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GTE TO EXCHANGE GEORGIA PROPERTIES WITH ALLTEL FOR ACCESS LINES IN ILLINOIS, INDIANA AND MICHIGAN

 IRVING, Texas, Feb. 3 /PRNewswire/ -- GTE Telephone Operations today announced it has signed a letter of intent with ALLTEL Corp. to trade telephone-service areas in several states.
 Under the terms of the agreement, GTE would exchange its 285,000 access lines in the state of Georgia for ALLTEL's 95,000 access lines in Illinois, Indiana and Michigan, as well as approximately $440 million in cash.
 This is part of a previously announced strategic effort by GTE to trade or sell a small percentage of local-exchange properties in markets that may be of greater long-term strategic value to other telephone- service providers. GTE serves 110 exchanges in Georgia and has a total of approximately 975 employees supporting Telephone Operations who would become ALLTEL employees. ALLTEL serves 80 exchanges and has some 330 employees in Illinois, Indiana and Michigan who would become part of GTE as a result of the transaction.
 GTE Telephone Operations President Kent B. Foster said, "This transaction is a positive development for both companies. It is consistent with GTE's stated objective of clustering and strengthening our local-exchange properties for greater efficiencies. The exchange will enable GTE to enhance our operational and marketing synergy in the states of Illinois, Indiana and Michigan. "ALLTEL also can achieve the same type of synergy with its combined properties in Georgia."
 GTE already serves 706,292 access lines in Illinois, 726,158 access lines in Indiana and 545,842 access lines in Michigan. ALLTEL has 40,878 access lines in Illinois, 9,476 access lines in Indiana and 44,668 access lines in Michigan.
 Pending execution of a definitive agreement and appropriate regulatory approvals, GTE expects the exchange of properties to be completed by the end of the third quarter of 1993.
 GTE Telephone Operations is the largest U.S.-based, local telephone company, providing phone services through more than 21 million access lines in portions of 40 states, British Columbia, Quebec, Venezuela and the Dominican Republic. It also markets telecommunication products and services, and supplies computer software and data processing. GTE Telephone Operations, based in Irving, Texas, is the largest of GTE Corporation's business groups, with total revenues of $15.86 billion in 1992.
 -0- 2/3/93
 /CONTACT: John D. Wallace, 214-718-4015; or Bob Brand, 214-718-4945, both of GTE Telephone Operations; or Julia Spicer of GTE Corp., in Washington, 202-463-5206/
 (GTE)


CO: GTE Corp. ST: Texas IN: TLS SU:

LR -- NY010 -- 2268 02/03/93 09:45 EST
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Publication:PR Newswire
Date:Feb 3, 1993
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