CINCINNATI BELL REVENUE UP 16% IN 2Q THANKS TO WIRELESS/DATA.

Cincinnati Bell Inc. (NYSE:CSN) has reported that its rapidly expanding wireless and data services businesses helped generate a 16 percent revenue gain for the second quarter, while tough expense controls pushed earnings up 76 percent.

After-tax earnings from continuing operations grew 76 percent to $28.3 million, or 20 cents per share, compared with $16.1 million, or 12 cents per share in the second quarter last year. Cincinnati Bell's core local telecommunications business led the earnings improvement with a sharp 9.6-point gain in operating margin.

Results for both years exclude those of Convergys Corporation, which Cincinnati Bell spun off to its shareholders at the end of 1998.

"Our second-quarter results are further evidence of the substantial financial, operational and management strength we have created at Cincinnati Bell," president and CEO Rick Ellenberger said. "I'm more confident than ever that we can leverage those strengths to thousands of new customers with IXC, while maintaining our excellent record for superior service quality and innovation here at home."

Second-quarter revenue growth of $34.1 million came largely from sales of wireless services, from growth in broadband, Internet and value added services, and from growing systems integration and communications equipment sales.

Cincinnati Bell's second-quarter revenues from broadband and other high-speed services increased 22 percent. Revenues from sales of value-added voice services, such as Caller ID and Cincinnati Bell's new all-in-one Complete Connections bundle, increased 28 percent over the second quarter of 1998. Since March, Cincinnati Bell has sold 49,794 units of its new Complete Connections package, representing 7.9 percent of its residential customer base.

Access lines in service increased 2.6 percent from the second quarter of 1998, which includes a 4.2 percent increase in business lines. Minutes of use for switched access services increased 6.3 percent.

Operating expenses excluding wireless decreased 4 percent from the year-earlier quarter, including an 8 percent reduction at Cincinnati Bell Telephone. More than half of the reduction came from lower costs for Year-2000 compliance and completion of mandated changes to foster local-market competition.

Cincinnati Bell's wireless business continued to excel in subscriber and revenue growth. Average monthly revenues per subscriber jumped to $77 in the second quarter from $67 in the first quarter, as the subscriber base grew 26 percent during the quarter to 88,800, representing 4.4 percent penetration of covered POPs.

In August, Cincinnati Bell Wireless celebrated its first anniversary as a leading provider of advanced PCS services in the Cincinnati and Dayton markets with special promotions and events,

Cincinnati Bell said that operating income of its directory business increased 6 percent on a 1 percent increase in revenues. Operating income from its other communications businesses including EnterpriseWise, CBLD and Cincinnati Bell Supply, declined 61 percent on a 23 percent revenue increase, largely due to startup costs for new initiatives at CBLD and EnterpriseWise.

About Cincinnati Bell

Cincinnati Bell is a integrated communications provider of local, long distance, wireless, data, Internet, directory services, and related communications equipment, to customers in the Midwest.

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