Teleport Communications Group Inc. to Acquire the Assets of Kansas City Fiber Network, L.P.; Expand Into Kansas City, the 28th Largest Major Metropolitan Market

Business Wire, Dec 2, 1997

DAYTON, N.J.--(BUSINESS WIRE)--Dec. 2, 1997--Teleport Communications Group Inc. (Nasdaq/NM:TCGI) announced today that it will acquire the assets and customer base of Kansas City Fiber Network, L.P. (KC FiberNet), a leading competitive local exchange carrier in the Kansas City metropolitan area owned by Tele-Communications Inc. ("TCI") and Time Warner Communications.

With the additional facilities and customers from KC FiberNet, TCG's national footprint will total 66 major markets, and will include 29 of the top 30 markets.

"We are extremely pleased that the acquisition of the Kansas City facilities will give us an immediate presence in a key business market," said Bob Annunziata, Chairman, President and CEO of TCG. "This acquisition also helps fulfill our strategic goal to be in the top 30 domestic markets."

KC FiberNet currently operates a fiber optic network over 580 route miles in Kansas and Missouri which connects to more than 200 on-net buildings.

According to Annunziata, "We are constantly evaluating build versus buy decisions for TCG's networks. This acquisition was a natural choice for TCG since it allows us to quickly enter into a new market. TCG immediately adds more than 200 on-net buildings as well as customers with revenues which are currently EBITDA positive. We expect this acquisition to be immediately accretive to TCG."

This acquisition is subject to approval from regulatory authorities.

TCG is the nation's first and largest provider of competitive local telecommunications services, using both fiber-optic and broadband wireless services, for information intensive businesses in 58 major markets, upon the closing of this acquisition. With the completion of eight new markets, TCG will serve 66 major markets with an array of advanced voice, data, video and Internet services. Visit TCG on the World Wide Web at: www.tcg.com.

CONTACT: Nancy Huson, Investor Relations

(732) 392-2154

Roger Cawley, Media

(732) 392-2122