INTERMEDIA ACQUIRES NETWORK AND SWITCHES; ENHANCES MARKET ENTRY IN FIVE CITIES; SUPPORTS NATIONWIDE ATM DEPLOYMENT.

TAMPA, Fla.--(BUSINESS WIRE)--June 25, 1997--Intermedia Communications (NASDAQ/NM:ICIX) today announced the purchase of five operational Nortel DMS-250 switches and related network infrastructure from Telco Communications Group ("Telco") (NASDAQ/NM:TCGX). This asset purchase supports Intermedia's previously announced plan to install 15 local and long distance switches by year end 1997. The approximately $38 million cash purchase of operational switches represents a cost saving over internal deployment as well as a significant time to market advantage. Included in the purchase is network infrastructure consisting of a high capacity backbone connecting 17 major markets in the US, facilitating nationwide end to end distribution of the Company's enhanced data services.

Intermedia also announced the launch of its 22 city nationwide asynchronous transfer mode (ATM) backbone network deployment. "Now that ATM technology has evolved into a carrier-grade capability, Intermedia is maintaining its leadership position in data by providing a coast-to-coast, cost-effective solution. This deployment allows more efficient integration of Intermedia's Internet, frame relay, and voice network services onto a single network fabric," said David C. Ruberg, Intermedia's Chairman, President, and Chief Executive Officer. "The high capacity facilities that this purchase brings us will save both time and money in the rollout of ATM. In addition, the switching and transport network allows us to route off-net traffic onto Intermedia-owned or controlled facilities, thereby improving our margins."

"This transaction supports our switch deployment plan while keeping us on trajectory to achieve positive EBITDA in the second quarter of 1998," said Robert M. Manning, Senior Vice President and Chief Financial Officer. Manning added that the approximately $38 million purchase price is substantially included in the Company's existing 1997 capital expenditure program.

ENHANCES MARKET ENTRY

With this purchase, Intermedia gains access to five of the nation's largest metropolitan markets, including New York, Los Angeles, Chicago, Dallas and Atlanta. To enhance functionality for both local and long distance services, Intermedia is planning to upgrade the DMS-250 switches in New York, Chicago and Dallas to full local and long distance capability. The purchase also includes Signal Control Point (SCP) software, known as an intelligent call routing system, that enables Intermedia to provide advanced intelligent network services, advanced 800 services, and virtual private networks.

"These are high quality switch installations, formerly owned by Advantis, that match our strict operating standards," commented Bob Rouse, Intermedia's Executive Vice President of Engineering, Operations, and Information System. "The switches, which are currently configured for long distance traffic only, can be easily upgraded to provide local and long distance services, making them identical to the other switches in our network. We expect to complete the upgrade of the New York, Chicago, and Dallas switches by the end of the year. Furthermore, these five switches are currently equipped with 170,000 ports allowing us to add approximately 100,000 access lines without any additional switch capital cost," Rouse noted.

INTERMEDIA INITIATES FACILITY-BASED LOCAL EXCHANGE SERVICE IN ATLANTA

Intermedia today also announced the initiation of facility-based local exchange services, including business lines, trunks, and ISDN, in the metropolitan Atlanta area on its recently installed local and long distance switch. "The additional Atlanta switch, purchased from Telco, will serve as a regional IXC (long distance) tandem, providing regional access to the southeast portion of Intermedia's local and long distance network. It will serve Intermedia's traffic needs and provide a convenient traffic concentration point for other domestic and international carriers whose networks interconnect with Intermedia's.

"The level of interexchange traffic on our network that passes through Atlanta is significant and growing rapidly," added Rouse. "Having both a local/long distance and a dedicated long distance switch in this major market allows us the maximum flexibility in growing both the local and long distance traffic."

The Los Angeles switch will similarly serve as an aggregation point for terminating and originating long distance traffic on the West Coast. Intermedia does not plan to upgrade either the Los Angeles or the Atlanta switches purchased from Telco to add local capabilities, according to Rouse.

In addition to the five switches and 170,000 equipped ports, the purchase includes five Tellabs digital cross connect systems (DACS), a pair of signal transfer points (STPs), and several thousand installed feature group circuits for local access, whose installation costs are saved by this transaction. The purchase also provides favorable pricing on transport facilities connecting several of the switches.

Statements contained in this document regarding expected revenues and other planned events are forward-looking statements, subject to uncertainties and risks, including, but not limited to, the demand for Intermedia's products and services, and the ability of Intermedia to successfully implement its expanded and accelerated capital deployment plan, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "risk factors" in Intermedia's form 10-k annual report for its fiscal year ended December 31, 1996.

Intermedia Communications is one of the nation's fastest growing telecommunications companies, offering an integrated package of local, long distance, voice, data, and Internet services to business and government customers in the eastern US. Intermedia is headquartered in Tampa, Florida, with sales offices in over 20 cities throughout the east. Intermedia stock is traded on the NASDAQ National Markets under the symbol "ICIX." For information about Intermedia's services, or other corporate data, visit Intermedia on the World Wide Web at http://www.icix.net .

CONTACT: Intermedia Communications

Chris Brown, 813/829-2408

or

Public Communications Inc.

Stephen J. Kasser, 813/226-2772