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MCI INTRODUCES NEW VIDEOCONFERENCING SERVICE PACKAGE; EXPANDS AGREEMENT WITH PICTURETEL CORPORATION

 DALLAS, May 17 /PRNewswire/ -- MCI Communications Corporation (NASDAQ-NMS: MCIC) today introduced a new multipoint dial-up videoconferencing service and equipment package under an expanded agreement with PictureTel Corporation that will enable more businesses to use video technology cost-efficiently and conveniently.
 MCI and PictureTel also announced that MCI placed a $3.25 million order for PictureTel equipment packages, including PictureTel's family of videoconferencing systems and additional network and peripheral equipment. PictureTel is the worldwide market share leader of dial-up video-conferencing systems.
 Meeting businesses' increased demand for economical, turn-key videoconferencing solutions, the new service will provide customers with a combination of domestic and international video networking solutions, highly competitive equipment upgrade options and a leasing program in cooperation with PictureTel.
 The service was announced here at the ICA COMNET DALLAS '93 trade show.
 In addition, the company announced the first two customers to use MCI VideoNet -- the Milwaukee-based Johnson Controls, Inc. and Perot Systems, headquartered in Reston, Va.
 Available pending expected FCC approval June 1, the new MCI VideoNet service will provide business users with flexible bandwidth options for point-to-point or multipoint conference bridging at variable data speeds over MCI's digital data network.
 "Videoconferencing is finally emerging as a utility for effective business communications," said Paul J. Weichselbaum, MCI vice president of data marketing. "In the past, many businesses have been unwilling to use video-conferencing because of the high equipment costs, limited applications and technological difficulties associated with it.
 "But now, the increasing availability of switched digital services worldwide and the evolution of new transmission and equipment standards has fostered a whole new market demand," said Weichselbaum.
 "PictureTel and MCI are working together to open the market for both small companies and the departments of large corporations alike by providing a low-cost, low-risk offering which enables them to redefine the way they do business," said Robert F. Mitro, PictureTel's senior vice president and general manager, worldwide sales and service group.
 MCI VideoNet service will offer network-provided bridging capabilities for PictureTel's family of videoconferencing systems using MCI's Switched 56 service.
 Customers can conduct multipoint conferences by dialing into MCI's VideoNet platform which utilizes PictureTel's M-8000 bridge. Customers can use up to six individual Switched 56 circuits (totaling 336 Kbps.), depending upon their application, quality and cost requirements for each conference.
 PictureTel Corporation (NASDAQ-NMS: PCTL), headquartered in Danvers, Mass., develops, manufactures and markets a full range of visual telecommunications solutions that are "re-defining the way the world meets." PictureTel enables worldwide video communications through an easy-to-use dial-up family of standards-based videoconferencing systems.
 MCI Communications Corporation, headquartered in Washington, offers a full range of domestic and global telecommunications services. The company, with 1992 revenue of more than $10 billion, is the second largest long distance provider in the U.S. and has more than 60 overseas offices in 55 countries and places.
 -0- 5/17/93
 /NOTE: For information about Johnson Controls, contact Mary Dugan, supervisor, JCI Telecom Services, 414-228-2593.
 Johnson Controls is a diversified company, including the manufacture of plastics, automated control systems and automotive products.
 For information about Perot Systems, contact Jeff Smith, Network Operations Manager, 214-497-8077. Perot provides computer and communications services./
 /CONTACT: Pam Small or John Houser of MCI Communications Corp., ICA Booth No. 3026, 800-289-0073 or 202-887-3000; Ron Taylor of PictureTel Corp., 508-762-5178; or John Coulbourn of Rourke & Company, 617-267-0042/
 (MCIC PCTL)


CO: MCI Communications Corp.; PictureTel Corporation ST: Texas, District of Columbia IN: TLS SU: PDT

IH-MH -- DC015 -- 9217 05/17/93 12:33 EDT
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Date:May 17, 1993
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