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LCI REPORTS RECORD GROWTH FOR SECOND CONSECUTIVE QUARTER

 McLEAN, Va., Oct. 19 /PRNewswire/ -- LCI International, Inc. (NASDAQ- NMS: LCII) today reported record growth for a second consecutive quarter as its third quarter 1993 revenues of $90.4 million increased dramatically 35 percent compared to $67.0 million, for the same quarter in 1992. The company's operating income increased by 58 percent to $9.4 million vs. $5.9 million, respectively, for the same period of 1992. Net income, before an extraordinary charge of $207,000 relating to the early retirement of debt, was $4.9 million versus a loss of $3.0 million for the same quarter in 1992. Primary earnings per share of common and common stock equivalent before the extraordinary item were $.27; earnings per share of common and common stock equivalent after the extraordinary item were $.25.
 Revenues for the nine months ended Sept. 30, 1993, were $248.0 million, a 29 percent increase over the comparable period in 1992. Operating income of $25.6 million improved 76 percent over the $14.5 million for the comparable period in 1992. Excluding the one-time extraordinary charge in 1993, the company achieved earnings on common of $4.1 million reversing the $15.9 million loss in 1992.
 During the third quarter, LCI International completed a significant financing transaction which further improved the company's capital structure. On Aug. 18, LCI completed an offering of 4.6 million shares of 5 percent cumulative convertible exchangeable preferred stock priced at $25.00 per share. The net proceeds of over $111 million were used to further reduce debt and capital lease obligations and provide working capital.
 "During 1993, the company has completely restructured its balance sheet to position itself for future growth," said H. Brian Thompson, chairman and chief executive officer. "At the end of 1992 LCI had $305.8 million in debt and negative equity. At the end of the third quarter, LCI had $155.4 million in debt and $206.9 million in equity. These changes in the company's capital structure have reduced annual interest expenses by $16 million and will continue to favorably impact earnings on common stock."
 LCI continued to generate significant growth in volume: switched minutes of use, frequently used by the industry as a measure of operating performance, increased 40 percent from 431 million minutes in the third quarter of 1992 to 603 million this year.
 "LCI's strong third quarter demonstrates our ability to deliver healthy financial results while laying the groundwork to take advantage of emerging marketplace opportunities," Thompson explained. "Our excellent results are a fitting milestone to a quarter that has seen the company launch its Integrity(TM) service package for business customers that use $2,500 to $50,000 per month in outbound and inbound long distance, international calling, calling card usage, private line and broadcast fax services."
 LCI INTERNATIONAL, INC.
 (000s except Per Share Amounts)
 3 Months Ended Sept. 30,
 1993 1992
 Gross Revenues $90,417 $67,040
 Cost of Services 52,108 38,724
 Gross Margin 38,309 28,316
 Selling, general and
 administrative expenses 20,407 14,281
 Depreciation and Amortization 8,524 8,115
 Operating Income 9,378 5,920
 Interest and other expenses, net 4,367 8,906
 Income tax 99 60
 Net income (loss) before
 extraordinary item 4,912 (3,046)
 Extraordinary item (207) 0
 Net income (loss) before
 preferred dividends 4,705 (3,046)
 Preferred Dividends Accrued 671 1,319
 Earnings (loss) on common stock $4,034 ($4,365)
 Primary earnings (loss) per share of
 common and common stock equivalent
 Before Extraordinary item $.27 ($.39)
 After Extraordinary item $.25 ($.39)
 Weighted average number of common
 and common stock equivalents 16,021 7,855
 LCI INTERNATIONAL, INC.
 (000s except Per Share Amounts)
 9 Months Ended Sept. 30,
 1993 1992
 Gross Revenues $247,965 $191,908
 Cost of Services 143,379 111,565
 Gross Margin 104,586 80,343
 Selling, general and
 administrative expenses 54,644 41,932
 Depreciation and Amortization 24,367 23,923
 Operating Income 25,575 14,488
 Interest and other expenses, net 20,536 26,290
 Income tax 297 180
 Net income (loss) before
 extraordinary item 4,742 (11,982)
 Extraordinary item (5,105) 0
 Net income (loss) before
 preferred dividends (363) (11,982)
 Preferred Dividends Accrued 671 3,881
 Earnings (loss) on common stock (1,034) (15,863)
 Primary earnings (loss) per share of
 common and common stock equivalent
 Before Extraordinary item $.33 ($1.52)
 After Extraordinary item ($.09) ($1.52)
 Weighted average number of common
 and common stock equivalents 12,100 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 operational subsidiaries headquartered in Dublin, Ohio.
 -0- 10/19/93
 /CONTACT: Ron Kraemer, 614-798-6862, or Jim Fette, 614-798-6272, both of LCI International/
 (LCII)


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

KL-SM -- CL004 -- 3780 10/19/93 09:10 EDT
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Date:Oct 19, 1993
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