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MCI JOINS WITH BRITISH MANUFACTURER TO OFFER WORLDWIDE VIDEOPHONE SERVICE

 MCI JOINS WITH BRITISH MANUFACTURER TO OFFER WORLDWIDE VIDEOPHONE
 SERVICE
 WASHINGTON, Sept. 23 /PRNewswire/ -- MCI Communications Corporation (NASDAQ: MCIC) announced today an agreement with a British manufacturer to market in the United States the first internationally compatible videophone. Under the name "MCI VideoPhone," MCI will distribute the instrument manufactured by GEC-Marconi. The MCI VideoPhone will be available in early 1993 for approximately $750 per unit, or about half the published retail price of the AT&T videophone.
 The MCI VideoPhone will employ the Marconi Video Telephone Standard (M-VTS), which is likely to become the European and international standard for public switch telephones. British Telecommunications (BT), the principal supplier of telecommunications products and services in the United Kingdom, has adopted M-VTS. Similar agreements between Marconi and other European and Asian telephone companies are expected. The M-VTS standard, which uses proprietary camera design and video compression algorithms, was developed by Marconi for advanced military applications and adapted for the consumer videophone.
 "BT believes that the low cost and high quality of this product will make the M-VTS standard 'de facto' for videophones on the public switched phone network," said Jeff Richardson, manager, BT network applications.
 MCI and BT will have a cooperative joint marketing arrangement that will enable customers in either country to acquire, with "one-stop" shopping, two videophones and have one delivered in the other country.
 The MCI VideoPhone is lightweight and compact in size. At 3-1/2 pounds, it weighs about the same as a conventional phone. The MCI VideoPhone plugs into any conventional phone jack and can be placed on a desk or wall-mounted. The MCI VideoPhone has features and functions that make it a premier consumer product:
 -- EASE OF USE: Once you have completed the call, simply press one button and your image will appear. No additional equipment is needed.
 -- LOW PRICE: At approximately $750 per unit, MCI expects to offer the MCI VideoPhone for about half the price of the current AT&T offering.
 -- SYNCHRONIZED VOICE AND VIDEO: The M-VTS standard uses advanced technology that provides synchronized sound and video.
 -- SELF-VIEWING FEATURE: The MCI VideoPhone provides a "picture- within-a-picture" that allows a caller to view himself during a video conversation.
 The MCI VideoPhone delivers moving video images on a three-inch (diagonal) color display. The screen folds down when the video is not in use. The MCI VideoPhone functions as a normal telephone even when the video is off.
 Additional easy-to-use features include a privacy button to block video and mute audio during conversations, a high-definition "freeze mode" for still viewing of an image, a timer showing length of calls, and a speakerphone option for "hands-free" conversations. There are no extra telephone charges for the video function.
 "The MCI VideoPhone is the first true long distance telephone for consumers," said Gerald H. Taylor, president, MCI Consumer Markets. "We are excited about the international compatibility since we expect that many customers will want to communicate via the MCI VideoPhone with friends and family abroad."
 Taylor continued, "MCI expects likely first users to be families separated by long distances, deaf or hard-of-hearing customers, grandparents staying in touch with their children and grandchildren, and telecommuters and at-home workers communicating with vendors and customers via long distance."
 "North America is a key market for us, and one that we are tackling with utmost priority," said Len Ogier, managing director of Marconi Electronics. "We are delighted to have a market leader like MCI introduce this product in the U.S." "BT and MCI will work together to help customers who would like to use videophones to call between the U.K. and the U.S. to obtain them in both countries," said Richardson. "We intend to launch this videophone in the U.K. in the near future."
 To receive information regarding the MCI VideoPhone, consumers can call toll-free, 1-800-274-5962.
 GEC-Marconi, a manufacturer of consumer products and high-tech electronics equipment, is the world's second largest defense contractor. Marconi's advanced camera technology and large-scale integration of high-tech components are unequalled.
 MCI Communications Corporation, headquartered in Washington, is the nation's second largest long distance carrier. MCI is a leader in providing consumer long distance services including the award-winning Friends & Family savings program.
 -0- 9/23/92
 /CONTACT: Debra Shriver or Kate Fralin of MCI, 703-415-6941; Julie Winskie or Bradley Daves of Porter Novelli, 212-315-8105, for MCI; Andrew Moyler of GEC-Marconi, 703-415-6765; or John Moggridge of BT, in London, 44-71-356-5368/
 (MCIC) CO: MCI Communications Corporation; MCI Telecommunications Corp. ST: Virginia, District of Columbia IN: TLS SU: PDT


GK-OS -- NY032 -- 2615 09/23/92 11:45 EDT
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Date:Sep 23, 1992
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