LCI International, Inc.

LCI International, Inc. is a facilities-based long distance telecommunications carrier that provides a broad range of voice and data telecommunications services in both the domestic and international markets. The company provides services to commercial and residential customers. The services are provided primarily through digital fiber optic facilities. The company's revenues consist of switched revenues and private line revenues. Switched revenue is a function of switched Minutes Of Uses (MOUs) and rate structure charged per MOU and private line revenues is a function of fixed rates that do not vary with usage. LCI provides services in the United States and in more than 220 international locations. During 1997, the company acquired USLD Communications Corp which provides telecommunications services to business customers, operator services for the hospitality and payphone industries and local telephone service in selected markets.