So Far, Over 2100 SNET Employees Opt for Early Retirement.

NEW HAVEN, Conn.--(BUSINESS WIRE)--July 28, 1995--As the July 31 deadline approaches for making a decision on whether to remain with SNET or to take early retirement, over 2,100 employees have accepted an Early Out Offer. This early retirement opportunity was made available to 6,400 bargaining unit employees on July 1. Most departing employees will be leaving SNET later this year.

The offer was a part of SNET s contract with the Connecticut Union of Telephone Workers which was ratified on April 21, 1995. The offer adds six years to an employee s age and six years to length of service to determine eligibility for retirement health care benefits and for calculating discounts to pensions.

This is good news for SNET and good news for employees who choose to leave and for those who choose to stay, said Jean LaVecchia, SNET s senior vice president - organization development. Although, the number of employees who are taking advantage of this offer is certainly higher than anticipated, we re pleased to say that the acceptance rate has allowed us to achieve a bargaining unit size that should be sustainable over time. We can augment our forces as needed by adding temporary resources, by rearranging and rebalancing our existing workforce, and by looking at opportunities to meet our business needs by using all available resources and business ingenuity, she continued.

We want to be sure we continue to meet our high standards for customer service as employees depart. Although most employees will be departing later this year, we will be offering to some employees the opportunity to remain until mid-1996 to help smooth the transition to a smaller workforce.

Dan Keating, president of the CUTW said, We can be proud of the contract which we bargained earlier this year. Employees are leaving the company with a very good package and with benefits that most would not have been eligible for without this offer. Employees who choose to stay can count on increased job security and growth opportunities.

LaVecchia added, With the number of employees choosing this option, we find the need to downsize our bargaining unit ranks greatly diminished. Force levels after these departures will be closer to our targets and we should be able to avoid further bargaining unit downsizing in the foreseeable future.

The external forces of competition which drove our need to downsize still exist -- and are increasing. Our focus will be on those employees who have elected to stay with SNET and who will be transforming our company into a sharper, even more competitive business totally dedicated to meeting our customers needs for information, communications and entertainment.

SNET has no plans at this time which would impact its 3,200 management employees.

CONTACT: SNET, New Haven

Beverly Levy, 203/771-4474