##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549


Form 10-Q


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|   |  | For the quarterly period ended March 31, 2005                                               
|or
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|   |  | For the transition period
    from          to                                              

Commission File Number 000-28160


Western Wireless Corporation


(Exact name of registrant as specified in its charter)


|                                                                    |  |                                      
|------------------------------------------------------------------- |  | -------------------------------------
|Washington                                                          |  | 91-1638901                           
|(State or other jurisdiction of
     incorporation or organization) |  | (IRS Employer
    Identification No.)
|                                                                   
|3650 131st Avenue S.E.                                              |  | 98006                                
|Bellevue, Washington                                                |  | (Zip Code)                           
|(Address of principal executive offices)                            |  |                                      

(425) 586-8700


(Registrants telephone number, including
area code)


(Former name, former address and former fiscal year, if
changed, since last report)


þ o


þ o




|                                   |  |                                         |            | 
|---------------------------------- |  | --------------------------------------- | ---------- | 
|Title                              |  | Shares Outstanding as of April 29, 2005 |           
|                                   |  |                                         |           
|Class A Common Stock, no par value |  |                                         | 93,510,543 | 
|Class B Common Stock, no par value |  |                                         | 6,668,794  | 









---










WESTERN WIRELESS CORPORATION


FORM 10-Q


For the Quarter Ended March 31, 2005


TABLE OF CONTENTS


|                                |  |                                                                                                                                     |    |      |    | 
|------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|                                |  |                                                                                                                                     |    | Page |   
|                                |  |                                                                                                                                     |    |      |   
|PART I  FINANCIAL INFORMATION 
|Item 1.                         |  | Financial Statements (unaudited)                                                                                                    |    |      |    | 
|                                |  | Condensed Consolidated Balance Sheets as of
    March 31, 2005 and December 31, 2004                                                |    |      | 2  | 
|                                |  | Condensed Consolidated Statements of
    Operations and Comprehensive Income for the Three Months Ended
    March 31, 2005 and 2004 |    |      | 3  | 
|                                |  | Condensed Consolidated Statements of Cash
    Flows for the Three Months Ended March 31, 2005 and 2004                              |    |      | 5  | 
|                                |  | Notes to Condensed Consolidated Financial
    Statements                                                                            |    |      | 6  | 
|Item 2.                         |  | Managements Discussion and
    Analysis of Financial Condition and Results of Operations                                           |    |      | 20 | 
|Item 3.                         |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                                      |    |      | 34 | 
|Item 4.                         |  | Controls and Procedures                                                                                                             |    |      | 35 | 
|                               
|PART II  OTHER
    INFORMATION
|Item 1.                         |  | Legal Proceedings                                                                                                                   |    |      | 36 | 
|Item 2.                         |  | Unregistered Sales of Equity Securities
    and Use of Proceeds                                                                     |    |      | 36 | 
|Item 3.                         |  | Defaults Upon Senior Securities                                                                                                     |    |      | 36 | 
|Item 4.                         |  | Submission of Matters to a Vote of
    Security Holders                                                                             |    |      | 36 | 
|Item 5.                         |  | Other Information                                                                                                                   |    |      | 36 | 
|Item 6.                         |  | Exhibits                                                                                                                            |    |      | 36 | 
|                                |  |                                                                                                                                     |    |      |    | 
|Signatures                      |  |                                                                                                                                     | 37 |     
|                                |  |                                                                                                                                     |    |      |    | 
|Exhibit Index                   |  |                                                                                                                                     | 38 |     
|EXHIBIT 12.1                   
|EXHIBIT 31.1                   
|EXHIBIT 31.2                   
|EXHIBIT 32.1                   
|EXHIBIT 32.2                   



1



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##### Table of Contents



WESTERN WIRELESS CORPORATION





CONDENSED CONSOLIDATED BALANCE SHEETS


(Dollars in thousands)


(Unaudited)


|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |   |           |           |           | 
|--------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------- | --------- | --------- | ------------ | - | --------- | --------- | --------- | 
|                                                                                                                      |                                                                                                      | March 31,                                                            |           |           | December 31, |  
|                                                                                                                      |                                                                                                      | 2005                                                                 |           |           | 2004         |  
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|ASSETS                                                                                                               
|Current assets:                                                                                                       |                                                                                                      |                                                                      |           |           |              |   |           |          
|                                                                                                                      | Cash and cash equivalents                                                                            |                                                                      | $         | 80,529    |              |   | $         | 278,633   |          
|                                                                                                                      | Accounts receivable, net of allowance for doubtful accounts of
    $23,052 and $26,057, respectively |                                                                      |           | 261,577   |              |   |           | 264,908   |          
|                                                                                                                      | Inventory                                                                                            |                                                                      |           | 30,296    |              |   |           | 32,947    |          
|                                                                                                                      | Marketable securities                                                                                |                                                                      |           | 110,076   |              |   |           | 107,227   |          
|                                                                                                                      | Prepaid expenses and other current assets                                                            |                                                                      |           | 92,748    |              |   |           | 87,849    |          
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|                                                                                                                      |                                                                                                      | Total current assets                                                 |           |           | 575,226      |   |           |           | 771,564   | 
|Property and equipment, net of accumulated depreciation of
    $1,181,533 and $1,127,402, respectively                |                                                                                                      |                                                                      | 1,053,277 |           |              |   | 1,054,082 |          
|Licensing costs and other intangible assets, net of accumulated
    amortization of $39,053 and $35,845, respectively |                                                                                                      |                                                                      | 1,270,446 |           |              |   | 1,237,407 |          
|Investments in and advances to unconsolidated affiliates                                                              |                                                                                                      |                                                                      | 9,324     |           |              |   | 11,063    |          
|Other assets                                                                                                          |                                                                                                      |                                                                      | 47,078    |           |              |   | 44,685    |          
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|                                                                                                                      |                                                                                                      | $                                                                    | 2,955,351 |           |              | $ | 3,118,801 |          
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|                                                                                                                     
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                 
|Current liabilities:                                                                                                  |                                                                                                      |                                                                      |           |           |              |   |           |          
|                                                                                                                      | Accounts payable                                                                                     |                                                                      | $         | 67,890    |              |   | $         | 78,037    |          
|                                                                                                                      | Accrued liabilities and other                                                                        |                                                                      |           | 321,093   |              |   |           | 319,132   |          
|                                                                                                                      | Construction accounts payable                                                                        |                                                                      |           | 52,358    |              |   |           | 56,494    |          
|                                                                                                                      | Current portion of long-term debt                                                                    |                                                                      |           | 24,668    |              |   |           | 253,629   |          
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|                                                                                                                      |                                                                                                      | Total current liabilities                                            |           |           | 466,009      |   |           |           | 707,292   | 
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|Long-term liabilities:                                                                                                |                                                                                                      |                                                                      |           |           |              |   |           |          
|                                                                                                                      | Long-term debt, net of current portion                                                               |                                                                      |           | 2,046,005 |              |   |           | 2,013,194 |          
|                                                                                                                      | Deferred income taxes                                                                                |                                                                      |           | 89,624    |              |   |           | 47,399    |          
|                                                                                                                      | Other long-term liabilities                                                                          |                                                                      |           | 61,225    |              |   |           | 64,617    |          
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|                                                                                                                      |                                                                                                      | Total long-term liabilities                                          |           |           | 2,196,854    |   |           |           | 2,125,210 | 
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|Minority interests in consolidated subsidiaries                                                                       |                                                                                                      |                                                                      | 26,189    |           |              |   | 22,287    |          
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|Commitments and contingencies (Note 4)                                                                                |                                                                                                      |                                                                      |           |           |              |   |           |          
|Shareholders equity:                                                                                                 |                                                                                                      |                                                                      |           |           |              |   |           |          
|                                                                                                                      | Preferred stock, no par value, 50,000,000 shares
    authorized; no shares issued and outstanding    |                                                                      |           |           |              |   |           |           |          
|                                                                                                                      | Common stock, no par value, 300,000,000 shares authorized;                                           |                                                                      |           |           |              |   |           |           |          
|                                                                                                                      |                                                                                                      | Class A, 93,333,791 and 93,300,241 shares issued and
    outstanding |           |           |              |   |           |           |           | 
|                                                                                                                      |                                                                                                      | Class B, 6,838,796 and 6,838,796 shares issued and
    outstanding   |           |           | 1,131,134    |   |           |           | 1,130,569 | 
|                                                                                                                      | Accumulated other comprehensive income                                                               |                                                                      |           | 20,617    |              |   |           | 24,220    |          
|                                                                                                                      | Accumulated deficit                                                                                  |                                                                      |           | (885,452  | )            |   |           | (890,777  | )        
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|                                                                                                                      |                                                                                                      | Total shareholders equity:                                          |           |           | 266,299      |   |           |           | 264,012   | 
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  
|                                                                                                                      |                                                                                                      | $                                                                    | 2,955,351 |           |              | $ | 3,118,801 |          
|                                                                                                                      |                                                                                                      |                                                                      |           |           |              |  



2



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##### Table of Contents



WESTERN WIRELESS CORPORATION





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND


COMPREHENSIVE INCOME


(Dollars in thousands, except per share data)


(Unaudited)


|                                                              |                                                                                                                 |                          |         |         |         |   |        |         |         |  
|------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ------------------------ | ------- | ------- | ------- | - | ------ | ------- | ------- | -
|                                                              |                                                                                                                 | Three Months Ended       |        
|                                                              |                                                                                                                 | March 31,                |        
|                                                              |                                                                                                                 |                          |        
|                                                              |                                                                                                                 | 2005                     |         |         | 2004    |  
|                                                              |                                                                                                                 |                          |         |         |         |  
|Revenues:                                                     |                                                                                                                 |                          |         |         |         |   |        |        
|                                                              | Subscriber revenues                                                                                             |                          | $       | 419,801 |         |   | $      | 346,039 |        
|                                                              | Roamer revenues                                                                                                 |                          |         | 65,906  |         |   |        | 63,681  |        
|                                                              | Fixed line revenues                                                                                             |                          |         | 10,765  |         |   |        | 12,883  |        
|                                                              | Equipment sales                                                                                                 |                          |         | 19,238  |         |   |        | 20,531  |        
|                                                              | Other revenues                                                                                                  |                          |         | 4,517   |         |   |        | 3,360   |        
|                                                              |                                                                                                                 |                          |         |         |         |  
|                                                              |                                                                                                                 | Total revenues           |         |         | 520,227 |   |        |         | 446,494 |  
|                                                              |                                                                                                                 |                          |         |         |         |  
|Operating expenses:                                           |                                                                                                                 |                          |         |         |         |   |        |        
|                                                              | Cost of service (exclusive of depreciation, amortization and
    accretion included below)                      |                          |         | 143,692 |         |   |        | 120,043 |        
|                                                              | Cost of equipment sales                                                                                         |                          |         | 40,859  |         |   |        | 47,664  |        
|                                                              | General and administrative (exclusive of stock-based
    compensation, net, of $1,787 and $1,747, respectively) |                          |         | 89,007  |         |   |        | 70,710  |        
|                                                              | Sales and marketing                                                                                             |                          |         | 73,557  |         |   |        | 65,299  |        
|                                                              | Depreciation, amortization and accretion                                                                        |                          |         | 72,410  |         |   |        | 59,294  |        
|                                                              | Stock-based compensation, net                                                                                   |                          |         | 1,787   |         |   |        | 1,747   |        
|                                                              | Impairment of long-lived assets                                                                                 |                          |         | 24,314  |         |   |        |         |        
|                                                              |                                                                                                                 |                          |         |         |         |  
|                                                              |                                                                                                                 | Total operating expenses |         |         | 445,626 |   |        |         | 364,757 |  
|                                                              |                                                                                                                 |                          |         |         |         |  
|Other income (expense):                                       |                                                                                                                 |                          |         |         |         |   |        |        
|                                                              | Interest and financing expense, net                                                                             |                          |         | (35,604 | )       |   |        | (34,256 | )      
|                                                              | Equity in net income of unconsolidated affiliates                                                               |                          |         | 1,446   |         |   |        | 1,236   |        
|                                                              | Realized gain on marketable securities                                                                          |                          |         | 742     |         |   |        |         |        
|                                                              | Realized gain (loss) on interest rate hedges                                                                    |                          |         | 2,817   |         |   |        | (1,167  | )      
|                                                              | Other, net                                                                                                      |                          |         | 1,042   |         |   |        | 731     |        
|                                                              |                                                                                                                 |                          |         |         |         |  
|                                                              |                                                                                                                 | Total other expense      |         |         | (29,557 | ) |        |         | (33,456 | )
|                                                              |                                                                                                                 |                          |         |         |         |  
|Minority interests in net income of consolidated subsidiaries |                                                                                                                 |                          | (3,866  | )       |         |   | (2,477 | )      
|                                                              |                                                                                                                 |                          |         |         |         |  
|Income before provision for income taxes                      |                                                                                                                 |                          | 41,178  |         |         |   | 45,804 |        
|Provision for income taxes                                    |                                                                                                                 |                          | (35,853 | )       |         |   | (9,588 | )      
|                                                              |                                                                                                                 |                          |         |         |         |  
|                                                              |                                                                                                                 | Net income               |         | $       | 5,325   |   |        | $       | 36,216  |  
|                                                              |                                                                                                                 |                          |         |         |         |  
|Basic income per share                                        |                                                                                                                 | $                        | 0.05    |         |         | $ | 0.39   |        
|                                                              |                                                                                                                 |                          |         |         |         |  
|Diluted income per share                                      |                                                                                                                 | $                        | 0.05    |         |         | $ | 0.37   |        
|                                                              |                                                                                                                 |                          |         |         |         |  

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##### Table of Contents



WESTERN WIRELESS CORPORATION





CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND


COMPREHENSIVE INCOME  (Continued)


(Unaudited)


|                           |                                                                                                        |                                                   |                                                       |         |       |       |        |        |        |        |  
|-------------------------- | ------------------------------------------------------------------------------------------------------ | ------------------------------------------------- | ----------------------------------------------------- | ------- | ----- | ----- | ------ | ------ | ------ | ------ | -
|                           |                                                                                                        | Three Months Ended                                |                                                      
|                           |                                                                                                        | March 31,                                         |                                                      
|                           |                                                                                                        |                                                   |                                                      
|                           |                                                                                                        | 2005                                              |                                                       |         | 2004  |      
|                           |                                                                                                        |                                                   |                                                       |         |       |      
|Comprehensive income:      |                                                                                                        |                                                   |                                                       |         |       |       |        |       
|                           | Net income                                                                                             |                                                   | $                                                     | 5,325   |       |       | $      | 36,216 |       
|                           | Other comprehensive income (loss):                                                                     |                                                   |                                                       |         |       |       |        |        |       
|                           | Unrealized income (loss) on marketable securities:                                                     |                                                   |                                                       |         |       |       |        |        |       
|                           |                                                                                                        | Reclassification adjustment                       |                                                       |         | (334  | )     |        |        |        |       
|                           |                                                                                                        | Unrealized income (loss) on marketable securities |                                                       |         | 4,322 |       |        |        | (1,517 | )     
|                           |                                                                                                        |                                                   |                                                       |         |       |      
|                           |                                                                                                        |                                                   | Net unrealized income (loss) on marketable securities |         |       | 3,988 |        |        |        | (1,517 | )
|                           |                                                                                                        |                                                   |                                                       |         |       |      
|                           | Unrealized income (loss) on hedges                                                                     |                                                   |                                                       |         |       |       |        |        |       
|                           |                                                                                                        | Reclassification adjustment                       |                                                       |         | 318   |       |        |        | 459    |       
|                           |                                                                                                        | Unrealized income (loss) on hedges                |                                                       |         | 6,705 |       |        |        | (1,569 | )     
|                           |                                                                                                        |                                                   |                                                       |         |       |      
|                           |                                                                                                        |                                                   | Net unrealized income (loss) on hedges                |         |       | 7,023 |        |        |        | (1,110 | )
|                           |                                                                                                        |                                                   |                                                       |         |       |      
|                           | Foreign currency translation adjustment                                                                |                                                   |                                                       | (11,209 | )     |       |        | (1,948 | )     
|                           |                                                                                                        |                                                   |                                                       |         |       |      
|                           | Comprehensive income, before provision for income taxes on other
    comprehensive income (loss) items |                                                   |                                                       | 5,127   |       |       |        | 31,641 |       
|                           | Provision for income taxes related to other comprehensive income
    (loss) items (Note 6)             |                                                   |                                                       | (3,405  | )     |       |        |        |       
|                           |                                                                                                        |                                                   |                                                       |         |       |      
|Total comprehensive income |                                                                                                        | $                                                 | 1,722                                                 |         |       | $     | 31,641 |       
|                           |                                                                                                        |                                                   |                                                       |         |       |      



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WESTERN WIRELESS CORPORATION





CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


(Dollars in thousands)


(Unaudited)


|                                               |                                                                                       |                                                                                           |                                           |          |        |          |         |         |         |         |  
|---------------------------------------------- | ------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------- | ----------------------------------------- | -------- | ------ | -------- | ------- | ------- | ------- | ------- | -
|                                               |                                                                                       | Three Months Ended                                                                        |                                          
|                                               |                                                                                       | March 31,                                                                                 |                                          
|                                               |                                                                                       |                                                                                           |                                          
|                                               |                                                                                       | 2005                                                                                      |                                           |          | 2004   |         
|                                               |                                                                                       |                                                                                           |                                           |          |        |         
|Operating activities:                          |                                                                                       |                                                                                           |                                           |          |        |          |         |        
|                                               | Net income                                                                            |                                                                                           | $                                         | 5,325    |        |          | $       | 36,216  |        
|                                               | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                           |                                           |          |        |          |         |         |        
|                                               |                                                                                       | Realized gain on marketable securities                                                    |                                           |          | (742   | )        |         |         |         |        
|                                               |                                                                                       | Depreciation, amortization and accretion                                                  |                                           |          | 73,698 |          |         |         | 60,536  |        
|                                               |                                                                                       | Deferred income taxes                                                                     |                                           |          | 25,790 |          |         |         | 6,051   |        
|                                               |                                                                                       | Impairment of long-lived assets                                                           |                                           |          | 24,314 |          |         |         |         |        
|                                               |                                                                                       | Stock-based compensation, net                                                             |                                           |          | 1,787  |          |         |         | 1,747   |        
|                                               |                                                                                       | Equity in net income of unconsolidated affiliates, net of cash
    distributions received |                                           |          | 2,468  |          |         |         | (222    | )      
|                                               |                                                                                       | Minority interests in net income of consolidated subsidiaries                             |                                           |          | 3,866  |          |         |         | 2,477   |        
|                                               |                                                                                       | Realized (gain) loss on interest rate hedges                                              |                                           |          | (2,817 | )        |         |         | 1,167   |        
|                                               |                                                                                       | Non-cash interest                                                                         |                                           |          | 1,456  |          |         |         | 2,865   |        
|                                               |                                                                                       | Other, net                                                                                |                                           |          | (900   | )        |         |         | (94     | )      
|                                               |                                                                                       | Changes in operating assets and liabilities                                               |                                           |          | (9,740 | )        |         |         | (15,679 | )      
|                                               |                                                                                       |                                                                                           |                                           |          |        |         
|                                               |                                                                                       |                                                                                           | Net cash provided by operating activities |          |        | 124,505  |         |         |         | 95,064  |  
|                                               |                                                                                       |                                                                                           |                                           |          |        |         
|Investing activities:                          |                                                                                       |                                                                                           |                                           |          |        |          |         |        
|                                               | Purchase of property and equipment                                                    |                                                                                           |                                           | (106,951 | )      |          |         | (63,022 | )      
|                                               | Purchases of minority interests                                                       |                                                                                           |                                           | (32,280  | )      |          |         | (31,163 | )      
|                                               | Sale (purchase) of marketable securities                                              |                                                                                           |                                           | 1,881    |        |          |         | (4,201  | )      
|                                               | Funds in escrow                                                                       |                                                                                           |                                           | (1,071   | )      |          |         |         |        
|                                               | Other, net                                                                            |                                                                                           |                                           | (23      | )      |          |         | 694     |        
|                                               |                                                                                       |                                                                                           |                                           |          |        |         
|                                               |                                                                                       |                                                                                           | Net cash used in investing activities     |          |        | (138,444 | )       |         |         | (97,692 | )
|                                               |                                                                                       |                                                                                           |                                           |          |        |         
|Financing activities:                          |                                                                                       |                                                                                           |                                           |          |        |          |         |        
|                                               | Additions to long-term debt                                                           |                                                                                           |                                           | 60,000   |        |          |         |         |        
|                                               | Repayment of long-term debt                                                           |                                                                                           |                                           | (240,831 | )      |          |         | (24     | )      
|                                               | Issuance of common stock, net                                                         |                                                                                           |                                           | 349      |        |          |         | 1,851   |        
|                                               | Dividends paid to minority interests                                                  |                                                                                           |                                           |          |        |          |         | (4,410  | )      
|                                               |                                                                                       |                                                                                           |                                           |          |        |         
|                                               |                                                                                       |                                                                                           | Net cash used in financing activities     |          |        | (180,482 | )       |         |         | (2,583  | )
|                                               |                                                                                       |                                                                                           |                                           |          |        |         
|Effect of exchange rate changes                |                                                                                       |                                                                                           | (3,683                                    | )        |        |          | (1,496  | )      
|Change in cash and cash equivalents            |                                                                                       |                                                                                           | (198,104                                  | )        |        |          | (6,707  | )      
|Cash and cash equivalents, beginning of period |                                                                                       |                                                                                           | 278,633                                   |          |        |          | 128,597 |        
|                                               |                                                                                       |                                                                                           |                                           |          |        |         
|Cash and cash equivalents, end of period       |                                                                                       | $                                                                                         | 80,529                                    |          |        | $        | 121,890 |        
|                                               |                                                                                       |                                                                                           |                                           |          |        |         



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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)




|   |              
|-- | -------------
|1. | Organization:

ONE®












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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)










|   |                                            
|-- | -------------------------------------------
|2. | Summary of Significant Accounting Policies:



| |                   
| | ------------------
| | Reclassifications:





| |                             
| | ----------------------------
| | Principles of Consolidation:







| |                                
| | -------------------------------
| | Stock-Based Compensation Plans:



7



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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|                          |                                                                                                                  |                        |   |        |      |  |   |        |  
|------------------------- | ---------------------------------------------------------------------------------------------------------------- | ---------------------- | - | ------ | ---- |  | - | ------ | -
|                          |                                                                                                                  | Three Months Ended     |  
|                          |                                                                                                                  | March 31,              |  
|                          |                                                                                                                  |                        |  
|                          |                                                                                                                  | 2005                   |   |        | 2004 | 
|                          |                                                                                                                  |                        |   |        |      | 
|                          |                                                                                                                  | (Dollars in thousands, |  
|                          |                                                                                                                  | except per share data) |  
|Net income:               |                                                                                                                  |                        |   |        |      |  |   |       
|                          | As reported                                                                                                      |                        | $ | 5,325  |      |  | $ | 36,216 |  
|                          | Add: stock-based compensation expense included in reported net
    income, net of tax                            |                        |   | 1,126  |      |  |   | 1,747  |  
|                          | Deduct: stock-based compensation expense determined under fair
    value based method for all awards, net of tax |                        |   | (3,626 | )    |  |   | (3,691 | )
|                          |                                                                                                                  |                        |   |        |      | 
|                          | Pro forma net income                                                                                             |                        | $ | 2,825  |      |  | $ | 34,272 |  
|                          |                                                                                                                  |                        |   |        |      | 
|Basic income per share:   |                                                                                                                  |                        |   |        |      |  |   |       
|                          | As reported                                                                                                      |                        | $ | 0.05   |      |  | $ | 0.39   |  
|                          |                                                                                                                  |                        |   |        |      | 
|                          | Pro forma                                                                                                        |                        | $ | 0.03   |      |  | $ | 0.37   |  
|                          |                                                                                                                  |                        |   |        |      | 
|Diluted income per share: |                                                                                                                  |                        |   |        |      |  |   |       
|                          | As reported                                                                                                      |                        | $ | 0.05   |      |  | $ | 0.37   |  
|                          |                                                                                                                  |                        |   |        |      | 
|                          | Pro forma                                                                                                        |                        | $ | 0.03   |      |  | $ | 0.35   |  
|                          |                                                                                                                  |                        |   |        |      | 



|                                          |  |  |      |  
|----------------------------------------- |  |  | ---- | -
|Weighted average risk free interest rates |  |  | 4.0  | %
|Expected dividend yield                   |  |  | 0.0  | %
|Expected volatility                       |  |  | 75.0 | %
|Expected lives (in years)                 |  |  | 6.5  |  





| |                                      
| | -------------------------------------
| | Recently Issued Accounting Standards:



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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)








|   |                
|-- | ---------------
|3. | Long-Term Debt:

|                                               |            |                        |           |           |              |   |           |           | 
|---------------------------------------------- | ---------- | ---------------------- | --------- | --------- | ------------ | - | --------- | --------- | 
|                                               |            | March 31,              |           |           | December 31, |  
|                                               |            | 2005                   |           |           | 2004         |  
|                                               |            |                        |           |           |              |  
|                                               |            | (Dollars in thousands) |          
|Credit Facility:                               |            |                        |           |           |              |   |           |          
|                                               | Term Loans |                        | $         | 1,175,813 |              |   | $         | 1,183,875 | 
|                                               | Revolver   |                        |           | 60,000    |              |   |           |           | 
|9.250% Senior Notes Due 2013                   |            |                        | 600,000   |           |              |   | 600,000   |          
|4.625% Convertible Subordinated Notes Due 2023 |            |                        | 115,000   |           |              |   | 115,000   |          
|tele.ring Term Loan                            |            |                        |           |           |              |   | 218,281   |          
|Slovenian Credit Facility                      |            |                        | 70,481    |           |              |   | 74,286    |          
|Bolivian Credit Facility                       |            |                        | 50,000    |           |              |   | 50,000    |          
|Fair value hedges and other                    |            |                        | (621      | )         |              |   | 25,381    |          
|                                               |            |                        |           |           |              |  
|                                               |            |                        | 2,070,673 |           |              |   | 2,266,823 |          
|Less current portion                           |            |                        | (24,668   | )         |              |   | (253,629  | )        
|                                               |            |                        |           |           |              |  
|                                               |            | $                      | 2,046,005 |           |              | $ | 2,013,194 |          
|                                               |            |                        |           |           |              |  

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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|                                     |            |   |           |           | 
|------------------------------------ | ---------- | - | --------- | --------- | 
|Nine months ending December 31, 2005 |            | $ | 24,579    |          
|Year Ending December 31,             |            |   |           |          
|                                     | 2006       |   |           | 45,676    | 
|                                     | 2007       |   |           | 68,911    | 
|                                     | 2008       |   |           | 84,078    | 
|                                     | 2009       |   |           | 76,431    | 
|                                     | Thereafter |   |           | 1,770,998 | 
|                                     |            |   |          
|                                     |            | $ | 2,070,673 |          
|                                     |            |   |          



| |                 
| | ----------------
| | Credit Facility:









| |                     
| | --------------------
| | tele.ring Term Loan:



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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|   |                               
|-- | ------------------------------
|4. | Commitments and Contingencies:



| |             
| | ------------
| | Commitments:





| |               
| | --------------
| | Contingencies:









| |                             
| | ----------------------------
| | International Contingencies:



| |          
| | ---------
| | Slovenia:



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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)












| |       
| | ------
| | Ghana:





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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)






|   |              
|-- | -------------
|5. | Income Taxes:







|                       |                             |                        |   |        |      |  |   |       | 
|---------------------- | --------------------------- | ---------------------- | - | ------ | ---- |  | - | ----- | 
|                       |                             | Three Months Ended     |  
|                       |                             | March 31,              |  
|                       |                             |                        |  
|                       |                             | 2005                   |   |        | 2004 | 
|                       |                             |                        |   |        |      | 
|                       |                             | (Dollars in thousands) |  
|Current taxes payable: |                             |                        |   |        |      |  |   |      
|                       | International jurisdictions |                        | $ | 5,588  |      |  | $ | 3,537 | 
|                       | U.S. jurisdiction           |                        |   | 400    |      |  |   |       | 
|Deferred taxes:        |                             |                        |   |        |      |  |   |      
|                       | International jurisdictions |                        |   | 2,107  |      |  |   |       | 
|                       | U.S. jurisdiction           |                        |   | 27,758 |      |  |   | 6,051 | 
|                       |                             |                        |   |        |      | 
|                       | Provision for income taxes  |                        | $ | 35,853 |      |  | $ | 9,588 | 
|                       |                             |                        |   |        |      | 

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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|   |                                   
|-- | ----------------------------------
|6. | Other Comprehensive Income (Loss):



|                                            |                                            |                                                |         |       |            |   |        |            |        |   |         |       |       | 
|------------------------------------------- | ------------------------------------------ | ---------------------------------------------- | ------- | ----- | ---------- | - | ------ | ---------- | ------ | - | ------- | ----- | ----- | 
|                                            |                                            |                                                |         | Tax   |            |   |       
|                                            |                                            | Before-Tax                                     |         |       | (Expense)  |   |        | Net-of-Tax |       
|                                            |                                            | Amount                                         |         |       | or Benefit |   |        | Amount     |       
|                                            |                                            |                                                |         |       |            |   |        |            |       
|                                            |                                            | (Dollars in thousands)                         |        
|Unrealized income on marketable securities: |                                            |                                                |         |       |            |   |        |            |        |   |         |      
|                                            | Reclassification adjustment                |                                                | $       | (334  | )          |   | $      | 124        |        |   | $       | (210  | )    
|                                            | Unrealized income on marketable securities |                                                |         | 4,322 |            |   |        | (1,599     | )      |   |         | 2,723 |      
|                                            |                                            |                                                |         |       |            |   |        |            |       
|                                            |                                            | Net unrealized income on marketable securities |         |       | 3,988      |   |        |            | (1,475 | ) |         |       | 2,513 | 
|                                            |                                            |                                                |         |       |            |   |        |            |       
|Unrealized income on hedges:                |                                            |                                                |         |       |            |   |        |            |        |   |         |      
|                                            | Reclassification adjustment                |                                                |         | 318   |            |   |        |            |        |   |         | 318   |      
|                                            | Unrealized income on hedges                |                                                |         | 6,705 |            |   |        | (2,481     | )      |   |         | 4,224 |      
|                                            |                                            |                                                |         |       |            |   |        |            |       
|                                            |                                            | Net unrealized income on hedges                |         |       | 7,023      |   |        |            | (2,481 | ) |         |       | 4,542 | 
|                                            |                                            |                                                |         |       |            |   |        |            |       
|Foreign currency translation adjustment     |                                            |                                                | (11,209 | )     |            |   | 551    |            |        |   | (10,658 | )    
|                                            |                                            |                                                |         |       |            |   |        |            |       
|                                            |                                            | $                                              | (198    | )     |            | $ | (3,405 | )          |        | $ | (3,603  | )    
|                                            |                                            |                                                |         |       |            |   |        |            |       



|   |                         
|-- | ------------------------
|7. | Income Per Common Share:





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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|                                      |                                                                                           |                               |      |             |      |   |      |             | 
|------------------------------------- | ----------------------------------------------------------------------------------------- | ----------------------------- | ---- | ----------- | ---- | - | ---- | ----------- | 
|                                      |                                                                                           | Three Months Ended March 31,  |     
|                                      |                                                                                           |                               |     
|                                      |                                                                                           | 2005                          |      |             | 2004 |  
|                                      |                                                                                           |                               |      |             |      |  
|                                      |                                                                                           | (Dollars in thousands, except |     
|                                      |                                                                                           | per share data)               |     
|Basic income per share computation:   |                                                                                           |                               |      |             |      |   |      |            
|Numerator:                            |                                                                                           |                               |      |             |      |   |      |            
|                                      | Net income                                                                                |                               | $    | 5,325       |      |   | $    | 36,216      | 
|                                      |                                                                                           |                               |      |             |      |  
|Denominator:                          |                                                                                           |                               |      |             |      |   |      |            
|                                      | Weighted average common shares outstanding:                                               |                               |      | 100,168,000 |      |   |      | 91,708,000  | 
|                                      |                                                                                           |                               |      |             |      |  
|Basic income per share                |                                                                                           | $                             | 0.05 |             |      | $ | 0.39 |            
|                                      |                                                                                           |                               |      |             |      |  
|Diluted income per share computation: |                                                                                           |                               |      |             |      |   |      |            
|Numerator:                            |                                                                                           |                               |      |             |      |   |      |            
|                                      | Net income                                                                                |                               | $    | 5,325       |      |   | $    | 36,216      | 
|                                      | Add back interest and financing expense on convertible
    subordinated notes, net of tax |                               |      |             |      |   |      | 1,378       | 
|                                      |                                                                                           |                               |      |             |      |  
|                                      | Adjusted net income                                                                       |                               | $    | 5,325       |      |   | $    | 37,594      | 
|                                      |                                                                                           |                               |      |             |      |  
|Denominator:                          |                                                                                           |                               |      |             |      |   |      |            
|                                      | Weighted average common shares outstanding                                                |                               |      | 100,168,000 |      |   |      | 91,708,000  | 
|                                      | Assumed exercise of stock options                                                         |                               |      | 1,938,000   |      |   |      | 2,276,000   | 
|                                      | Assumed exercise of convertible subordinated notes                                        |                               |      |             |      |   |      | 7,441,000   | 
|                                      |                                                                                           |                               |      |             |      |  
|                                      | Diluted weighted average shares outstanding                                               |                               |      | 102,106,000 |      |   |      | 101,425,000 | 
|                                      |                                                                                           |                               |      |             |      |  
|Diluted income per share:             |                                                                                           | $                             | 0.05 |             |      | $ | 0.37 |            
|                                      |                                                                                           |                               |      |             |      |  



|   |                                                        
|-- | -------------------------------------------------------
|8. | Acquisitions, Dispositions and Discontinued Operations:



| |                         
| | ------------------------
| | PCS Licenses Acquisition





| |                                   
| | ----------------------------------
| | WWI Minority Interest Acquisition:



15



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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)




| |         
| | --------
| | Austria:





|   |                                            
|-- | -------------------------------------------
|9. | Operating Segments and Related Information:







|                                  |                                          |                        |   |           |            |  |           |                  |  |  |              |         |  |  |   |           | 
|--------------------------------- | ---------------------------------------- | ---------------------- | - | --------- | ---------- |  | --------- | ---------------- |  |  | ------------ | ------- |  |  | - | --------- | 
|                                  |                                          |                        |   | Austrian  |            |  | All Other |                  |  | 
|                                  |                                          | Domestic               |   |           | Operations |  |           | International(2) |  |  | Consolidated |        
|                                  |                                          |                        |   |           |            |  |           |                  |  |  |              |        
|                                  |                                          | (Dollars in thousands) |  
|Three months ended March 31, 2005 |                                          |                        |   |           |            |  |           |                  |  |  |              |         |  |  |   |          
|                                  | Total revenues                           |                        | $ | 265,367   |            |  | $         | 165,339          |  |  | $            | 89,521  |  |  | $ | 520,227   | 
|                                  | Depreciation, amortization and accretion |                        |   | 44,360    |            |  |           | 7,139            |  |  |              | 20,911  |  |  |   | 72,410    | 
|                                  | Interest and financing expense, net      |                        |   | 16,644    |            |  |           | 1,816            |  |  |              | 17,144  |  |  |   | 35,604    | 
|                                  | Total assets                             |                        |   | 2,125,783 |            |  |           | 283,021          |  |  |              | 546,547 |  |  |   | 2,955,351 | 
|                                  | Total capital expenditures               |                        |   | 74,442    |            |  |           | 9,960            |  |  |              | 22,549  |  |  |   | 106,951   | 
|                                  | Adjusted EBITDA(1)                       |                        |   | 97,639    |            |  |           | 58,438           |  |  |              | 17,035  |  |  |   | 173,112   | 
|Three months ended March 31, 2004 |                                          |                        |   |           |            |  |           |                  |  |  |              |         |  |  |   |          
|                                  | Total revenues                           |                        | $ | 249,426   |            |  | $         | 144,467          |  |  | $            | 52,601  |  |  | $ | 446,494   | 
|                                  | Depreciation, amortization and accretion |                        |   | 39,596    |            |  |           | 4,149            |  |  |              | 15,549  |  |  |   | 59,294    | 
|                                  | Interest and financing expense, net      |                        |   | 19,900    |            |  |           | 2,650            |  |  |              | 11,706  |  |  |   | 34,256    | 
|                                  | Total assets                             |                        |   | 1,850,459 |            |  |           | 247,327          |  |  |              | 466,596 |  |  |   | 2,564,382 | 
|                                  | Total capital expenditures               |                        |   | 46,590    |            |  |           | 8,155            |  |  |              | 8,277   |  |  |   | 63,022    | 
|                                  | Adjusted EBITDA(1)                       |                        |   | 104,758   |            |  |           | 35,053           |  |  |              | 2,967   |  |  |   | 142,778   | 

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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)


(1) Adjusted EBITDA:












17



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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|                  |                                                                              |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|----------------- | ---------------------------------------------------------------------------- | --------------------------------- | ------ | -------- | ---------- | - | --------- | ------------- |  | - | ------------ | ------ | - | - | ------- | ------ | -
|                  |                                                                              | Three Months Ended March 31, 2005 |       
|                  |                                                                              |                                   |       
|                  |                                                                              |                                   |        | Austrian |            |   | All Other |               |  |  
|                  |                                                                              | Domestic                          |        |          | Operations |   |           | International |  |   | Consolidated |       
|                  |                                                                              |                                   |        |          |            |   |           |               |  |   |              |       
|                  |                                                                              | (Dollars in thousands)            |       
|Net income (loss) |                                                                              | $                                 | 25,928 |          |            | $ | 29,994    |               |  | $ | (50,597      | )      |   | $ | 5,325   |       
|                  | Depreciation, amortization and accretion                                     |                                   |        | 44,360   |            |   |           | 7,139         |  |   |              | 20,911 |   |   |         | 72,410 |  
|                  | Asset dispositions                                                           |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Stock-based compensation, net                                                |                                   |        |          |            |   |           | 1,075         |  |   |              | 712    |   |   |         | 1,787  |  
|                  | Impairment of long-lived assets                                              |                                   |        |          |            |   |           |               |  |   |              | 24,314 |   |   |         | 24,314 |  
|                  | Interest and financing expense, net                                          |                                   |        | 16,644   |            |   |           | 1,816         |  |   |              | 17,144 |   |   |         | 35,604 |  
|                  | Equity in net (income) loss of unconsolidated affiliates, and
    other, net |                                   |        | 272      |            |   |           | 31            |  |   |              | (2,791 | ) |   |         | (2,488 | )
|                  | (Gain) loss on sale of joint venture                                         |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Realized (gain) loss on marketable securities                                |                                   |        | (742     | )          |   |           |               |  |   |              |        |   |   |         | (742   | )
|                  | Realized (gain) loss on interest rate hedges                                 |                                   |        | (2,817   | )          |   |           |               |  |   |              |        |   |   |         | (2,817 | )
|                  | Loss on extinguishment of debt                                               |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Minority interests in net (income) loss of consolidated
    subsidiaries     |                                   |        |          |            |   |           |               |  |   |              | 3,866  |   |   |         | 3,866  |  
|                  | Provision for income taxes                                                   |                                   |        | 13,994   |            |   |           | 18,383        |  |   |              | 3,476  |   |   |         | 35,853 |  
|                  | Discontinued operations                                                      |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Cumulative change in accounting principle                                    |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  |                                                                              |                                   |        |          |            |   |           |               |  |   |              |       
|Adjusted EBITDA   |                                                                              | $                                 | 97,639 |          |            | $ | 58,438    |               |  | $ | 17,035       |        |   | $ | 173,112 |       
|                  |                                                                              |                                   |        |          |            |   |           |               |  |   |              |       

|                  |                                                                              |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|----------------- | ---------------------------------------------------------------------------- | --------------------------------- | ------- | -------- | ---------- | - | --------- | ------------- |  | - | ------------ | ------ | - | - | ------- | ------ | -
|                  |                                                                              | Three Months Ended March 31, 2004 |        
|                  |                                                                              |                                   |        
|                  |                                                                              |                                   |         | Austrian |            |   | All Other |               |  |  
|                  |                                                                              | Domestic                          |         |          | Operations |   |           | International |  |   | Consolidated |       
|                  |                                                                              |                                   |         |          |            |   |           |               |  |   |              |       
|                  |                                                                              | (Dollars in thousands)            |        
|Net income (loss) |                                                                              | $                                 | 39,363  |          |            | $ | 27,067    |               |  | $ | (30,214      | )      |   | $ | 36,216  |       
|                  | Depreciation, amortization and accretion                                     |                                   |         | 39,596   |            |   |           | 4,149         |  |   |              | 15,549 |   |   |         | 59,294 |  
|                  | Asset dispositions                                                           |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Stock-based compensation, net                                                |                                   |         |          |            |   |           | 147           |  |   |              | 1,600  |   |   |         | 1,747  |  
|                  | Impairment of long-lived assets                                              |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Interest and financing expense, net                                          |                                   |         | 19,900   |            |   |           | 2,650         |  |   |              | 11,706 |   |   |         | 34,256 |  
|                  | Equity in net (income) loss of unconsolidated affiliates, and
    other, net |                                   |         | 17       |            |   |           | 1,039         |  |   |              | (3,023 | ) |   |         | (1,967 | )
|                  | (Gain) loss on sale of joint venture                                         |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Realized (gain) loss on marketable securities                                |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Realized (gain) loss on interest rate hedges                                 |                                   |         | (169     | )          |   |           |               |  |   |              | 1,336  |   |   |         | 1,167  |  
|                  | Loss on extinguishment of debt                                               |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Minority interests in net (income) loss of consolidated
    subsidiaries     |                                   |         |          |            |   |           |               |  |   |              | 2,477  |   |   |         | 2,477  |  
|                  | Provision for income taxes                                                   |                                   |         | 6,051    |            |   |           | 1             |  |   |              | 3,536  |   |   |         | 9,588  |  
|                  | Discontinued operations                                                      |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Cumulative change in accounting principle                                    |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  |                                                                              |                                   |         |          |            |   |           |               |  |   |              |       
|Adjusted EBITDA   |                                                                              | $                                 | 104,758 |          |            | $ | 35,053    |               |  | $ | 2,967        |        |   | $ | 142,778 |       
|                  |                                                                              |                                   |         |          |            |   |           |               |  |   |              |       

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WESTERN WIRELESS CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)  (Continued)




|    |                                                   
|--- | --------------------------------------------------
|(2) | Revenues and Long-Lived Assets by Geographic Area:



19



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Cautionary statement for purposes of the Safe
Harbor provisions of the Private Litigation Reform Act of
1995. This quarterly report on Form 10-Q, including
Managements Discussion and Analysis of Financial Condition
and Results of Operations, contains statements that are not
based on historical fact, including without limitation
statements containing the words believes,
may, will, estimate,
continue, anticipates,
intends, expects and words of similar
import, which constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act of 1995. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors all of which are
difficult to predict and many of which are beyond our control
and which may cause the actual results, events or developments
to be significantly different from any future results, events or
developments expressed or implied by such forward-looking
statements. Such factors include, among others, the following:
general economic and business conditions, nationally,
internationally and in the regions and countries in which
Western Wireless Corporation operates; demographic changes;
technology changes; increased competition; changes in business
strategy or development plans; whether the pending merger
described herein with ALLTEL Corporation (ALLTEL)
will be completed and the effects on us in the event it is not
completed; the high leverage of the Company and our ability to
access capital markets; the ability to attract and retain
qualified personnel; existing governmental regulations and
changes in, or the failure to comply with, governmental
regulations; our ability to acquire and the cost of acquiring
additional spectrum licenses; product liability and other claims
asserted against the Company; and other factors included
elsewhere in this report, in the Companys filed public
offering prospectuses or its reports filed with the Securities
and Exchange Commission, including, without limitation, those
described under the caption, Risk Factors, contained
in our Form 10-K for the year ended December 31, 2004
and in our public offering prospectuses.


Given these uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. The
Company disclaims any obligation to update any such factors or
to publicly announce the result of any revisions to any of the
forward-looking statements contained herein to reflect future
results, events or developments.






Overview


ONE ONE




20



---



##### Table of Contents





Merger Announcement












Impairment Charge




21



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##### Table of Contents











Results of Domestic Operations for the Three Months Ended
March 31, 2005 and 2004




22



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|                    |                                          |                          |        |         |         |   |         |         |         | 
|------------------- | ---------------------------------------- | ------------------------ | ------ | ------- | ------- | - | ------- | ------- | ------- | 
|                    |                                          | Three Months Ended       |       
|                    |                                          | March 31,                |       
|                    |                                          |                          |       
|                    |                                          | 2005                     |        |         | 2004    |  
|                    |                                          |                          |        |         |         |  
|                    |                                          | (Dollars in thousands)   |       
|Revenues:           |                                          |                          |        |         |         |   |         |        
|                    | Subscriber revenues                      |                          | $      | 199,007 |         |   | $       | 186,676 |        
|                    | Roamer revenues                          |                          |        | 50,783  |         |   |         | 48,037  |        
|                    | Equipment sales                          |                          |        | 15,122  |         |   |         | 14,212  |        
|                    | Other revenues                           |                          |        | 455     |         |   |         | 501     |        
|                    |                                          |                          |        |         |         |  
|                    |                                          | Total revenues           |        | $       | 265,367 |   |         | $       | 249,426 | 
|Operating expenses: |                                          |                          |        |         |         |   |         |        
|                    | Cost of service                          |                          | $      | 47,519  |         |   | $       | 42,987  |        
|                    | Cost of equipment sales                  |                          |        | 25,609  |         |   |         | 22,789  |        
|                    | General and administrative               |                          |        | 58,805  |         |   |         | 47,000  |        
|                    | Sales and marketing                      |                          |        | 35,795  |         |   |         | 31,892  |        
|                    | Depreciation, amortization and accretion |                          |        | 44,360  |         |   |         | 39,596  |        
|                    |                                          |                          |        |         |         |  
|                    |                                          | Total operating expenses |        | $       | 212,088 |   |         | $       | 184,264 | 
|Adjusted EBITDA     |                                          | $                        | 97,639 |         |         | $ | 104,758 |        



Domestic Revenues






23



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Domestic Operating Expenses










24



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Domestic Adjusted EBITDA




Results of International Operations for the three months
ended March 31, 2005 and 2004








25



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|                    |                                          |                          |        |         |         |   |        |         |         | 
|------------------- | ---------------------------------------- | ------------------------ | ------ | ------- | ------- | - | ------ | ------- | ------- | 
|                    |                                          | Three Months Ended       |       
|                    |                                          | March 31,                |       
|                    |                                          |                          |       
|                    |                                          | 2005                     |        |         | 2004    |  
|                    |                                          |                          |        |         |         |  
|                    |                                          | (Dollars in thousands)   |       
|Revenues:           |                                          |                          |        |         |         |   |        |        
|                    | Subscriber revenues                      |                          | $      | 220,794 |         |   | $      | 159,363 |        
|                    | Roamer revenues                          |                          |        | 15,123  |         |   |        | 15,644  |        
|                    | Fixed line revenues                      |                          |        | 10,765  |         |   |        | 12,883  |        
|                    | Equipment sales                          |                          |        | 4,116   |         |   |        | 6,319   |        
|                    | Other revenues                           |                          |        | 4,062   |         |   |        | 2,859   |        
|                    |                                          |                          |        |         |         |  
|                    |                                          | Total revenues           |        | $       | 254,860 |   |        | $       | 197,068 | 
|Operating expenses: |                                          |                          |        |         |         |   |        |        
|                    | Cost of service                          |                          | $      | 96,173  |         |   | $      | 77,056  |        
|                    | Cost of equipment sales                  |                          |        | 15,250  |         |   |        | 24,875  |        
|                    | General and administrative               |                          |        | 30,202  |         |   |        | 23,710  |        
|                    | Sales and marketing                      |                          |        | 37,762  |         |   |        | 33,407  |        
|                    | Depreciation, amortization and accretion |                          |        | 28,050  |         |   |        | 19,698  |        
|                    | Stock-based compensation                 |                          |        | 1,787   |         |   |        | 1,747   |        
|                    | Impairment of long-lived assets          |                          |        | 24,314  |         |   |        |         |        
|                    |                                          |                          |        |         |         |  
|                    |                                          | Total operating expenses |        | $       | 233,538 |   |        | $       | 180,493 | 
|Adjusted EBITDA     |                                          | $                        | 75,473 |         |         | $ | 38,020 |        





International Revenues




26



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International Operating Expenses










27



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International Adjusted EBITDA




Adjustments to Reconcile Net Income (Loss) to Adjusted
EBITDA






28



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|                  |                                                                              |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|----------------- | ---------------------------------------------------------------------------- | --------------------------------- | ------ | -------- | ---------- | - | --------- | ------------- |  | - | ------------ | ------ | - | - | ------- | ------ | -
|                  |                                                                              | Three Months Ended March 31, 2005 |       
|                  |                                                                              |                                   |       
|                  |                                                                              |                                   |        | Austrian |            |   | All Other |               |  |  
|                  |                                                                              | Domestic                          |        |          | Operations |   |           | International |  |   | Consolidated |       
|                  |                                                                              |                                   |        |          |            |   |           |               |  |   |              |       
|                  |                                                                              | (Dollars in thousands)            |       
|Net income (loss) |                                                                              | $                                 | 25,928 |          |            | $ | 29,994    |               |  | $ | (50,597      | )      |   | $ | 5,325   |       
|                  | Depreciation, amortization and accretion                                     |                                   |        | 44,360   |            |   |           | 7,139         |  |   |              | 20,911 |   |   |         | 72,410 |  
|                  | Asset dispositions                                                           |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Stock-based compensation, net                                                |                                   |        |          |            |   |           | 1,075         |  |   |              | 712    |   |   |         | 1,787  |  
|                  | Impairment of long-lived assets                                              |                                   |        |          |            |   |           |               |  |   |              | 24,314 |   |   |         | 24,314 |  
|                  | Interest and financing expense, net                                          |                                   |        | 16,644   |            |   |           | 1,816         |  |   |              | 17,144 |   |   |         | 35,604 |  
|                  | Equity in net (income) loss of unconsolidated affiliates, and
    other, net |                                   |        | 272      |            |   |           | 31            |  |   |              | (2,791 | ) |   |         | (2,488 | )
|                  | (Gain) loss on sale of joint venture                                         |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Realized (gain) loss on marketable securities                                |                                   |        | (742     | )          |   |           |               |  |   |              |        |   |   |         | (742   | )
|                  | Realized (gain) loss on interest rate hedges                                 |                                   |        | (2,817   | )          |   |           |               |  |   |              |        |   |   |         | (2,817 | )
|                  | Loss on extinguishment of debt                                               |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Minority interests in net (income) loss of consolidated
    subsidiaries     |                                   |        |          |            |   |           |               |  |   |              | 3,866  |   |   |         | 3,866  |  
|                  | Provision for income taxes                                                   |                                   |        | 13,994   |            |   |           | 18,383        |  |   |              | 3,476  |   |   |         | 35,853 |  
|                  | Discontinued operations                                                      |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Cumulative change in accounting principle                                    |                                   |        |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  |                                                                              |                                   |        |          |            |   |           |               |  |   |              |       
|Adjusted EBITDA   |                                                                              | $                                 | 97,639 |          |            | $ | 58,438    |               |  | $ | 17,035       |        |   | $ | 173,112 |       
|                  |                                                                              |                                   |        |          |            |   |           |               |  |   |              |       

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|                  |                                                                              |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|----------------- | ---------------------------------------------------------------------------- | --------------------------------- | ------- | -------- | ---------- | - | --------- | ------------- |  | - | ------------ | ------ | - | - | ------- | ------ | -
|                  |                                                                              | Three Months Ended March 31, 2004 |        
|                  |                                                                              |                                   |        
|                  |                                                                              |                                   |         | Austrian |            |   | All Other |               |  |  
|                  |                                                                              | Domestic                          |         |          | Operations |   |           | International |  |   | Consolidated |       
|                  |                                                                              |                                   |         |          |            |   |           |               |  |   |              |       
|                  |                                                                              | (Dollars in thousands)            |        
|Net income (loss) |                                                                              | $                                 | 39,363  |          |            | $ | 27,067    |               |  | $ | (30,214      | )      |   | $ | 36,216  |       
|                  | Depreciation, amortization and accretion                                     |                                   |         | 39,596   |            |   |           | 4,149         |  |   |              | 15,549 |   |   |         | 59,294 |  
|                  | Asset dispositions                                                           |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Stock-based compensation, net                                                |                                   |         |          |            |   |           | 147           |  |   |              | 1,600  |   |   |         | 1,747  |  
|                  | Impairment of long-lived assets                                              |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Interest and financing expense, net                                          |                                   |         | 19,900   |            |   |           | 2,650         |  |   |              | 11,706 |   |   |         | 34,256 |  
|                  | Equity in net (income) loss of unconsolidated affiliates, and
    other, net |                                   |         | 17       |            |   |           | 1,039         |  |   |              | (3,023 | ) |   |         | (1,967 | )
|                  | (Gain) loss on sale of joint venture                                         |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Realized (gain) loss on marketable securities                                |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Realized (gain) loss on interest rate hedges                                 |                                   |         | (169     | )          |   |           |               |  |   |              | 1,336  |   |   |         | 1,167  |  
|                  | Loss on extinguishment of debt                                               |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Minority interests in net (income) loss of consolidated
    subsidiaries     |                                   |         |          |            |   |           |               |  |   |              | 2,477  |   |   |         | 2,477  |  
|                  | Provision for income taxes                                                   |                                   |         | 6,051    |            |   |           | 1             |  |   |              | 3,536  |   |   |         | 9,588  |  
|                  | Discontinued operations                                                      |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  | Cumulative change in accounting principle                                    |                                   |         |          |            |   |           |               |  |   |              |        |   |   |         |        |  
|                  |                                                                              |                                   |         |          |            |   |           |               |  |   |              |       
|Adjusted EBITDA   |                                                                              | $                                 | 104,758 |          |            | $ | 35,053    |               |  | $ | 2,967        |        |   | $ | 142,778 |       
|                  |                                                                              |                                   |         |          |            |   |           |               |  |   |              |       

Consolidated Other Income (Expense)




Consolidated Provision for Income Taxes








30



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Consolidated Net Income




Consolidated Liquidity and Capital Resources
















31



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|                                |                                    |                        |           |              |      |   |                          |         |  |        |        |         |  |            |         |         |  |   |           |           | 
|------------------------------- | ---------------------------------- | ---------------------- | --------- | ------------ | ---- | - | ------------------------ | ------- |  | ------ | ------ | ------- |  | ---------- | ------- | ------- |  | - | --------- | --------- | 
|                                |                                    |                        |           | Nine Months  |      |   | Year Ending December 31, |        
|                                |                                    |                        |           | Ending       |      |   |                          |        
|                                |                                    |                        |           | December 31, |      |   | 2006 -                   |         |  | 2008 - |        |         | 
|                                |                                    | Total                  |           |              | 2005 |   |                          | 2007    |  |        | 2009   |         |  | Thereafter |        
|                                |                                    |                        |           |              |      |   |                          |         |  |        |        |         |  |            |        
|                                |                                    | (Dollars in thousands) |          
|Domestic long-term debt(1)      |                                    | $                      | 1,950,192 |              |      | $ | 14,266                   |         |  | $      | 73,428 |         |  | $          | 120,750 |         |  | $ | 1,741,748 |          
|International long-term debt(1) |                                    |                        | 120,481   |              |      |   | 10,313                   |         |  |        | 41,159 |         |  |            | 39,759  |         |  |   | 29,250    |          
|Operating lease obligations     |                                    |                        | 482,313   |              |      |   | 51,787                   |         |  |        | 99,989 |         |  |            | 87,192  |         |  |   | 243,345   |          
|Purchase obligations(2)         |                                    |                        | 204,030   |              |      |   | 167,003                  |         |  |        | 36,495 |         |  |            | 465     |         |  |   | 67        |          
|Other long-term obligations(3)  |                                    |                        | 75,905    |              |      |   | 27,342                   |         |  |        | 27,288 |         |  |            | 1,461   |         |  |   | 19,814    |          
|                                |                                    |                        |           |              |      |   |                          |         |  |        |        |         |  |            |        
|                                | Total contractual cash obligations |                        | $         | 2,832,921    |      |   | $                        | 270,711 |  |        | $      | 278,359 |  |            | $       | 249,627 |  |   | $         | 2,034,224 | 
|                                |                                    |                        |           |              |      |   |                          |         |  |        |        |         |  |            |        






|    |                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents principal repayments on our long-term debt. Our
    long-term debt also requires that we make interest payments.
    These obligations do not include scheduled interest payments.

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|    |                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Represents open purchase order commitments at March 31,
    2005, mainly related to infrastructure, handsets and annual
    maintenance contracts.                     
|   
|(3) | Mainly includes our asset retirement obligations, international
    site sharing costs and an acquisition agreement obligation.
    Excludes non-cash deferred revenue.







Recently Issued Accounting Standards






33



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|        |                                                               
|------- | --------------------------------------------------------------
|Item 3. | Quantitative and Qualitative Disclosures About Market
    Risk

Market Risk Management




Interest Rate Risk








Foreign Currency Risk






34



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|        |                        
|------- | -----------------------
|Item 4. | Controls and Procedures

Evaluation of Disclosure Controls and Procedures




Changes in Internal Control over Financial Reporting








| |     |                                                                                                                                                                                                                                                                         
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | we engaged our U.S. and foreign tax consultant on a more
    comprehensive basis, to provide both U.S. and foreign tax
    expertise and Statement of Financial Accounting Standards
    (SFAS) No. 109, Accounting for Income
    Taxes (SFAS No. 109) expertise;



| |      |                                                                                                                                                                                       
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) | we commenced a search for additional qualified personnel with
    U.S. and foreign tax expertise, as well as SFAS 109
    experience and have hired an international tax director; and



| |       |                                                                                                                                                                                                                                                                                                                                                            
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) | we improved our internal control over financial reporting
    related to evaluating the income tax implications of non-routine
    business transactions, new accounting pronouncements and new
    state, federal and international tax legislation for appropriate
    treatment and the review of consolidated benefit
    (provision) for income taxes.



35



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##### Table of Contents






PART II  OTHER INFORMATION







|        |                  
|------- | -----------------
|Item 1. | Legal Proceedings








|        |                                                                
|------- | ---------------------------------------------------------------
|Item 2. | Unregistered Sales of Equity Securities and Use of
    Proceeds








|        |                                
|------- | -------------------------------
|Item 3. | Defaults Upon Senior Securities








|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders








|        |                  
|------- | -----------------
|Item 5. | Other Information








|        |         
|------- | --------
|Item 6. | Exhibits

|        |    |             |  |                                                                                                                                                                                                                                                                                        
|------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    | Description
|        |    |            
|        | 10 | .1(A)       |  | Form of Stock Option Agreement pursuant to Western Wireless
    Corporation 2005 Long-Term Equity Incentive Plan (non-officer)                                                                                                                                                         
|       
|        | 10 | .2(A)       |  | Form of Stock Option Agreement pursuant to Western Wireless
    Corporation 2005 Long-Term Equity Incentive Plan (officer)                                                                                                                                                             
|       
|        | 10 | .3(A)       |  | Form of Restricted Stock Purchase Agreement pursuant to Western
    Wireless Corporation Executive Restricted Stock Plan                                                                                                                                                               
|       
|        | 12 | .1          |  | Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                     
|       
|        | 31 | .1          |  | Certification of John W. Stanton, Chairman and Chief Executive
    Officer of Western Wireless Corporation, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002
    (Rule 13a-14(a))                                                                                         
|       
|        | 31 | .2          |  | Certification of M. Wayne Wisehart, Executive Vice President and
    Chief Financial Officer of Western Wireless Corporation,
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    (Rule 13a-14(a))                                                                       
|       
|        | 32 | .1          |  | Certification of John W. Stanton, Chairman and Chief Executive
    Officer of Western Wireless Corporation, pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002
    (Subsections(a) and(b) of Section 1350,
    Chapter 63 of Title 18, United States Code)                  
|       
|        | 32 | .2          |  | Certification of M. Wayne Wisehart, Executive Vice President and
    Chief Financial Officer of Western Wireless Corporation,
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    (Subsections(a) and(b) of Section 1350,
    Chapter 63 of Title 18, United States Code)






|    |                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------
|(A) | Incorporated by reference to the exhibit filed with our
    Registration Statement on Form S-8 (333-121798).

36



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SIGNATURES






| |                                 
| | --------------------------------
| | Western Wireless
    Corporation



| |     |                      
| | --- | ---------------------
| | By: | /s/ M. Wayne Wisehart

| |                            
| | ---------------------------
| |                            
| | M. Wayne Wisehart          
| | Executive Vice President   
| | and Chief Financial Officer



| |     |                
| | --- | ---------------
| | By: | /s/ Scott Soley

| |                              
| | -----------------------------
| |                              
| | Scott Soley                  
| | Vice President and Controller
| | (Chief Accounting Officer)   



37



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EXHIBIT INDEX


|        |    |             |  |                                                                                                                                                                                                                                                                                        
|------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    | Description
|        |    |            
|        | 10 | .1(A)       |  | Form of Stock Option Agreement pursuant to Western Wireless
    Corporation 2005 Long-Term Equity Incentive Plan (non-officer)                                                                                                                                                         
|       
|        | 10 | .2(A)       |  | Form of Stock Option Agreement pursuant to Western Wireless
    Corporation 2005 Long-Term Equity Incentive Plan (officer)                                                                                                                                                             
|       
|        | 10 | .3(A)       |  | Form of Restricted Stock Purchase Agreement pursuant to Western
    Wireless Corporation Executive Restricted Stock Plan                                                                                                                                                               
|       
|        | 12 | .1          |  | Computation of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                     
|       
|        | 31 | .1          |  | Certification of John W. Stanton, Chairman and Chief Executive
    Officer of Western Wireless Corporation, pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002
    (Rule 13a-14(a))                                                                                         
|       
|        | 31 | .2          |  | Certification of M. Wayne Wisehart, Executive Vice President and
    Chief Financial Officer of Western Wireless Corporation,
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    (Rule 13a-14(a))                                                                       
|       
|        | 32 | .1          |  | Certification of John W. Stanton, Chairman and Chief Executive
    Officer of Western Wireless Corporation, pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002
    (Subsections(a) and(b) of Section 1350,
    Chapter 63 of Title 18, United States Code)                  
|       
|        | 32 | .2          |  | Certification of M. Wayne Wisehart, Executive Vice President and
    Chief Financial Officer of Western Wireless Corporation,
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    (Subsections(a) and(b) of Section 1350,
    Chapter 63 of Title 18, United States Code)






|    |                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------
|(A) | Incorporated by reference to the exhibit filed with our
    Registration Statement on Form S-8 (333-121798).

38