OTHER NEWS - Aug. 28, 1993

Pacific Telesis Spinoff Ruled Tax-Free: Pacific Telesis Group said the Internal Revenue Service has ruled that its proposed spinoff to shareholders of its Pactel Corp. subsidiary qualifies as a tax-free transaction. The company said Pactel filed with the Securities and Exchange Commission for an initial public offering of 50 million Pactel common shares. The IRS ruling leaves the spinoff and public offering contingent on a favorable review by the California Public Utilities Commission and final approval by the Pacific Telesis board, the company said. Pactel, which includes the wireless operations of Pacific Telesis, is intended to be spun off as an independent company in 1994, following the initial public offering later this year.