GTE's annual report features a 'start watch' and a timeline

STAMFORD, Conn. -- Introduced by the three words "Ready, Set, Go," GTE Corp.'s

1996 annual report features an eight-page timeline that graphically tells the

story of how GTE has taken the actions that position it well ahead of its

competitors during the first year of open competition in the telecom industry.

GTE Chairman and Chief Executive Officer Charles R. Lee, pictured with the

"start-watch" that appears on the report's cover, calls 1996 "the most important

year in the history of the telecommunications industry, and a very good year for

GTE."

Passage of the Telecommunications Act of 1996 opened a "window of

opportunity," Lee observes, and "we were ready from Day One." GTE became the

first large local phone company to offer long-distance, to provide a convenient

package of integrated services, and to put everything together on one bill, with

one point of contact for customer services.

"No other major local telephone company can make the same claim," Lee

asserts. "GTE is providing these services to customers in our major markets

today," while other companies are still just talking about their plans. GTE is

also working hard to promote the elimination of unnecessary regulation and the

development of a fair and competitive market, he says.

In addition, the company is moving aggressively "to take advantage of our

substantial presence and decades of experience in international markets," Lee

emphasizes. "In 1997, we plan to pursue additional initiatives in Asia, Latin

America and Europe."

A second special annual report feature, complementing the timeline,

addresses another key company goal. "GTE has set out to become the easiest

company to do business with in the entire industry," Lee says. The report

pictures several customers -- including a retired couple, a retailer, a

California family, a Venezuelan child and a student -- who have received

services reflecting that objective.

Long Distance Reply Card Demonstrates GTE's Aggressive Marketing

A reply card bound into the center of the annual report offers individual

shareholders in all 50 states an opportunity to sign up for GTE Long Distance

services. The insert exemplifies the vigorous drive the company has mounted to

build a strong position in long-distance service.

The report notes that GTE added 825,000 long-distance customers during the

year, along with 738,000 cellular customers, 72,000 Internet customers, 7,000

video customers and 8,600 new directory advertisers.

GTE shareholders are also reminded of the company's strong financial

performance in 1996. Charts show GTE's industry-leading 8.1 percent access-line

growth and 11.1 percent increase in minutes of use, as well as the company's 6.9

percent increase in consolidated revenues to $21.3 billion for the year, and its

10 percent increase in earnings per share to $2.88. Total access lines at year

end were 25.9 million, with cellular subscribers at just under

3.8 million.

GTE, which ranks among the nation's 15 most widely held companies, published

about 1,600,000 copies of the report, one of the world's largest annual report

print runs. Information in the report will also be available on the company's

Web site, http://www.gte.com.

About GTE

With revenues of more than $21 billion in 1996, GTE is one of the largest

publicly held telecommunications companies in the world. GTE is also the

largest U.S.-based local telephone company and a leading cellular-service

provider -- with wireline and wireless operations that form a market area

covering about one third of the country's population. Outside the United

States, where GTE has operated for more than 40 years, the company serves over 6

million customers. GTE also is a worldwide leader in government and defense

communications systems and equipment, aircraft-passenger telecommunications,

directories and telecommunications-based information services and systems.

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