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SOUTHWESTERN BELL REPORTS FOURTH QUARTER, ANNUAL EARNINGS

 SOUTHWESTERN BELL REPORTS FOURTH QUARTER, ANNUAL EARNINGS
 ST. LOUIS, Jan. 23 /PRNewswire/ -- Southwestern Bell Corp. (NYSE: SBC) today reported net income of $316.2 million or $1.05 per share for the fourth quarter of 1991, compared with net income of $267.5 million or 89 cents per share in the fourth quarter a year ago.
 Revenues for the three months ended Dec. 31, were $2.5 billion, compared to $2.4 billion for the fourth quarter of 1990. Return on shareowners' equity was 14.26 percent, up from 12.39 percent in the fourth quarter 1990.
 For the year, net income was $1,156.5 million or $3.85 per share, excluding a second-quarter extraordinary charge of $81 million or 27 cents a share for refinancing $732 million of long-term debt. With the charge, net income for 1991 was $1,075.8 million or $3.58 a share. Net income for 1990 was $1,101.4 million or $3.67 per share.
 Revenues for the year were $9.3 billion, compared to $9.1 billion in 1990.
 "Southwestern Bell Corp. made solid progress during 1991, despite uncertainties in our nation," said Edward E. Whitacre Jr., Southwestern Bell Corp.'s chairman and chief executive officer. "Net income increased for the seventh consecutive year, excluding the extraordinary charge, and we took important steps to strengthen our operations for the future. In 1991 we expanded our cellular business, increased our investment in international businesses, and significantly streamlined operations through a successful management force reduction program.
 "This progress is reflected in our total return to investors since divestiture," Whitacre said. Southwestern Bell Corp.'s total return from the beginning of 1984 through year end 1991 was 326.1 percent, the best of all the Bell holding companies. (Total return is stock appreciation plus dividends.)
 "Strong performances by our cellular and Yellow Pages subsidiaries led earnings growth for the quarter and the year," Whitacre said. Southwestern Bell Mobile Systems added 91,000 customers in the fourth quarter and 293,000 for the year, bringing its total to 960,000. Southwestern Bell Yellow Pages revenue growth for the year was more than double the industry average of 3.0 percent.
 "Southwestern Bell Telephone continues to absorb rate reductions ordered by state and federal regulators," Whitacre said. "However, its cost containment efforts resulted in lower operating expenses for the year, and 1991 access line gains were in line with expectations."
 Southwestern Bell Telephone added 52,000 access lines in the fourth quarter and 293,000 for the year, bringing its total to 12.4 million.
 During the fourth quarter, approximately 3,700 managers at Southwestern Bell Telephone and other Southwestern Bell companies accepted an offer of pension enhancements and voluntarily retired or resigned effective Dec. 30.
 Costs associated with this force reduction resulted in a one-time charge which reduced fourth quarter net income by about $30 million, or 10 cents a share. The corporation said it expects that savings from the force reduction could reduce 1992 operating expenses by $150- 200 million.
 In 1990, Southwestern Bell Corp. invested $485.8 million for 5 percent of the equity of Telefonos de Mexico (Telmex) plus an option to acquire an additional 5 percent. In September 1991, the company exercised the option. Southwestern Bell Corp.'s 10 percent equity interest in Telmex is in L and AA shares, which are subject to certain restrictions. Based on the market value of L shares, the value of the company's current investment in Telmex is approximately $2.5 billion.
 Southwestern Bell Corp., based in St. Louis, is an international communications corporation with more than 1 million shareowners. It provides a variety of products and services through its principal subsidiaries including Southwestern Bell Telephone Co., Southwestern Bell Yellow Pages, Southwestern Bell Mobile Systems, Metromedia Paging, Southwestern Bell Telecom, Mast Advertising & Publishing, Gulf Printing and Southwestern Bell International Holdings.
 SOUTHWESTERN BELL CORP.
 Financial Summary and Comparisons
 (dollars in millions, except earnings per share)
 (unaudited)
 Fourth Quarter Results
 Percent
 1991 1990 Change
 Operating revenues $2,522.4 $2,446.3 3.1
 Operating expenses $1,928.5 $1,938.2 (0.5)
 Net income $ 316.2 $ 267.5 18.2
 Earnings per share $ 1.05 $ .89 18.0
 Weighted average number
 of common shares
 outstanding
 (in millions) 300.2 300.1 ---
 Return on weighted
 average shareowners'
 equity 14.26pct. 12.39pct. 187 basis
 points
 Annual Results
 Percent
 1991 1990 Change
 Operating revenues $9,331.9 $9,112.9 2.4
 Operating expenses $7,198.3 $7,071.0 1.8
 Income before
 extraordinary loss $1,156.5 $1,101.4 5.0
 Extraordinary loss on
 early extinguishment
 of debt $ 80.7 --- ---
 Net income $1,075.8 $1,101.4 (2.3)
 Earnings per share
 Income before
 extraordinary loss $ 3.85 $ 3.67 4.9
 Extraordinary loss on
 early extinguishment
 of debt $ .27 --- ---
 Net income $ 3.58 $ 3.67 (2.5)
 Weighted average number
 of common shares
 outstanding
 (in millions) 300.1 300.4 ---
 Return on weighted
 average shareowners'
 equity 12.30pct. 12.92pct. (62) basis
 points
 Return on weighted
 average shareowners'
 equity before
 extraordinary loss 13.03pct. 12.92pct. 11 basis
 points
 NOTE: Southwestern Bell Corp. incurred an extraordinary loss in the second quarter of 1991 for refinancing of long-term debt in the Telephone Co.
 -0- 1/23/92
 /CONTACT: Jerrell Ross of Southwestern Bell Corp., 314-235-7100/
 (SBC) CO: Southwestern Bell Corp. ST: Missouri IN: TLS SU: ERN


BB -- DV005 -- 2838 01/23/92 13:15 EST
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Date:Jan 23, 1992
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