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GTE REACHES DEFINITIVE AGREEMENTS ON SALE OF LIGHTING BUSINESS

 GTE REACHES DEFINITIVE AGREEMENTS ON SALE OF LIGHTING BUSINESS
 STAMFORD, Conn., Aug. 6 /PRNewswire/ -- GTE Corp. (NYSE: GTE) today announced it has reached definitive and separate agreements with OSRAM (a Siemens company) and a newly formed company, owned by a consortium of international investors, for the sale of its worldwide lighting business for a total of approximately $1.1 billion, including the assumption of debt.
 The sales include all the businesses in GTE's Electrical Products Group except Valenite and Control Devices, which GTE expects to sell in separate transactions later this year.
 OSRAM, headquartered in Munich, Germany, will purchase GTE's North American Lighting business, with operations in the United States, Canada and Puerto Rico. The newly formed company, now in the process of adopting the name of Sylvania Lighting International B.V., will acquire GTE's International Lighting business, with operations in Europe, the Far East, Latin America and Australia.
 The transactions are subject to the necessary regulatory approvals. Closings with both companies will be simultaneous, and are expected around year end.
 "These transactions strengthen the strategic outlook of the well- established Sylvania lighting business," said GTE Chairman and Chief Executive Officer Charles R. Lee. "We want to acknowledge and thank our employees and customers for their continued dedication and support during this divestiture process, and assure them that the business should succeed and prosper under its new owners."
 Essentially all 20,000 active employees affected by these transactions will remain employees of their organizations at the time of closing -- it will be "business as usual" regardless of the fact that these organizations have been transferred to new owners, Lee noted. GTE Is Focused on Telecommunications
 "These actions are also very significant to GTE's employees, customers and shareholders, because they are consistent with our focus on what had always been our largest and most profitable business -- telecommunications," Lee said.
 "As we said when we announced our intention to divest the electrical products business, 'our future growth, profitability and enhancement of shareholder value lie within the telecommunications industry,'" noted Lee. "That was true then, it is true now and it will be true in the year 2000," Lee stated. "Now we can get on with the consolidation and take advantage of the many opportunities before us."
 As a result of strategic actions taken over the last few years, GTE is now the fourth-largest publicly held telecommunications company in the world. It is the largest U.S.-based local-telephone company and the second-largest cellular-service provider in the United States. In 1990, it joined with Contel Corp. in the single-largest merger in telecommunications history and, in 1991, it acquired operating control of CANTV, the Venezuelan telephone company.
 Background on Transactions
 GTE had announced on Sept. 30, 1991, that it would be considering various options for its electrical products business in order to focus its resources on the telecommunications industry. Various divestiture options were examined by management, and finally the company opted for an outright sale.
 OSRAM, headquartered in Munich, Germany, employs 16,400 people and had worldwide sales of $1.8 billion in 1991. OSRAM is a leading lighting-products company with a strong position in Europe and widespread operations in Latin America, Japan and the Far East.
 Siemens is a highly diversified international electrical and electronics company, headquartered in Munich, with sales amounting to $45 billion in the fiscal year 1991 and about 402,000 employees worldwide.
 Sylvania Lighting International B.V. will be a new, independent company which, at closing, will operate the international lighting businesses that are now part of GTE Electrical Products. The new company will be owned by a consortium of international investors advised by Citicorp Venture Capital (London). These investors are committed to growing the business over the longer term.
 GTE had revenues of approximately $20 billion in 1991 and assets of $42 billion at year end. In addition to its number one and number two U.S. positions in local telephone and cellular services, respectively, GTE is also a leader in government and defense-communication systems, satellite-based telecommunications, air-to-ground telecommunications, directories and other information systems and services.
 -0- 8/6/92
 /CONTACT: Harvey W. Greisman, 203-965-2903, after 6 p.m., 203-226-7661, or Tony Hamilton 203-965-2853, after 6 p.m., 203-327-2162, in Washington, D.C. contact: Julia Spicer, 202-463-5206, after 6 p.m., 202-797-0715, all of GTE/
 (GTE) CO: GTE Corp. ST: Connecticut IN: SU:


PS -- NY107 -- 7801 08/06/92 17:53 EDT
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Date:Aug 6, 1992
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