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 ENGLEWOOD, Colo., Dec. 2 /PRNewswire/ -- Jones Intercable Inc. (NASDAQ: JOIN and JOINA) and BCE Telecom International Inc. ("BCETI") today announced that they have signed a letter of intent to enter into a strategic relationship whereby BCETI would acquire an approximate 30 percent equity interest in Jones Intercable in the form of Class A Common Stock of the company. BCETI is owned by BCE Inc. (NYSE: BCE), the largest publicly held company in Canada, whose family of companies include Bell Canada, Northern Telecom and Bell Northern Research. BCETI and Jones are partners in the United Kingdom, offering cable television and telephone services to residences and businesses in a large area of London.
 BCETI's investment commitment totals $400 million and may increase as Jones Intercable expands its operations. Approximately $275 million of the investment will be funded at closing at a purchase price of $27.50 per Class A Common share of Jones Intercable. The remaining $125 million will be invested by BCETI in the future to maintain its 30 percent interest as Jones Intercable offers additional equity in the public marketplace which it anticipates doing to achieve its growth plans. BCETI will have the right to maintain or increase its ownership by investing amounts beyond the initial commitment of $400 million.
 Jones Intercable would become the investment vehicle for BCETI's U.S. cable television investments. The capital commitment by BCETI would further Jones Intercable's strategic plans, which may include the acquisition of additional cable television systems or operators, as well as the purchase of certain cable television systems owned by limited partnerships which are managed by Jones Intercable. This arrangement also provides for the companies to collaborate in a number of technological, operational and other areas which would allow Jones Intercable to expand into wireline local exchange communications and broader telecommunications services both in its cable markets and elsewhere.
 In addition, Jones International Ltd., which is wholly owned by Glenn R. Jones, chairman and chief executive officer of Jones Intercable Inc., would grant BCETI an option to acquire certain shares of Common Stock of Jones Intercable Inc. Except in limited circumstances, the option would only be exercisable during the eighth year after closing. Its exercise would result in BCETI holding a sufficient number of shares of Common Stock of Jones Intercable Inc. to enable it to elect 75 percent of the board of directors.
 As part of a broader relationship between the parties, BCETI would also invest in a number of affiliates of Jones International Ltd. which are engaged in the telecommunications and distribution businesses, including an investment in Jones Lightwave Ltd., which is engaged in the alternative access telecommunications business, and in Jones Education Networks Ltd., the parent company of Mind Extension University: The Education Network. Mind Extension University is one of the fastest growing basic cable television networks in the United States, and is the only basic cable network offering distance education.
 Jones stated, "BCE is our ideal strategic partner. They are global investors, well capitalized and recognized leaders in telecommunications technologies -- we are very much philosophically aligned in our interests. As a result of this relationship, Jones Intercable will be well positioned to take full advantage of the future of cable television, telecommunications services and multi-media delivery systems in our many present and future markets."
 Derek H. Burney, BCETI's chairman, president and chief executive officer, said, "This investment provides BCETI with a solid entry into the world's most dynamic telecommunications market and is a major step in BCE's global strategy. The complementary strengths of BCE and Jones Intercable will enable us and our shareholders to take advantage of the rapidly converging cable, communications and entertainment markets in the United States."
 As part of these transactions, Jones has been invited to become vice chairman of the board of BCETI, and Burney would become vice chairman of the board of Jones Intercable.
 Jones Financial Group Ltd., the financial services affiliate of Jones International Ltd., arranged and negotiated the transaction on behalf of Jones Intercable Inc. Patrick J. Lombardi, president of Jones Financial Group, commented, "We have had ongoing discussions with BCETI about the possible expansion of our relationship outside of the United Kingdom, and we believe the time is right to join forces to take advantage of the tremendous growth opportunities for cable television, telephony and future services in the U.S. market.
 "The implementation of the growth strategy has already begun," Lombardi stated, noting that Jones Financial Group is already considering a number of possible acquisitions of cable television and telecommunications businesses and expects to move rapidly in this growth effort.
 Closing on the transaction, which is subject to certain conditions, including the execution of definitive agreements and the acquisition by Jones Intercable of the assets of Jones Spacelink Ltd., is expected to occur during mid-1994.
 Jones Intercable Inc. is one of the largest cable television operators in the United States. It is also the world's largest cable television management company, managing cable operations for publicly held entities. It manages cable operations in 20 states and three countries.
 BCETI is responsible for BCE's international telecommunications investments and provides telecommunications consulting services through Bell Canada International.
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 /CONTACT: Patrick J. Lombardi of Jones Intercable, 303-792-3111 or 303-784-8453 after 5 p.m. MST; or Derek H. Burney of BCETI, 514-392-2300/

CO: Jones Intercable Inc.; BCE Telecom International Inc. ST: Colorado IN: TLS SU:

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Publication:PR Newswire
Date:Dec 2, 1993

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