SNET News Release 227 Church Street New Haven, Connecticut 06510 October 22, 1996 For more information, please contact: Kevin Moore Don Porter SNET Woodbury Telephone (203) 771-2136 (203) 262-0202 SNET To Acquire Remaining Woodbury Telephone Shares Southern New England Telecommunications Corporation (SNET) -- (NYSE: SNG) -- and The Woodbury Telephone Company -- (NASDAQ OTC: WBTL) -- announced today that they have reached an agreement in principle under which SNET will acquire the remaining 63.5% of outstanding Woodbury Telephone common shares not currently owned by SNET for an aggregate consideration of about $30.0 million. As a result, Woodbury Telephone will become a wholly-owned subsidiary of SNET. Under the terms of the agreement, common shareholders of Woodbury Telephone would exchange each outstanding Woodbury common share for an amount of SNET common shares having a market value of $43.00 at the closing of the transaction, subject to certain conditions. The transaction, which is expected to qualify as a tax-free exchange under the Internal Revenue Code, is expected to close by mid-1997. -more- -2- The agreement is subject to the approval of the shareholders of Woodbury Telephone, as well as the approvals of the Connecticut Department of Public Utility Control, the Federal Communications Commission, and the U.S. Department of Justice. The Woodbury Telephone Company, a Connecticut corporation, is the primary provider of local telephone service in major portions of the Connecticut towns of Woodbury, Southbury and Bethlehem, as well as smaller portions of the towns of Oxford and Roxbury. As of year end 1995, Woodbury Telephone had annual revenues of $12.6 million; EBITDA (cash flow) of $6.6 million; net income of $1.8 million; and about 19,000 access lines in service. Woodbury Telephone also maintains a small ownership interest in Springwich Cellular Limited Partnership, of which SNET owns 98.6%. SNET is a Connecticut-based telecommunications company reaching beyond its traditional borders to offer wireline, wireless and information and entertainment services, including local, national and international calling; mobile communications; and publishing, information and advertising. The company is building I-SNET, Connecticut's broadband, information superhighway to serve all its customers. ##