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FRONTEER ANNOUNCES SALE OF ARIZONA DIRECTORIES

 BISMARCK, N.D., Dec. 9 /PRNewswire/ -- Fronteer Directory Co. Inc. (NASDAQ: FDIR) today announced the sale of its Arizona directories to Phone Directories Inc. of Provo, Utah, for proceeds of $581,063.83. This translates into a gain of $472,221.23 for the yellow pages publishing company. The terms of the sale, completed on Nov. 9, 1993, call for a three-year payoff plan at 10 percent interest. The first installment of $154,500.00 was paid upon the signing of the agreement, with future installments to be paid as follows: $113,000.00 on Feb. 15, 1994, $32,500.00 on March 28, 1994, and installments of $120,000.00 each to be paid on Nov. 1, 1994, Nov. 1, 1995, and Nov. 1, 1996, for a total of $660,000.00.
 Fronteer Directory President Dennis Olson, says the proceeds will be used primarily for the continued expansion into Montana and Wyoming and for general operating expenses. Olson said the continued lackluster revenues from the Arizona directories prompted the sale. "We have been unable to turn a profit in Arizona, and we are confident that we can reallocate our resources in the type of market that we are already familiar and successful within. At the same time with our expansion into Montana and Wyoming, we feel we can rapidly replace the lost Arizona volume with profitable volume. Additionally, by concentrating our efforts closer to our corporate operations, management will be able to more closely monitor sales activities and, therefore, reduce costs."
 Fronteer Directory originally purchased the Arizona directories in 1989 but was unable to increase revenues marginally in the four years since the purchase. The sale was seen as both advantageous and appropriate for Phone Directories Inc., who already owns 11 other directories throughout Arizona.
 The sale also reaffirms Olson's contention that there is a significant hidden asset value in the company, as its directories show little value on the company's balance sheet.
 Fronteer Directory Co. Inc. is an independent Yellow Pages publishing and advertising company with over 20 directories in seven states. Fronteer is the only publicly held independent directory company in the United States.
 -0- 12/9/93
 /CONTACT: Max Ramras or Marilou Snider of Registered Communications Group, 602-998-7555; or Dennis Olson of Fronteer Directory, 701-258-4970/
 (FDIR)


CO: Fronteer Directory Co. Inc.; Phone Directories Inc. ST: North Dakota, Arizona, Utah IN: PUB SU: TNM

EH-JB -- LA006 -- 2088 12/09/93 09:02 EST
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Publication:PR Newswire
Date:Dec 9, 1993
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