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INTERMEDIA COMMUNICATIONS NYNEX SIGN CO-CARRIER INTERCONNECTION AGREEMENT FOR MASSACHUSETTS.


TAMPA, Fla.--(BUSINESS WIRE)--Dec. 18, 1996--

Agreement Gives Intermedia Intermedia - A hypertext system developed by a research group at IRIS (Brown University). Access to Boston Local Switched Services

Marketplace, Is Milestone in ICI New England Expansion

Intermedia Communications Inc., (ICI - Nasdaq/NM:ICIX), a rapidly growing provider of integrated telecommunications services, and NYNEX announced an agreement that provides for the interconnection of the two companies' networks. The agreement provides for the exchange of voice and data traffic between the two networks on a mutual and reciprocal basis throughout NYNEX's Massachusetts service area. It enables Intermedia to resell NYNEX local services and elements of NYNEX's network on an unbundled basis to customers in Massachusetts. Intermedia has previously been certified to provide both local and long-distance services in Massachusetts.

The Massachusetts interconnection agreement is modeled on a similar agreement the two companies announced for New York State on November 14.

"One of the cornerstone's of Intermedia's expansion plan involves the aggressive but constructive negotiations we are conducting with incumbent local exchange carriers such as NYNEX," said David C. Ruberg, Intermedia's chairman, president and chief executive officer. "The fact that we have reached two productive, mutually beneficial agreements with NYNEX in a two-month period for network interconnection, and resale of NYNEX services and unbundled network elements is one more indication that our strategy is working."

"This Massachusetts agreement marks another major milestone in our plan to provide fully integrated, comprehensive and cost effective business telecommunications solutions to customers throughout the Eastern United States. We have been successful in developing true competition, while working cooperatively as equals with our ILEC business partners regardless of the disposition in the courts of the FCC Order on Interconnection," Ruberg added.

NYNEX AGREEMENT PART OF INTERMEDIA'S EXPANSION PLAN

In addition to its agreements with NYNEX, Intermedia has an interconnection agreement with BellSouth for that company's entire Southeastern nine-state region, and is currently negotiating similar comprehensive agreements with Bell Atlantic, Ameritech, Sprint/United, GTE and Southwestern Bell. Intermedia's rapid expansion has been made possible by the Company's aggressive pursuit of interconnection agreements with these ILECs and pursuit of local and interexchange certifications throughout the country.

NYNEX AGREEMENT FURTHER ENHANCES INTERMEDIA'S POSITION AS LEADING FRAME RELAY PROVIDER

"Intermedia has been providing enhanced data services (frame relay) in Massachusetts, in other NYNEX territories and throughout the eastern United States for years," said Ruberg. "We currently serve data communications customers in over 1100 cities. Our agreement with NYNEX for Massachusetts will enable us to provide existing customers there with more efficient solutions, and to expand our network to reach a whole new set of customers," Ruberg said.

Intermedia currently provides enhanced data services to customers throughout NYNEX's service area. The new interconnection agreement provides Intermedia with additional cost advantages on elements of NYNEX's frame relay network.

GROUND RULES OF AGREEMENT GIVE INTERMEDIA TRUE COMPETITIVE FOOTHOLD

The agreement establishes the ground rules under which Intermedia and NYNEX will interconnect their networks:

-- Intermedia can now offer local service to customers in Massachusetts, as well as in New York State, to be expanded to all NYNEX states upon local regulatory approval. The initial period of the agreement is from December 9, 1996, to December 9, 1999.

-- Compensation between the two companies for traffic exchange will be mutual and reciprocal, which simplifies billing for both companies.

-- Customers who switch their local service to Intermedia will be able to keep their current telephone numbers (number portability).

-- Intermedia will be able to purchase (and resell) portions of NYNEX's network services as it needs them to serve customers -- on a separate or "unbundled" basis.

-- Intermedia will offer toll-free 800 and 888 service in the NYNEX territories.

-- Intermedia customers will have full access to 911 emergency service.

-- Customers using Intermedia will have full access to operator services and directory listings.

-- Both companies will work together to guarantee that the interconnection remains technically sound.

According to Jack Goldberg, NYNEX vice president - wholesale markets, "This agreement with Intermedia will help meet the exploding customer demand across the communications marketplace -- wireline, wirefree, voice, video, data and entertainment and information -- especially here in the Northeast. As NYNEX continues to open up its local market through this agreement and others like it, we are developing a robust wholesale business and we look forward to the opportunity to compete in long-distance markets."

NYNEX is a global communications and media corporation that provides a full range of services in the northeastern United States and high-growth markets around the world, including the United Kingdom, Thailand, Gibraltar, Greece, Indonesia, the Philippines, Poland, Slovakia and the Czech Republic. The corporation is a leader in telecommunications, wireless communications, directory publishing and video entertainment and information services.

Intermedia Communications is a rapidly growing provider of integrated telecommunications solutions for business, government and the telecommunications industry. Intermedia is known for its ability to package customized, "no assembly required" solutions to meet each customer's specific requirements. The Company provides voice, data and video services; local and long-distance switched services; advanced access services in cities throughout the eastern United States; and enhanced data services, including frame relay and Internet access, to business and government customer locations in over 1100 cities nationwide and internationally -- offering seamless end-to-end connectivity virtually anywhere in the world. Intermedia is headquartered in Tampa, Florida and is traded on the NASDAQ national market under the symbol ICIX. Intermedia's address on the World Wide Web is www.icix.net

CONTACT: Intermedia Communications Inc., Tampa

Barbara Samson, 813/744-2402

or

Public Communications Inc.

Stephen J. Kasser, 813/226-2772
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Dec 18, 1996
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