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ALC COMMUNICATIONS REPORTS RECORD SECOND-QUARTER RESULTS -- PROFITS UP 189 PERCENT

 ALC COMMUNICATIONS REPORTS RECORD SECOND-QUARTER RESULTS --
 PROFITS UP 189 PERCENT
 BINGHAM FARMS, Mich., July 14 /PRNewswire/ -- ALC Communications Corporation (AMEX: ALC) today reported net income of $4.4 million ($.15 per share) on revenue of $92.7 million for the quarter ended June 30, 1992. These results represent a 7-percent increase in revenue and a 189-percent increase in profits over the second quarter of 1991, which had net income of $1.5 million on revenue of $86.5 million.
 Operating income for the second quarter also established a new high, rising to $8.9 million, up 44 percent from $6.2 million in the 1991 second quarter. A portion of the increase is attributable to the company's continued success in reducing network costs, and thereby increasing its gross margin. Gross margin percentage surged to an all- time high of 40.4 percent in the second quarter, up from 33.2 percent in 1988, 35.4 percent in 1989, 35.7 percent in 1990 and 38.7 percent in 1991.
 Long-distance call volume was also up, rising 8.2 percent over the second quarter of 1991. ALC Chief Financial Officer Marvin Moses attributed the company's improved financial results to continued success in servicing the long-distance needs of small to medium-sized commercial accounts with innovative products and superior customer service.
 The company also indicated that it has gone effective with its previously announced Subordinated Debenture exchange offer. The exchange offer is scheduled to be completed by Aug. 6, 1992, by which time several other senior loans will also be renewed and extended. Assuming successful completion of these transactions, management believes the company's debt service requirements will then be commensurate with expected future cash flow from operations.
 ALC Communications Corporation common stock is traded on the American Exchange under the symbol ALC. Allnet(R), the wholly owned operating subsidiary of ALC, provides long-distance products and services to more than 265,000 customers nationwide. The company is headquartered in Bingham Farms and employs 1,500 people nationwide.
 SUMMARY OF ALC FINANCIAL RESULTS
 (In thousands except for per-share amounts)
 Three Months Ended Six Months Ended
 June 30, June 30, June 30, June 30,
 1992 1991 1992 1991
 Net revenue $92,658 $86,541 $184,702 $172,455
 Operating income $8,922 $6,182 $16,588 $12,395
 Net income $4,434 $1,534 $7,701 $2,841
 Net income per share (1) $0.15 $0.01 $0.24 $0.00
 Weighted average common
 and common equivalent
 shares (2) 20,634 20,616 20,633 20,616
 (1) -- Includes impact relating to accretion of discount on ALC Class A Preferred Stock, dividends on ALC Class A Preferred Stock accrued but not declared and accretion of payment to certain holders of ALC Class A Preferred Stock under the amendment agreement.
 (2) -- Adjusted for the impact of the 1-for-5 reverse stock split effective in September 1991.
 -0- 7/14/92
 /CONTACT: David J. Thomas, vice president and treasurer, ALC Communications Corporation, 313-433-4935/
 (ALC) CO: ALC Communications Corporation ST: Michigan IN: TLS SU: ERN


JG-KS -- DE005 -- 8963 07/14/92 09:06 EDT
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Date:Jul 14, 1992
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