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TCI OF PENNSYLVANIA TO CREATE 'PITTSBURGH SUPERSYSTEM' IN 7 COUNTIES, DEPLOY FIBER OPTICS TO OFFER UP TO 500 CHANNELS

 $70 Million Project Will Link 380,000 Customers
 From Single Distribution/Service Center
 PITTSBURGH, April 12 /PRNewswire/ -- The concept of an American communications infrastructure network -- a national electronic superhighway to the home made of fiber optic cable -- is one step closer to reality as TCI of Pennsylvania, Inc., today announced plans for a $70 million modernization and consolidation of its Southwestern Pennsylvania cable systems.
 The Southwestern Pennsylvania plan is part of The Infostructure Network, a nationwide four-year, $2 billion fiber construction project of Tele-Communications, Inc. (NASDAQ-NMS: TCOMA), the nation's largest cable company, and TCI of Pennsylvania's corporate parent. TCI said it plans to invest some $750 million nationally in 1993 alone, towards a goal of serving about 90 percent of its customers with fiber by 1994.
 In Southwestern Pennsylvania, TCI of Pennsylvania will create a new entity called the "Pittsburgh Supersystem" that will link its cable operations in Allegheny, Armstrong, Beaver, Fayette, Indiana, Washington and Westmoreland counties, operations that currently serve about 380,000 customers.
 As part of the project, the company will deploy fiber optics and digital signal compression to increase its capacity to 500 channels, with the exact number of channels offered to be determined. Currently, the company's systems offer from 22 to about 60 channels, depending on the community.
 The Pittsburgh Supersystem will be headquartered at the company's current City of Pittsburgh facility at 300 Corliss St., West End section. All customer service, marketing and administrative functions will be handled there.
 In addition, a master signal distribution center -- known as a headend -- will electronically link 155 communities in the seven-county area and will consolidate functions now performed at 16 separate headends.
 The company's current offices in East Hills, Greensburg, Pa., and South Hills, will be transformed into service centers, that is, bases for installers and technicians, and they will continue to accept customer payments.
 TCI of Pennsylvania's current offices in Apollo, Carnegie, Donora, McKeesport, Pa., and the North Hills will be closed by this summer, with all personnel shifted to Supersystem headquarters or an appropriate service center.
 At an afternoon news conference, James M. Mazur, general manager of the Pittsburgh Supersystem, said the modernization and consolidation will "position us to offer the entire range of new customer services.
 "We are investing $70 million because we believe in this region," he said, "and we believe that our Pittsburgh Supersystem has a vital role to play in the emerging economy of Pittsburgh and Southwestern Pennsylvania.
 "Today, we are renewing our commitment to this community. We will invest whatever it takes to keep our cable system on the cutting edge, to ensure that the residents of our communities enjoy all the advantages of modern electronic communications."
 Mazur said the project will bring both immediate and long-term benefits to customers, including:
 -- More programming options, including expanded pay-per-view selections, basic entertainment services, educational and community programming;
 -- More services for business users, including enhanced infomercial and advertising opportunities and customized data transmission networks;
 -- Improved customer service. The number of staff in direct customer
contact will grow from 380 to 400, an increase of more than 5 percent;
 -- Greater reliability. In the supersystem, the master headend will be staffed around the clock, and it will have back-up capability in McKeesport. Both these new features should reduce programming interruptions and limit the length of those that do occur; and
 -- Easier use of VCRs and advanced viewing features in the City of Pittsburgh, with the current dual-cable structure replaced by single-cable delivery.
 "We can't identify all the applications, since so many are in the developmental stages," Mazur said. "With our new technology and organization, we will be poised to offer our customers any promising feature that develops."
 Mazur projected that most of the modernization will be completed by the close of 1994, with some local rebuilding projects continuing in 1995. He said there is no "date certain" for completion of the personnel consolidation, but that it should be completed this summer.
 In the five communities where TCI of Pennsylvania offices will close, the company is finalizing arrangements for customers to make in-person payments at up to 33 different locations.
 "We are very sensitive to the impact of office closings," Mazur said. "We hope the communities affected by our consolidation will understand why we are undertaking this initiative, and that they will appreciate the customer benefits. We intend to continue working closely with all the communities we serve, and to honor all our franchise agreements."
 Mazur said all company employees serving the 155 communities involved were offered positions in the supersystem. Those who chose not to accept -- for any reason -- received generous severance packages.
 The key technological portion of the supersystem will be a 78-mile digital loop to connect the master headend in Pittsburgh with the back-up headend in McKeesport. Other components of the physical plant include 67 miles of AM fiber plant to connect systems to the hub sites, and 1,588 miles of fiber to bring the distribution system into neighborhoods.
 The goal is to create fiber nodes (local connection points) in clusters of approximately 2,500 residents. From these nodes, four coaxial cables will branch out to deliver service to clusters of 600 residences.
 TCI is traded in the NASDAQ market with Class A common stock and Class B common stock trading separately under the symbols TCOMA and TCOMB, respectively. In addition, the company's Liquid Yield Notes, due 2008, are traded in the NASDAQ market under the symbol TCOMG.
 -0- 4/12/93
 /EDITORS: Following are TCI of Pennsylvania, Inc.-Pittsburgh Supersystem highlights./
 ------
 -- Project Description:
 Modernization and consolidation to link TCI of Pennsylvania operations serving 380,000 customers in 155 communities across seven counties -- Allegheny, Armstrong, Beaver, Fayette, Indiana, Washington and Westmoreland.
 -- Technology:
 Fiber-to-the-neighborhood architecture, including a 145-mile fiber optic loop to link the 155 communities.
 Sixteen signal distribution centers (headends) consolidated into a master headend in Pittsburgh, with back-up in McKeesport.
 -- Cost:
 Estimated at $70 million.
 -- Channel Capacity:
 Digital signal compression will allow delivery of up to 500 channels.
 -- Timetable:
 Consolidation completed summer of 1993;
 Major construction completed by close of 1994; and
 Some neighborhood construction continues in 1995.
 -- New Channel Uses:
 More basic entertainment services;
 More pay-per-view options;
 More community & educational programming; and
 Enhanced business uses, including channel leasing, advertising opportunities, customized data transmission networks.
 -- Consolidation:
 System to be administered centrally at 300 Corliss St., West End, City of Pittsburgh;
 All customer service, marketing and administrative functions handled at headquarters; and
 Four regional service centers to serve as bases for technical operations.
 -- Customer Advantages:
 More programming options;
 Improved customer service;
 Greater reliability; and
 Elimination of dual-cable inconveniences in City of Pittsburgh.
 -- Staff:
 Customer contact staff increases from 380 to 400; and
 All staff will be based in Pittsburgh or an appropriate service center.
 -- Office Status:
 Headquarters -- Pittsburgh
 Service centers -- Pittsburgh, East Hills, Greensburg, South Hills
 Closing -- Apollo, Carnegie, Donora, McKeesport, North Hills
 -- Payment Centers
 Arrangements being finalized for up to 33 payment centers.
 Finalized to date:
 Irwin Bank and Trust
 - 309 Main St., Irwin, Pa. 15642
 - Route 30, Irwin, Pa. 15642
 - Route 130 (Penn Township), Irwin, Pa. 15642
 - Rainbow Village Shopping Center, White Oak, Pa. 15131
 /CONTACT: Evan Pattak of TCI of Pennsylvania, 412-771-8700, ext. 1440/
 (TCOM)


CO: TCI of Pennsylvania, Inc.; Tele-Communications, Inc. ST: Pennsylvania IN: TLS SU:

CD-CC -- PG002 -- 4830 04/12/93 14:17 EDT
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