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MFS ANNOUNCES 21ST METROPOLITAN NETWORK; ACQUIRES MWR FIBERCOM IN ST. LOUIS

 OMAHA, Neb., Nov. 16 /PRNewswire/ -- MFS Communications Company, Inc. ("MFS") (NASDAQ-NMS: MFST), today announced a definitive agreement for MFS to acquire all operating assets of Midwest Capital Group's St. Louis subsidiary, MWR FiberCom, Inc. The transaction calls for Midwest Capital Group to receive a 20 percent interest in MFS' St. Louis subsidiary, Metropolitan Fiber Systems of St. Louis, Inc. This will be MFS' 21st metropolitan network.
 According to the agreement, MFS will retain an 80 percent majority ownership and its subsidiary, MFS Telecom, Inc., will operate the existing 20 route mile fiber optic network, as well as 10 route miles now under construction. Headquartered in Oakbrook Terrace, Ill., MFS Telecom is the nation's largest Competitive Access Provider. MWR FiberCom has invested approximately $2 million in the existing network.
 Plans call for significant continued expansion of the network to around 80 route miles, at a projected cost of approximately $15 million. The expansion will incorporate downtown St. Louis and suburban business centers near Lambert International Field, Creve Coeur, Maryland Heights and Clayton, connecting nearly 50 buildings, including several Southwestern Bell Telephone central offices.
 "We welcome the opportunity to offer the advantages of state-of-the- art fiber optic based telecommunications services to the business community of St. Louis," said Ronald R. Beaumont, president and chief executive officer of MFS Telecom. "Already the nation's tenth largest commercial center, we see St. Louis as a significant growth market. Our decision to develop a network here is in keeping with our strategic growth plans to establish networks in more than 50 metropolitan areas domestically and internationally over the next 3-5 years."
 "MFS' record of providing reliable communications services to business and government speaks for itself," said Roland M. Johnsen, vice president and general manager of MWR FiberCom. "Once completed, the St. Louis operation will provide private line services connecting two or more customer locations within the metropolitan area, and special access services connecting customers to their long distance carriers, with the same kind of high quality fiber optic network that kept critical communications intact through fires, floods and even the 1989 San Francisco earthquake."
 MFS competes directly with all seven Regional Bell Operating Companies, and is the nation's largest provider of competitive local access services. As an integrated telecommunications company, MFS provides a wide range of high quality voice, data and other competitive telecommunications services and systems to satisfy the growing demand of business and government end users.
 The St. Louis acquisition, follows recent announcements by MFS to build networks in California's San Jose-Silicon Valley area; Tampa and London; as well as acquisition of existing networks in Albany, Buffalo and Rochester.
 MWR FiberCom is a subsidiary of MWR Telecom, a Midwest Resources Company, and Iowa's first Competitive Access Provider for voice and data telecommunications services. Midwest Resources is a utility holding company headquartered in Des Moines, Iowa.
 MFS Telecom expects to begin development of the network expansion immediately following the anticipated closing of the transaction, which, subject to receiving certain authorizations including approval by the Missouri Public Service Commission, is expected to occur early in the first quarter of 1994.
 -0- 11/16/93
 /CONTACT: Josh Howell or Steve Ingish of MFS, 708-218-7316; or Debbie Brooks of MWR FiberCom, 515-242-4358/
 (MFST)


CO: MFS Communications Company, Inc.; MWR FiberCom, Inc. ST: Nebraska IN: TLS SU: PDT TNM

MP -- NY028 -- 4934 11/16/93 09:24 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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