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OCOM CORPORATION ANNOUNCES OPERATING RESULTS FOR FIRST QUARTER 1993

 NEW YORK, May 14 /PRNewswire/ -- OCOM Corporation (NASDAQ: OHCO) ("OCOM") announced today its operating results for the three months ended March 31, 1993.
 OCOM CORPORATION
 (In thousands, except per share data)
 Three months ended March 31 1993 1992
 Revenues:
 Toll $ 800 $ 1,709
 Transmission 1,327 1,156
 Total revenues 2,127 2,865
 Expenses:
 Operating 968 1,011
 SG&A 517 576
 Total expenses 1,485 1,587
 Operating income 642 1,278
 Depreciation and amortization (1,121) (1,169)
 Interest and dividend income 239 396
 Income (loss) before income taxes (240) 505
 Provision for income taxes (89) (247)
 Net income (loss) $ (329) $ 258
 Net income (loss) per common share $ (.05) $ .04
 Weighted average shares 6,644 7,021
 Prior to July 31, 1991, OCOM was a wholly owned subsidiary of Cellular Communications, Inc. (NASDAQ: COMMA) ("CCI"). On July 25, 1990, CCI and PacTel Corporation ("PacTel") entered into a merger and joint venture agreement, as amended as of Dec. 14, 1990 (merger agreement) whereby, on Aug. 1, 1991, CCI's cellular interests in Ohio and PacTel's cellular interests in Michigan and Ohio were contributed to a new joint venture equally owned by the two companies (joint venture). In connection with the merger agreement, on July 31, 1991, CCI distributed to its stockholders the stock of OCOM which consisted of CCI's long-distance and microwave operations in Ohio.
 OCOM sells interexchange long distance telephone services to cellular customers of the joint venture in Ohio who have chosen OCOM as their long distance service provider, and to roamers on portions of the joint venture's Ohio Cellular system. (Roamers whose presubscribed interexchange carrier ("PIC") is available to the joint venture must be carried by the roamers' PIC.) OCOM provides this service through arrangements with other long distance carriers under tariff or contract. In addition, pursuant to an agreement with the joint venture (the "JV Contract"), OCOM provides the joint venture with cell site to switch and switch to switch transmission service over OCOM's microwave facilities at competitive tariff rates. A small portion of OCOM's private line microwave services are provided to other customers.
 From OCOM's commencement of business in July 1991 until November 1992, all of the joint venture's cellular subscribers in the markets contributed by CCI to the joint venture, and all of the roamers in those markets, received long distance service from OCOM. In November 1992, the cellular subscribers of the joint venture then using OCOM for long distance service selected by "equal access" ballot, and began using, their choice of long distance service provider. OCOM was selected by approximately 58 percent of the joint venture's subscribers. Although OCOM will continue to provide long distance service to certain roamers on portions of the joint venture's Ohio systems pursuant to the JV Contract, long distance traffic from roamers whose PIC information is available to the joint venture must be carried by the roamer's PIC. PIC information is currently available only from intra-joint venture roamers, but as inter-carrier switch communication technology improves, PIC information will become available for more roamers.
 In February 1993, the District Court for the District of Columbia issued two Modification of Final Judgment ("MFJ") waivers that impacted OCOM's long distance service business. PacTel received the MFJ waiver that it had applied for in connection with the formation of the joint venture to allow the joint venture to provide long distance, or interLATA (local access and transport area), cellular telephone service within the Cleveland, Canton, Lorain/Elyria, Mansfield and Akron, Ohio Metropolitan Statistical ("MSAs") (Cleveland/Akron System). The joint venture has the right to buy the voice mail equipment CCI contributed to OCOM in July 1991 for $100 upon receipt of this waiver. Also, a waiver was granted permitting Bell Operating Companies and their affiliates ("BOCs") to provide multiLATA cellular services in Rural Service Areas ("RSAs") which are located partially or wholly in LATAs served by BOCs. In March 1993, the joint venture began providing interLATA service in its Cleveland/Akron System and the Ashtabula RSA. It is not yet known whether the joint venture will purchase the voice mail equipment or whether it will begin providing interLATA services in other RSAs.
 In December 1992, Pacific Telesis Group ("PTG") announced that it intends, subject to shareholder and regulatory approvals, to distribute to its shareholders its wireless operations as a totally independent company (the "PacTel Spin"). PTG announced that it expects the PacTel Spin will remove many legal and regulatory barriers that have historically constrained PacTel and its affiliates, such as the prohibition against providing interexchange long distance service. If such a restructuring takes place, the joint venture could enter into the long distance resale market in competition with OCOM. As a result, OCOM could lose a substantial portion of its interexchange long distance business.
 Given the diminished revenue base for long distance service as a result of the equal access process, the prospect of competition from the joint venture with respect to provision of long distance service, the possible purchase by the joint venture of the company's equipment and facilities, and the possibility of competition from landline telephone companies and others for the microwave transmission business currently provided to the joint venture, the company does not view the business prospects for its current operations favorable. The company therefore is pursuing alternative business strategies, one of which has led to an agreement with Insight Communications U.K., L.P. ("Insight U.K.") to form a new company. The new company, International CableTel, Inc. ("CableTel") will invest in the Insight U.K. companies that own cable and telephone licenses in the United Kingdom. The consummation of the transaction is subject to certain closing condition, including the receipt of certain regulatory approvals. The formation of CableTel and its agreement with Insight U.K. represents the commencement of the company's new business strategy to acquire, own and operate integrated cable and telephone properties. If and when future circumstances warrant, the company could be merged into CableTel or the company's assets could be liquidated and distributed to its shareholders.
 Results of First Quarter Operations
 Toll revenues decreased from $1,709,000 to $800,000 for the following reasons. The 1993 revenues reflect a 42 percent reduction in the company's customer base as a result of the equal access process, and the company is no longer providing long distance services to certain intra-joint venture roamers who are not the company's customers. In addition, the 1992 revenues include approximately $574,000 for InterLATA calls in the joint venture's Cleveland/Akron System made by the joint venture's Cleveland/Akron System subscribers which were free to the company's subscribers in 1993 as part of a marketing promotion. Beginning in March 1993, the joint venture began providing interLATA service in the Cleveland/Akron System to its Cleveland/Akron System subscribers which means the company will no longer have an opportunity to generate revenue from these calls. This will also reduce operating expenses since the company will no longer incur costs from carrying these calls.
 Microwave transmission revenue increased from $1,156,000 to $1,327,000 from addition circuits installed in the microwave network and billed to the joint venture.
 Operating expenses decreased from $1,011,000 to $968,000 due to the decrease in toll and interconnection costs from the reduction in long distance service. The decrease was offset by increases in microwave transmission costs and public utility property taxes.
 Selling, general and administrative expenses decreased from $576,000 to $517,000 primarily due to a decrease in marketing costs.
 Depreciation and amortization expense decreased from $1,169,000 to $1,121,000 because certain equipment has been fully depreciated.
 Interest and dividend income decreased from $396,000 to $239,000 due to lower interest rates earned on investments as a result of the mandatory redemption of the CCI preferred stock in January 1993.
 The provision for income taxes decreased from $247,000 to $89,000 because of the reduction in net income. The company's tax provision in 1993 is primarily due to the federal alternative minimum tax.
 -0- 5/14/93
 /CONTACT: J. Barclay Knapp, chief operating officer, 212-906-8445, or Stanton N. Williams, director-corporate development, 212-906-8448, or Richard J. Lubasch, vice president-general counsel, 212-906-8470, all for OCOM Corporation/
 (OHCO)


CO: OCOM Corporation ST: New York IN: TLS SU: ERN

TS-LD -- NY006 -- 8488 05/14/93 09:10 EDT
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