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Frontier Corporation's Second Quarter Earnings Highlight Continued Focus on Data: Reports $.20 Normalized EPS; Fifth Consecutive Quarter of Triple-Digit Data Growth - Company Financial Information

Cambridge Telcom Report, August 9, 1999

Frontier Corporation (NYSE:FRO) has announced second quarter 1999 results that are consistent with the company's revised expectations, which have previously been publicly disclosed.

Frontier's second quarter normalized earnings per share were $0.20. Normalized net income was $36 million. Consolidated revenue was $647 million for the second quarter, while operating income was $67 million.

The company's earnings continue to be impacted by accelerated pricing erosion in the switched long distance business. To overcome this trend, last week Frontier became the first communications company in the industry to announce plans to run the vast majority of its interexchange traffic over an Internet Protocol (IP) network by 2002.

"Frontier has remained steadfast in its strategy to evolve from a switched voice company to a leading edge player in the exploding data and Internet space," said Frontier President and Chief Operating Officer Rolla P. Huff. "This commitment has resulted in Frontier being the first service provider to announce the deployment of a true carrier class voice-over-IP offering that will provide quality and reliability on a nationwide scale and for a fraction of the current cost."

Consolidated Second Quarter Highlights - Progressed with its definitive merger agreement with Global Crossing to create the preeminent global IP services company in the world.

- Launched innovative application networking services strategy to host customers' outsourced applications in the company's data centers.

- Named to the Business Week Info Tech 100, an annual ranking of

the best performing information technology companies.

- Through Frontier Internet Ventures, invested in Narus, Inc. a pioneer in providing comprehensive customer usage information directly off high-speed IP networks.

- Continued progress on the Frontier Optronics Network, with 100 percent of the base network and nearly 80 percent of the entire network complete. A map denoting the progress of the Optronics network build is also available on the company's web site at http://www.frontiercorp.com/optronics/maps.html Integrated Services The Integrated Services segment includes Frontier's commercial, consumer and carrier businesses for all data, competitive local (CLEC), long distance, audio/video conferencing and other value-added services. Three main growth areas drive the integrated services segment: carrier or wholesale services, data, and competitive local exchange (CLEC) services.

 

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