MCI INTRODUCES NEW RETAIL LINE OF PREPAID CALLING CARDS.

ATLANTA--(BUSINESS WIRE)--Oct. 2, 1996--MCI today unveiled a new retail line of prepaid calling card services and customized in-store displays, including the industry's first holiday-themed prepaid calling cards. The MCI PrePaid retail line will expand the merchandise mix, provide more store visibility for popular prepaid calling cards and give consumers a purchasing choice.

"MCI is continuously working toward taking PrePaid Cards beyond telecommunications and turning it into a premier retail product," said Jeff Lindauer, general manager, MCI PrePaid Markets. "By moving in this direction, we are distinguishing ourselves from the competition and significantly boosting our brand presence in the retail market, providing our customers with the quality and value they expect from MCI."

MCI's retail approach dictates two primary uses for phone cards: those purchased strictly by users to make calls, and those bought as novelties or gifts for others. MCI's "Ring in the Holidays" cards will cover major gift giving holidays, such as Christmas and Channukah.

The 1996 Holiday Ornament series features three images designed to appeal to holiday shoppers: a stocking with candy and treats, a snowflake, and an ornament with toys and gifts. Each card is affixed to a colorful carrier which can be merchandised on a variety of fixtures including a free-standing, eye-catching Christmas Tree Display.

MCI PrePaid Marketing has created a wide range of displays and fixtures, designed by line of trade to accommodate virtually any retailers needs.

The basic MCI PrePaid retail series includes four everyday, general-sales or utility cards. This series features cards in 15, 30, 60, and 75 unit denominations available in a spectrum of colors. Customized floor and counter displays feature interchangeable headers and cards to provide flexibility for seasonal or promotional changes. One of the features of the counter top displays is a special merchandising hook designed to prevent or deter theft. MCI also offers a variety of state-of-the-art vending machines that can be customized with promotional insets. Point-of-sale display materials include banners, register stickers, danglers, a take-one flyer and a window hanger.

Point of Sale Swipe Activation

As the prepaid phonecard industry continues to grow, the competition for market share accelerates, and in-store visibility becomes imperative. To combat the threat of theft and inventory shrinkage from on-floor displays, MCI has implemented another industry first, point-of-sale-swipe activation (POSA).

POSA allows retailers to merchandise cards on the sales floor, as opposed to traditional "behind the register" methods. This added security allows customers the opportunity to pick up and inspect the product, while eliminating the merchants' concern of losing a product with stored value. Cards that are displayed on the sales floor remain inactive until check-out, at which point, they are run through a swiping devise that activates the card.

MCI PrePaid Cards and Calling Features

MCI PrePaid Card users can call from any phone -- public or private, touch tone or rotary -- in the U.S., to virtually anywhere in the world. Features of MCI PrePaid Cards include international origination and termination, rechargeability , one-touch call reorigination, 24-hour customer service, Traveler's Assist(R) information and referral service, speed dialing and complete turn key merchandising support. Each time the card is used, the number of units remaining is announced before the call is connected.

Popular in Europe since the mid-1970's and in the Far East since the early '80's, prepaid calling cards entered the U.S. market in the early '90's. Industry insiders believe their popularity as collectibles in the United States will outpace that of baseball trading cards. Already, some phone cards have sold for as much as $2,000 more than original face value in the collector's market. Some industry analysts predict the U.S. prepaid calling card market will top $1 billion in 1996.

MCI, headquartered in Washington, D.C., is one of the world's largest and fastest growing diversified communications companies. With annual revenue of more than $15 billion, MCI offers consumers and businesses a broad portfolio of services including long distance, wireless, local, paging, messaging, Internet, information services, outsourcing, and advanced global communications. -0- PHOTOS AVAILABLE: Electronic images of the Christmas Card and retail display, suitable for publication, can be downloaded free by any news organization from a photo bulletin board service. Information on obtaining the images is available by calling 1-800-221-2462, ext. 252.

CONTACT: MCI Telecommunications

Karen Zellner, 770-673-7185

1-800-644-NEWS