CONTACT: Andrew J. Kahn [transmitted by Ronald Proschan] DAVIS, COWELL & BOWE 100 Van Ness Avenue, 20th Floor San Francisco, CA 94102 415-626-1880 800-622-0641 DISTRIBUTION: US 2 - ----------------------------------------------------------------- FOR IMMEDIATE RELEASE May 2, 1996 AT U.S. WEST AND QUESTAR, SHAREHOLDER CHALLENGE TO GOLDEN PARACHUTES FOR EXECUTIVES WHO QUIT Both U.S. West Inc. and Questar Corp. have policies which allow senior executives to quit and receive the same severance pay as if they had been fired. These policies are being challenged by a shareholder proposal coming up for a vote at these companies' annual shareholders meetings. The proponent is shareholder United Food & Commercial Workers Local 99R, a Phoenix-based food industry union. The policy at U.S. West (NYSE:USW,UMG) would pay at least 3 years' worth of compensation to officers who quit in the 3 years after a change in control if quitting in response to any reduction in the officer's benefits ("including Company-paid and/or reimbursed club memberships") or in response to "any diminution in the status or responsibilities of the Executive's position." The policy at Questar (NYSE:STR) does not require any change in employment for severance to be paid to an officer quitting within 3 years of a change in control, so long as the officer stayed on 6 months after the changeover. An officer quitting in the first year after a change in control would receive two years' severance. A "change in control" triggering both policies includes purchase of a large block of stock by another corporation or replacement of the existing board. William McDonough, Local 99R President, said, "Name me one rank-and-file worker in this country who has a benefit as generous as these golden parachutes. Shareholders should not have to reward executives for choosing to quit." All press inquiries should be directed to Local 99R counsel, Andrew Kahn, at (415) 626-1880 or (800) 622-0641, who will supply press members with Local 99R's proxy statements and copies of company policies. The U.S. West meeting is June 7 in Ames, Iowa. U.S. West refused to include Local 99R's proposal in the Company's proxy card: thus the only way currently for shareholders to vote for the proposal is to attend the meeting or obtain a proxy statement and card from Local 99R (2501 W. Dunlap Ave. Phoenix 85021 tel. 602-572-2149). The Questar shareholders meeting is May 21 in Salt Lake City. Questar's proxy card includes the proposal. Local 99R is engaged in a labor dispute with Albertson's. A U.S. West executive sits on the Albertson's board of directors, and an Albertson's executive sits on Questar's board.