Cincinnati Bell Inc. approves next restructuring phase of Cincinnati Bell Telephone.

CINCINNATI--(BUSINESS WIRE)--Feb. 6, 1995--Cincinnati Bell Inc. (NYSE:CSN) approved today the next phase of the restructuring of its subsidiary Cincinnati Bell Telephone (CBT).

The telephone company is redesigning and streamlining its processes and work activities to improve responsiveness to customer needs, permit more rapid introduction of new products and services, improve the quality of product and service offerings, and reduce costs.

``This restructuring process is designed to improve all aspects of services to our customers,'' CBT President Raymond R. Clark said. ``We've addressed customer issues of service, quality, speed and value in all of our new business processes, while maintaining and improving our high standards for service and responsiveness. Although we have one of the best levels of service in the nation, we know we must continuously improve to satisfy our customers' changing lifestyles.''

The restructuring will result in the need for fewer people to operate the business. In all, CBT expects to eliminate approximately 800 positions, including management and hourly positions. The majority of the reduction in CBT's workforce is expected to result from an offer of early retirement incentives to eligible employees. Involuntary separations may also be required to achieve the company's staffing objectives.

``We will manage the restructuring in a way that is fair to our employees and will maintain the high level of quality service that our customers are accustomed to, and expect from us,'' Clark said.

The retirement incentive offer increases by five years each eligible employee's age and years of service for purposes of calculating pension benefits. In addition, retiring employees will receive an enhancement to their pensions equal to two weeks pay for every year of service. Other employees who leave under this offer will receive severance benefits.

Cincinnati Bell will incur a one-time pre-tax charge of between $70 and $100 million to reflect the anticipated cost of the program. The charge will be incurred at the end of the first quarter.

Some elements of the restructuring have already been completed. The company recently reorganized its functions into 12 processes designed to streamline work, and named a new management team responsible for the processes. Others will be adopted over the next several years. CBT will develop advanced information systems that will help it respond to the changing expectations of its customers.

The company estimates that the restructuring, when more fully implemented in 1997, should result in a savings of approximately $50 million from current projections of CBT's annual operating expense.

CBT will begin phasing in technology known as soft dial tone during the third quarter of this year. Soft dial tone enables CBT to partially disconnect a line when a customer ends service. This provides the new resident the ability to use the existing line to establish service quickly. It also allows for dialing 911 in the event of an emergency.

CBT will also offer customers more convenient service appointments. This will allow customers to better fit service contacts into their busy schedules, moving closer to meeting the future expectations for service on demand.

CBT provides modern telecommunications products and services in a three-state area including portions of Ohio, Kentucky, and Indiana. The company has 879,000 access lines and has customers in an area covering more than 2,400 square miles.

Cincinnati Bell Inc. companies supply telecommunications, billing solutions for the communications industry, and marketing services to customers in the United States and abroad.

CONTACT: Cincinnati Bell Inc., Cincinnati

Kyle Hill, 513/397-1240

or Wayne Buckhout, 513/397-1081