Transaction Network Services to Acquire Transline Communications.

RESTON, Va.--(BUSINESS WIRE)--Jan. 11, 1999--Transaction Network Services, Inc. (TNS) (NASDAQ:TNSI) announced today that it has signed an agreement to acquire the outstanding shares of Transline Communications, Inc., for approximately $4 million in TNS common stock. Transline, a privately held company headquartered in Kansas City Kansas, is a provider of specialized international data, fax, and voice communications to U.S. and multinational financial services and other corporate businesses. The company recognized approximately $3.5 million in revenues in 1998.

Transline's core business is comprised of managed private, secure voice and data services to approximately 75 financial institutions for equities, options, and commodities trading. TNS will integrate these complimentary communications services into its financial services division (FSD) product line to expand its existing networking capabilities.

In addition, Transline has an established international presence, with facilities in London, Paris, Frankfurt, Milan, and other key international sites. This transaction will add about 35 new customers to TNS' financial services division customer roster, as well as direct access to several stock and derivitives exchanges.

"By merging with Transline, we'll be able to offer our existing customers a wider range of services, including managed voice, and access to more international financial centers," commented John Schanz, vice president and general manager of TNS' financial services division. "We'll also benefit from the addition of new trading applications, such as options and commodities, as an adjunct to the equities applications currently transported over our network," Schanz added.

"Our customers are ultimately the greatest beneficiaries of this merger," noted Jack Lorenz, president and CEO of Transline Communications, Inc. "TNS is a strong company with an outstanding network. We think our customers will be impressed with TNS' technology and support, and with the private, secure IP network services TNS can offer for their on-line trading initiatives," Lorenz added.

The merger, which has been approved by Transline's shareholders, is expected to close by the end of January, and is subject to certain conditions, including qualifying as a pooling of interests.

Additionally, and in connection with this transaction, TNS' Board of Directors has rescinded its previously authorized share repurchase program.

Transaction Network Services, Inc. (TNS), headquartered in Reston, Virginia, provides data communications services for transaction-oriented applications. The company is listed on the NASDAQ Stock Market under the symbol TNSI. Additional company information is available on the TNS website at www.tnsi.com.

The statements and information contained in this news release that are not descriptions of historical fact may contain forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially from those currently anticipated, including customer retention, competition, changes in economic conditions, unanticipated technological issues that may arise during the consolidation of operations, technological change and changes in government regulation. Accordingly, there can be no assurance that the financial services market's demand for these services will continue to expand, that these service offerings will be successful in penetrating these markets, that forecasted revenues will be achieved, or that anticipated network performance and cost savings will be attained. See TNS' reports filed with the SEC for additional discussion of these risks and other factors which may effect TNS' services, revenues, and costs.