INTERMEDIA COMMUNICATIONS POSITIONS ITSELF FOR DEREGULATED LOCAL TELECOMMUNICATIONS MARKET; Major Competitive Telecommunications Provider with Strong Infrastructure, Versatile Company "Turned Loose" by New Telecommunications Law

Business Wire, Feb 9, 1996

TAMPA, Fla.--(BUSINESS WIRE)--Feb. 9, 1996--Officials of Intermedia Communications (Nasdaq/NM: ICIX), a leading provider of competitive telecommunications services in the Southeast, today welcomed the signing into law by President Clinton of Senate Bill 652 as modified by the House of Representatives, the "Telecommunications Act of 1996," and indicated actions the Company has taken to participate more fully under the new law in the local telecommunications marketplace.

"We have been positioning Intermedia for the last ten years to take advantage of these developments, while playing a key role in formulating and driving this legislation," said David C. Ruberg, Intermedia's chairman, president and chief executive officer.

"We know that, with the appropriate regulatory safeguards intended under this law, we can compete with all companies, including the incumbent local telephone companies. We have a network infrastructure and market position that can enable us to garner as much as five percent of the $90 billion local telecommunications market in our home markets alone, and then to expand into other markets as conditions permit.

"In light of this widespread deregulation and our capabilities, Intermedia has initiated negotiations with local telephone companies in several regions of the United States for interconnection under the new law.

"Now it all comes down to customer service and product offering. Each and every telephone company can now be chosen by customers on the services it offers, the convenience with which it packages its services, and price," Ruberg said.

FEATURES OF NEW LAW BENEFIT INTERMEDIA

The new law permits the Regional Bell Operating Companies (RBOCs) to enter into the long-distance market, but only after they have proven that competition exists in their local markets -- a stipulation that benefits competitive local telephone companies such as Intermedia, which can now rapidly expand its local service offerings in multiple markets.

The law will also benefit Intermedia's ability to offer its already burgeoning long-distance and enhanced data services (frame relay and internet) to customers purchasing local switched services, rounding out the Company's total telecommunications package of services and allowing Intermedia to be a true "one-stop-shopping" source of telecommunications services.

LAW TO BOOST U.S. IN NATIONAL MARKETPLACE

"We salute our national legislators and the President on having the foresight to deregulate the local telecommunications industry, much as they deregulated long-distance ten years ago. Overall this new law should have a similar effect on local telecommunications services that the `Consent Degree' with AT&T did ten years ago," Ruberg said. "It will allow competitors to gain significant market share over time, just as competition reduced AT&T's long-distance market share.

"As true competition develops there will be a proliferation of new services, and prices should stabilize or move downward. This will help the American economy compete more efficiently in world markets and bring a new era of telecommunications to both businesses and homes everywhere," Ruberg concluded.

Intermedia Communications, headquartered in Tampa, Florida, provides customers with integrated telecommunications solutions over its extensive fiber-optic and data networks -- including voice, data and video services and local and long-distance switched services. Intermedia currently operates fiber-optic networks in Florida in Orlando, Tampa, Miami, Jacksonville, St. Petersburg and West Palm Beach; in Cincinnati, Ohio; in Raleigh/Durham, North Carolina; and has networks under development in St. Louis, Missouri, and Huntsville, Alabama. Intermedia also provides specialized telecommunications services to customers throughout the U.S. and internationally.

CONTACT: Intermedia Communications

Barbara Samson, 813/744-2402

or http://www.icix.net

or

Public Communications, Inc.

Stephen J. Kasser, 813/226-2772