RACAL-DATACOM AND MCI JOIN FORCES TO IMPROVE NETWORK COST SAVINGS AND
PERFORMANCE

SUNRISE, FLA. (February 7, 1995) -- Racal-Datacom and MCI announced today
that they have signed an agreement to jointly market the combined
capabilities of MCI tariffed services and Racal network equipment at
reduced rates to their customers.

Under the agreement, Racal becomes a member of MCI's Affinity program which
makes Racal customers eligible for term discounts ranging from 12 to 29
percent* on MCI's broad range of voice and data services. Additionally,
customers gain the benefits of Racal's and MCI's combined strengths in an
integrated solution.

"With the Affinity program, we are boosting both the cost savings and
performance of our customers' communications networks," said James Norman,
president of Racal-Datacom, Inc. "Customers don't have to question the
compatibility of their network equipment and carrier services. They gain
unified support in the design, installation and ongoing operation of their
network."

"The Racal relationship leverages MCI's state-of-the-art transmission
capabilities with one of the world's leading network equipment
manufacturers," said Mort Aaronson, vice president, market management, MCI
Business Markets. "MCI understands that the synergy created by these
powerful business partners can greatly simplify the customers' buying
process and enhance the way they do business."

MCI data services available through the Affinity program include: Voice
Grade Private Line, Digital Private Line, Digital Data Service, Fractional
T1, TDS 1.5 and Frame Relay.

Racal-Datacom products delivering these services include: the Excalibur
digital access product family with Single-Ended Tl, shared switched 56 and
ISDN backup; fiber optic distribution systems; hubs, routers and frame
relay access devices, all under common network management.

Through Racal and MCI products and services, customers can manage their
entire network -- from the telecommunication lines through local area and
wide area networking systems, all the way to the desktop.

"Our customers are increasingly turning to the cost savings and efficiency
improvements available through new LAN/WAN technologies and evolving
carrier services," said Norman. "The MCI/Racal Affinity gives them the
opportunity to cost effectively migrate their networks to these
technologies and services. The relationship enables us to jointly pursue
new business and to expand customer satisfaction."

In addition to the Affinity program, Racal and MCI also participate in a
comarketing alliance which offers discounts on Racal equipment to MCI
customers. The two firms have been involved in co-marketing since 1990.

"Our partnership with Racal benefits both companies," added Aaronson, "and
most importantly, customers benefit from a complete network solution."
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*Rates and discounts are subject to the terms and conditions in MCI Tariff
F.C.C. No. 1, which may be amended from time to time.

Company Backgrounds

Racal-Datacom provides network solutions for the delivery and management of
information between headquarters and remote locations. The company's broad
product line includes local area wide area and metropolitan area
networking systems. All Racal products are managed by a single, open and
integrated network management platform and backed by a full range of
services including network design, operation and integration, worldwide
maintenance and support.

MCI Communications Corporation is one of the world's largest communications
companies with 1993 revenues of nearly $12 billion. Headquartered in
Washington, D.C., MCI has more than 65 offices in 58 countries.
Atlanta-based MCI Business Markets provides a wide range of communication
and information services to America's businesses, including networkMCI
BUSINESS software, long distance voice, data and video services and
consulting and outsourcing services.
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Racal-Datacomm, 1601 N. Harrison Parkway, Sunrise, FL 33323-2899
Mailing Address: PO Box 40744, Fort Lauderdale, FL 33340-7044
305-846-1601;  Fax: 305-846-3935

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