WINSTAR SIGNS LICENSE AGREEMENT FOR SOURCE MEDIA'S INTERACTIVE CHANNEL; WinStar Secures Exclusive 38 GHz Distribution Rights; The Interactive Channel to Serve as "Front End" for WinStar's Future 38 GHz Delivery of Video Services

Business Wire, June 13, 1996

NEW YORK--(BUSINESS WIRE)--June 13, 1996--WINSTAR COMMUNICATIONS, INC. (NASDAQ-WCII) today announced that its WinStar New Media subsidiary has signed a licensing agreement with Source Media, Inc. for the exclusive right to use the programming service and technology of The Interactive Channel in connection with the 38 GHz part of the spectrum, consistent with WinStar's future plans to develop new applications and lines of business using its 38 GHz licenses.

The Interactive Channel is a navigational tool for interactive television and a programming service, used for the delivery of interactive programs. It allows viewers to use a remote control to navigate a menu of online multimedia local and national programming and educational content. Source recently announced that the Interactive Channel is slated for launch this fall, after extensive testing, and that it is capable of delivering Internet E-Mail and Web site programming.

The license, which has an initial five year term and is renewable at WinStar's option, also includes non-exclusive rights to use the Interactive Channel in other parts of the wireless spectrum. Source will receive fees and royalty payments from WinStar in connection with its use of the Interactive Channel.

Source Media, Inc., based in Dallas, uses its proprietary rights to participate in the interactive programming and information industry.

WinStar Communications, Inc. is a local telecommunications company. WinStar Wireless is a competitive access provider which provides its Wireless Fiber "last mile" telecommunications services to long distance carriers, competitive access providers, mobile communications companies, local telephone companies, and other customers with broadband local communications needs. WinStar has licenses in the 38 GHz band in 41 of the top 45 MSAs in the United States, including the top 31 MSAs, and encompassing more than 100 cities with populations over 100,000, with over 400 million channel pops. WinStar Telecommunications provides telecommunications services in competition with the incumbent local telephone companies. WinStar Gateway Network provides long distance telephone service. WinStar New Media creates and distributes information services and entertainment content as a complement to WinStar's telecommunications activities. -0- Wireless Fiber is a service mark of WinStar Communications, Inc.

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Michelle Davis Steve Hein

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WinStar Communications, Inc. (212) 696-2000 Ext. 250

(212) 687-7577 Ext. 153 northstar@tsipr.com