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INTERMEDIA CHOSEN AS U S WEST COMMUNICATIONS' PREFERRED DATA PROVIDER; Intermedia to provide nationwide reach for carrier's next generation network.

TAMPA, Fla.--(BUSINESS WIRE)--Jan. 29, 1998--Intermedia Communications Inc. (Nasdaq/NM: ICIX) today announced a definitive multi-year agreement to become U S WEST Communications' preferred interLATA data services provider enabling U S WEST to offer seamless national frame relay and Internet services.

"This agreement is a product of the strategy we have been pursuing for the past four years," said David C. Ruberg, Intermedia's president, chairman, and chief executive officer. "We have sought to complement incumbent local exchange providers" (ILEC) intraLATA frame relay product with our extensive interLATA network of switches and network to network interfaces (NNIs). This complementary strategy has allowed the ILECs to market jointly with Intermedia to provide national end-to-end solutions for their in-region customers."

U S WEST's fourteen-state region represents a substantial new market opportunity for Intermedia and anchors Intermedia's nationwide network expansion, enabling Intermedia's data origination and termination in the 48 contiguous states.

"Our business customers are looking to U S WEST to provide integrated, customized solutions including Frame Relay, ATM and IP services which incorporate national data networking capabilities," said Joe Zell, president of U S WEST !NTERPRISE Networking. "This relationship strengthens our ability to satisfy our corporate customers' requirements of both national scope and depth, while improving our value proposition and quality service offerings."

Intermedia will benefit from the following:

--Large complementary sales forces and accelerated entry into U S

WEST's fourteen-state region

--Increased terminating traffic on Intermedia's frame relay

network

--Improved network economies

--Cross-selling opportunities to existing and future customers in

U S WEST's region "This is definitely a win-win situation in

terms of expanded sales opportunities and improved network

utilization," said Ruberg. "We avoid a portion of the cost

of customer acquisition in U S WEST's region, and they

acquire the capability to provide services to their

customers on a nationwide basis."

Under the terms of this preferred provider agreement, Intermedia will license U S WEST to utilize and market Intermedia's portfolio of enhanced data networking services. Included will be the use of ViewSpan sm, Intermedia's advanced network monitoring and service platform. This technology provides Intermedia and its partners visibility across multiple Cascade-based data networks for an end-to-end network view allowing customers to monitor the performance of their service in real time.

Intermedia Communications is one of the nation's fastest growing telecommunications companies, providing integrated telecommunications solutions to business, government, interexchange and local exchange customers. These solutions include voice and data, local and long distance, and advanced network access services in major US markets. Intermedia's enhanced data portfolio, including frame relay networking, ATM, and a full range of business Internet services, offers seamless end-to-end service virtually anywhere in the world. DIGEX, an Intermedia Communications company, is a first-tier national Internet carrier providing connectivity and complex web site management services to business customers. News and product/service information about DIGEX are available at http://www.digex.net.

Intermedia is headquartered in Tampa, Florida, with sales offices in more than 40 cities. Intermedia can be found on the World Wide Web at http://www.intermedia.com.

CONTACT: Intermedia Communications, Tampa

Ray Bermond, 813/829-2015, rgbermond@intermedia.com

John Strickling, 813/829-2864,

jrstrickling@intermedia.com

or

U S West

Jeremy Story, 303/896-0934
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Publication:Business Wire
Date:Jan 29, 1998
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