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U S WEST AND TCI COMBINE UNITED KINGDOM CABLE TV/TELEPHONE INTERESTS

 U S WEST AND TCI COMBINE
 UNITED KINGDOM CABLE TV/TELEPHONE INTERESTS
 LONDON, Dec. 18 /PRNewswire/ -- U S WEST Cable Communications and Tele-Communications Inc. (TCI) (NASDAQ: TCOMA) today announced that they have agreed to combine their United Kingdom cable TV and telephone operations. The new partnership will participate in franchises with 2.9 million homes.
 Under the new joint venture, both U S WEST and TCI will own 50 percent of their combined franchise interests. In addition, each partner will provide 50 percent of the required future investment. Completion of the transaction is subject to various regulatory and third-party consents.
 Dick McCormick, president and chief executive officer of U S WEST Inc. said: "The agreement underscores the long-term commitment of both companies to their United Kingdom cable and telephone operations, and will further strengthen the industry as a whole.
 "Under the new venture, we can more efficiently bring together U.K. cable TV and telephony into a single business strategy, investment plan and customer offering."
 The company will control and operate the London South (Croydon, Kingston/Richmond, Merton/Sutton), Edinburgh, Avon and Thames Estuary (North and South) cable TV and telephone franchises. It will hold interests in and provide telephone consulting services to the Camden, Islington, Hackney Haringey, Enfield, Windsor, Hillingdon, Hounslow and Birmingham franchises. In addition, it will be negotiating ownership of the Tyneside franchise where U S WEST already has an interest with US Cable.
 According to John Malone, president and CEO of TCI: "The joint venture puts into practice the real operating and commercial synergies between cable TV and telephony -- a joining of forces which ultimately best serves the consumer.
 "This synergy will allow us to continue a rapid rate of cable build," Malone added, "and thereby meet established consumer demand for choice and value in television and telephone service -- all consistent with U.K. public policy objectives. It also represents our company's first significant venture as an equity partner in local telephone exchange service."
 Participating in franchises with 2.9 million homes, the new TCI/U S WEST joint venture will have a pro-rata equity ownership of 1.8 million homes, about 12 percent of all homes franchised in the U.K. Together, U S WEST and TCI will have a projected total equity in excess of $750 million in their U.K. projects. TCI, the largest cable TV operating company in the United States, completed their merger with United Artists Entertainment on Dec. 3, 1991. TCI acquired United Artists' U.K. cable investments at that time.
 Through its cable TV partnerships in the U.K., U S WEST is already offering telephone service in seven franchises and plans to extend it to all franchises in the future. Early sales results are positive, with more than 13,000 residential and nearly 1,000 business customers, and a total of nearly 20,000 lines in service. The penetration rate of lines sold is 22 percent for residential service and 18 percent for business. Cable TV penetrations in the combined operations range from 22-30 percent.
 U S WEST Cable Communications is a subsidiary of U S WEST Inc. (NYSE: USW), a $28 billion diversified company headquartered in Englewood, Colo., a suburb of Denver. Its major subsidiary, U S WEST Communications, serves 25 million customers in 14 western states. U S WEST also owns companies involved in regional, national and international markets providing: radio communications, including cellular, paging and Personal Communications Networks; cable TV; business telecommunications products and services; directory publishing and marketing services; international networks and financial services.
 TCI based in Denver, serves 8.8 million cable TV customers in 49 states throughout the U.S. The company also has investments in a number of cable programming services. Tele-Communications is traded over-the-counter with Class A Common Stock and Class B Common Stock trading separately under the symbols of TCOMA and TCOMB, respectively. The company's 7 percent Convertible Subordinated Debentures and its Liquid Yield Option Notes due 2000 are traded in the over-the-counter markets under the symbols TCOMH and TCOMG, respectively.
 -0- 12/18/91
 /CONTACT: Rebecca Herbst of U S WEST Cable Communications, 303-649-4658; or Bob Thomson of TCI, 303-267-5220/
 (USW TCOMA) CO: U S WEST Cable Communications; U S WEST Inc.; Tele-Communications
 Inc. ST: Colorado IN: TLS SU: JVN


MC -- DV004 -- 3365 12/18/91 11:07 EST
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Date:Dec 18, 1991
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