August 2, 1995 For further information, contact: Bill Seekamp (203) 771-2136 SNET COMMENTS ON THE ESTIMATED IMPACT OF RECENT DEVELOPMENTS SNET today said that it expects that the acceptance of its early retirement offer by 2,660 of its bargaining unit employees will not have a material impact on 1995 operating earnings. Most of these employees will be leaving the company late in 1995. SNET took a charge in 1993 in anticipation of reducing its workforce and that charge may be adjusted in the fourth quarter of this year when the costs of the current offer are definitively known. "The enthusiastic response to our early retirement offer will have a very positive long term impact on our cost structure," said Donald R. Shassian, Senior Vice President and CFO. "This will help us succeed in an ever more competitive marketplace." As previously announced, SNET completed a $456 million acquisition of cellular properties on July 1. The acquisition adds approximately 2.3 million people -- or POPS - -- to SNET's cellular service area for a combined market covering a population of over 5.5 million POPS. SNET now expects that the acquisition will dilute 1995 earnings by approximately 12 percent. -more- -2- The revised impact of the acquisition on 1995 results is due to SNET's decision to accelerate a number of transition activities and higher than anticipated fraud in the new properties. "We remain very bullish about this acquisition which strengthens our position in southern New England in the highest growth segment of our industry," Shassian said. SNET, a Connecticut-based company reaching beyond its traditional borders, provides local, national and international calling, mobile communications; and publishing, information and advertising services. It is building I-SNET, a statewide information superhighway that brings to customers a full array of information, communications and entertainment services. -xxx-