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LCI INTERNATIONAL AND SMART TALK NETWORK ANNOUNCE A STRATEGIC BUSINESS ALLIANCE

 DUBLIN, Ohio, Aug. 12 /PRNewswire/ -- LCI International, Inc. (NASDAQ-NMS: LCII) announced that the company has entered into a letter of intent to form a strategic business alliance with STN Incorporated of Toronto, a Canadian long-distance reseller. The proposed transaction, which is subject to the consummation of a definitive agreement, calls for LCI to provide up to US$16.75 million in convertible debentures as well as a variety of support and information services to facilitate STN's continued rapid growth in the Canadian marketplace.
 The companies will form a seamless trans-border network offering a full complement of business and residential offerings including switched services, Virtual private network, enhanced 800, frame relay, and data services. The relationship will take advantage of the significant synergies in traffic profiles and compatible intelligent switching platforms.
 As the relationship evolves, LCI has certain rights to acquire further ownership and establish a substantial position in STN.
 "This alliance exploits the strategic advantage LCI has enjoyed in the market due to its technologically advanced network intelligence and information systems," said H. Brian Thompson, LCI's chairman and chief executive officer. "Not only does this strengthen LCI's presence in North America but also links us with an aggressive, dynamic company in the Canadian marketplace."
 In an unrelated matter, LCI also announced that the company entered into a non-binding letter of intent with Teledial America of North Carolina, Inc., a closely-held reseller that operates in North Carolina, South Carolina, Georgia, and Tennessee to purchase substantially all of its assets and assume substantially all of its liabilities. The cash purchase price is estimated to be $5.5 million.
 The consummation of the transactions contemplated by these letters of intent is subject to approval of the board of directors of the respective companies, the preparation and execution of definitive agreements and regulatory and other required approvals and consents.
 LCI International is a publicly-held, worldwide, facilities-based telecommunications company that provides to its business and residential customers a full array of voice, data and video transmission services through its fiber-optic network. LCI International, Inc., with headquarters in McLean, Va., has its operational subsidiaries headquartered in Dublin, Ohio.
 -0- 8/12/93
 /CONTACT: Ron Kraemer, 614-798-6862, or Jim Fette, 614-798-6272, both of LCI International/
 (LCII)


CO: LCI International; STN Incorporated; Teledial America ST: Ohio, Ontario, North Carolina IN: TLS SU: JVN TNM

KL -- CL013 -- 2207 08/12/93 15:09 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
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