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PACIFIC TELECOM REPORTS EARNINGS

 PACIFIC TELECOM REPORTS EARNINGS
 VANCOUVER, Wash., Nov. 3 /PRNewswire/ -- Pacific Telecom Inc. (PTI)


(NASDAQ: PTCM) reported net income of $8.2 million, or 21 cents per share, for the third quarter of 1992 as compared to $28.5 million, or 72 cents per share reported for the third quarter last year. This decrease in net income was the result of nonrecurring items in both 1992 and 1991.
 These nonrecurring items include the sale of a wholly owned subsidiary in September 1991 that resulted in an after-tax gain of $17.4 million and a third quarter 1992 charge of $6.5 million representing the year-to-date after-tax operating losses of PTI's international subsidiary. PTI is in the process of disposing of its ownership interest in its international operations and reports those operations as discontinued. As part of this process, PTI recently received formal proposals from interested parties regarding transactions which would allow PTI to exit the international business. PTI is evaluating these proposals with its investment bankers and discussing the details with the interested parties. PTI believes that if a sale is executed based on the proposals, it may be unable to recover its total investment in the international operations. A valuation adjustment in a material amount may be necessary in the fourth quarter of 1992 as PTI moves forward in this process. At Sept. 30, 1992, PTI's investment in international operations was $153 million.
 Operating income decreased $1.9 million for the third quarter of 1992 as compared to the third quarter of 1991 due to the $5.1 million cost, after settlements and recovery, of an early retirement offering made during the quarter. The after-tax impact of the early retirement offering was $3.1 million. The increase in operating income, excluding the effects of early retirement costs, of $3.2 million resulted from access line growth in the company's local exchange business, higher private line revenues and lower leased circuit expenses.
 Net income for the nine months ended Sept. 30, 1992, was $41.1 million, or $1.04 per share, as compared to $64.7 million, or $1.64 per share, for the same period in 1991. The decrease in year-to-date net income resulted from the loss related to international operations and net cost of the early retirement offering mentioned above, fewer sales of capacity on the North Pacific Cable, lower long lines out-of-period revenue adjustments and lower intrastate revenues resulting from the introduction of intrastate competition in Alaska in May 1991 as well as the effects of an intrastate rate decrease implemented in July 1991. Additionally, 1991 results included $5.5 million of interest capitalized during construction of the North Pacific Cable and PTI's replacement satellite. These decreases were partially offset by access line growth in the company's local exchange business, higher private line revenues and lower leased circuit expenses.
 By action of the board of directors on Oct. 23, 1992, a dividend of 33 cents per common share was declared. The dividend will be payable Nov. 30, 1992, to the shareholders of record as of Nov. 13, 1992.
 Approximately 87 percent of PTI common stock is beneficially owned by PacifiCorp (NYSE: PPW).
 PACIFIC TELECOM INC.
 CONSOLIDATED INCOME STATEMENTS
 (Unaudited, in thousands, except per-share amounts)
 Three months Nine months
 Ended Sept. 30: 1992 1991 1992 1991
 Operating revenues $182,293 $173,480 $518,217 $535,839
 Operating expenses 147,721 137,006 418,191 416,686
 Operating income 34,572 36,474 100,026 119,153
 Other Income (Expense):
 Interest expense (13,427) (13,981) (40,452) (40,906)
 Interest during construction -- 403 -- 5,549
 Interest income 76 548 632 2,157
 Gain on sale of investments
 & subsidiaries 1,615 22,206 23,057 22,206
 Minority interest 49 172 87 (1,674)
 Other (1,902) (9,267) (13,069) (16,223)
 Total other income (expense) (13,589) 81 (29,745) (28,891)
 Income before income taxes 20,983 36,555 70,281 90,262
 Income taxes 6,311 8,042 22,652 25,538
 Income from continuing
 operations 14,672 28,513 47,629 64,724
 Loss from discontinued
 operations, net of
 income tax (6,500) -- (6,500) --
 Net income $ 8,172 $ 28,513 $ 41,129 $ 64,724
 Income per common share from
 continuing operations $ 0.37 $ 0.72 $ 1.21 $ 1.64
 Net income per common share $ 0.21 $ 0.72 $ 1.04 $ 1.64
 Average shares outstanding 39,545 39,487 39,519 39,474
 -0- 11/3/92
 /CONTACT: Brian M. Wirkkala, vice president-treasurer, Pacific Telecom Inc., 206-696-0983/
 (PTCM PPW) CO: Pacific Telecom Inc. ST: Washington IN: TLS SU: ERN DIV


LM -- SE004 -- 2113 11/03/92 14:13 EST
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Date:Nov 3, 1992
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