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ACC CORP. REPORTS RECORD FIRST QUARTER REVENUE AND EARNINGS

 ROCHESTER, N.Y., May 4 /PRNewswire/ -- ACC Corp. (NASDAQ/NMS: ACCC) reported strong first quarter results from North American continuing long-distance telephone operations. Highlights of first quarter results are as follows:
 Continuing operations results
 -- First quarter 1993 revenue was $24.88 million, up 43 percent
 over first quarter 1992 revenue of $17.39 million.
 -- First quarter net income increased 19.8 percent to $984,858, or
 $.14 per share, versus $821,753, or $.12 per share in the same
 quarter a year ago.
 -- First quarter billable minutes increased 62 percent to 158.6
 million versus 97.6 million for the same period in 1992.
 The above results are presented before a $.07 per share loss from discontinued operations reflecting the planned sale of the company's cellular business segment, for which a definitive agreement was signed with Horizon Cellular Telephone Company of Central Kentucky, L.P. (Horizon) on January 22, 1993, and ACC's start-up United Kingdom (ACC U.K.) long-distance business which reported $19,900 in revenues and $172,000 in losses, or $.02 per share for the first quarter. Earnings per share have been retroactively adjusted to reflect a 3 for 2 stock dividend which occurred on January 4, 1993.
 Consolidated results
 -- Consolidated net income, including the loss from discontinued
 operations and the company's U.K. start-up, for the first
 quarter 1993 was $327,402 or $.05 per share, compared to
 $354,194 or $.05 per share for the same quarter a year ago.
 In commenting on the results, Richard T. Aab, chairman and chief executive officer stated, "We are pleased with our first quarter long distance results, where ACC again achieved record revenue and earnings from continuing operations. Our U.S. operations are showing strong year to year comparison as our university resale sector continues to exhibit excellent growth. ACC Long Distance Ltd. has established itself as the second largest long-distance reseller in Canada, and the number one objective for the company remains to increase market share. In the U.K our long distance business is moving forward quickly with ACC U.K. introducing students at London's Imperial College and Cambridge University's Churchill College to our U.K. and international long- distance services. The start-up losses associated with establishing our U.K. business will continue at least through the remainder of 1993. Finally, the sale of ACC's cellular business to Horizon continues to move toward closing as both ACC and Horizon await the FCC license transfer approval expected soon."
 ACC Corp. is a diversified telecommunications company based in Rochester, N.Y. Through its subsidiaries, the company provides long- distance telephone service throughout the northeastern United States, and is the second largest long-distance reseller in Canada. In addition, the company holds the first international simple resale license granted in the United Kingdom.
 ACC CORP. AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME
 (UNAUDITED)
 (IN DOLLARS)
 THREE MONTHS ENDED
 MARCH 31,
 1993 1992
 Revenue:
 Toll revenue $23,937,706 $16,809,836
 Leased lines & other 959,162 584,901
 Total 24,896,868 17,394,737
 Operating expenses:
 Network costs 16,530,251 10,845,034
 Operator services and other
 costs 308,207 242,563
 Depreciation and
 amortization 1,275,895 896,940
 General, &
 administrative expenses 5,420,714 4,043,092
 Total 23,535,067 16,027,629
 Income from operations 1,361,801 1,367,108
 Other income (expense):
 Interest 48,405 (38,041)
 Other (13,723) 4,544
 Total 34,682 (33,497)
 Income from continuing
 operations before income
 taxes 1,396,483 1,333,611
 Provision for income taxes: 583,480 511,858
 Income from continuing
 operations $813,003 $821,753
 Loss from discontinued
 operations (after income tax
 benefits of $248,000 in 1993
 and $241,000 in 1992) (485,601) (467,559)
 Net income 327,402 354,194
 Net income (loss) per common &
 common equivalent share:
 Continuing operations $0.12 $0.12
 Discontinued operations ($0.07) ($0.07)
 Net income $0.05 $0.05
 Average number of common and
 common equivalent shares 7,032,492 6,817,895
 ACC CORP. AND SUBSIDIARIES
 BUSINESS SEGMENT INFORMATION
 (IN DOLLARS)
 THREE MONTHS ENDED MARCH 31, 1993
 UNITED NORTH
 KINGDOM AMERICA CONSOLIDATED
 Revenue:
 Toll revenue $19,932 $23,917,774 $23,937,706
 Leased lines,
 equip. & other --- 959,162 959,162
 TOTAL 19,932 24,876,936 24,896,868
 Operating expenses:
 Network costs 47,772 16,482,479 16,530,251
 Equip. & other
 costs --- 308,207 308,207
 Depreciation &
 Amortization 28,847 1,247,048 1,275,895
 Selling, general
 & admin. 113,168 5,305,546 5,420,714
 Total 191,787 23,343,280 23,535,067
 Income (loss)
 from operations (171,855) 1,533,656 1,361,801
 Other income (expense):
 Interest --- 48,405 48,405
 Other --- (13,723) (13,723)
 TOTAL --- 34,682 34,682
 Income (loss)
 from continuing
 operations before
 income taxes (171,855) 1,568,338 1,396,483
 Provision for
 income taxes --- 583,480 583,480
 Income (loss)
 from continuing
 operations ($171,855) $984,858 $813,003
 Net income (loss)
 from continuing
 operations per
 common & common
 equivalent share: ($0.02) $0.14 $0.12
 Common and
 common
 equivalent
 shares 7,032,492 7,032,492 7,032,492
 Note: Above results do not include the effect of the company's discontinued operations.
 -0- 5/4/93
 /CONTACT: Richard T. Aab of ACC Corp., 716-987-3150/
 (ACCC)


CO: ACC Corp. ST: New York IN: TLS SU: ERN

BM -- CL008 -- 4256 05/04/93 11:05 EDT
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Date:May 4, 1993
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