GTE wins three new major commercial accounts, valued in excess of $250 million, to provide network management, data processing and outsourcing services.

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TAMPA, Fla. - GTE Corp. (NYSE: GTE) today announced that it has signed three new multi-year agreements worth more than $250 million, with three commercial customers to provide network management, data processing and outsourcing services. The agreements are with Japan's DDI Corp., and two U.S.-based companies, Federated Systems Group, and Highlights For Children magazine.

"GTE's data center operations and telecom applications are recognized world-class technology solutions. By choosing GTE, our three newest customers leverage years of experience in advanced IT services to support their core business objectives," said Deb Anders, GTE Data Services' vice president-commercial services. "And for us, all three accounts represent significant penetration in targeted markets."

The agreement with DDI Corp., Japan's second largest telecommunications carrier, calls for GTE to provide its Usage Management System (UMS) software application that automates telecommunications data collection from advanced networks and switching devices. DDI will use UMS to deliver a new generation of billing solutions to its 20 million subscribers and enhance areas such as time to market, convergence billing and operational cost reduction. GTE will implement UMS in DDI Pocket, a provider of personal communications systems, DDI long distance and DDI Cellular. The application will be fully operational in the fourth quarter of this year. Last year in Japan, UMS was implemented by GTE for TU-KA Cellular.

Federated Systems Group (FSG) awarded GTE a seven-year, multi-million dollar contract to integrate and manage its voice, video and data traffic network. GTE will also provide Help Desk functionality and telecom billing services. FSG is a division of Cincinnati-based Federated Department Stores, Inc., the nation's largest operator of traditional full-line department stores. In this agreement, GTE is contracting with Cisco Systems Inc. for telecom equipment and maintenance and with Sprint for access and transport links. GTE plans to have Federated's 450 stores and support locations transferred to a state-of-the-art Asynchronous Transfer Mode (ATM) network by March 2000.

"We are pleased with this technology alliance," said James Amann, Chairman and CEO of Federated Systems Group. "GTE's network operations centers are recognized as some of the best in the nation. We believe GTE Data Services has the experience in data network management and control that will support our commitment to continued growth and leading edge technology in the marketplace of the future."

In its five-year contract with the publisher of the world's largest subscriber based kids magazine, Highlights For Children (HFC), GTE will supply data and network management services. Under terms of the agreement, GTE will relocate the magazine's entire data processing operation from HFC's Columbus, Ohio headquarters to GTE Data Services in Tampa, Fla. GTE will also provide help desk, disaster recovery and printing services to HFC.

"We are delighted to have GTE as our technology partner" said Garry Myers, CEO of Highlights For Children. "GTE Data Services has the expertise to support our technology needs so that we can continue to focus on the educational needs of teachers and children."

GTE Data Services, a unit of GTE Corp., is one of the largest IT organizations in the United States. It has more than 30 years of experience designing, connecting and operating data centers that have a record of providing 99.9 percent system availability to commercial customers and GTE affiliates. The company supplies applications development, data center processing, outsourcing, network management and service bureau services to telecommunications carriers and business customers worldwide.

With 1998 revenues of more than $25 billion, GTE is one of the world's largest telecommunications companies and a leading provider of integrated telecommunications services. In the United States, GTE provides local service in 28 states and wireless service in 17 states, nationwide long-distance and internetworking services. These services range from dial-up Internet access for residential and small-business consumers to Web-based applications for Fortune 500 companies, and video services in selected markets.

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