SBC Communications expands wireless business using AT&T properties

SAN ANTONIO -- August 12, 1996 -- SBC Communications Inc. (NYSE: SBC) today announced transactions involving AT&T wireless properties that will permit SBC's wireless subsidiary, Southwestern Bell, to offer cellular services to most Arkansas consumers in the near future.

"For many years, Arkansas consumers have counted on Southwestern Bell for telecommunications services," said Edward E. Whitacre, Jr., SBC's chairman and chief executive officer. "Now Southwestern Bell will be a full-service provider in Arkansas, offering customers the convenience of one-stop shopping for all their telephone and cellular services."

When the transactions with AT&T are completed, SBC will gain control of Arkansas cellular licenses and networks covering a total population of 2.3 million people.

SBC will also gain control of the 9.4 percent stake currently held by AT&T in SBC's Worcester, Mass. cellular system, which is a part of SBC's Boston-area Cellular One operations.

Under the terms of the agreements, AT&T will get control of SBC's undeveloped PCS licenses for Little Rock and Memphis and a 35.7 percent minority stake in a Pittsburgh, Pennsylvania cellular system. AT&T also will receive an undisclosed amount of cash.

"Gaining control of the established cellular operations in Arkansas offers several advantages over development of the PCS licenses," said Mary T. Manning, president - Southwestern Bell Wireless. "It lets the company move to a full-service position much more quickly, avoiding start up costs, substantial capital investments and lengthy build-out times. And, it provides technical compatibility with our current cellular systems."

Southwestern Bell, by its own controlled markets or through a reciprocal arrangement with GTE, will now offer cellular service to all markets in its traditional five state territory of Arkansas, Kansas, Missouri, Oklahoma, except Tulsa, and Texas. The company is developing a PCS license for the Tulsa market.

The transactions with AT&T are expected to be completed in the first quarter of 1997.

SBC Communications Inc. is one of the world's leading diversified telecommunications companies and the second largest wireless communications company based in the United States. SBC provides innovative telecommunications products and services under the Southwestern Bell and Cellular One brands.

Its businesses include wireline and wireless services and equipment in the United States and interests in wireless businesses in Europe, Latin America, South Africa and Asia; cable television in both domestic and international markets; and directory advertising and publishing. SBC reported 1995 revenues of $12.7 billion.