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COMPANIA DE TELEFONOS DE CHILE S.A. ANNOUNCES OFFERING OF CONVERTIBLE DEBENTURES

 SANTIAGO, Chile, April 8 /PRNewswire/ -- Compania de Telefonos de Chile S.A. (NYSE: CTC) announced today the public sale of US$71,850,000 of its 4.5 percent Convertible Subordinated Debentures due 2003. The Debentures are redeemable at maturity at 112.66 percent of par to provide investors with a yield to maturity of 5.5 percent. The Debentures are convertible at any time into shares of the company's Series A Common Stock, without face value, at a conversion price of US$4.79 per share (equivalent to a conversion price of US$81.43 per American Depository Share and a conversion ratio of 208.77 shares of Series A Common Stock or 12.28 ADS's per US$1,000 principal amount of Debentures), subject to adjustment in certain circumstances. The conversion price represents a 25.0 percent premium over the average closing price of the company's ADS's during the last five days.
 The Debenture offering will be made in two equal tranches, in a U.S. offering and in an international offering outside of the United States and Chile. Goldman, Sachs & Co., S.G. Warburg Securities and Salomon Brothers Inc. are the representatives of the Underwriters for the U.S. offering. Goldman Sachs International Limited, S.G. Warburg Securites and Swiss Bank Corporation are the representatives of the Underwriters for the international offering. Goldman, Sachs & Co. serves as the Global Coordinator for the combined offering.
 In addition to the public sale of the Debentures, the company has sold in a preemptive rights offering in Chile, effected pursuant to the requirements of Chilean law and concluded on April 6, 1993, US$110,773,900 of debentures convertible into Series A Common Stock and US$10,063,900 of debentures convertible into Series B Common Stock.
 The company's Debentures have been rated "Baa3" by Moody's Investor Service and "BBB-" by Standard & Poor's Corporation on a subordinated basis. The Republic of Chile has a Sovereign rating of "BBB" from Standard & Poor's Corporation.
 The proceeds from the sales of the Debentures in the combined offering and the offering in Chile will be used to finance a portion of the company's Development Plan.
 Compania de Telefonos de Chile S.A., the first South American company to list its shares on the New York Stock Exchange, is the largest telecommunications enterprise in Chile providing, local, long distance and international telephone services in 77 percent of the country's territory where 92 percent of Chile's population resides. Additionally, the company operates a cellular network in the two principal metropolitan areas of Chile, Santiago and Valparaiso.
 -0- 4/8/93
 /CONTACT: Alejandro Rivera, head of finance and investor relations


of Compania de Telefonos de Chile, 011-562-696-1147; or Felicia Vonella of Dewe Rogerson, Inc., 212-688-6840, for Compania de Telefonos de Chile/
 (CTC)


CO: Compania de Telefonos de Chile S.A. ST: IN: TLS SU: OFR

LR-KW -- NY062 -- 4358 04/08/93 15:55 EDT
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Date:Apr 8, 1993
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