CINCINNATI BELL REPORTS 4Q EARNINGS UP 31% EXCLUDING WIRELESS.

Cincinnati Bell Inc. (NYSE:CSN) has announced strong earnings growth, with fourth-quarter earnings from continuing operations increasing 31 percent on a normalized basis to $0.21 per share. For the full year, normalized earnings from continuing operations increased 13 percent to $0.72 per share.

Quarterly and annual results from continuing operations are normalized to exclude non-recurring and extraordinary items and the dilutive effect of Cincinnati Bell's new, rapidly growing wireless business. Additionally, on December 31, 1998, Cincinnati Bell spun off to shareholders its 90 percent interest in Convergys Corp.

Rick Ellenberger, chief operating officer, said "1998 was a year of tremendous operating and financial accomplishments, ending with the "new" Cincinnati Bell as an exciting growth company in the rapidly expanding communications marketplace. I'm particularly pleased with the rapid growth of our data services, our progress in marketing value-added services, and our ability to aggressively manage costs through the fourth quarter."

Fourth-quarter revenues increased 5 percent to $226.5 million. Revenues increased 6 percent for the year to $885.1 million. Revenues in Cincinnati Bell's local-exchange business, Cincinnati Bell Telephone (CBT), were up 6 percent for the quarter and 7 percent for the year.

On a reported basis, Cincinnati Bell earned $0.26 per share (diluted) in the fourth quarter of 1998 compared to a loss of $1.30 per share a year ago. It earned $1.08 per share in 1998, compared with a 1997 loss of $0.12 per share. 1997 results include a fourth-quarter charge of $1.52 per share for the discontinuance of regulatory accounting (SFAS 71).

Fourth-Quarter Operating Highlights

Wireless - CBI consummated its venture with AT&T by purchasing its 80 percent interest in the wireless business serving Cincinnati and Dayton. In 1998, Cincinnati Bell Wireless signed up nearly 3 percent of the population covered by its new PCS network.

DSL - CBT initiated one of the nation's most aggressive deployments of DSL (Digital Subscriber Line) technology, which offers high-speed data and Internet connections over regular copper access lines. About half of CBT's 1 million lines are DSL-ready, and about 3,000 subscriptions were sold in the quarter.

ZoomTown - the nation's first DSL-enhanced interactive community was launched and became an attractive showcase for advertisers, content providers and E-commerce vendors.

Data Services - CBI integrated its purchase of Indianapolis-based KSM Consulting, a network solutions provider specializing in Microsoft applications and an authorized reseller of Cisco Systems and Compaq solutions.

Data Transport - CBI's integrated communications provider, CBLD, launched a frame relay offering in six Midwest cities.

Internet Services - CBLD entered into a strategic relationship with PSINet to provide CBLD-brand high speed and dial-up Internet access to its customers outside of Cincinnati. Fuse, CBT's local Internet access service, increased its subscriber base by 82 percent in 1998.

Cincinnati Bell Telephone

Cincinnati Bell Telephone had another excellent quarter and year. Exploding customer demand for high-bandwidth services, and CBT's expanded management and integration support for this market, led to 31 percent growth in revenues from data and other high-bandwidth services in the fourth quarter and 35 percent growth for the year. Aggressive marketing of value-added local exchange services, such as Caller ID, voice messaging, and Internet Call Manager, grew revenues from those services 28 percent in the fourth quarter and 29 percent in 1998.

Total access-line volume growth, including voice-grade equivalents such as unswitched high-bandwidth transport services (DS1 and DS3 circuits), increased 11.2 percent for the year. Switched access-line growth was 2.8 percent for the year, including a 4.3 percent gain in business lines.

Other Communications Services

Revenues for Cincinnati Bell's other communications services businesses were essentially flat for the fourth quarter and the year. 1998 revenue growth was affected by increased competition in its directory business, and by realignment of its telecom remarketing business.

1999 Outlook

Ellenberger commented that the outlook for Cincinnati Bell in 1999 is very positive. "Cincinnati Bell is a company on the move, tightly focused on the communications needs of its customers and successfully introducing new technology solutions while improving its operating efficiency." The following table reconciles reported earnings per share to normalized earnings per share, and includes the following:

- a fourth-quarter 1998 extraordinary charge of $1 million net of tax for debt retirement, and a $1.1 million special credit to reverse a restructuring liability.

- a fourth-quarter 1997 extraordinary non-cash charge of $210 million ($1.52 per share) for discontinuance of SFAS 71, and 1997 pension settlement gains of $21 million ($0.10 per share).

About Cincinnati Bell

Cincinnati Bell is a full-service provider of local, long distance, wireless, data, Internet and directory services, and related communications equipment, to customers in the Midwest. Cincinnati Bell's World Wide Web address is www.cinbellinc.com.