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WARBURG, PINCUS CAPITAL MAKES $10M COMMITMENT TO LCI INTERNATIONAL

 DUBLIN, Ohio, Nov. 19 ~PRNewswire~ -- LCI International today announced that the company's majority shareholder, Warburg, Pincus Capital Company, L.P. (WPCC), will invest $10 million in equity securities to support the continued implementation of LCI's strategic plan. The company anticipates that the investment will be made by the end of 1992.
 Additionally, WPCC has conveyed its willingness to invest up to an additional $10 million in equity securities if LCI secures the consent of holders of LCI's senior secured and senior subordinated notes to several indenture amendments that the company intends to propose in the near future. The amendments will be designed to position the company for increasingly profitable growth.
 LCI intends to use the proceeds to make further investments both in its successful advertising program in support of its residential expansion strategy, and in the development of the network intelligence necessary to provide the feature and functionality required to compete on a national basis.
 During the last half of 1991 and early 1992, WPCC and Primus Venture Partners, LCI's other lead investor, invested $18 million in equity securities of LCI. WPCC and Primus invested $48 million in equity securities in the company's initial acquisition in late 1988.
 Through a variety of aggressive changes in its marketing strategy, LCI is positioned to become one of the premier full-service long-distance carriers in the nation. The company recently announced dramatic improvement in third quarter and year-to-date results: third quarter revenues increased 18.5 percent over the prior year, and on a comparable basis, quarterly operating income showed a 59 percent increase over 1991.
 In January 1992, the company, formerly LiTel Telecommunications Corporation, and its affiliates, began doing business as LCI International to better reflect its overall capabilities and the focus of its service, enabling its customers to complete calls throughout the U.S. and to 178 foreign countries.
 More recently, LCI entered the residential market with its new SIMPLE, FAIR and INEXPENSIVE calling plan, and has begun a major national account program to appeal to larger and more sophisticated users of telecommunications.
 LCI International is a worldwide, facilities-based telecommunications company that provides a full line of voice, data and video transmission services to meet both business and residential customer's needs through its state-of-the-art fiber optic network. LCI International, with headquarters in Dublin, Ohio, is a privately held company whose shareholders include New York-based E.M. Warburg, Pincus & Co., Inc., the largest venture banking firm in the United States, and Primus Venture Partners, Cleveland, one of the largest venture capital firms in the Midwest.
 -0- 11~19~92
 ~CONTACT: Larry E. Wolfe, chief financial officer of LCI International, 614-798-6444~


CO: LCI International ST: Ohio IN: TLS SU: RCN

DA -- CL018 -- 3105 11~19~92 16:38 EST
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Publication:PR Newswire
Date:Nov 19, 1992
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