Teleport Communications Group Inc., TCG, Elects to Commence the Accrual of Cash Interest On Its 11 - 1/8% Senior Discount Notes

Business Wire, May 28, 1998

DAYTON, N.J.--(BUSINESS WIRE)--May 28, 1998--Teleport Communications Group Inc. (Nasdaq/NM:TCGI) announced today its election to commence the accrual and payment of cash interest on TCG's 11-1/8% Senior Discount Notes due July 1, 2007 (CUSIP No. 879463-AC-1). The accrual of interest payments will begin on July 1, 1998 and cash interest will be paid semi-annually beginning January 1, 1999. In addition, on July 1, 1998 the principal amount of the Notes will be reduced to the Accreted Value of $723 per $1,000 face amount of the securities. This election is in accordance with the terms of the Notes and will not affect the original yield of the Notes. As of July 1, 1998, investors will begin earning cash interest at the original yield rather than continue accreting principal.

TCG is the nation's first and largest provider of competitive local telecommunications services, selling both fiber optic and broadband wireless facilities to serve information intensive businesses in 82 major metropolitanmarkets with an array of advanced voice, data, video and Internet services. Visit our web site at www.tcg.com.

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