Bell Atlantic to Buy Out Long-Term Yellow Pages Sales Contracts from R.H. Donnelley in New York

Business Wire, April 27, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--April 27, 2000

Bell Atlantic Directory Group, one of the world's largest Yellow Pages publishers, and R.H. Donnelley, the nation's largest independent marketer of yellow pages advertising, today entered into a letter of intent with respect to ending their long-term New York State sales agency contracts.

The two companies have reached a mutual agreement for an early termination of Donnelley's contracts as sales agent for Bell Atlantic Yellow Pages. Officials from both companies cited changing business strategies as the reason for the agreement. Terms of the agreement were not disclosed.

As a result, Bell Atlantic expects to hire certain Donnelley sales and support employees as it re-organizes to directly serve its customers in New York.

"This agreement really is focused around the strong desires of both companies to better serve our respective customers," said John Diercksen, President of Bell Atlantic Directory Group. "At Bell Atlantic, we want to be the direct link to our customers in New York and Donnelley wants to do the same in its core markets. In the end, both sets of customers come out ahead."

Diercksen added: "As Bell Atlantic Directory Group continues its focus on customer service, this agreement will enable us to operate more efficiently and effectively in all of our markets in New York."

Commenting for Donnelley, Frank R. Noonan, Chairman and Chief Executive Officer said, "While we have enjoyed an excellent relationship with Bell Atlantic over the years, our company and the markets we serve have changed dramatically since the last negotiation of our contract in 1990. As we continue to assess our core strengths and our most promising market opportunities, we have identified strategic changes that we believe are necessary to make our company more competitive and more profitable. As a result, we have taken several steps, including this one, to sharpen our company's focus, cut corporate costs and provide a strong financial springboard for growth. We are confident that this new, streamlined profile for our company will make us stronger and will create the greatest value for shareholders."

Mr. Noonan continued, "Making this transition now enables us to realize the maximum return from this relationship, and facilitates a seamless transition both for our customers and for those Donnelley employees who will become employees of Bell Atlantic. We are very pleased with this outcome."

R.H. Donnelley, headquartered in Purchase, N.Y., is the largest independent marketer of yellow pages advertising in the U.S. More information about R.H. Donnelley can be found at www.rhd.com.

Bell Atlantic is at the forefront of the new communications and information industry. With more than 44 million telephone access lines and more than 20 million wireless customers worldwide, Bell Atlantic companies are premier providers of advanced wireline voice and data services, market leaders in wireless services and one of the world's largest publishers of directory information. Bell Atlantic companies are also among the world's largest investors in high-growth global communications markets, with operations and investments in 23 countries.

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