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LCI INTERNATIONAL AND SMART TALK NETWORK COMPLETE DEFINITIVE AGREEMENT

 McLEAN, Va., Oct. 18 /PRNewswire/ -- LCI International, Inc. (NASDAQ- NMS: LCII) today announced that it has concluded definitive agreements with STN Incorporated (Smart Talk Network) (NASDAQ-NMS: STHIF; TSE/ASE: STH) of Toronto, to form a strategic business alliance.
 The agreements call for LCI to provide financing of $22.3 million (Canadian) in two equal debentures convertible into common shares of STN at $5.10 (Canadian) per share. The first debenture will be funded at the initial closing and the second based upon STN's revenue achievement. As an incentive to provide the financing, LCI will receive an option to purchase an additional 750,000 common shares of STN at $6.00 (Canadian). LCI will provide $5 million (U.S.) in bridge financing pending closing of the transaction.
 Certain existing shareholders of STN have agreed to sell, and LCI is obligated to buy, 2.4 million common shares of STN at $5.00 (Canadian) per share by Jan. 3, 1994. In addition, certain existing shareholders have agreed to tender an additional 5.3 million shares at $5.00 (Canadian) should LCI choose to make a take over bid by June 15, 1994. In the event LCI exercises all of its rights to acquire stock under these agreements, it would become the majority shareholder of STN.
 The closing of the transaction is subject to various conditions, including STN shareholder approval at a shareholder meeting to be held before the end of the year.
 As a result of the alliance, the companies plan to interconnect their compatible intelligent switching platforms to form a single seamless trans-border network centrally monitored from LCI's network control center in Dublin, Ohio. The combined network will take advantage of complementary traffic profiles and associated economies of scale while supporting the full range of business and residential offerings including switched services, virtual private network, enhanced 800, frame relay and other advanced data services.
 "This strategic alliance enhances the competitive advantage LCI has begun to enjoy in the market because of its technologically advanced network intelligence and information systems, and provides LCI's first step into the broader world of international telecommunications relationships," said H. Brian Thompson, LCI's chairman and chief executive officer. "This relationship further positions both companies to better serve the ever-changing needs of their customers."
 As part of the arrangement, LCI will provide STN with network management, information and billing services and grant to STN a non- exclusive license to use its software for providing these services.
 LCI International, Inc. 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- 10/18/93
 /CONTACT: Ron Kraemer, of LCI International, 614-798-6862, or Mark Silver, of STN, 416-882-6722/
 (LCII STHIF)


CO: LCI International, Inc.; STN Incorporated ST: Ohio, Virginia, Ontario IN: TLS SU:

KL-LC -- CL008 -- 3204 10/18/93 09:06 EDT
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Publication:PR Newswire
Date:Oct 18, 1993
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