CTC Communications announces third quarter results.

WALTHAM, Mass.--(BUSINESS WIRE)--Jan. 16, 1997-- CTC Communications Corp. (NASDAQ:CPTL), formerly Computer Telephone Corp. today reported net income of $1,159,000, or $0.11 per share, on revenues of $10,194,000 for the third quarter ended Dec. 31, 1996, as compared to net income of $1,175,000, or $0.11 per share, on revenues of $8,150,000, for the comparable period of the previous fiscal year.

Robert Fabbricatore, chairman and chief executive officer of CTC Communications Corp. stated that the record revenues were the results of the continued expansion of the company's customer base through the ongoing development of the existing branches, as well as growth in the branches added during the second fiscal quarter. He further stated that additional penetration has been made into the existing customer base through the marketing of local, long distance, and Internet access product lines. He went on to say that the company will continue to expand its revenue base, as well as further invest in the infrastructure of the organization, in anticipation of the multiple opportunities that will develop as a result of the Telecom Act of 1996.

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                                     Three Months Ended
                                 Dec. 31, 1996    Dec. 31, 1995

Network service commission income  $7,265,608      $6,826,572
Resale product usage income         2,928,179       1,323,601
  Total revenue                    10,193,787       8,150,173
  Net income                        1,159,000       1,175,000
Earnings per share                       0.11            0.11
Weighted shares outstanding        10,705,803      10,672,928

                                     Nine Months Ended
                                 Dec. 31, 1996    Dec. 31, 1995

Network service commission income $20,841,298     $19,268,327
Resale product usage income         7,977,017       3,668,316
  Total revenue                    28,818,315      22,936,643
  Net income                        3,402,014       2,812,750
Earnings per share                       0.31            0.27
Weighted shares outstanding        10,851,605      10,529,669

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Earnings per share and weighted shares outstanding for the periods indicated above reflect the 2-for-1 stock split declared on Oct. 10, 1995.

CTC Communications Corp. is principally engaged in the marketing of network services including discounted telephone calling plan, 800 service, Centrex and Data Networks, and performs other account management services, as an authorized agent for NYNEX New England, Southern New England Telephone (SNET), NYNEX New York, Pacific Telesis, Ohio Bell Telephone; specialty services such as INTERNET access on the NETCOM On-Line Communication Services Inc. network, conference calling, broadcast fax, and prepaid calling cards; as well as long distance services on the Cable and Wireless Communications Inc., WilTel, IXC and Frontier networks.

CONTACT: CTC Communications Corp.,

John D. Pittenger, 617/466-1302

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