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LCI INTERNATIONAL REPORTS RECORD GROWTH

 McLEAN, Va., July 20 /PRNewswire/ -- LCI International, Inc. (NASDAQ-NMS: LCII) today reported second quarter 1993 revenues of $82.9 million, versus $62.7 million for the same quarter in 1992 (a 32 percent increase) and operating income of $8.4 million versus $3.8 million, a 118 percent increase, respectively, for the same period of 1992. Net income, before an extraordinary charge of $4.9 million relating to the early retirement of debt, was $693,000 versus a loss of $6.3 million for the same quarter in 1992. Net income per share before the extraordinary charge was $.06; net loss per share including the extraordinary charge was $.35.
 Revenues for the six months ended June 30, 1993 were $157.5 million, a 26 percent increase over the comparable period in 1992. Operating income of $16.2 million improved 89 percent over the $8.6 million for the comparable period in 1992. Excluding the one-time extraordinary charge in 1993, the company reduced its net loss for the six-month period from $11.5 million in 1992 to $170,000 in 1993.
 LCI International completed two landmark business transactions in the second quarter which have resulted in immediate and positive growth for the company and the significant improvement in net income.
 On April 29, LCI received the required regulatory approvals to complete its acquisition of Long Distance Service of Washington, Inc. (LDS), headquartered in McLean, Va. LDS results are included in the results of operations from April 29. LDS will serve as LCI's base for Mid-Atlantic operations, according to LCI Chairman H. Brian Thompson. In addition, LCI became a public company on May 13 when its common stock began trading on the NASDAQ National Market. The company issued 6.1 million common shares priced at $18.25 per share. The net proceeds of over $103 million from the offering were primarily used to retire $71.3 million of 16.75 percent senior subordinated discount reset notes and to reduce other indebtedness. These transactions, along with other restructuring of the balance sheet, will reduce interest expense in excess of $16 million on an annualized basis.
 "The improvement in the company's capital structure will help position the company for further profitable growth in 1993," said Thompson. "We are pleased with the current direction and performance of the company and with the momentum we have built for our future growth."
 LCI continued to generate significant growth in volume; switched minutes of use, frequently used by the industry as a measure of operating performance, increased 35 percent from 401 million minutes in the second quarter of 1992 to 543 million this year. Excluding the impact of the LDS acquisition, the company's internally generated volume and revenues increased over 25 percent.
 LCI's internal growth has been driven by a variety of new programs and promotions including the company's new nationwide origination services, simplified pricing approaches and a focused sales attack on both its existing markets and new cities in the Mid-Atlantic and Midwest areas of the country, plus its Simple, Fair & Inexpensive services for both business and residential customers.
 "Over the past two years, LCI has achieved all the objectives it established in the company's successful turnaround including revenue growth levels of 25 percent, restructuring of its highly leveraged balance sheet and the public trading of its equity," Thompson said. "Now we can move to the next stage in the company's development, that of continued focused growth with a more national and international base, and possible acquisitions of strategic importance."
 LCI INTERNATIONAL, INC.
 (000s except Per Share Amounts)
 3 Months Ended June 30,
 1993 1992
 Gross Revenues fore Extraordinary item $ .06 $


(.63)
 After Extraordinary item $ (.35) $ (.63)
 Weighted average number of common and
 common stock equivalents 12,002 7,858
 (000s except Per Share Amounts)
 6 Months Ended June 30,
 1993 1992
 Gross Revenues $157,548 $124,868
 Cost of Services 91,271 72,841
 Gross Margin 66,277 52,027
 Selling, general and administrative
 expenses 34,237 27,651
 Depreciation and Amortization 15,843 15,808
 Operating Income 16,197 8,568
 Interest and other expenses, net 16,169 17,384
 Income tax 198 120
 Net income (loss) before
 extraordinary item (170) (8,936)
 Extraordinary item (4,897) 0
 Net income (loss) before preferred
 dividends (5,067) (8,936)
 Preferred Dividends Accrued 0 2,561
 Income (loss) on common stock $ (5,067) $(11,497)
 Net income (loss) per share of common
 and common stock equivalent
 Before Extraordinary item $ (.02) $ (1.14)
 After Extraordinary item $ (.51) $ (1.14)
 Weighted average number of common and
 common stock equivalents 10,032 7,856
 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 operation subsidiaries headquartered in Dublin, Ohio.
 -0- 7/20/93
 /CONTACT: Ron Kraemer (investors), 614-798-6862, or Jim Fette (media), 614-798-6272, both of LCI International, Inc./
 (LCII)


CO: LCI International, Inc. ST: Ohio IN: TLS SU: ERN

AR -- CL004 -- 6551 07/20/93 08:24 EDT
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Date:Jul 20, 1993
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