 1998,  the Company  recorded a pretax gain of
      $36.6 million  primarily  from the sale of a portion of its  investment in
      WorldCom,  Inc. common stock.  Proceeds from the sale of stock amounted to
      $40.7 million.  This transaction  resulted in an increase of $22.3 million
      in net income and $.12 in earnings per share.

5.    Earnings per Share:
      A reconciliation  of the net income and number of shares used in computing
      basic and diluted  earnings per share for the three,  six and twelve month
      periods ended June 30, 1998 and 1997 was as follows:
<TABLE>
                                                          Three Months Ended          Six Months Ended          Twelve Months Ended
      (In thousands, except per share amounts)                 June 30,                   June 30,                    June 30,
      ----------------------------------------            -------------------         -----------------         -------------------
                                                             1998        1997           1998       1997            1998        1997
                                                             ----        ----           ----       ----            ----        ----
      <S>                                                <C>         <C>            <C>        <C>             <C>         <C>
      Basic earnings per share:
        Net income applicable to common shares           $196,667    $173,634       $319,978   $275,084        $551,772    $390,317
        Weighted average common shares
          outstanding for the period                      184,342     186,708        184,208    186,775         184,775     187,944
                                                         --------    --------       --------   --------        --------    --------
        Basic earnings per share                            $1.07        $.93          $1.74      $1.47           $2.99       $2.08
                                                            =====        ====          =====      =====           =====       =====
      Diluted earnings per share:
        Net income applicable to common shares           $196,667    $173,634       $319,978   $275,084        $551,772    $390,317
        Adjustments for convertible securities:
           Preferred stocks                                    38          52             84        106             184         214
                                                         --------    --------       --------   --------        --------    --------
        Net income applicable to common shares
           assuming conversion of above securities       $196,705    $173,686       $320,062   $275,190        $551,956    $390,531
                                                         --------    --------       --------   --------        --------    --------
        Weighted average common shares
           outstanding for the period                     184,342     186,708        184,208    186,775         184,775     187,944
         Increase in shares which would result from:
           Exercise of stock options                        1,638       1,384          1,741      1,081           1,434       1,021
           Conversion of convertible preferred stocks         470         538            473        541             490         547
                                                         --------    --------        -------    -------         -------     -------
        Weighted average common shares
           assuming conversion of above securities        186,450     188,630        186,422    188,397         186,699     189,512
                                                         --------    --------        -------    -------         -------     -------
        Diluted earnings per share                          $1.06        $.92          $1.72      $1.46           $2.96       $2.06
                                                            =====        ====          =====      =====           =====       =====
</TABLE>
6.    Business Segment Information:
      Operating  results for each of the  Company's  business  segments  for the
      three,  six and twelve month  periods ended June 30, 1998 and 1997 were as
      follows:
<TABLE>
                                                      Three Months Ended           Six Months Ended           Twelve Months Ended
      (In thousands)                                        June 30,                   June 30,                     June 30,
      --------------                                  --------------------         -------------------        ---------------------
                                                        1998          1997           1998         1997           1998          1997
                                                        ----          ----           ----         ---            ----          ----
      <S>                                           <C>           <C>          <C>          <C>            <C>           <C>
      Revenues and Sales:
        Wireline                                    $341,067      $311,294     $  675,514   $  612,470     $1,331,926    $1,201,902
        Wireless                                     154,877       137,711        295,506      261,828        576,404       509,969
                                                    --------      --------     ----------   ----------     ----------    ----------
           Total communications                      495,944       449,005        971,020      874,298      1,908,330     1,711,871
        Information services                         297,191       247,613        564,052      464,777      1,072,648       963,690
        Product distribution                         111,277        92,414        193,050      200,004        352,748       413,824
        Other operations                              30,080        27,848         53,332       62,106        110,106       125,499
                                                    --------      --------     ----------   ----------     ----------    ----------
           Total                                    $934,492      $816,880     $1,781,454   $1,601,185     $3,443,832    $3,214,884
                                                    ========      ========     ==========   ==========     ==========    ==========
      Operating Income:
        Wireline                                    $109,773      $108,638     $  225,428   $  214,539     $  457,339    $  414,967
        Wireless                                      50,171        44,399         91,181       84,087        186,924       164,017
        Other                                         (4,609)            -         (5,556)           -         (6,985)            -
                                                    --------      --------     ----------   ----------     ----------    ----------
           Total communications                      155,335       153,037        311,053      298,626        637,278       578,984
        Information services                          39,404        35,739         76,267       69,403        152,086        71,391
        Product distribution                           4,874         4,213          8,455        8,630         13,782        19,169
        Other operations                               2,457         1,783          4,215        4,711          8,292        10,444
        Corporate expenses                            (5,568)      (22,613)       (11,941)     (27,986)       (29,749)      (87,034)
                                                    --------      --------     ----------   ----------     ----------    ----------
           Total                                    $196,502      $172,159     $  388,049   $  353,384     $  781,689    $  592,954
                                                    ========      ========     ==========   ==========     ==========    ==========
</TABLE>
                                       24

<PAGE>

TO ALLTEL STOCKHOLDERS:

ALLTEL's second quarter 1998 financial results from current businesses  produced
quarterly  revenues  and earnings per share growth of 16 percent and 12 percent,
respectively, to $934,492,000 and 58 cents per share.
     These results exclude the operations of 360 Communications  Company,  which
merged with ALLTEL on July 1.
     Highlights from current businesses in the second quarter include:
     o   All major business units produced double-digit growth in revenues.
     o   Wireless customer base surpassed the 1 million customer level.
     o   Wireless average revenue per customer increased 6 percent from the
         first quarter.
     o   Wireline access line growth exceeded 6 percent for the third  
         consecutive quarter.
     o   ALLTEL  introduced a  single-bill,  bundled  service  offering
         including wireless, Internet and long-distance in its first
         PCS market, Jacksonville, Fla.
     o   Long-distance  customer  base grew to  338,000  customers,  a 
         79 percent increase from last year.
     o   Operating income from information  services grew at a double-digit
         rate, reflecting continued double-digit revenue growth.
     I am  very  pleased  with  ALLTEL's  double-digit  earnings  growth  in the
quarter,  and I am particularly  pleased we could do this while working to merge
ALLTEL  and 360  Communications.  Our  integration  teams  continue  work on the
details of combining the companies, and we are more convinced than ever that the
transition will be a smooth one, that we will realize the cost savings estimated
earlier,  and that the  company's  future  results will show the benefits of the
merger.
     During the quarter,  ALLTEL's  wireline business  experienced  double-digit
increases in revenues  fueled by the strong  demographics  of our largely  rural
service areas.  Additionally,  the success of new product offerings -- including
long-distance,  Internet  access and competitive  local exchange  carrier (CLEC)
services --was a positive factor in the quarter.
     The  results  of  our  CLEC  strategy  in  Little  Rock  are   particularly
encouraging.  With the success of this  offering,  we have  achieved our goal of
becoming the first  full-service  communications  provider in this  market,  now
offering  CLEC,  long-distance,  wireless  and paging and  Internet  access.  In
addition,  we are now  actively  selling  CLEC  services  to a  second  market -
Charlotte,  N.C.  - an area  where we have a number  of  competitive  advantages
including a switch and fiber loop, an effective network of wireless distribution
outlets, and strong brand awareness.
     Also during the quarter, our integrated communications structure enabled us
to deliver a bundled service offering in  Jacksonville,  Fla. Our competitors in
that market  simply  cannot match the breadth of our service  array.  Results to
date in that market clearly  demonstrate the advantages a full-service  provider
has over a single- or limited-product provider.
     Wireless  operations produced  double-digit  growth in revenues,  operating
income and customer  growth,  with customer count breaking through the 1 million
mark.  In addition,  average  revenue per customer  increased 6 percent from the
first quarter.
     Information  services  continued to generate  double-digit  revenue  growth
coming  from  new and  existing  customers,  while  operating  income  grew at a
double-digit rate in the second quarter.

ALLTEL and 360 Communications Complete Merger
On July 1, ALLTEL and 360  Communications  completed  their  merger,  creating a
formidable  new competitor in the  communications  industry.  Together,  our two
companies  have  tremendous   local  presence.   In  addition  to  our  numerous
distribution  outlets,  we have a growing  facilities-based  network, as well as
existing   relationships   with  a  customer   segment   very   willing  to  buy
communications products.
     These  three  factors  together  distinguish  us from our  competitors  and
provide a platform for  continuing  to grow the value of the  combined  company.
Second  quarter pro forma  results  from  current  businesses  for the  combined
company  indicated 16 percent and 14 percent  growth in revenues  and  operating
income, respectively, and 21 percent growth in basic earnings per share.
     The merged  company  has more than $4.9  billion in annual  revenues,  $8.9
billion in assets, $12 billion in market capitalization and serves more than 5.6
million communications  customers in 22 states and operates more than 700 retail
outlets. The combined company employs more than 20,000 people worldwide.
     The 360 Communications name will change to ALLTEL in mid-September.


                                       25
<PAGE>

Four named to ALLTEL Board
In  conjunction  with the  merger of ALLTEL and 360  Communications,  ALLTEL has
expanded the  membership of its board of directors  from 11 to 15. Three members
of 360's board of directors have been appointed to serve on ALLTEL's board. They
are Dennis  Foster,  ALLTEL vice  chairman;  Michael  Hooker,  chancellor of the
University  of North  Carolina;  and Frank E. Reed,  former 360  chairman.  Also
joining the expanded ALLTEL board is Charles H. Goodman, vice president of Henry
Crown and Co. of Chicago.

Poland's largest bank signs agreement with ALLTEL
In June,  ALLTEL signed a long-term  information  technology (IT) agreement with
Grupa Pekao SA, Poland's largest bank in terms of assets. Pekao is headquartered
in Warsaw and provides commercial and retail banking services. At year-end 1997,
Pekao had $13.4 billion in assets and 564 branches.
     The contract is ALLTEL's  first in Poland and increases to 48 the number of
countries  in which  ALLTEL  provides  services.  Under terms of the  agreement,
ALLTEL will implement its  integrated  financial  software  system for Pekao and
provide a wide range of professional  services,  including  technical  strategic
planning, application software customization and implementation, and integration
of non-ALLTEL systems with ALLTEL products.

Board Declares Dividends
ALLTEL's board of directors  declared  regular  quarterly  dividends on ALLTEL's
common stock. The 29 cent dividend is payable October 3, 1998 to stockholders of
record as of September 8, 1998.
     Regular  quarterly  dividends  were  also  declared  on all  series  of the
Company's preferred stock. Preferred dividends are payable September 15, 1998 to
stockholders of record as of August 21, 1998.


/s/Joe T. Ford

Joe T. Ford
Chairman and Chief Executive Officer
July 23, 1998


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