SNET Expands Wireless Business by 70%.

NEW HAVEN, Conn.--(BUSINESS WIRE)--July 3, 1995--SNET (NYSE:SNG) completed on July 1 the acquisition of cellular properties that include all of Rhode Island and the New Bedford, Massachusetts area formerly owned by Bell Atlantic as well as the Pittsfield, Massachusetts market 80 percent of which was owned by NYNEX and the 16.1 percent interest that NYNEX held in a cellular partnership that serves all of Connecticut and the Springfield, Massachusetts area. SNET has also reached agreement with the Richmond Telephone company to purchase the remaining 20 percent of the Pittsfield market.

The acquisition adds approximately 2.3 million people - or POPS - to SNET's cellular service area for a combined market covering a population of over 5.5 million POPS, and increases the population of the territory served by SNET's cellular business by 70 percent.

SNET Mobility, is paying approximately $450 million in cash for the properties which it is financing initially with short-term debt and which it intends to replace with medium-term debt.

"We are following through with this very substantial expansion of our presence in the fastest growing part of the telecommunications industry," said Daniel J. Miglio, SNET Chairman and CEO. "These new properties are all within or adjacent to areas we already serve, strengthening our position in the strategic New York - Boston corridor.

"We look forward to bringing our high quality wireless communications service to this expanded marketplace in one of the most communications-intensive corridors in the world," Miglio said. "This acquisition improves the economies of scale in our dramatically growing cellular business."

SNET will market cellular service in its new Rhode Island and New Bedford, Massachusetts territories under the name Cellular One. Cellular One is the nation's most subscribed to brand of cellular phone service. SNET's operational headquarters for the Cellular One properties in Rhode Island and Massachusetts will be located in Warwick, Rhode island.

SNET's cellular service in the Pittsfield, Massachusetts area will be marketed under the name SNET LinxSM by SNET Mobility.

SNET Mobility currently serves an area consisting of over 3.2 million POPS. This area includes the metropolitan areas of Hartford, Bridgeport, New Haven and New London Connecticut and Springfield, Massachusetts as well as the rural service areas of Windham and Litchfield, Connecticut and Franklin, Massachusetts. In 1994, SNET nearly doubled the number of cellular mobile customers it serves from 88,000 to 166,000.

SNET, a Connecticut-based company reaching beyond its traditional borders, provides local, national and international calling; mobile communications; and publishing, information and advertising services. It is building I-SNET, a statewide information superhighway that brings to customers a full array of information, communications and entertainment services.

CONTACT: SNET, New Haven

Bill Seekamp, 203/771-2136