IXC Communications, Inc.
Ticker: IIXC 5000 Plaza on the Lake, Suite 200
Exchange: NASDAQ-National Market Austin, Texas 78746
Industry: Service (512) 328-1112

Type of Shares:Common Shares Filing Date:5/20/96
U.S. Shares:4,480,000 Offer Date:7/2/96
Non-U.S. Shares:1,120,000 Filing Price: -
Primary Shares:5,600,000 Offer Price:$16.00
Secondary Shares:0 Gross Spread:$1.12
Offering Amount: $126,500,000 Selling:$0.68
Expenses:$1,500,000 Reallowance:$0.10
Shares Out After:30,775,308

ManagerTierPhone
Morgan Stanley & Co. IncorporatedLead Manager (212) 703-4797
CS First BostonCo-manager (212) 909-3312
Dillon, Read & Co. Inc.Co-manager (212) 906-7000

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$91.00$26.25$21.77Assets:$346.47
Net Income:-$3.22-$11.70$1.27Liabilities:$351.31
EPS:-$0.27-$0.49$0.03Equity:-$4.84

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

Business Description
The Company provides two principal services to long distance companies: (i)long-haul transmission of voice and data over dedicated circuits; and (ii)switched long distance services. The Company is one of only five carriers to own a digital telecommunications network extending from coast-to-coast (the other carriers are AT&T;, MCI, Sprint and WorldCom). Its facilities include digital switches located in Los Angeles, Dallas, Chicago, Philadelphia and Atlanta. The Company is currently engaged in a major expansion of its network. The Company has long-haul circuit contracts with over 200 long distance carriers, including AT&T;, MCI, Sprint, WorldCom, Cable & Wireless, Frontier and LCI. Long-haul transmission service is also provided to customers after contract expiration on a month-to-month basis. The Company's long-haul contracts provide for fixed monthly payments, generally in advance. The Company has provided services to nine of its ten largest customers for at least six years and, although sales volumes from particular customers vary from year to year, has historically enjoyed a high customer retention rate. The Company recently expanded into the business of selling switched long distance services to long distance resellers in order to complement its long-haul business and to capitalize on its ability to provide switched services over its own network.

Use of Proceeds
The proceeds from the proposed offering will be used for fiber optic expansion.

Last updated: 10/28/96

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