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IMPACT TELECOMMUNICATIONS TO ACQUIRE NORTHWEST TELECOMMUNICATIONS

 SPOKANE, Wash., March 29 /PRNewswire/ -- Impact Telecommunications Corp. (ITC), a Spokane-based telecommunications company, today announced that it has agreed, subject to closing conditions, to acquire all the common and preferred stock of Northwest Telecommunications Inc. (Northwest Telco), a regional long distance company also based in Spokane.
 ITC is a holding company formed by Richard Cusac, who also serves as ITC chairman, and Bessemer Venture Partners. The company currently owns International Pacific Inc. (IP) and National Technical Associates Inc. (NTA), providers of operator services to hotels, hospitals, condominiums and payphones in 12 Western states. Northwest Telco serves both business and residential customers in Washington, Oregon and Idaho with a full range of long distance products through sales and customer services offices in Boise, Idaho; Portland, Ore.; Seattle and Spokane, Wash.; and Idaho Falls, Idaho.
 "By consolidating these three companies, we've created the largest independent long distance company based in the Northwest," Cusac said.
 "The addition of Northwest Telco to the ITC group will allow us to diversify our products, expand our customer base and offer enhanced direct dial services to our operator services customers. Beyond this level, we are looking to merge additional Northwest-based direct dial companies into our group in the near future."
 Cusac said Northwest Telco's principle investor, Pentzer Corp., a subsidiary of The Washington Water Power Co. (NYSE: WWP), will become a significant shareholder of ITC upon completion of the transaction.
 "This is a good strategic move for Pentzer," Richard A. Davis, president and chief executive officer of Pentzer, said. "We believe that as an investor in ITC, we will realize the benefits associated with a larger, more diversified company in an industry in which we have great confidence."
 "I am extremely impressed with the resources and professionalism of the ITC group," Joseph Maio, president of Northwest Telco, said. "They are a dynamic outfit, and we expect major benefits for Northwest Telco and our customers from this new relationship."
 "This acquisition positions the company to obtain significant network cost reductions," Louis J. Soumas, ITC's chief executive officer, said. Soumas noted that ITC companies have utilized Northwest Telco's network and switches for years.
 "We know Northwest Telco's network and people well and can speak to the high quality of both from our direct experience. We expect to make full use of the additional expertise brought by Northwest Telco executives and staff," he said. "Our emphasis will continue to be on maintaining customer service quality and improving product offerings."
 Soumas said ITC's operating subsidiaries, including the Northwest Telco acquisition, are expected to generate more than $55 million in gross revenues and employ more than 250 people in 1993. He said that although ITC is small compared to companies like AT&T, MCI and Sprint, its emphasis on personalized customer service, high-quality network and lower corporate overhead make it extremely competitive.
 Cusac summarized ITC's outlook by saying, "We believe we have a clear vision of the future of this industry. Increased volumes, capable management, a full range of quality products, consistent profitability and access to capital are the keys to success, and we are confident we have these capabilities."
 With the Northwest Telco purchase, ITC will have completed three acquisitions in the past 12 months. The company expects to be positioned for an initial public offering by early 1994.
 -0- 3/29/93
 /CONTACT: Louis J. Soumas or Stephen D. Mean of Impact Telecommunications, 509-456-7624/
 (WWP)


CO: Impact Telecommunications Corp.; Northwest Telecommunications Inc.;
 Pentzer Corp.; The Washington Water Power Co. ST: Washington IN: TLS SU: TNM


SW-LM -- SE005 -- 0563 03/29/93 13:22 EST
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Date:Mar 29, 1993
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