Rabin & Peckel LLP Files Class Action Against USN Communications, Inc. and Certain of Its Officers and Directors, and the Lead Underwriters of Its Initial Public Offering, Alleging Violations of Federal Securities Law.

NEW YORK--(BUSINESS WIRE)--Dec. 4, 1998--

The Following is an Announcement by Rabin & Peckel LLP:

A putative class action has been filed in the United States District Court for the Southern District of New York on behalf of a Class of purchasers of USN Communications, Inc. ("USN" or the "Company") (Nasdaq: USNC) common stock on or traceable to the Company's initial public offering of 8,000,000 shares from February 4, 1998, through August 13, 1998, inclusive (the "Class Period").

The Complaint alleges that USN and certain of its officers and directors, and the lead underwriters of its initial public offering, violated the Securities Act of 1933 by making an untrue statement of a material fact and omitting to state material facts necessary to make the statements contained in the Prospectus not misleading. In particular, it is alleged that defendants failed to disclose financial results for the fourth quarter ending December 31, 1997, in which the Company had sustained a material net loss of $37.5 million, and falsely represented that the net proceeds of the initial public offering would be sufficient to meet planned capital expenditures and anticipated negative operating cash flow for the foreseeable future. The Complaint alleges that as a result of this material misrepresentation and omission, Class members were damaged.

Plaintiff is represented by the law firms of Rabin & Peckel LLP and The Law Office of Leo W. Desmond. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.

If you purchased USN common stock during the Class Period described above, you may, no later than January 18, 1999, move the Court to serve as lead plaintiff, if you so choose. To serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this announcement or your rights or interests, please contact plaintiff's counsel, Joseph V. McBride or Donald J. Wallace, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at [phone] or [phone], by facsimile at [phone], or by e-mail at [e-mail], or Leo W. Desmond, The Law Office of Leo W. Desmond, 2161 Palm Beach Lakes Blvd., Suite 204, West Palm Beach, FL 33409, by telephone at [phone] or [phone], by facsimile at [phone], by e-mail at [e-mail], or at his website at www.SecuritiesAttorney.com.