LCI INTERNATIONAL TO ACQUIRE LONG DISTANCE SERVICE, INC.
DUBLIN, Ohio, Feb. 2 /PRNewswire/ -- LiTel Communications, Inc. and its parent company, LCI International, Inc., today announced that it has signed an agreement to acquire Long Distance Service, Inc. (LDS) headquartered in McLean, Va. LCI International, among the nation's largest and fastest-growing privately held telecommunications companies, anticipates the acquisition, which is subject to regulatory approval, will be completed by May 1. LCI plans to operate LDS as a wholly owned subsidiary and as its base for East Coast operations. "This acquisition is strategically important to LCI as it provides a significant opportunity to greatly expand LCI's presence in the mid-Atlantic states," said H. Brian Thompson, LCI chairman and chief executive officer. "We continue to focus on geographically expanding our long distance service to both business and residential customers. LDS has been built on providing superior personal service and customer satisfaction, a philosophy that fits hand in glove with ours. LCI will continue to build on and enhance current LDS services and will introduce its 'Simple, Fair and Inexpensive' series of telecommunications services to the LDS marketplace." Founded in 1983, LCI International is a worldwide, facilities-based telecommunications company that provides a full line of voice, data and video transmission services to meet both business and residential customer's needs. During the past two years, LCI has experienced a strong growth pattern. In 1992 LCI's minutes of use over its network grew by 26.5 percent and its revenue grew by 16.3 percent over 1991 to more than $260 million. LCI's steady growth has been attributed to a variety of new services and promotions including the company's nationwide origination, simplified pricing approaches and a focused sales attack on both its existing market and new cities in the east, midwest and southeast areas of the country. "LCI has made a variety of aggressive changes to the services it provides and in its marketing strategy to position itself within the telecommunications industry as one of the premier full-service, long-distance carriers in the nation," Thompson explained. "We believe those changes have produced remarkable results and we are having a positive impact on the marketplace." LDS is the nation's oldest privately held long distance company having been established in 1980 by Richard Rice, LDS's president and chief executive officer. LDS is also a full-service long-distance provider serving the needs of large and small businesses and operates an extensive network throughout the Bell Atlantic states. In 1992 LDS grew to more than $25 million in revenues. "I expect the combination of expertise from both companies will serve to strengthen LCI's position as a significant competitor in this marketplace," said Rice. "The combination of the two networks and organizations will clearly benefit our existing and future customers." LCI International, with headquarters in Dublin, Ohio, is a privately held company whose shareholders include New York-based E.M. Warburg, Pincus & Co., Inc., the largest venture banking firm in the United States, and Primus Venture Partners, Cleveland, one of the largest venture capital firms in the Midwest. -0- 2/2/93 /CONTACT: H. Brian Thompson, LCI chairman & CEO, 614-798-6340; Richard Rice, LDS President & CEO, 703-442-0220; or James R. Fette, LCI Corporate Communications, 614-798-6272/
CO: LCI International, Inc., Long Distance Service, Inc. ST: Ohio, Virginia IN: TLS SU: TNM
DA -- CL004 -- 1721 02/02/93 10:03 EST
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|Date:||Feb 2, 1993|
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