October 22, 2002

West Corporation Reports Third Quarter Results

OMAHA, Neb., Oct. 22 /PRNewswire-FirstCall/ -- West Corporation (Nasdaq: WSTC or "West"), a leading provider of integrated customer contact solutions focused on helping Fortune 1000 companies acquire, manage, retain and grow their customer relationships, today announced results for the third quarter ended September 30, 2002.

    Financial Summary (unaudited)
    (In thousands, except per share amounts and percentages)

                         Three Months Ended            Nine Months Ended
                               Sep 30                        Sep 30
                      2002      2001     Percent    2002     2001     Percent
                                          Change                       Change
    Revenue        $199,354  $180,968     10.2%  $604,978  $577,015      4.8%
    Operating
     Income          20,931    25,519    -18.0%    86,917    89,839     -3.3%
    Net Income       13,607    14,741     -7.7%    56,484    56,063      0.8%
    Earnings per
     share (basic)     0.21      0.23                0.86      0.86
    Earnings per
     diluted share     0.20      0.22                0.83      0.82

"Our results this quarter were impacted by increased costs related to bad debt and some of our clients changing their plans resulting in reduced call volume," commented Thomas B. Barker, President and Chief Executive Officer. "We believe the fourth quarter and 2003 will lead to continued profitable growth for West."

Third Quarter Operating Results

For the quarter ended September 30, 2002, revenues increased 10.2% to $199.4 million compared to $181.0 million in the third quarter 2001. Operating income for the third quarter was $20.9 million, a decrease of 18.0% compared to $25.5 million in the same period last year. EBITDA (earnings before interest, taxes, depreciation and amortization) for third quarter 2002 increased 4.6% to $37.4 million from $35.8 million in the comparable period in 2001. Net income for the quarter stood at $13.6 million versus $14.7 million in third quarter 2001, a decline of 7.7%. Diluted earnings per share for the third quarter 2002 were 20 cents, versus 22 cents during the same period in 2001.

"During the quarter, we acquired Attention LLC, a leading accounts receivable management company," stated Barker. "We were attracted to the firm because of its experienced management team, premium brand clients and reputation for delivering outstanding results, and so far the firm has met our high expectations. The acquisition of Attention LLC has added 566 workstations to bring our total capacity to 13,827 workstations."

Nine-Month Operating Results

For the nine-months ended September 30 2002, revenues were $605.0 million, an increase of 4.8% compared to $577.0 million for the same period in 2001. Operating income decreased slightly, by 3.3%, to $86.9 million in the first nine months of 2002 compared to $89.8 million last year. Net income was $56.5 million up slightly from $56.1 million in the nine month 2001 period. For the same period, EBITDA increased by 6.5% to $133.3 million from $125.2 million.

Margins

Operating margins for the third quarter 2002 were 10.5%, compared to 14.1% in the same period last year. For the nine months ended September 30, 2002, operating margins were 14.4%, compared to 15.6% in the same period last year.

Balance Sheet

At the end of the third quarter, the company had cash and short-term investments totaling $115.6 million. On September 30, 2002, the company had no outstanding borrowings under its lines of credit and maintained a healthy current ratio of 4.1 to 1. During the third quarter of 2002 the company invested $14.2 million in capital expenditures, primarily related to the addition of IVR ports and construction of a network operations center.

Conference Call

The company will hold a conference call to discuss earnings on October 23rd at 10:00 AM Central Time. Investors may access the call by visiting the Investor Relations section of the West Corporation website at www.west.com and clicking on the Live Webcast icon. If you are unable to participate during the live webcast, a replay of the call will also be available on the website.

About West Corporation

West Corporation is a leading provider of integrated customer contact solutions focused on helping Fortune 1000 companies acquire, manage, retain and grow their customer relationships.

West's customized solutions include large volume agent based transaction processing, interactive voice response, Web-enabled customer contact solutions and business-to-business marketing services. The company's operational strength and proprietary technology enables it to develop long-term partnerships with its clients and drive greater value from each customer interaction.

Founded in 1986 and headquartered in Omaha, Nebraska, West has a team of approximately 24,000 employees, occupying thirty-eight state-of-the-art contact centers and eight interactive automated voice and data processing centers across North America and India.

For more information, please visit www.west.com .

Statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. Such risks and uncertainties include, but are not limited to: planned expansion of operating facilities; labor market conditions; mergers, acquisitions, or joint ventures, including their execution; customer concentrations; technological innovation; and general economic conditions. Further information regarding the factors that could cause actual results to differ from expected or projected results can be found in documents filed by the Company with the United States Securities and Exchange Commission (the "SEC").

                            WEST CORPORATION
                   CONDENSED STATEMENTS OF OPERATIONS
    (Unaudited, in thousands except per share and selected operating
                                  data)

                                              Three Months Ended
                                                 September 30,            %
                                               2002         2001       Change
    Revenue                                  $199,354     $180,968      10.2%
    Cost of services                           98,103       93,713       4.7%
    Selling, general and administrative
     expenses                                  80,320       61,736      30.1%
    Operating income                           20,931       25,519     -18.0%
    Other income (expense), net                   406       (2,063)    119.7%
    Income before tax                          21,337       23,456      -9.0%
    Income tax expense                          7,682        8,691     -11.6%
    Minority Interest                              48           24     100.0%
    Net income                                $13,607      $14,741      -7.7%

    Earnings per share:
      Basic                                     $0.21        $0.23
      Diluted                                   $0.20        $0.22
    Weighted average common shares
     outstanding:
      Basic                                    65,725       64,956
      Diluted                                  67,561       67,844
    SELECTED OPERATING DATA:
    Operating margin                            10.5%        14.1%
    Number of workstations (end of
     period)                                   13,827       11,221
    Number of ports (end of period)           143,600       78,277


                            WEST CORPORATION
                   CONDENSED STATEMENTS OF OPERATIONS
    (Unaudited, in thousands except per share and selected operating
                                  data)

                                               Nine Months Ended
                                                 September 30,            %
                                               2002         2001       Change
    Revenue                                  $604,978     $577,015       4.8%
    Cost of services                          293,210      295,178      -0.7%
    Selling, general and administrative
     expenses                                 224,851      191,998      17.1%
    Operating income                           86,917       89,839      -3.3%
    Other income (expense), net                 1,548         (415)    473.0%
    Income before tax                          88,465       89,424      -1.1%
    Income tax expense                         31,778       33,055      -3.9%
    Minority Interest                             203          306     -33.7%
    Net income                                $56,484      $56,063       0.8%

    Earnings per share:
      Basic                                     $0.86        $0.86
      Diluted                                   $0.83        $0.82
    Weighted average common shares
     outstanding:
      Basic                                    65,685       64,876
      Diluted                                  68,313       68,139
    SELECTED OPERATING DATA:
    Operating margin                            14.4%        15.6%
    Number of workstations (end of
     period)                                   13,827       11,221
    Number of ports (end of period)           143,600       78,277


                                          September 30, December 31,     %
                                               2002         2001       Change
    Current assets:
       Cash and short-term investments       $115,546     $151,520     -23.7%
       Trade accounts receivable, net         114,406      131,316     -12.9%
       Other current assets                    59,387       45,936      29.3%
         Total current assets                 289,339      328,772     -12.0%
    Net property and equipment                217,315      202,671       7.2%
    Goodwill                                  111,291       41,942     165.3%
    Other assets                               44,014       18,050     143.8%
         Total assets                        $661,959     $591,435      11.9%
    Current liabilities                       $69,812      $93,592     -25.4%
    Other liabilities & minority interest      38,847       29,684      30.9%
    Stockholders' equity                      553,300      468,159      18.2%
       Total liabilities and stockholders
        equity                               $661,959     $591,435      11.9%



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