REPEAT/GTE Waives High-speed, Digital Subscriber Line Activation and Equipment Fees Through End of July.

Business Editors/Telecommunications Writers

REPEATING...adding digit in sub-head

IRVING, Texas--(BUSINESS WIRE)--May 22, 2000

GTE's DSL customer base tops 100,000 and remains on pace to

reach 200,000 by end of the year

GTE today announced that it will waive the one-time activation and equipment fees for its high-speed Internet access service through the end of July.

The waiver, which requires a one-year contract, is the company's latest move to boost the number of its digital subscriber line (DSL) customers that recently surpassed 100,000.

"We remain on track to reach 200,000 DSL customers by the end of the year," said Rob McCoy, president of retail markets for GTE Network Services. "Residential and small business customers are reacting positively to our competitively priced DSL service packages, and the waiver of activation and equipment fees creates an even more enticing offer that will bolster the number of new subscribers."

Through July 31, GTE local telephone service customers who order DSL for at least one year from any of the Internet service providers (ISPs) that have partnered with GTE to offer DSL will not pay the one-time $60 activation fee from GTE Network Services. In addition, GTE local telephone customers who order DSL through GTE Internet, the company's consumer and small business ISP, will not be charged the one-time $50 Internet access fee from GTE Internet.

GTE local telephone customers also have the option to order DSL service from other Internet service providers that establish their own pricing. In total, GTE has contracts with 349 ISPs that offer GTE's DSL in 17 states.

GTE Internet is also introducing a special promotion for its small business customers through July 31. Effective immediately, small business customers can test drive GTE's DSL service for 90 days. Under the promotion, small business customers can receive a full refund of the monthly access fee, plus cancellation of their annual contract without incurring a financial penalty, if they are not satisfied with their service within the 90-day period.

In February, GTE began shipping its new DSL customers self-installation kits that speed up the time it takes for customers to start using their service after placing an order. Today, more than 80 percent of GTE's new DSL customers take advantage of the self-install offer. Customers who prefer to have a telephone company technician install their DSL modem and other equipment pay a one-time $80 fee.

GTE offers five service packages for residential and small business customers, beginning with a $49.95 per month plan which provides transmission at speeds 25 times faster than dial-up modems.

By the end of the year, GTE Network Services plans to offer DSL from 1,000 wire centers and have more than 8 million DSL-qualified telephone access lines.

The service is currently offered in more than 40 markets in 17 states. GTE Network Services, the local exchange carrier unit of GTE Corp., currently offers DSL in parts of California, Florida, Hawaii, Idaho, Illinois, Indiana, Kentucky, Michigan, Missouri, North Carolina, Ohio, Oregon, Pennsylvania, Texas, Virginia, Washington and Wisconsin. More than 60 percent of GTE's customers live or work in areas where service is available, and the company will continue to aggressively expand its DSL footprint over the next several years.

For more information on GTE's entire DSL service offerings, call toll-free 1-877-483-5070 or visit http://www.gte.com/dsl.

About GTE

With 1999 revenues of more than $25 billion, GTE is a leading telecommunications provider with one of the industry's broadest arrays of products and services. In the United States, GTE provides local service in 28 states and wireless service in 18 states, as well as long-distance, directory, and internetworking services ranging from dial-up Internet access for residential and small-business consumers to Web-based applications for Fortune 500 companies. Outside the United States, the company serves customers on five continents. Additional information about GTE can be obtained at http://www.gte.com.

GTE's community and philanthropic programs target excellence in education, particularly math, science, technology and literacy. GTE also supports job training, delivery of health and human services, and the arts. The company's newest program is GTE Reads, a public charity designed to create public awareness, increase fundraising and support organizations dedicated to improving America's literacy levels. GTE customers can contribute to GTE Reads by checking off a box on their bill. Others can contribute through GTE Superpages.com at http://www.superpages.com.