Citizens Utilities announces convertible preferred security offering.

STAMFORD, Conn.--(BUSINESS WIRE)--Dec. 26, 1995--Citizens Utilities announced today that it intends to proceed with a convertible preferred security offering in early 1996. According to Robert J. DeSantis, Citizens' vice president and treasurer, the company plans to offer approximately $175 million of its Equity Providing Preferred Income Convertible Securities ("EPPICS"). Approximately 3.5 million shares are expected to be offered at $50 per share. The securities have been assigned a AA rating from both Standard & Poor's Rating Group and Fitch Investors Service and a Aa3 rating from Moody's Investor Service. The offering will be lead-managed by Merrill Lynch & Co. and co-managed by Lehman Brothers.

Mr. DeSantis stated, "In accordance with our previously announced financing strategy, the proceeds from the issuance will constitute the final phase of the $1.4 billion of permanent funding for Citizens' acquisition of 620,000 telephone access lines from GTE Corp. and ALLTEL." To date, Citizens has acquired approximately 95% of the 620,000 telephone access lines. The remaining access lines are expected to be acquired by early 1996.

Citizens Utilities (NYSE: CZNA, CZNB) is a diversified growth company providing telecommunications, natural gas distribution, electric distribution, and water and wastewater treatment services to nearly 1.6 million customers in 19 states. Citizens has a significant investment in Centennial Cellular Corp. (NASDAQ: CYCL), a cellular telephone company, and owns and operates Electric Lightwave, Inc., a competitive telecommunications services provider operating in five major cities in the western United States. Citizens also owns and operates Citizens Long Distance Company.

CONTACT: Arthur Dague

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