SBC to enter fast-growing South African cellular market.

SAN ANTONIO, Texas--(BUSINESS WIRE)--Aug. 7, 1995--SBC Communications Inc. announced today that it will take part in South Africa's expanding cellular communications market through an equity investment in MTN, one of South Africa's two national cellular companies.

"South Africa offers some of the most exciting business opportunities in the world, including a young and extremely promising cellular communications market," said Edward E. Whitacre Jr., SBC's chairman and chief executive officer. "Our investment in MTN will enable SBC and its shareholders to benefit from what we believe will be a fast-growing and very rewarding business. Longer term, we have positioned ourselves for additional opportunities in South Africa, as well as elsewhere on the African continent."

"SBC's record of accomplishment in cellular communications is known and respected around the world," said John Beck, chief executive officer, of MTN. "We are extremely pleased to welcome them as an active participant in the continued growth and success of our company, and we look forward to bringing their depth of experience to bear on our efforts here in the South African marketplace."

Simultaneous with the investment, SBC has entered into a joint venture arrangement with New Africa Investments Limited (NAIL), South Africa's largest black-controlled publicly listed company and the parent company of NAFTEL, a partner in MTN. The joint venture will explore telecommunications opportunities in South Africa and nine other southern African countries.

"This is one of the single largest direct investments into South Africa since the 1994 elections," said Dr. Nthato Motlana, chairman of NAIL. "I expect more exciting things from MTN as a result of the introduction of SBC."

SBC plans to invest about $90 million (at current exchange rates) in MTN. A portion of the amount will go to acquire a 15.5% stake in the company, and the remainder will cover SBC's share of a major recapitalization plan MTN initiated earlier this year. MTN will use the funds primarily to expand its nationwide cellular network and to increase its marketing capacity.

As an equity partner in MTN, SBC will be represented on MTN's holding company and operating company boards, and will provide management services to MTN. "One of the things that made this investment so attractive was the fact that MTN's shareholders valued not only our capital but our management expertise," said James S. Kahan, SBC's senior vice president - corporate development. "The hands-on involvement this investment entails will benefit both SBC's and MTN's shareholders."

Kahan said SBC and MTN have entered definitive agreements and closing by the end of September is anticipated upon approvals from the South African regulatory authorities.

"We are pleased to become a part of an excellent ownership group, which includes some of the country's most prominent companies and businesspeople," said Kahan. "MTN began operations just a little over a year ago, and has quickly built a network serving most of South Africa's metropolitan areas with a subscriber base of more than 100,000 customers. Against the backdrop of continued political stability and rapid economic expansion we're seeing in South Africa, we believe MTN's growth prospects are excellent."

MTN's other shareholders include Cable and Wireless, a U.K.-based telecommunications company; Naftel, a black business organization; M- Cell, an affiliate of South African-based cable TV company Multichoice; FABCOS, an organization to promote black businesses; Union CO., the investment arm of South Africa's third largest trade union; and Transnet, South Africa's state-owned rail, airline and harbor transport company.

The company is headquartered in Johannesburg and employs some 300 people.

SBC Communications Inc. is one of the world's leading diversified telecommunications companies. In addition to providing innovative products and services over its local telecommunications network, SBC businesses include cellular services and equipment, business and consumer telecommunications equipment, cable television interests in both domestic and international markets, and directory advertising and publishing. The company has 58,700 employees and reported 1994 revenues of $11.6 billion.

CONTACT: SBC Communications Inc.

Robert E. Ferguson, 210/351-3990