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CenturyTel Reports First Quarter Earnings

April 29, 2004

MONROE, La.--(BUSINESS WIRE)--April 29, 2004--CenturyTel, Inc. (NYSE:CTL) announces operating results for first quarter 2004.

    --  Operating revenues increased 2.7% to $593.7 million from
        $578.0 million.

    --  Operating cash flow (as defined in the attached financial
        schedules), excluding nonrecurring items, rose to $310.5
        million.

    --  Net income, excluding nonrecurring items, grew 3.2% to $83.3
        million. Reported under GAAP, net income was $83.3 million
        compared to $83.9 million in first quarter 2003.

    --  Diluted earnings per share, excluding nonrecurring items,
        increased 3.6% to $.58 from $.56 in first quarter 2003.
        Reported under GAAP, diluted earnings per share for both first
        quarter 2004 and first quarter 2003 were $.58.

    --  Free cash flow (as defined in the attached financial
        schedules) was $148.5 million in first quarter 2004.

    --  During the first quarter, the Company repurchased 4,942,000
        shares of common stock under its share repurchase program.

First Quarter Highlights(1)          Quarter       Quarter
(In thousands, except per share       Ended         Ended
 amounts and customer units          3/31/04       3/31/03    % Change
---------------------------------- ------------ ------------ ---------

Operating Revenues                  $  593,704   $  578,014       2.7%
Operating Cash Flow                 $  310,549   $  306,579       1.3%
Net Income                          $   83,279   $   80,696       3.2%
Diluted Earnings Per Share          $      .58   $      .56       3.6%
Average Diluted Shares Outstanding     143,347      143,797     (0.3)%
Capital Expenditures                $   61,745   $   59,669       3.5%
---------------------------------- ------------ ------------ ---------
Telephone Access Lines               2,366,420    2,407,152     (1.7)%
Long Distance Lines(2)                 971,922      848,810      14.5%
DSL Connections                         97,092       60,615      60.2%
---------------------------------- ------------ ------------ ---------
(1) These results include adjustments for nonrecurring items and other
    non-GAAP financial measures. A reconciliation of these items to
    comparable GAAP measures is included in the attached financial
    schedules.
(2) Effective first quarter 2004, long distance units are reported on
    a line basis instead of a customer basis. First quarter 2003 has
    been restated on a line basis to ensure period-to-period
    comparability.

"CenturyTel achieved both revenue and earnings growth in the first quarter while continuing to generate strong free cash flow," Glen F. Post, III, chairman and chief executive officer, said. "We also made excellent progress with our share repurchase program announced in February, investing over $139 million to acquire more than 4.9 million shares of common stock."

As previously announced, CenturyTel is presenting its results of operations in a single segment format beginning first quarter 2004. The Company is also reporting separate revenue components that align with its major products and services. However, CenturyTel is providing operating cash flow and operating income information on a consolidated basis only. Quarterly and full year 2003 financial results have been restated to conform to the single segment format and are included in the attached schedules.

Operating revenues rose 2.7% to $593.7 million in first quarter 2004 from $578.0 million in first quarter 2003. This $15.7 million revenue increase was driven primarily by the fiber assets acquired during 2003, data revenue growth from DSL subscriber and data circuit additions and increased enhanced calling feature penetration. These increases more than offset revenue declines attributable to lower intrastate toll revenues and universal service funding, along with access line losses.

Operating expenses, excluding nonrecurring items, increased 3.0% to $410.1 million, or $11.9 million over first quarter 2003. Cost of services and products increased $3.7 million primarily due to the fiber assets acquired during 2003. Selling, general and administrative expenses, excluding nonrecurring items, increased $8.0 million primarily due to the 2003 fiber asset acquisitions, increases in employee costs and increased marketing expenses.

Operating cash flow, excluding nonrecurring items, increased 1.3% to $310.5 million from $306.6 million. CenturyTel achieved an operating cash flow margin, excluding nonrecurring items, of 52.3% during the quarter versus 53.0% in first quarter 2003.

Net income, excluding nonrecurring items, increased 3.2% to $83.3 million from $80.7 million in first quarter 2003 due to a $3.7 million increase in operating income and lower interest expense, which were partially offset by the previously announced increase in state income taxes. Diluted earnings per share, excluding nonrecurring items, increased 3.6% to $.58 from $.56.

"The launch of tiered DSL service during the first quarter across CenturyTel's more than 1.5 million DSL-enabled lines was well received as we added more than 13,600 DSL customers, a 90% increase over net additions in fourth quarter 2003. Additionally, a majority of these customers selected bundles with higher speed service offerings," Post said.

For first quarter 2004, CenturyTel reported, under generally accepted accounting principles (GAAP), operating revenues of $593.7 million, a 2.7% increase from $578.0 million in first quarter 2003. The Company reported net income of $83.3 million and diluted earnings per share of $.58, compared to $83.9 million and $.58 per diluted share, respectively, in first quarter 2003. Net income in first quarter 2003 included a nonrecurring $5.0 million pre-tax partial recovery of amounts previously written off in connection with the WorldCom bankruptcy.

For the second quarter 2004, CenturyTel expects total revenues of $590 to $605 million and diluted earnings per share of $.52 to $.56, which reflects $4.6 million of expenses in connection with the planned prepayment in early May of the Company's $100 million aggregate principal amount of Series B senior notes. For the full year 2004, diluted earnings per share is expected to be in the range of $2.20 to $2.35, an increase of $.15 over previously provided guidance. This increase in full year 2004 EPS guidance is primarily due to stronger first quarter revenues than expected, lower 2004 expenses than originally forecast and fewer fully diluted shares as a result of share repurchases during the first quarter.

These outlook figures are presented on a GAAP basis, excluding non-recurring items and the potential impact of any future mergers, acquisitions, divestitures, share repurchases or other similar business transactions.

Reconciliation to GAAP. This release includes certain non-GAAP financial measures, including but not limited to operating cash flow, free cash flow and adjustments to GAAP measures to exclude the effect of nonrecurring items. In addition to providing key metrics for management to evaluate the Company's performance, we believe these measurements assist readers in their understanding of period-to-period operating performance and in identifying historical and prospective trends. Reconciliations of non-GAAP financial measures to the most comparable GAAP measures are included in the attached financial statements. Reconciliation of additional non-GAAP financial measures that may be discussed during the earnings call described below will be available on the Company's Web site at www.centurytel.com. Investors are urged to consider these non-GAAP measures in addition to, and not in substitution for, measures prepared in accordance with GAAP.

Investor Call. As previously announced, CenturyTel's management will host a conference call at 10:30 a.m. Central Time today. Interested parties can access the call by dialing 800.346.2923. The call will be accessible for replay until 1:00 p.m. Central Time, May 6, 2004, by calling 800.332.6854 and entering the conference ID number 3383. Investors can also listen to CenturyTel's earnings conference call and replay by accessing the Company's Web site at www.centurytel.com.

In addition to historical information, this release includes certain forward-looking statements, estimates and projections that are based on current expectations only, and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the control of the Company. Actual events and results may differ materially from those anticipated, estimated or projected if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to: the timing, success and overall effects of competition from a wide variety of competitive providers; the risks inherent in rapid technological change; the effects of ongoing changes in the regulation of the communications industry; the Company's ability to effectively manage its growth, including integrating newly-acquired businesses into the Company's operations, hiring adequate numbers of qualified staff, and successfully upgrading its billing and other information systems; possible changes in the demand for, or pricing of, the Company's products and services; the Company's ability to successfully introduce new product or service offerings on a timely and cost-effective basis; the Company's ability to collect its receivables from financially troubled communications companies; other risks referenced from time to time in the Company's filings with the Securities and Exchange Commission; and the effects of more general factors such as changes in interest rates, in accounting policies or practices, in operating, medical or administrative costs, in general market, labor or economic conditions, or in legislation, regulation or public policy. These and other uncertainties related to the Company's business are described in greater detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2003. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The information contained in this release is as of April 29, 2004. The Company undertakes no obligation to update any of its forward-looking statements.

CenturyTel, Inc. provides communications services including local, long distance, Internet access and data services to more than 3 million customers in 22 states. The company, headquartered in Monroe, Louisiana, is publicly traded on the New York Stock Exchange under the symbol CTL, and is included in the S&P 500 Index. CenturyTel is the 8th largest local exchange telephone company, based on access lines, in the United States. Visit CenturyTel at www.centurytel.com.

                           CenturyTel, Inc.

                   CONSOLIDATED STATEMENTS OF INCOME
              THREE MONTHS ENDED MARCH 31, 2004 AND 2003
                              (UNAUDITED)

                                             Three months ended
                                               March 31, 2004
                                      --------------------------------
                                                                As
                                                              adjusted
                                                    Less     excluding
                                                     non-       non-
                                          As      recurring  recurring
In thousands, except per share         reported     items      items
 amounts                              ---------- ---------- ----------



 OPERATING REVENUES
 Local service                       $  178,058               178,058
 Network access                         240,957               240,957
 Long distance                           44,589                44,589
 Data                                    65,628                65,628
 Fiber transport and CLEC                17,432                17,432
 Other                                   47,040                47,040
                                      ---------- ---------- ----------
                                        593,704          -    593,704
                                      ---------- ---------- ----------

 OPERATING EXPENSES
 Cost of services and products          181,549               181,549
 Selling, general and administrative    101,606               101,606
 Depreciation and amortization          126,992               126,992
                                      ---------- ---------- ----------
                                        410,147          -    410,147
                                      ---------- ---------- ----------

 OPERATING INCOME                       183,557          -    183,557

 OTHER INCOME (EXPENSE)
 Interest expense                       (52,543)              (52,543)
 Income from unconsolidated cellular
  entity                                  2,059                 2,059
 Other income and expense                 2,304                 2,304
 Income tax expense                     (52,098)              (52,098)
                                      ---------- ---------- ----------
 NET INCOME                          $   83,279          -     83,279
                                      ========== ========== ==========

 BASIC EARNINGS PER SHARE            $     0.58                  0.58
 DILUTED EARNINGS PER SHARE          $     0.58                  0.58

 SHARES OUTSTANDING
 Basic                                  142,585               142,585
 Diluted                                143,347               143,347

DIVIDENDS PER COMMON SHARE           $   0.0575                0.0575


                                             Three months ended
                                               March 31, 2003
                                      --------------------------------
                                                                As
                                                              adjusted
                                                    Less     excluding
                                                     non-       non-
                                          As      recurring  recurring
In thousands, except per share         reported     items      items
 amounts                              ---------- ---------- ----------

 OPERATING REVENUES
 Local service                          177,013               177,013
 Network access                         246,330               246,330
 Long distance                           42,560                42,560
 Data                                    58,136                58,136
 Fiber transport and CLEC                 5,895                 5,895
 Other                                   48,080                48,080
                                      ---------- ---------- ----------
                                        578,014          -    578,014
                                      ---------- ---------- ----------

 OPERATING EXPENSES
 Cost of services and products          177,860               177,860
 Selling, general and administrative     88,616  (4,959)(1)    93,575
 Depreciation and amortization          126,765               126,765
                                      ---------- ---------- ----------
                                        393,241     (4,959)   398,200
                                      ---------- ---------- ----------

 OPERATING INCOME                       184,773      4,959    179,814

 OTHER INCOME (EXPENSE)
 Interest expense                       (55,592)              (55,592)
 Income from unconsolidated cellular
  entity                                  1,569                 1,569
 Other income and expense                  (932)                 (932)
 Income tax expense                     (45,899) (1,736)(2)   (44,163)
                                      ---------- ---------- ----------
 NET INCOME                              83,919      3,223     80,696
                                      ========== ========== ==========

 BASIC EARNINGS PER SHARE                  0.59       0.02       0.56
 DILUTED EARNINGS PER SHARE                0.58       0.02       0.56

 SHARES OUTSTANDING
 Basic                                  142,901               142,901
 Diluted                                143,797               143,797

DIVIDENDS PER COMMON SHARE                0.055                 0.055



                                                            Increase
                                                           (decrease)
                                               Increase     excluding
                                              (decrease)  nonrecurring
 In thousands, except per share amounts       as reported     items
                                             ------------ ------------

 OPERATING REVENUES
 Local service                                       0.6%         0.6%
 Network access                                    (2.2%)       (2.2%)
 Long distance                                       4.8%         4.8%
 Data                                               12.9%        12.9%
 Fiber transport and CLEC                          195.7%       195.7%
 Other                                             (2.2%)       (2.2%)
                                                     2.7%         2.7%

 OPERATING EXPENSES
 Cost of services and products                       2.1%         2.1%
 Selling, general and administrative                14.7%         8.6%
 Depreciation and amortization                       0.2%         0.2%
                                                     4.3%         3.0%

 OPERATING INCOME                                  (0.7%)         2.1%

 OTHER INCOME (EXPENSE)
 Interest expense                                  (5.5%)       (5.5%)
 Income from unconsolidated cellular entity         31.2%        31.2%
 Other income and expense                        (347.2%)     (347.2%)
 Income tax expense                                 13.5%        18.0%

 NET INCOME                                        (0.8%)         3.2%

 BASIC EARNINGS PER SHARE                          (1.7%)         3.6%
 DILUTED EARNINGS PER SHARE                            -%         3.6%

 SHARES OUTSTANDING
 Basic                                             (0.2%)       (0.2%)
 Diluted                                           (0.3%)       (0.3%)

DIVIDENDS PER COMMON SHARE                           4.5%         4.5%


NONRECURRING ITEMS
(1) - Partial recovery of amounts previously written off in connection
      with WorldCom bankruptcy.
(2) - Tax effect of item (1).



                           CenturyTel, Inc.

                      CONSOLIDATED BALANCE SHEETS
                 MARCH 31, 2004 AND DECEMBER 31, 2003
                              (UNAUDITED)

                                                Mar. 31,    Dec. 31,
                                                  2004        2003
                                               ----------- -----------
                                                    (in thousands)
                    ASSETS
CURRENT ASSETS
 Cash and cash equivalents                    $   273,293     203,181
 Other current assets                             239,807     259,758
                                               ----------- -----------
    Total current assets                          513,100     462,939
                                               ----------- -----------

NET PROPERTY, PLANT AND EQUIPMENT
 Property, plant and equipment                  7,227,139   7,184,155
 Accumulated depreciation                      (3,838,323) (3,728,674)
                                               ----------- -----------
    Net property, plant and equipment           3,388,816   3,455,481
                                               ----------- -----------

INVESTMENTS AND OTHER ASSETS
 Goodwill                                       3,426,714   3,425,001
 Other                                            567,875     552,431
                                               ----------- -----------
     Total investments and other assets         3,994,589   3,977,432
                                               ----------- -----------


TOTAL ASSETS                                  $ 7,896,505   7,895,852
                                               =========== ===========


            LIABILITIES AND EQUITY
CURRENT LIABILITIES
 Current maturities of long-term debt         $   172,258      72,453
 Other current liabilities                        438,179     398,930
                                               ----------- -----------
     Total current liabilities                    610,437     471,383

LONG-TERM DEBT                                  3,016,992   3,109,302
DEFERRED CREDITS AND OTHER LIABILITIES            854,432     836,651
STOCKHOLDERS' EQUITY                            3,414,644   3,478,516
                                               ----------- -----------

TOTAL LIABILITIES AND EQUITY                  $ 7,896,505   7,895,852
                                               =========== ===========



                           CenturyTel, Inc.

             RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                              (UNAUDITED)

                                             Three months ended
                                               March 31, 2004
                                      --------------------------------
                                                                As
                                                              adjusted
                                                    Less     excluding
                                                     non-       non-
                                          As      recurring  recurring
In thousands                           reported     items      items
                                      ---------- ---------- ----------
 Consolidated operating cash flow
  and cash flow margin
  Operating income                   $  183,557          -    183,557
  Add:  Depreciation and
   amortization                         126,992               126,992
                                      ---------- ---------- ----------
  Consolidated operating cash flow   $  310,549          -    310,549
                                      ========== ========== ==========

  Revenues                           $  593,704          -    593,704
                                      ========== ========== ==========

  Consolidated operating income margin
   (operating income divided by
   revenues)                               30.9%                 30.9%
                                      ==========            ==========

  Consolidated cash flow margin
   (operating cash flow divided by
   revenues)                               52.3%                 52.3%
                                      ==========            ==========


 Free cash flow (prior to debt
  service requirements and
  dividends)
  Net income                         $   83,279          -     83,279
  Add:  Depreciation and
   amortization                         126,992          -    126,992
  Less:  Capital expenditures           (61,745)         -    (61,745)
                                      ---------- ---------- ----------
  Free cash flow                     $  148,526          -    148,526
                                      ========== ========== ==========

  Free cash flow                     $  148,526
  Income from unconsolidated
   cellular entity                       (2,059)
  Deferred income taxes                  26,673
  Changes in current assets and
   current liabilities                   57,695
  Increase in other noncurrent
   assets                               (11,032)
  Decrease in other noncurrent
   liabilities                           (3,949)
  Retirement benefits                    10,830
  Other, net                             (4,989)
  Add:  Capital expenditures             61,745
                                      ----------
  Net cash provided by operating
   activities                        $  283,440
                                      ==========


                                            Three months ended
                                              March 31, 2003
                                     ---------------------------------
                                                                As
                                                              adjusted
                                                    Less     excluding
                                                     non-       non-
                                          As      recurring  recurring
In thousands                           reported     items      items
                                     ----------- ---------- ----------
 Consolidated operating cash flow and
  cash flow margin
  Operating income                      184,773    4,959(1)   179,814
  Add:  Depreciation and amortization   126,765               126,765
                                     ----------- ---------- ----------
  Consolidated operating cash flow      311,538      4,959    306,579
                                     =========== ========== ==========

  Revenues                              578,014          -    578,014
                                     =========== ========== ==========

  Consolidated operating income
   margin (operating income divided
   by revenues)                            32.0%                 31.1%
                                     ===========            ==========

  Consolidated cash flow margin
   (operating cash flow divided by
   revenues)                               53.9%                 53.0%
                                     ===========            ==========


 Free cash flow (prior to debt
  service requirements and dividends)
  Net income                             83,919    3,223(1)    80,696
  Add:  Depreciation and amortization   126,765          -    126,765
  Less:  Capital expenditures           (59,669)         -    (59,669)
                                     ----------- ---------- ----------
  Free cash flow                        151,015      3,223    147,792
                                     =========== ========== ==========

  Free cash flow                        151,015
  Income from unconsolidated cellular
   entity                                (1,569)
  Deferred income taxes                   9,502
  Changes in current assets and
   current liabilities                  104,810
  Increase in other noncurrent assets    (6,751)
  Decrease in other noncurrent
   liabilities                             (588)
  Retirement benefits                     5,139
  Other, net                             (1,926)
  Add:  Capital expenditures             59,669
                                     -----------
  Net cash provided by operating
   activities                           319,301
                                     ===========

(1) Partial recovery of amounts previously written off in connection
    with WorldCom bankruptcy (presented on both a pre-tax and
    after-tax basis).



                           CenturyTel, Inc.

                   CONSOLIDATED STATEMENTS OF INCOME
         THREE MONTHS ENDED JUNE 30, 2003, SEPTEMBER 30, 2003
                        AND DECEMBER 31, 2003
             RESTATED FOR SINGLE SEGMENT PRESENTATION (a)
                              (UNAUDITED)


                                             Three months ended
                                               June 30, 2003
                                      --------------------------------
                                                                As
                                                              adjusted
                                                    Less     excluding
                                                     non-       non-
                                          As      recurring  recurring
 In thousands, except per share        reported     items      items
  amounts                             ---------- ---------- ----------

 OPERATING REVENUES
 Local service                       $  178,360               178,360
 Network access                         248,220               248,220
 Long distance                           43,201                43,201
 Data                                    60,672                60,672
 Fiber transport and CLEC                 9,036                 9,036
 Other                                   47,240                47,240
                                      ---------- ---------- ----------
                                        586,729          -    586,729
                                      ---------- ---------- ----------

 OPERATING EXPENSES
 Cost of services and products          183,960               183,960
 Selling, general and administrative     89,723                89,723
 Depreciation and amortization          124,665               124,665
                                      ---------- ---------- ----------
                                        398,348          -    398,348
                                      ---------- ---------- ----------

 OPERATING INCOME                       188,381          -    188,381

 OTHER INCOME (EXPENSE)
 Interest expense                       (55,957)              (55,957)
 Income from unconsolidated cellular
  entity                                  1,590                 1,590
 Other income and expense                   974                   974
 Income tax expense                     (47,621)              (47,621)
                                      ---------- ---------- ----------
 NET INCOME                          $   87,367          -     87,367
                                      ========== ========== ==========

 BASIC EARNINGS PER SHARE            $     0.61                  0.61
 DILUTED EARNINGS PER SHARE          $     0.60                  0.60

 SHARES OUTSTANDING
 Basic                                  143,329               143,329
 Diluted                                144,475               144,475

DIVIDENDS PER COMMON SHARE           $    0.055                 0.055




                                             Three months ended
                                             September 30, 2003
                                      --------------------------------
                                                                As
                                                              adjusted
                                                    Less     excluding
                                                     non-       non-
                                          As      recurring  recurring
 In thousands, except per share        reported     items      items
  amounts                             ---------- ---------- ----------

 OPERATING REVENUES
 Local service                          179,136               179,136
 Network access                         252,757               252,757
 Long distance                           45,207                45,207
 Data                                    62,008                62,008
 Fiber transport and CLEC                13,530                13,530
 Other                                   47,626                47,626
                                      ---------- ---------- ----------
                                        600,264          -    600,264
                                      ---------- ---------- ----------

 OPERATING EXPENSES
 Cost of services and products          190,193               190,193
 Selling, general and administrative     94,561                94,561
 Depreciation and amortization          124,729               124,729
                                      ---------- ---------- ----------
                                        409,483          -    409,483
                                      ---------- ---------- ----------

 OPERATING INCOME                       190,781          -    190,781

 OTHER INCOME (EXPENSE)
 Interest expense                       (54,360)              (54,360)
 Income from unconsolidated cellular
  entity                                  1,736                 1,736
 Other income and expense                (1,076)               (1,076)
 Income tax expense                     (46,102)   2,527(1)   (48,629)
                                      ---------- ---------- ----------
 NET INCOME                              90,979      2,527     88,452
                                      ========== ========== ==========

 BASIC EARNINGS PER SHARE                  0.63       0.02       0.61
 DILUTED EARNINGS PER SHARE                0.63       0.02       0.61

 SHARES OUTSTANDING
 Basic                                  143,897               143,897
 Diluted                                145,171               145,171

DIVIDENDS PER COMMON SHARE                0.055                 0.055




                                             Three months ended
                                              December 31, 2003
                                      --------------------------------
                                                                As
                                                              adjusted
                                                    Less     excluding
                                                     non-       non-
                                          As      recurring  recurring
 In thousands, except per share        reported     items      items
  amounts                             ---------- ---------- ----------

 OPERATING REVENUES
 Local service                          178,056               178,056
 Network access                         254,155    1,500(2)   252,655
 Long distance                           42,916                42,916
 Data                                    64,182                64,182
 Fiber transport and CLEC                14,580                14,580
 Other                                   48,714                48,714
                                      ---------- ---------- ----------
                                        602,603      1,500    601,103
                                      ---------- ---------- ----------

 OPERATING EXPENSES
 Cost of services and products          187,197               187,197
 Selling, general and administrative    101,452    7,500(2)    93,952
 Depreciation and amortization          127,493               127,493
                                      ---------- ---------- ----------
                                        416,142      7,500    408,642
                                      ---------- ---------- ----------

 OPERATING INCOME                       186,461     (6,000)   192,461

 OTHER INCOME (EXPENSE)
 Interest expense                       (60,842) (7,500)(2)   (53,342)
 Income from unconsolidated cellular
  entity                                  1,265                 1,265
 Other income and expense                 3,188    3,000(3)       188
 Income tax expense                     (47,630)   3,675(4)   (51,305)
                                      ---------- ---------- ----------
 NET INCOME                              82,442     (6,825)    89,267
                                      ========== ========== ==========

 BASIC EARNINGS PER SHARE                  0.57      (0.05)      0.62
 DILUTED EARNINGS PER SHARE                0.57      (0.05)      0.61

 SHARES OUTSTANDING
 Basic                                  144,204               144,204
 Diluted                                145,354               145,354

DIVIDENDS PER COMMON SHARE                0.055                 0.055



(a) Results of operations for 2003 have been restated to conform to
    the Company's 2004 presentation of a single reportable segment. In
    connection with this restatement, the Company has, among other
    things, (i) eliminated certain 2003 revenues arising out of
    previously-reported intersegment transactions (which reduced
    operating expenses by a like amount and therefore had no impact on
    operating income), and (ii) reclassified depreciation expense
    related to certain service subsidiaries of the Company to
    depreciation expense from operating expenses. Previously with
    multiple segment presentation, such costs were allocated to the
    Company's regulated telephone operations as an operating expense.

NONRECURRING ITEMS
(1) - Net out of period income tax adjustments.
(2) - Operating taxes, including related revenue effect, and interest
      associated with various operating tax audits.
(3) - Reversal of costs previously accrued to defend unsolicited
      takeover proposal.
(4) - Tax effect of items (2) and (3).



                           CenturyTel, Inc.

                   CONSOLIDATED STATEMENTS OF INCOME
                 TWELVE MONTHS ENDED DECEMBER 31, 2003
             RESTATED FOR SINGLE SEGMENT PRESENTATION (a)
                              (UNAUDITED)


                                            Twelve months ended
                                             December 31, 2003
                                      --------------------------------
                                                                As
                                                              adjusted
                                                    Less     excluding
                                                     non-       non-
                                          As      recurring  recurring
 In thousands, except per share        reported     items      items
  amounts                             ---------- ---------- ----------

 OPERATING REVENUES
 Local service                          712,565          -    712,565
 Network access                       1,001,462    1,500(2)   999,962
 Long distance                          173,884          -    173,884
 Data                                   244,998          -    244,998
 Fiber transport and CLEC                43,041          -     43,041
 Other                                  191,660          -    191,660
                                      ---------- ---------- ----------
                                      2,367,610      1,500  2,366,110
                                      ---------- ---------- ----------

 OPERATING EXPENSES
 Cost of services and products          739,210          -    739,210
 Selling, general and administrative    374,352    2,541(1)   371,811
 Depreciation and amortization          503,652          -    503,652
                                      ---------- ---------- ----------
                                      1,617,214      2,541  1,614,673
                                      ---------- ---------- ----------

 OPERATING INCOME                       750,396     (1,041)   751,437

 OTHER INCOME (EXPENSE)
 Interest expense                      (226,751) (7,500)(2)  (219,251)
 Income from unconsolidated cellular
  entity                                  6,160          -      6,160
 Other income and expense                 2,154    3,000(3)      (846)
 Income tax expense                    (187,252)   4,466(4)  (191,718)
                                      ---------- ---------- ----------
 NET INCOME                             344,707     (1,075)   345,782
                                      ========== ========== ==========

 BASIC EARNINGS PER SHARE                  2.40      (0.01)      2.41
 DILUTED EARNINGS PER SHARE                2.38      (0.01)      2.39

 SHARES OUTSTANDING
 Basic                                  143,583               143,583
 Diluted                                144,700               144,700

DIVIDENDS PER COMMON SHARE                 0.22                  0.22



(a) Results of operations for 2003 have been restated to conform to
    the Company's 2004 presentation of a single reportable segment. In
    connection with this restatement, the Company has, among other
    things, (i) eliminated certain 2003 revenues arising out of
    previously-reported intersegment transactions (which reduced
    operating expenses by a like amount and therefore had no impact on
    operating income), and (ii) reclassified depreciation expense
    related to certain service subsidiaries of the Company to
    depreciation expense from operating expenses. Previously with
    multiple segment presentation, such costs were allocated to the
    Company's regulated telephone operations as an operating expense.

NONRECURRING ITEMS
(1) - Includes operating taxes associated with various audits ($7.5
      million), net of partial recovery of amounts previously written
      off in connection with WorldCom bankruptcy ($5.0 million).
(2) - Includes interest cost ($7.5 million) associated with various
      operating tax audits and revenue effect of operating taxes in
      (1) above ($1.5 million).
(3) - Reversal of costs previously accrued to defend unsolicited
      takeover proposal.
(4) - Net out of period income tax adjustments ($2.5 million credit),
      net of tax effect of items (1) through (3).
MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=4628461
    CONTACT: CenturyTel Inc.
, Monroe
             Media: Patricia Cameron, 318-388-9674
             patricia.cameron@centurytel.com
             or
             Investors: Tony Davis, 318-388-9525
             tony.davis@centurytel.com
             www.centurytel.com

    SOURCE: CenturyTel, Inc.