CoreComm Incorporated announces operating results for first quarter 1997.

NEW YORK--(BUSINESS WIRE)--May 15, 1997--CoreComm Incorporated (NASDAQ: COMM) announced today its operating results for the three months ended March 31, 1997. -0-

                                   Three Months Ended March 31
                                         1997       1996
                                 (In thousands, except subscribers,
                                 pagers in use, and per share data)

Revenues:
  Service                           $  33,352     $ 28,513
  Equipment, net                         (860)      (1,717)
                                     ----------------------
                                       32,492       26,796

Expenses:
  Operating                             3,890        3,885
  SG&A                                 18,049       13,647
                                     ----------------------
                                       21,939       17,532
                                     ----------------------
Operating income                       10,553        9,264

Depreciation and amortization          (5,540)      (4,530)
Interest and other, net                (3,281)      (1,719)
Provision for income taxes             (1,328)      (1,726)
                                     -----------------------
Income before extraordinary item          404        1,289
Loss from early extinguishment of
  debt, net of income tax
  benefit of $237,000                  (3,830)           -
                                     -----------------------
Net income (loss)                    $ (3,426)    $  1,289
                                     =======================
Net income (loss) per common share:
  Income before extraordinary item   $    .03     $    .09
  Extraordinary item                     (.29)           -
                                     -----------------------
Net income (loss)                    $   (.26)    $    .09
                                     =======================

Weighted average shares                13,071      13,932

Ending subscribers                    166,600     127,800

Ending pagers in use                   35,100      17,800

Discussion of Results

Service revenues increased to $33,352,000 from $28,513,000 as a result of subscriber growth that increased the Company's current revenue stream. Average monthly revenue per cellular subscriber for the first quarter decreased to $68 in 1997 from $78 in 1996.

The loss from equipment, before depreciation of rental equipment, decreased to $860,000 from $1,717,000 primarily because of reductions in the cost of cellular telephones. The Company sells cellular telephones and pagers below cost in response to competition and to generate subscriber growth.

Operating expenses increased to $3,890,000 from $3,885,000 primarily due to additional costs associated with the expanded network (including paging operations), offset by a reduction in interconnection charges. Operating expenses as a percentage of service revenues decreased to 12% in 1997 from 14% in 1996.

Selling, general and administrative expenses increased to $18,049,000 from $13,647,000 as a result of increased selling and marketing to increase the customer base and additional personnel to service the expanding customer base. Increases in bad debt expense, property taxes and subscriber billing expense also contributed to this increase.

Depreciation and amortization expense increased to $5,540,000 from $4,530,000 primarily because of an increase in property, plant and equipment.

Interest and other, net, increased to expense of $3,281,000 from expense of $1,719,000 due to the issuance of the 10% Senior Subordinated Notes and the repayment of the bank loan in 1997, which resulted in an increase in long-term debt at a higher effective interest rate. The increase in interest expense was partially offset by an increase in interest income due to the investment of a portion of the proceeds from the issuance of Notes.

In connection with the repayment of the bank loan, the Company recorded an extraordinary loss of $4,067,000 ($3,830,000 net of income tax benefit) from the write-off of unamortized deferred financing costs.

Restructuring

On January 31, 1997, Cellular Communications of Puerto Rico, Inc. ("CCPR") completed a corporate restructuring (the "Restructuring") in which a new entity, CoreComm Incorporated, was formed. Upon completion of a merger of a subsidiary of CoreComm with and into CCPR, which resulted in CCPR becoming a wholly- owned subsidiary of CoreComm, former holders of shares of common stock of CCPR became holders of common stock of CoreComm on a one for one basis. On February 3, 1997, CoreComm common stock began trading on the Nasdaq National Market under the symbol "COMM."

The principal purpose of the Restructuring was to provide more financial and operating flexibility in pursuing business opportunities both inside and outside of the Company's current markets. In the course of the Restructuring, $200 million was raised by a subsidiary of CCPR in a private placement of Senior Subordinated Notes. With the proceeds of the offering, CCPR repaid approximately $116 million of bank debt (including accrued interest and fees) and CoreComm received approximately $80 million.

CONTACT: CoreComm Inc.

Stanton Williams

Director-Corporate Development

Richard J. Lubasch

Senior Vice President-General Counsel

[phone]