Star Telecommunications Awards Qwest 20-Year $70 Million Capacity Contract

Santa Barbara, CA and Denver, CO - June 25, 1998-STAR Telecommunications, Inc. (Nasdaq: STRX) and Qwest (Nasdaq: QWST) today announced that STAR will purchase capacity on the Qwest nationwide Macro CapacitySM Fiber Network. Under a 20-year, $70 million agreement, STAR has purchased a long-term right to use capacity on the Qwest network extending into every major metropolitan city in the United States. STAR expects to reduce its annual carrying costs on domestic routes by more than 50 percent as a result of this agreement.

?STAR has led the industry in deploying a state-of-the-art network to support our rapidly growing volume of international and domestic long distance traffic,? said Christopher Edgecomb, Chairman of the Board and Chief Executive Officer of STAR. ?Our proposed acquisition of PT-1 will add significant domestic traffic, which will experience the greatest cost savings from this agreement. Today?s announcement with Qwest further demonstrates our commitment to establishing the most advanced proprietary lines of communication that will significantly lower our termination and routing costs over our current leased network. Locking up bandwidth and deploying advanced Nortel switcng the dynamic growth rate that we have experienced over the past three years.?

?Qwest?s Macro Capacity Fiber Network delivers the speed, service and reliability that innovative communications companies like STAR demand,? said Gregory M. Casey, Qwest?s senior vice president of broadband capacity. ?As we continue to rapidly light additional segments of our nationwide network, leading carriers are entering into agreements with Qwest to meet their present and future capacity needs.?

About STAR Telecommunications
STAR Telecommunications is a multinational long-distance provider offering switched-voice services to long-distance carriers and commercial customers throughout the world. STAR provides international long distance service through a global network of digital switching facilities and undersea fiber optic cable systems. STAR Telecom holds domestic switching facilities in New York, Los Angeles, Dallas and Miami, and international switching facilities in London, Frankfurt, Hamburg, Dusseldorf and Munich. Visit STAR Telecom at

This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Qwest with the SEC, specifically the most recent reports on Form 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including potential fluctuations in quarterly results, dependence on new product development, rapid technological and market change, failure to complete the network on schedule, volatility of stock price, financial risk management and future growth subject to risks.

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