GTE and Telia to acquire U S WEST Polska, Poland's largest Yellow Pages directory publisher, from U S WEST International; Poland seen as a growing market for Yellow Pages services

Business Wire, July 18, 1997

DALLAS--(BUSINESS WIRE)--July 18, 1997--GTE, which provides telephone directory services in 15 countries, and Telia InfoMedia International, the Swedish telephone directory publisher with operations in 13 countries, today announced the joint acquisition of U S WEST Polska, Poland's largest Yellow Pages directory publisher, from U S WEST International.

GTE will own 51 percent and have operational control of the company. The acquisition is subject to the approval of Poland's Office of Competition and Consumer Protection.

Research by GTE and Telia shows Poland as one of the most promising Yellow Pages directories markets in Eastern Europe. The two companies believe that leveraging their combined resources will best benefit the consumer and advertiser communities in Poland and maximize the long-term potential of the investment.

"With GTE's more than 60 years of directories publishing experience and Telia's established business relationships, excellent international management team and extensive multinational experience, particularly in Eastern Europe, we are confident we can offer Poland an outstanding telephone directory product," said Douglas C. LaVelle, senior vice president, GTE Directories. "This acquisition also is viewed as a critical component of GTE's strategy to expand our international operations."

"Polish businesses are clearly looking to the Yellow Pages as a very effective and comparatively inexpensive means for reaching the maximum number of high potential buyers," said Lars Guldstrand, president and CEO of Telia InfoMedia International. "We are predicting strong growth in the Yellow Pages industry in Poland over the next 10 years, and we are excited about the opportunity to participate in developing this market."

Gary Ames, president and CEO of U S WEST International, said, "I am delighted with this transaction. GTE and Telia are the right buyers at the right price. Today's announcement stems from U S WEST International's stated objective to focus its operations on cable telephony and wireless communications, which represent more than 90 percent of investment to date.

"We are selling a company that is successful and well-established in its sector, yet no longer a strategic fit for our organization," Ames said.

About U S WEST Polska and Poland's Yellow Pages Market

U S WEST Polska, a venture currently owned by U S WEST Media Group's international division, publishes independent directory products throughout Poland. The company has headquarters in Warsaw and employs nearly 1,000 people. It publishes 64 directory editions across five product lines, with approximately 3.4 million circulation. Revenues in 1996 were $28.1 million.

"We're pleased that GTE and Telia are showing an interest in Poland and the Yellow Pages market," said Piotr Strzalkowski, vice general director for U S WEST Polska. "The experience that GTE and Telia bring will ensure that we remain Poland's market leader in the arena of business information."

GTE and Telia research shows that the Yellow Pages are increasing in value in Poland both as a source of business information for consumers and as an advertising medium. In addition, privatization and consumer spending are driving the development of the entire Polish advertising industry, giving GTE and Telia reason to enter the market with optimism.

About U S WEST International

U S WEST International is part of the U S WEST Media Group (NYSE:UMG), one of America's largest broadband communications companies, which is involved in domestic and international cable and telephony, wireless communications, and directory and information services. For 1996, U S WEST Media Group reported proportionate revenues of $6.4 billion.

Media Group is one of two major groups that make up U S WEST, a company in the connections business, helping customers share information, entertainment and communications services in local markets worldwide.

U S WEST's other major group, U S WEST Communications, provides telecommunications services in 14 western and midwestern states.

About Telia and Telia InfoMedia

Telia is the national Swedish telecom company and has operations in more than 100 countries worldwide with a turnover of 44 SEK (approximately US$6 billion.) It currently employs 32,000 people and is a partner in Unisource/Uniworld (PTT Telecom Netherlands, Swiss PTT and AT&T). Telia InfoMedia (previously known as TeleMedia) is one of Europe's leading information service companies with offices in 13 countries worldwide. The company has a proven track record in the forefront of developing directories while spearheading innovative developments on new (electronic) products and services. The company's broad international expertise includes cable television, CD-ROM, Internet and directory assistance. Telia InfoMedia has 4,900 employees, a turnover of 5 billion SEK (approximately US$700 million) and is owned by Telia, the Swedish PTT, which is a partner of Unisource/Uniworld.

About GTE and GTE Directories

With revenues of more than $21 billion in 1996, GTE is one of the largest publicly held telecommunications companies in the world. In the United States, GTE offers local and wireless service in 29 states and long-distance service in all 50 states. GTE was the first among its peers to offer "one-stop shopping" for local, long distance and Internet access services.