MCI TO ACQUIRE IMAGE TECHNOLOGY, INC.; Move Furthers MCI's Position As A Leader in Information Services.

ATLANTA--(BUSINESS WIRE)--October 5, 1995--MCI Communications Corporation (NASDAQ: MCIC) and Image Technology, Inc. (ITI) today announced that they have entered into a definitive agreement whereby MCI Telecommunications Corporation has acquired substantially all of the assets of ITI, one of the largest privately held digital imaging and information services companies.

Under the agreement, MCI acquired the assets of ITI, excluding its portraiture division, for approximately $24 million. The acquisition allows MCI to leverage its product development and marketing expertise to address the burgeoning demand for digital imaging, business-to-business on-line systems and database publishing among public organizations and private companies.

"The acquisition further enhances MCI's ability to provide comprehensive communications solutions to businesses, associations and consumers through the creation, management and delivery of digital assets -- pictures, text, audio and motion video," said Scott Ross, MCI Telecommunications president of financial and business operations.

"MCI and ITI have joined together to provide the best in digital imaging and database publishing systems for on-line and kiosk delivery," said Doug Young, general manager of MCI's digital imaging division and former president of ITI. "MCI brings to ITI a sophisticated and reliable network platform and unparalleled marketing prowess. The combination of resources will offer excellent growth potential in the fast-growing imaging market."

Over the past two years, MCI's State Government and University Systems segment has partnered with ITI and Florida State University's Card Application Technology Center in developing and implementing the campusMCI suite of services, including touch-screen kiosks that allow students access to personal records and facilitate tuition payments and course registration. In addition, the MCI segment markets the nation's leading student integrated photo ID Card system.

The assets and technology acquired are used to develop digital imaging and automated prepress systems for on-line catalog, directory, magazine and other image-intensive publishing applications. Assets include a commercial software product, the Picture Plus+Series which combines images, text and line art within ODBC compatible databases, and automatically sizes, halftones and paginates composite color and black and white pages into print, video and electronic media. Also included is CATELIST, an industry database of digital photography, digital video and audio files -- plus technical specifications -- of products distributed via large and small home centers and hardware stores throughout North America. The CATELIST database effort represents potentially hundreds of thousands of manufacturer and vendor products and is one of the largest development efforts of its kind in digital imaging ever undertaken.

MCI, headquartered in Washington, D.C., has expanded from its core long distance business to become the world's third largest carrier of international calling and a premier provider of data communications over the vast Internet computer network. With annual revenue of over $13 billion, the company today provides a wide array of consumer and business long distance and local services, data and video communications, on-line information, electronic mail, network management services and communications software.

CONTACT: Ed Bergstraesser

MCI Telecommunications

1-800-644-NEWS

[e-mail]