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ALLTEL, GTE TO EXCHANGE TELEPHONE PROPERTIES

 LITTLE ROCK, Ark., Feb. 3 /PRNewswire/ -- ALLTEL Corporation (NYSE: AT) announced today that it has signed a letter of intent with GTE Corporation to trade telephone service areas in several states.
 Under terms of the agreement, ALLTEL would exchange its 95,000 access lines in Indiana, Michigan and Illinois, as well as approximately $440 million in cash, for GTE's Georgia telephone operations, which serve approximately 285,000 lines.
 In connection with this repositioning of telephone properties, certain moves will be initiated by ALLTEL within telephone operations.
 ALLTEL will consolidate the headquarters for its Northeast Region Telephone Operations, currently located in Jamestown, N.Y., into its Midwest Region headquarters based in Hudson, Ohio. The Midwest Region, which currently oversees telephone operations in Michigan, Illinois, Indiana and Ohio, would oversee telephone operations in Ohio, New York, Pennsylvania and West Virginia. At the same time, ALLTEL will streamline its telephone service corporation by decentralizing staff support functions to the regional headquarters.
 Joe Ford, ALLTEL chairman and president, said, "To position ourselves to succeed in the increasingly competitive telecommunications environment, we have and must continue to pursue opportunities to become more efficient. The exchange of properties with GTE not only enables us to exit three states, consolidate two regions and decentralize telephone support functions, but it also enables us to cluster the new Georgia properties around ALLTEL's existing Georgia operations for greater efficiencies.
 "We are proud of our strong record of productivity, but, we are also committed to the employees who have helped make this company a success. We will, wherever possible, pursue opportunities to find positions elsewhere in the growth areas of the company for the employees affected by the consolidations.
 "However, even with some attrition, it is expected that force reductions will be necessary."
 ALLTEL expects the trade to be non-dilutive to earnings once the efficiencies of related consolidations are realized.
 Pending execution of a definitive agreement and obtaining timely regulatory approvals, ALLTEL expects the exchange to be completed by the end of the third quarter of 1993.
 ALLTEL Corporation (NYSE: AT) is a leading telecommunications and information services company. In addition to providing local telephone service, ALLTEL subsidiaries provide cellular telephone service, information services and communications products.
 -0- 2/3/93
 /CONTACT: Ron Payne, vice president-corporate communications, ALLTEL Corp., 501-661-8989/
 (AT)


CO: ALLTEL Corporation ST: Arkansas IN: TLS SU: PER

KK -- CL003 -- 2238 02/03/93 09:04 EST
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Publication:PR Newswire
Date:Feb 3, 1993
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