OTHER NEWS - May 31, 1996

Companies Protest SBC-Pac Tel Merger Plans: Documents filed by MCI Communications Corp. and AT&T; Corp. with California regulators assert that the $24-billion merger between SBC Communications Inc. and Pacific Telesis Group will be anti-competitive and not in Californians’ best interests. An attorney for MCI said SBC has a reputation for not welcoming competition; an AT&T; spokeswoman accused SBC of anti-competitive practices. SBC responded that California will reap tremendous benefits, including jobs, from the merger. California regulators will conduct hearings on the merger proposal this summer. The deal also faces scrutiny by Texas regulators and by the Federal Communications and the Securities and Exchange commissions. SBC shares fell 12.5 cents to $48.875; Pacific Telesis stock fell 25 cents to $33.125. Both trade on the New York Stock Exchange.