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VALUE-ADDED REPORTS RECORD REVENUES FOR THE THIRD QUARTER

 DALLAS, Nov. 10 /PRNewswire/ -- Value-Added Communications, Inc. (NASDAQ-NMS: VACI) today announced revenues and net income for the third quarter and nine months ended Sept. 30, 1993.
 Revenues for the third quarter were $17,338,000, reflecting a new record and an increase of 8.3 percent over the $16,000,000 recorded for the same period a year ago. Net income was $106,000, or $0.01 per share, compared to $913,000 or $0.11 per share earned in the third quarter of 1992. Net income for the third quarter ended Sept. 30, 1993 included a non-recurring operating charge of $0.03 per share associated with the company's consolidation of its operations in Dallas, Texas.
 Revenues for the nine month period were $48,057,000, a 40.6 percent increase over the $34,171,000 recorded for the same period a year ago. Net income was $718,000 or $0.08 per share for the nine-month period, compared with $2,391,000 or $0.28 per share for the nine-month period ended Sept. 30, 1992.
 Dennis R. Casey, chairman and chief executive officer, stated that he is optimistic about the company's prospects despite the third quarter results. He added, "Results for the quarter were negatively impacted by expenses associated with the consolidation of offices in Dallas." He further commented that, "The primary reason for the decline in profitability was due to a $1.7 million reduction in high margin equipment sales."
 Mr. Casey said that, "As previously announced, the company is focusing its efforts on increasing the margins of long-term transaction contracts, while de-emphasizing equipment sales." He stated that, "A number of major cost reductions are underway, including carrier charges, validation expenses and billing fees; all of which should be implemented prior to the new year."
 The company also announced that it has completed the acquisition of Global-Res, Inc., the Scottsdale, Arizona based provider of international reservations services to the lodging industry. The company also announced that it expects to complete the acquisitions of Standard Telcom, Inc. of Oakbrook Terrace, Ill. and SelecTel Corporation of Irvine, Calif. around year end. As previously reported, these transactions are expected to increase VAC's revenue to an annualized level of over $100 million as of Jan. 1, 1994, with a positive impact on earnings.
 Mr. Casey also noted that, "The company has made major progress in developing all facets of its ATM business, and that market response has been favorable." He added, "The Company has also completed the installation of call processing systems at four prisons operated by the State of Minnesota Department of Corrections."
 Value-Added Communications, Inc. of Dallas, Texas is a telecom transaction processing company specializing in the processing of long distance calls, financial transactions and hotel reservations. VAC's customers are "host" locations and are primarily hotels and correctional facilities, but also include resorts, universities, hospitals, military bases, truck stops and pay telephones.
 VALUE-ADDED COMMUNICATIONS, INC. AND SUBSIDIARIES
 Consolidated Unaudited Condensed Income Statements


(in thousands except for share and per share information)
 Three Months Ended Sept. 30 1993 1992
 Revenues $17,338 $16,000
 Cost of Sales 13,196 11,818
 Selling, G & A 2,841 1,635
 Depr. and Amortization 691 629
 Income from Operations 610 1,918
 Interest and Other (431) (397)
 Income Before Income Taxes 179 1,521
 Provision for Income Taxes (73) (608)
 Net Income $106 $913
 Net Income Per Share $0.01 $0.11
 Weighted Shares Outstanding 9,188,000 8,464,695
 Nine Months Ended Sept. 30 1993 1992
 Revenues $48,057 $34,171
 Cost of Sales 37,117 24,309
 Selling, G & A 6,797 3,653
 Depr. and Amortization 1,857 1,437
 Income from Operations 2,286 4,772
 Interest and Other (1,089) (846)
 Income Before Income Taxes
 and Extraordinary Item 1,197 3,926
 Provision for Income Taxes (479) (1,295)
 Income Before Extraordinary
 Item 718 2,631
 Extraordinary Item -- 35
 Net Income $718 $2,666
 Pro Forma Net Income $718 $2,391
 Pro Forma Net Income
 Per Share $0.08 $0.28
 Weighted Shares Outstanding 9,231,000 8,464,695
 -0- 11/10/93
 /CONTACT: Dennis R. Casey, chairman & CEO or David R. Henkel, CFO, both of Value-Added Communications, 214-447-6700, or Lawrence Rosenbloom or Gary Fishman, both of The Hudson Stone Group, 212-983-8550/
 (VACI)


CO: Value-Added Communications, Inc. ST: Texas IN: TLS SU: ERN

TM -- NY013 -- 2572 11/10/93 08:09 EST
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Publication:PR Newswire
Date:Nov 10, 1993
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