May 15, 1996

NYNEX CONTACT: Media Relations, (212) 395-0500

NYNEX Chairman Sees Unprecedented Growth As Driving Force for Communications Partnerships

NEW YORK, N.Y. -- NYNEX Chairman Ivan G. Seidenberg cited a compelling reason for the wave of partnerships and alliances announced since the signing of the Telecommunications Act of 1996: a once-in-a-lifetime potential for growth based on unprecedented consumer demand.

In a keynote address to the Innovative Strategies for the 21st Century Conference -- a meeting of analysts and executives May 14-16 in New York City sponsored by Forbes and the American Stock Exchange -- Seidenberg called the proposed merger between NYNEX and Bell Atlantic "a natural alliance" that will give the companies the scale and scope to compete in the long-distance and cable TV industries.

By opening up the local telephone market at the same time, the Telecommunications Act "is launching a new cycle of growth, investment and innovation."

"No matter what happens in these competitive markets, customers will be the winners," Seidenberg said. "They will see increased choice, lower prices and more innovation...for a range of communications services, including wireline and wirefree telecommunications, TV, radio, movies, books, on-line services and video.

"The digital revolution and the increased customer demand for these communications services are the real drivers of the transformation in telecommunications."

The new Bell Atlantic will serve the market from Maine to Virginia, a 13-state region with a population of 63 million. This will make it the second largest telecommunications company in the U.S., and one of the five largest worldwide.

"The new Bell Atlantic will be one of the few companies in the world with the clout to meet the explosive demand in the U.S. and overseas," Seidenberg said.

Seidenberg cited record-breaking first-quarter growth for NYNEX in terms of phone lines (up 3.6%), as well as continued strong growth for second lines and value-added services such as Caller ID and Voice Messaging. He also said he believed that the base of NYNEX customers served by high-capacity ISDN lines will double yearly until the turn of the century.

"Communications is the hottest industry on the globe," said Seidenberg. "As the industry moves in fast-forward here in the U.S., another awesome impact is the robust growth in developing nations."

Seidenberg said that part of NYNEX's strategy has been to expand to targeted markets overseas. Three years ago, for example, NYNEX entered into a joint venture to design, build and operate infrastructure in Asia. NYNEX's initial $450 million investment is today worth more than $1 billion, and the venture -- now public -- serves 1 million customers in Bangkok, Thailand.

The new Bell Atlantic will have the resources to continue this type of international growth strategy, Seidenberg noted.

"With a hot market and lots of choice, partners like Bell Atlantic bring to NYNEX the investment scale and global reach needed in today's business climate," he said.

In a question and answer session, Seidenberg said that the merger was on schedule and that the companies have set up a well-organized process to address specific issues that involves more than 20 teams with co-leaders from each company.

He emphasized that the merger raises no antitrust issues: "The Department of Justice has a legitimate public interest role to look at the merger, and they should look at it. But when they get through, there will be no issue."

As for claims that the merger will eliminate local competition, Seidenberg was blunt: "The long distance guys are trying to make this into an issue, and they're just shooting blanks. We're opening our network [to local competitors], and we're going to enter the long distance and video businesses. That's what the Telecommunications Act is about."

In response to a question about the unions' reaction to the merger, Seidenberg said that NYNEX employees' response to a post-announcement survey was overwhelmingly positive.

"More than 80 percent of employees said they think it's good for the long term; 75 percent said they think the brand decision [to use the Bell Atlantic name] is a logical, common-sense choice," he said.

"I think the union will follow the real stakeholders -- the employees. Our people understand that the merger is our best growth strategy."