SHARED TECHNOLOGIES FAIRCHILD SERVED WITH SHAREHOLDER ACTION IN DELAWARE



WETHERSFIELD,  CONNECTICUT,  August 1, 1997--Shared  Technologies Fairchild Inc.
announced that yesterday it was served with a purported shareholder class action
complaint in an action  commenced in the Delaware  Chancery  Court in New Castle
County.  Shared  Technologies  and its  directors are named as  defendants.  The
complaint seeks injunctive relief, costs and attorneys' fees with respect to the
proposed merger of Shared  Technologies  and Tel-Save  Holdings,  Inc. which was
announced  on July  17,  1997.  Shared  Technologies  believes  that the suit is
without merit and intends to defend it vigorously.

Company contact:
Anthony D. Autorino
Chairman and Chief Executive Officer
(860) 258-2400