Teleport Communications Group Inc.
Ticker: TCGI One Teleport Drive
Exchange: NASDAQ-National Market Staten Island, New York 10311
Industry: Service (718) 355-2000

Type of Shares:Class A Common Shares Filing Date:4/19/96
U.S. Shares:18,800,000 Offer Date:6/27/96
Non-U.S. Shares:4,700,000 Filing Range:$15.00 - $17.00
Primary Shares:23,500,000 Offer Price:$16.00
Secondary Shares:0 Gross Spread:$0.82
Offering Amount: $376,000,000 Selling:$0.50
Expenses:$2,033,000 Reallowance:$0.10
Shares Out After:156,157,614

ManagerTierPhone
Merrill Lynch & Co.Lead Manager (212) 449-4600
Deutsche Morgan GrenfellCo-manager (212) 468-5000
Donaldson, Lufkin & Jenrette Securities Corp.Co-manager (212) 504-4525
Lehman Brothers IncorporatedCo-manager (212) 640-6129
Morgan Stanley & Co. IncorporatedCo-manager (212) 703-4797

Auditor: Deloitte & Touche
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$166.17$50.44$36.79Assets:$658.91
Net Income:-$53.80-$18.69-$11.54Liabilities:$552.25
EPS:Equity:$106.66

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is one of the nation's largest providers of local phone service outside of the Baby Bells. The company builds fiber optic networks in major U.S. cities and links them to businesses and office parks allowing them to circumvent the Baby Bells. Teleport Communications Group Inc., the first and largest competitive local exchange carrier in the United States, offers a wide range of local telecommunications services in major metropolitan markets nationwide. The Company competes with incumbent local exchange carriers as "The Other Local Phone COmpany" by providing high quality, integrated local telecommunications services, primarily over fiber optic digital networks, to meet the voice, data and video transmission needs of its customers. TCG's customers are principally telecommunications-intensive businesses, long distance carriers and resellers, and wireless communications companies. TCG offers these customers, technologically advanced local telecommunications services, as well as superior customer service, flexible pricing and vendor and route diversity.

Use of Proceeds
The proceeds from the proposed offering will be used to redeem up to 7.807,881 shares of Class B Common Stock held by a subsidiary of Continental; to repay approximately $155 million of bank indebtedness of a subsidiary of the company, which amounts may be reborrowed; to expand and develop existing and new networks and ; for other general corporate and working capital purposes, which may include acquisitions.

Last updated: 10/28/96

©1996 IPO Data Systems, Inc. - All rights reserved.