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ACC CORP. REPORTS STRONG ANNUAL GROWTH AND RECORD EARNINGS FOR LONG DISTANCE BUSINESS SEGMENT

 ACC CORP. REPORTS STRONG ANNUAL GROWTH AND RECORD EARNINGS
 FOR LONG DISTANCE BUSINESS SEGMENT
 ROCHESTER, N.Y., Feb. 12 /PRNewswire/ -- ACC Corp. (NASDAQ/NMS: ACCC) announced today that it grew well in excess of the industry rate during 1991, resulting in strong revenue gains and solid earnings despite cellular start-up costs, intra-Canada long distance start-up costs, and litigation defense costs for the year.
 -- Fourth quarter 1991 revenue was $16.54 million, up 74 percent over fourth quarter 1990 revenue of $9.50 million. Full year 1991 revenue was $52.29 million, up 39 percent over 1990 revenue of $37.56 million.
 -- Fourth quarter 1991 consolidated earnings were $172,502 or $.04 per share, compared to $450,999 or $.13 per share for the same quarter in 1990. Full year earnings for 1991 were $892,734 or $.23 per share, compared with $1,818,866 or $.53 per share in 1990.
 "ACC had a great fourth quarter and a strong year, considering $1.20 million in losses from the first year start-up costs of our cellular operations, and approximately $600,000 in pre-tax costs associated with the defense of two lawsuits brought against the company," said Richard T. Aab, chairman of the board and chief executive officer.
 "Our revenue results for the quarter and the year have exceeded our expectations, and our long distance business segment has achieved record profitability, helped in part by our Canadian operations which became profitable in the second half of the year."
 ACC's university student resale program in the United States and the powerful growth ACC Long Distance Ltd. is experiencing in Canada contributed to the company's success. Long distance revenue increased 68 percent to $15.96 million for the fourth quarter versus the same quarter last year and increased 36 percent to $51.13 million for the full year 1991 from 1990.
 Total long distance business segment earnings for the fourth quarter 1991 increased to $675,430, up 50 percent from $450,999 reported for the same period last year. Full year long distance earnings for 1991 increased to a record $2,089,276 from $1,818,866 in 1990, up 15 percent. Revenue from ACC Long Distance Ltd. increased to $17.77 million (U.S.) in 1991, up nearly 200 percent from 1990 and first time earnings for the year were approximately $145,000 (U.S.) "Our revenues from Canadian operations have grown to the point that we are beginning to realize the significant benefits of network efficiencies and improved margins," said Aab.
 Revenue from cellular operations were $585,000 for the fourth quarter and $1,164,000 for the full year. The cellular business recognized a fourth quarter loss of $503,000 or $.11 per share, and a full year loss of $1,197,000 or $.31 per share. "We experienced considerable costs for cellular start-up in Kentucky during the first year of operation," stated Aab. "However, we exceeded our 1991 plan for subscribers by closing the year with 16/5 cellular customers on line in Kentucky RSA #6."
 Aab further commented that "The fourth quarter was adversely affected by a one time special promotion for cellular phone sales at a discount which reflected a $200,000 pre-tax charge for the quarter."
 During 1991, ACC successfully installed a DEX 400S switch in both Toronto and Montreal, Canada, purchased the Kentucky rural service area ("RSA") cellular license for RSA No. 5, entered into an agreement to purchase the Kentucky cellular license for RSA No. 8, and completed a secondary stock offering, including a fully excercised over-allotment option.
 Aab stated, "Early in 1991, we made a conscious decision to drive revenue expansion in each new business segment even though it would occur at the expense of consolidated short-term earnings for 1991. I strongly believe this approach will have a significant positive impact on future earnings and shareholder value."
 ACC Corp. is a diversified telecommunications company based in Rochester, N.Y. The company is a holding company for ACC Long Distance Corp., ACC Long Distance Ltd., ACC Network Corp., ACC Local Fiber Corp., ACC Global Corp., and Danbury Cellular Telephone Co. Through its subsidiaries, the company provides long distance telephone service throughout northeastern United States and eastern Canada, and cellular telephone service in two RSA's in Kentucky.
 ACC CORP. AND SUBSIDIARIES
 BUSINESS SEGMENT INFORMATION
 (AUDITED)
 TWELVE MONTHS ENDED DEC. 31,
 1991 1990(B)
 CELLULAR LONG-DISTANCE(A) TOTAL TOTAL
 Revenue $1,164,140 $51,126,702 $52,290,842 $37,560,964
 Operating expenses:
 Network costs 201,828 32,343,496 32,545,324 23,219,894
 Equipment &
 other costs 659,381 575,451 1,234,832 0
 Depreciation &
 Amoritization 401,381 2,764,061 3,165,442 2,499,603
 Selling, general
 & admin. 1,592,388 11,997,311 13,589,699 8,759,039
 TOTAL 2,854,978 47,680,319 50,535,297 34,478,536
 Income from
 operations (1,690,838) 3,446,383 1,755,545 3,082,428
 Other income
 (expense) (122,109) (201,265) (323,374) (246,096)
 Income before
 taxes (1,812,947) 3,245,118 1,432,171 2,836,332
 Provision for
 income taxes (616,405) 1,155,842 539,437 1,017,466
 Net income
 (loss) ($1,196,542) $2,089,276 $892,734 $1,818,866
 Earnings (loss)
 per share ($0.31) $0.54 $0.23 $0.53
 Average number of
 common and commmon
 equivalent shares 3,867,846 3,454,405
 (A) Canadian revenues for this period total $17,770,681 (US $$).
 (B) There was not any significant cellular activiity during 1990.
 ACC CORP. AND SUBSIDIARIES
 BUSINESS SEGMENT INFORMATION
 (AUDITED)
 THREE MONTHS ENDED DEC. 31,
 1991 1990(B)
 CELLULAR LONG-DISTANCE(A) TOTAL TOTAL
 Revenue $585,178 $15,959,297 $16,544,475 $9,502,323
 Operating expenses:
 Network costs 109,968 9,814,887 9,924,855 5,804,288
 Equipment &
 other costs 312,153 411,666 723,819 0
 Depreciation
 & Amortization 205,845 776,713 982,558 508,712
 Selling, general
 & admin. 641,816 3,773,783 4,415,599 2,420,363
 TOTAL 1,269,782 14,777,049 16,046,831 8,733,363
 Income from
 operations (684,604) 1,182,248 497,644 768,960
 Other income
 (expense) (89,668) (69,284) (158,952) (66,802)
 Income before
 taxes (774,272) 1,112,964 338,692 702,158
 Provision for
 income taxes (271,344) 437,534 166,190 251,159
 Net income
 (loss) ($502,928) $875,430 $172,502 $450,999
 Earnings (loss)
 per share ($0.11) $0.15 $0.04 $0.13
 Average number of
 common and common
 equilvalent shares 4,521,024 3,434,015
 (A) Canadian revenues for this period total $6,801,480 (US $$).
 (B) There was not any significant cellular activiity during 1990.
 -0- 2/12/92
 /CONTACT: Michael R. Daley of ACC Corp., 716-987-3175/
 (ACCC) CO: ACC Corp. ST: New York IN: TLS SU: ERN


LC -- CL004 -- 9174 02/12/92 10:58 EST
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Date:Feb 12, 1992
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