ISSUED ON BEHALF OF GUATEL - J.P. Morgan selected to advise on privatization of GUATEL.

NEW YORK--(BUSINESS WIRE)--Feb. 27, 1997--International investment banking firm J.P. Morgan has been selected to advise the Government of Guatemala on the structuring and sale of Empresa Guatemalteca de Telecomunicaciones, or GUATEL.

International accounting firm Arthur Andersen advised GUATEL on the selection of an investment bank to be in charge of the sale to an operator. After several prominent international investment banks submitted proposals, the government's selection commission chose J.P. Morgan as the most qualified advisor to coordinate the privatization process.

The head of GUATEL, Alfredo Guzman, said today in New York, "With this important decision GUATEL authorities and the Government of Guatemala have taken a necessary step to guarantee the transparency of the process. We are excited about the expertise that an international operator can bring to GUATEL's operations and expect the favorable regulatory environment and tremendous growth opportunity will attract attention from a number of operators." Guatemala's telephone penetration is 3% with an estimated wait list of close to one million lines.

J.P. Morgan's experience in Latin America

J.P. Morgan has been ranked as the number one investment bank in Latin America in mergers and acquisitions and strategic advisory by Securities Data Corporation for the past three years in a row. In 1996, J.P. Morgan advised on 31 successful transactions totaling $5.7 billion dollars in Latin America.

With offices in 32 countries and more than 15,000 employees, J.P. Morgan specializes in financial advisory, international sales and trading, securities underwriting, capital investment, and risk management. J.P. Morgan has more than 90 telecommunications professionals worldwide and has developed strong relationships with the largest companies in the sector. Morgan's recent activities include:

- Advising a consortium led by Telefonica Internacional on its successful bid for the privatization of Companhia Riograndense de Telecomunicacoes in Brazil.

- Co-lead underwriter of Telefonica del Peru's $1.2 billion equity offering.

- Advising Inter Rio Holding on the sale of a 17.5% interest in COINTEL to CEI Citicorp Holdings.

- Advising Tele Danmark on its participation in a consortium that acquired 49.9% of Belgacom.

- Advising NEC on its bid to provide 12 satellite stations to ICO Global Space Communications Ltd.

Commitment of Guatemalan government

The decision to choose J.P. Morgan to structure and advise on the sale of GUATEL is a positive step in the privatization process, according to GUATEL. The involvement of J.P. Morgan supports the government's commitment to a transparent process and to communicating their strategy well to the international business community.

CONTACT: Press contact:

Joseph Evangelisti 212-648-9589