Atlantic Tele-Network, Inc. Awarded Interim Rate Increase in Guyana for Approximately $18 Million in Additional Annual Revenues.

ST. THOMAS, U.S. Virgin Islands--(BUSINESS WIRE)--Jan. 29, 1998-- Atlantic Tele-Network, Inc. (AMEX: ANK) announced today that its subsidiary, the Guyana Telephone and Telegraph Company, Ltd. ("GT&T") has been awarded an interim increase effective February 1, 1998, in GT&T's rates for local, domestic long distance, and outbound international telecommunications services. The rate increase, which was awarded today by the Guyana Public Utilities Commission, is designed to generate the equivalent of approximately $18 million in additional annual revenues for GT&T. The interim rates are intended to remain in effect while the Commission holds hearings and reaches a decision on an application filed December 31,1997 by GT&T seeking rates designed to generate the equivalent of approximately $26 million in additional revenues.

The interim rates awarded by the Commission represent a substantial increase and rationalization of GT&T's rates for local, domestic long distance and outbound international services. Previously, GT&T's basic rates for residential and business service were the equivalent of approximately $0.25 and $0.60 per month, respectively. The new interim basic rates are the equivalent of approximately $3.50 and $14.00 per month, respectively, and a number of new or increased usage-based rates have also been authorized, so that GT&T's annual revenues from local and domestic long distance services are expected to grow from approximately $1.7 million to approximately $12.9 million. The rate increase is also expected to grow GT&T's annual revenues from outbound international calls from approximately $17 million to approximately $23.8 million.

Cornelius B. Prior, Jr., Chief Executive Officer of ATN and chairman of GT&T stated, "The new interim rates, and the constructive discussions we have had with the Public Utilities Commission's staff, represent a major breakthrough for GT&T in its relations with its regulators. We continue to believe that GT&T is legally entitled to the remaining part of the full rate increase we are seeking. We hope to further convince the PUC of the correctness of our position in the hearings to be held on our rate application in the coming months. I am optimistic that, at the conclusion of these hearings, GT&T will obtain permanent rates which will not only permit it to earn a reasonable rate of return on its investment but will also provide GT&T with a sound financial base to accelerate the expansion of its facilities in Guyana."

Atlantic Tele-Network, Inc. is a telecommunications company with headquarters in St. Thomas in the U.S. Virgin Islands. ATN has 4.9 million shares outstanding. Its sole subsidiary, GT&T, is the national telephone service provider in the Republic of Guyana for local, domestic long distance and international service. GT&T's pending application for a rate increase is based on a 1991 agreement between ATN and the Guyana government under which GT&T is guaranteed rates sufficient to enable it to earn at least 15% per annum on its rate base. GT&T's rate base was approximately $121 million as of December 31, 1997.

The information in this press release regarding the revenues expected to result from the interim rate increase and regarding the expected outcome of the pending rate proceedings before the Guyana Public Utilities Commission constitute forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ from such statements. These risks include, without limitation, the outcome of GT&T's rate application, unforeseen fluctuations in the demand for GT&T's locally billed services, fluctuations in the value of Guyana's currency, and other risks detailed in ATN's Securities and Exchange Commission filings. ATN undertakes no obligation to release publicly the result of any revisions to these forward- looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

CONTACT: Company Contact:

Cornelius B. Prior, Jr., President & CEO 

Tel: [phone]

Fax: [phone]

or

Financial Relations Contact:

Terence Leong

Walker Street Associates

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Fax: [phone]