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BELLSOUTH REPORTS SECOND QUARTER EARNINGS

    ATLANTA, July 22 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS) reported 1993 second quarter net income of $377.7 million, or 76 cents per share, compared with $458.5 million, or 94 cents per share, in the second quarter of 1992.
    Second quarter results in 1993 included a previously announced extraordinary charge of $55.4 million, or 11 cents per share, related to the refinancing of more than $1.3 billion of debt during the quarter. Earnings in the same period of the prior year included a one-time gain of $32.9 million, or 7 cents per share, related to a regulatory settlement.
    The refinancings will save nearly $500 million in interest expense over the lives of the new debt issues.  Excluding the effect of the refinancings, earnings per share in the second quarter of 1993 were 87 cents, equal to 87 cents in the same quarter of 1992 without the one- time gain of 7 cents per share.
    Revenues for the three months ended June 30 were $3.91 billion, compared with $3.82 billion in the same quarter a year ago.  Continuing growth in access lines, long distance access minutes and cellular customers worldwide contributed to revenue growth.  Revenues increased 2.4 percent in the second quarter of 1993.  The same quarter a year ago included $52.7 million in revenue related to the one-time regulatory settlement.  Adjusted for that, revenues were up 3.8 percent in the second quarter of 1993.  Operating expenses increased 3.7 percent.
   "Customer growth in both our domestic and international cellular businesses remains very strong," said John L. Clendenin, chairman and chief executive officer, "and continued healthy growth in our telephone operations kept us in the lead in the number of U.S. access lines we have serving customers."
    U.S. cellular customers increased to 1,290,624, up 38 percent from June 30, 1992.  In BellSouth's eight overseas cellular markets, customers nearly tripled from a year ago, to 116,074 at the end of the second quarter of 1993.
    Telephone access lines serving BellSouth customers increased to 18,985,600 in the second quarter of 1993, an annual gain of 3.4 percent. Growth in total long distance access minutes picked up the pace of a year earlier, increasing 6.6 percent.  In the second quarter of 1992 access minutes grew 5.4 percent.
    The effect of BellSouth's continuing development of new businesses was in line with its expectations in the second quarter.  Among the start-up operations serving new growth markets are the company's partnerships in RAM Mobile Data and Optus Communications.
    RAM's networks link people and businesses in the fast-growing field of mobile computing.  In June, RAM completed a critical phase of construction, and its U.S. network now covers some 6,000 cities -- more than 90 percent of the urban business population.  Optus recently completed a successful first year of marketing competitive telecommunications services in Australia, including long distance and cellular.
    BellSouth is an international telecommunications holding company. Its subsidiaries offer local telephone service in nine southeastern states and mobile communications services worldwide, provide advertising and publishing services, and market and maintain stand-alone and fully integrated communications systems.
                      BELLSOUTH CORPORATION
                 Consolidated Statements of Income
                          (Unaudited)
              (In millions, except per share amounts)
       3 mos. ended                         6/30/93       6/30/92
    Operating revenues:
      Network and related services
        Local service                      $   1,624.6   $   1,559.1
        Interstate access                        718.5         722.0
        Intrastate access                        217.7         212.1
        Toll                                     300.0         301.1
      Directory advertising and publishing       394.4         367.9
      Wireless communications                    379.0         288.2
      Other services                             272.7         366.4
        Total operating revenues               3,906.9       3,816.8
    Operating expenses:
      Cost of services and products            1,467.5       1,451.8
      Depreciation                               755.8         754.1
      Selling, general and administrative        827.2         736.5
        Total operating expenses               3,050.5       2,942.4
    Operating income                             856.4         874.4
    Interest expense                             180.8         194.0
    Other income, net                             16.8          42.2
    Income before income taxes
     and extraordinary loss                      692.4         722.6
    Provision for income taxes                   259.3         264.1
    Income before extraord. loss                 433.1         458.5
    Extraord. loss on early extinguishment
     of debt, net of tax                         (55.4)          ---
    Net income                             $     377.7   $     458.5
    Weighted average common shares outst.        496.1         490.3
    Dividends declared per common share    $       .69   $       .69
       Earnings per share:
    Income before extraordinary loss       $       .87   $       .94
    Extraordinary loss on early extinguishment
     of debt, net of tax                          (.11)          ---
    Net income                             $       .76   $       .94
       6 mos. ended                         6/30/93       6/30/92
    Operating revenues:
      Network and related services
        Local service                      $   3,243.0   $   3,061.9
        Interstate access                      1,467.9       1,454.8
        Intrastate access                        433.2         439.3
        Toll                                     605.1         637.6
      Directory advertising and publishing       724.3         699.3
      Wireless communications                    731.6         550.6
      Other services                             535.5         712.0
        Total operating revenues               7,740.6       7,555.5
    Operating expenses:
      Cost of services and products            2,958.3       2,866.7
      Depreciation                             1,507.5       1,491.6
      Selling, general and administrative      1,614.3       1,491.2
        Total operating expenses               6,080.1       5,849.5
    Operating income                           1,660.5       1,706.0
    Interest expense                             360.8         392.4
    Other income, net                             25.7         129.7
    Income before income taxes
     and extraordinary loss                    1,325.4       1,443.3
    Provision for income taxes                   481.1         523.9
    Income before extraord. loss                 844.3         919.4
    Extraord. loss on early extinguishment
     of debt, net of tax                         (55.4)          ---
    Net income                             $     788.9   $     919.4
    Weighted average common shares outst.        495.8         489.1
    Dividends declared per common share    $      1.38   $      1.38
       Earnings per share:
    Income before extraordinary loss       $      1.70   $      1.88
    Extraordinary loss on early extinguishment
     of debt, net of tax                          (.11)          ---
    Net income                             $      1.59   $      1.88
                        BELLSOUTH CORPORATION
                      CONSOLIDATED BALANCE SHEETS
                            (in millions)
                                             6/30/93       12/31/92
                                           (Unaudited)
       ASSETS:
    Current assets:
      Cash and cash equivalents              $   595.0     $   265.5
      Temporary cash investments                  55.8          80.6
      Accounts receivable, net of allowance
       for uncollectibles of $141.3
       and $123.0                              2,774.0       2,692.5
      Material and supplies                      403.1         430.6
      Other current assets                       214.4         201.8
      Total                                    4,042.3       3,671.0
    Investments and advances                   2,099.3       1,087.1
    Property, plant and equipment:
      Telephone plant and other equipment     41,018.2      39,800.9
      Less:  accumulated depreciation         16,574.3      15,528.3
      Total                                   24,443.9      24,272.6
    Deferred charges and other assets            681.8         630.2
    Intangible assets                          1,369.7       1,801.8
    Total assets                             $32,637.0     $31,462.7
       LIABILITIES AND SHAREHOLDERS' EQUITY:
    Current liabilities:
     Debt maturing within one year:
      Debentures redeemed in July 1993       $   435.0     $     ---
      Other                                    1,883.7       1,634.6
      Accounts payable                           859.0       1,077.2
      Other current liabilities                2,191.8       2,310.4
      Total                                    5,369.5       5,022.2
    Long-term debt:
      Debentures                               4,802.7       6,263.0
      Other long-term debt                     2,562.7       1,096.7
      Total                                    7,365.4       7,359.7
    Deferred credits and other liabilities:
      Accumulated deferred income taxes        3,672.0       3,715.8
      Unamortized investment tax credits         562.2         604.3
      Other liabilities and deferred credits   1,631.3         962.1
      Total                                    5,865.5       5,282.2
    Shareholders' equity:
      Common stock, $1 par value                 500.6         493.8
      Paid-in capital                          7,954.8       7,609.6
      Retained earnings                        6,506.1       6,395.4
      Shares held in trust                      (253.1)          ---
      Guarantee of ESOP debt                    (671.8)       (700.2)
      Total                                   14,036.6      13,798.6
        Total liabilities and shareholders'
         equity                              $32,637.0     $31,462.7
                        Preliminary (Unaudited)
                    BELLSOUTH FINANCIAL HIGHLIGHTS
                           Selected Data
       3 mos. ended                        6/30/93       6/30/92
    Return to equity                          10.5 pct.     13.5 pct.
    Return to average total capital            8.9 pct.     10.7 pct.
    Weighted average common shares
     and equivalent shares
     outstanding (millions)                  496.1         490.3
    Earnings per share                    $    .76      $    .94
    Dividend per share                    $    .69      $    .69
    Property additions (millions)         $  907.0      $  697.5
        At June 30                            1993          1992
    Common shares outstanding (millions)     495.8         490.4
    Debt ratio                                39.2 pct.(a)  40.0 pct.
    Total employees                         97,823        97,013
    (a) Adjusted for debentures redeemed in July 1993 associated with refinancing activity
                       Preliminary (Unaudited)
                    BELLSOUTH FINANCIAL HIGHLIGHTS
                            Selected Data
       6 mos. ended                          6/30/93       6/30/92
    Return to equity                           11.1 pct.     13.7 pct.
    Return to average total capital             9.1 pct.     10.8 pct.
    Weighted average common shares
     and equivalent shares
     outstanding (millions)                    495.8         489.1
    Earnings per share                      $   1.59      $   1.88
    Dividend per share                      $   1.38      $   1.38
    Property additions (millions)           $1,702.2      $1,319.2
                  BELLSOUTH TELECOMMUNICATIONS, INC.
      Consolidated Statements of Income and Retained Earnings
                            (Unaudited)
                           (In millions)
       3 mos. ended                         6/30/93       6/30/92
    Operating revenues:
      Local service                        $   1,624.6   $   1,559.1
      Interstate access                          718.5         722.0
      Intrastate access                          217.7         212.1
      Toll                                       300.0         301.1
      Other                                      460.2         516.0
       Total operating revenues                3,321.0       3,310.3
    Operating expenses:
      Cost of services and products            1,283.6       1,231.9
      Depreciation                               708.6         710.2
      Selling, general and administrative        559.8         552.4
       Total operating expenses                2,552.0       2,494.5
    Operating income                             769.0         815.8
    Interest expense                             149.4         152.6
    Other income (expense), net                    6.4           8.7
    Income before income taxes and
     extraordinary loss                          626.0         671.9
    Provision for income taxes                   215.7         230.0
    Income before extraordinary loss             410.3         441.9
    Extraordinary loss on early extinguishment
     of debt net of tax                          (55.4)          ---
    Net income                             $     354.9   $     441.9
    Retained earnings:
      At beginning of period               $   3,970.6   $   4,076.6
      Add:  net income                           354.9         441.9
      Deduct:  dividends declared                407.0         506.5
      Deduct:  other adjustments                   ---           3.7
      At end of period                     $   3,918.5   $   4,008.3
       6 mos. ended                         6/30/93       6/30/92
    Operating revenues:
      Local service                        $   3,243.0   $   3,061.9
      Interstate access                        1,467.9       1,454.8
      Intrastate access                          433.2         439.3
      Toll                                       605.1         637.6
      Other                                      908.8         985.3
       Total operating revenues                6,658.0       6,578.9
    Operating expenses:
      Cost of services and products            2,623.0       2,439.2
      Depreciation                             1,414.7       1,403.2
      Selling, general and administrative      1,110.8       1,119.9
       Total operating expenses                5,148.5       4,962.3
    Operating income                           1,509.5       1,616.6
    Interest expense                             296.9         304.0
    Other income (expense), net                    3.6          66.8
    Income before income taxes and
     extraordinary loss                        1,216.2       1,379.4
    Provision for income taxes                   418.0         470.0
    Income before extraordinary loss             798.2         909.4
    Extraordinary loss on early extinguishment
     of debt net of tax                          (55.4)          ---
    Net income                             $     742.8   $     909.4
    Retained earnings:
      At beginning of period               $   3,967.0   $   3,983.5
      Add:  net income                           742.8         909.4
      Deduct:  dividends declared                791.3         880.9
      Deduct:  other adjustments                   ---           3.7
      At end of period                     $   3,918.5   $   4,008.3
                      Preliminary (Unaudited)
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Date:Jul 22, 1993
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