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INTERNATIONAL CABLETEL INCORPORATED AND SWALEC SIGN AGREEMENT TO FORM JOINT VENTURE TO PROVIDE CABLE AND TELEPHONE SERVICE IN SOUTH WALES

 NEW YORK, Oct. 21 /PRNewswire/ -- International CableTel Incorporated (CableTel) (NASDAQ: ICTL) and SWALEC have entered into an agreement in principle to form a joint venture that will own three cable television and television licenses in South Wales.
 The new company intends to combine two current CableTel licenses (Cardiff and Newport), covering approximately 188,000 households, and one license that will be acquired by SWALEC (West Glamorgan), covering approximately 122,000 households.
 Formation of the new company is subject to the execution of a definitive agreement and the receipt of approval of U.K. regulatory authorities. It is anticipated that the new company will begin providing services in early 1994.
 Under the agreement, CableTel will hold a 60 percent interest and SWALEC will hold a 40 percent interest in the joint venture.
 "Our customers in South Wales will benefit from the many services that cable can provide to their homes or offices," said SWALEC Chairman Wynford Evans. "This proposed venture extends SWALEC's involvement in the provision of services to the South Wales community, and running a cable television and telecommunications network has similarities to operating our electricity distribution network," he said.
 J. Barclay Knapp, president at CableTel, continued, "The joint venture intends to construct its networks to access residential cable television and telephone traffic as well as a significant portion of the business telecommunications market on a cost-effective basis. The new company will be focusing on providing high quality, competitively priced services, all supplied to the home through a single network."
 SWALEC's principal activities are the distribution and supply of electricity to domestic, commercial and industrial customers, and electrical contracting.
 CableTel, through subsidiaries, holds licenses to develop, construct and operate cable television, telephone and telecommunications systems in the United Kingdom currently comprising approximately 953,000 homes in suburban London (Guildford), West Yorkshire (Huddersfield), Scotland (Metropolitan Glasgow) and Wales (Cardiff and Newport). On Oct. 19, 1993, CableTel announced that it had entered into an agreement to form a joint venture with respect to franchises in the northern suburbs of London comprising approximately 350,000 households. After giving effect to CableTel's approximate 70 percent ownership interest in that joint venture, which is subject to regulatory approval, CableTel will have ownership interest in the U.K. comprising approximately 1,198,000 households. CableTel continues to explore additional joint ventures, business combinations and other relationships with other cable television and telephone franchise owners in the U.K.
 -0- 10/21/93
 /CONTACT: J. Barclay Knapp, president, or Richard J. Lubasch of CableTel, 212-906-8440/
 (ICTL)


CO: International CableTel Incorporated; SWALEC ST: New York IN: TLS ENT SU: JVN

GK-TM -- NY012 -- 4964 10/21/93 08:24 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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