4th Qtr & Finals - Part 1

GTE Corporation
27 January 2000


Media Contact:    Nancy Bavec,
972-507-6913 (After 6:30 p.m. CST 800-483-4726)
e-mail: [e-mail]


PART 1

GTE's Fourth Quarter Contributes to a Strong 1999 Performance;
       Company Ends Year with EPS Growth of 14 Percent


IRVING, Texas -- GTE Corporation reported strong financial
results for 1999 with adjusted earnings per share (EPS) of
$3.49, a 14 percent increase over the prior year, on net
income of $3.4 billion, excluding gains on the sales of
properties and other special items.  Including these gains and
special items, reported EPS for 1999 was $4.12 on net income
of $4 billion, compared to 1998 reported EPS of $2.24 on net
income of $2.2 billion.  Revenue of $25.3 billion for the year
grew 9 percent from 1998 adjusted revenue of $23.3 billion.

Fourth quarter adjusted EPS was 98 cents, excluding a 5
cent net after-tax gain, primarily from the sale of GTE
Information Systems.  Including this net gain, fourth
quarter reported EPS was $1.03.  Revenue grew 13 percent in
the fourth quarter to $6.7 billion from adjusted revenue of
$6 billion in the fourth quarter of 1998.
     
GTE's purchase of wireless properties from Ameritech
increased revenue by $186 million and reduced EPS by 2 cents per
share in the fourth quarter.  Excluding these new properties,
fourth quarter revenue growth would have been 9 percent and EPS
growth would have been 14 percent.  The EPS dilution of 2 cents
was caused principally by the non-cash amortization of goodwill
associated with this purchase.

'Over the last few years, we have been transforming our
company into a full-service telecommunications provider.  Our
focus has been on capturing high-growth opportunities,
particularly in the Internet and data businesses, and in 1999
we made great strides in advancing this strategy, ' said
Charles R. Lee, Chairman and CEO of GTE.  'Our newer growth
businesses, which include data and our CLEC, increased
revenue by 42 percent, with sales of data products and
services reaching a record $2.5 billion.  We began to
aggressively market DSL services, supported by a
competitively priced offer.  And we completed our private
high-speed fiber network, which will give GTE an edge in
today's competitive marketplace.
     
'At the same time, we enter the 21st century with strong
core businesses that performed very well in 1999 and provide
a solid foundation for future growth.  During the year, we
expanded our wireless footprint with the acquisition of
Ameritech's Chicago and St. Louis wireless properties and
substantially increased our domestic customer base.  We also
successfully reached agreements to reposition non-strategic
assets and will achieve in excess of $4 billion in after-tax
proceeds once all the transactions are completed.
     
'Also during 1999, we continued to strengthen our
international presence.  We repositioned our investment in
Canada, acquired a 40 percent ownership interest in the
Puerto Rico Telephone Company, and won a PCS license and began
construction of the PCS network for Buenos Aires, becoming a
national provider of wireless services in Argentina.  We also
increased our minority ownership position in our wireless
operation in Taiwan, which now has more than 3 million customers.

'At the same time, we continue to make progress in
completing our merger with Bell Atlantic.  All but two states
and the FCC have given their approval and Bell Atlantic
has won permission from the FCC to provide long distance
services in New York State.  We are optimistic that we can
close our transaction in the near future,' said Mr. Lee.

                    Consolidated Results

In 1999, consolidated revenue of $25.3 billion increased $2
billion, or 9 percent, over adjusted revenue of $23.3
billion in 1998.  Major contributors to this revenue growth
include:

-  Domestic access line growth of more than 10 percent and
   access minutes of use growth of 8 percent;
-  Network Services data revenue growth of $268 million, or
   28 percent, including special access data lines, ISDN and
   DSL;
-  Consumer vertical services revenue growth of 14 percent
   for the year and 18 percent in the fourth quarter;
-  Wireless revenue growth of $675 million.  When normalized
   for the newly acquired wireless properties and change in
   the manner of reporting in-collect revenue, growth
   accelerated 11 percent in the fourth quarter and was 7
   percent for the year;
-  Internetworking data revenue growth of $457 million, or 79
   percent;
-  International consolidated revenue growth of $302 million, or
   20 percent, with additional investments fueling proportionate
   revenue growth of $897 million, or 31 percent;
-  CLEC bundled offering revenue growth of $141 million, or
   157 percent;
-  Long-distance revenue growth of $217 million, or 36
   percent;
-  Continued customer growth, including:

                        Total as of     Increase     Percent
                         12/31/99         over      Increase
                                         last 12
                                         months
       Global access   29,310,000                   11 %
       lines*                         2,883,000
       Global          9,015,000      3,281,000     57 %
       wireless
       customers*
       Long distance   3,433,000                    26 %
                                      707,000
       CLEC bundles    312,000        226,000       263 %
       DSL             57,000         57,000        -

      
      * Represents domestic totals plus international
        proportionate access lines and wireless customers.
        All other statistics U.S. only.
     

In the quarter, consolidated adjusted operating income was
$1.7 billion, an increase of $243 million, or 16 percent, over
the same quarter last year.  For the full year, consolidated
adjusted operating income was $6.2 billion, an increase of
$756 million, or 14 percent, above 1998.  These increases
resulted from revenue growth and the favorable effects of
continuing cost-cutting initiatives.  Operating income
includes the losses associated with GTE's continuing
investments in its data and CLEC initiatives.

                     National Operations

National operations revenue was $6.2 billion for the quarter and
$23.6 billion for the year, increasing $668 million and $1.8
billion above the respective periods last year.  GTE's national
operations generated adjusted operating income of $1.6 billion
in the fourth quarter, an increase of $218 million, or 16
percent, over the same quarter last year.  For the entire year,
adjusted operating income was $5.6 billion, an increase of $453
million, or 9 percent, from 1998.  The major business units
delivering these results include:

Network Services
Network Services revenue in the fourth quarter was $4.1 billion,
an increase of $163 million, or 4 percent, from the same quarter
last year.  Total year revenue of $15.6 billion grew $326 million,
or 2 percent, from 1998.  These increases were due to growth in
access lines, minutes of use, data and vertical services,
partially offset by mandated price reductions and intraLATA toll
erosion.  Over the past 12 months, total access lines grew 10
percent, fueled by business switched access line growth of 7
percent and special access line growth of 36 percent.
The strong growth in access lines reflects the underlying economic
strength of the company's wireline markets.  Minutes of use
increased 8 percent both in the quarter and full year compared to
the same periods in 1998.

For the full year, data revenue of $1.2 billion increased $268
million, or 28 percent, from last year.  Data revenue includes
special access data lines, frame relay, CyberPOP and DSL.
By year-end, the company had obtained 57,000 DSL subscribers
through a competitively priced offering and an aggressive
marketing campaign.  The latest promotion includes a free modem
with a monthly charge of $49.95, including Internet access
through GTE.net.  At year-end, DSL was available from 550 central
offices, representing approximately 6 million qualified lines, or
approximately 30 percent of the company's total switched access
lines.

Offsetting the revenue increases were mandated federal and state
price reductions of approximately $73 million in the quarter and
approximately $307 million in the year.  In addition, toll
revenue continued to decline due to intraLATA toll competition
from long-distance carriers.  Within the local market,
approximately 400,000 of the company's 26.1 million domestic
access lines have been lost to resale.  However, over half of
these were resold through GTE's CLEC, and the resulting net lines
lost by GTE have been less than 1 percent to date.

Network Services operating income in the fourth quarter was $1.6
billion, an increase of $377 million over the same quarter last
year.  For the entire year, adjusted operating income grew $826
million, or 17 percent, to $5.8 billion.  These improvements were
principally due to continuing cost-cutting initiatives, including
the employee reduction program initiated in the first quarter of
1999 and the related favorable settlement of employee retirement
obligations.

Wireless Products and Services
Wireless revenue was $1.1 billion for the quarter and $3.7
billion for the year, including the Oct. 8 acquisition of
Ameritech wireless properties in Chicago, St. Louis and
Central Illinois.  Excluding these new properties and
adjusting for a change in the manner of reporting in-collect
revenue, growth accelerated to 11 percent in the fourth
quarter and was 7 percent for the year.  Wireless subscribers
now exceed 7.1 million, up from 4.8 million a year ago, for a
growth rate of 48 percent, including the newly acquired
markets (12 percent before the acquisition).

The favorable revenue and customer growth is the result of
positive customer response to the GTE CHOICE pricing plans, which
provide bundled minute pricing with expanded footprint options.
Introduced early in the year, the GTE CHOICE plans have attracted
medium and high-value customers and positioned the company as a
national competitor in anticipation of the national wireless
venture with Bell Atlantic and Vodafone AirTouch.  Due primarily
to these new pricing plans, revenue per user per month averaged
$46 during the year.  Cash operating expense per customer dropped
10 percent to $26, reflecting productivity and process
improvements, including the implementation of a single integrated
billing system in the fourth quarter.

While revenue growth and cash operating expense show significant
improvement, the GTE CHOICE pricing plans have increased roaming
costs and total customer acquisition expenses through strong
customer additions.  As a result, operating cash flow margin
decreased to 28 percent in the fourth quarter from 34 percent the
same quarter last year and 34 percent for the year compared to 39
percent last year.  GTE expects these roaming costs to
significantly decline as the company gains a broader national
footprint with Bell Atlantic and Vodafone AirTouch and takes
advantage of the next generation of CDMA technology that enables
providers to switch roaming partners more quickly.

Internetworking
Internetworking revenue was $301 million in the fourth quarter, an
increase of $136 million, or 82 percent, from the same quarter last
year.  Revenue for the year exceeded $1 billion, increasing $457
million, or 79 percent, from 1998.

Revenue from business services, which include Web hosting, virtual
private networks and e-business, doubled from the same quarter last
year and increased 73 percent for the entire year.  Revenue from
networking services provided to on-line and Internet service
providers increased over 50 percent in both the quarter and year.
In December, GTE completed the initial layer of its fiber network
which is now operational nationwide.  This 17,000 mile, high-speed,
high-capacity network spans more than 100 U.S. metropolitan areas
and utilizes the latest in SONET ring technologies.  This network
will serve as the foundation for all data and advanced services
provided by GTE business units, including Internet access, virtual
private networks and DSL traffic.

Internetworking revenue does not include data revenue from
other business units, such as traditional data circuits,
CyberPOP and DSL sold by Network Services.  Combined data
revenue from all business units for the fourth quarter was $689
million and $2.5 billion for the year.

Although operating losses from Internetworking increased to
$157 million in the fourth quarter and $552 million for the
year, current year operating cash flow, which excludes
depreciation, showed slight improvement from the prior year.
GTE continues to invest in additional network capacity,
selling and distribution channels, and new service offerings
to build the scale and scope required to accelerate additional
growth in this business.

Other National Operations

GTE Communications, which includes long-distance, CLEC and
large business accounts, produced revenue in the fourth
quarter of $431 million, an increase of $110 million, or 34
percent, from the same quarter last year, with annual
revenue growing $450 million, or 42 percent, to $1.5
billion.  This revenue growth was driven in part by a 26
percent increase in the number of long-distance customers
over the past 12 months, ending the year with 3.4 million
customers.  In November, GTE launched its CLEC bundled
service offering in Texas after receiving regulatory
approval.  GTE's CLEC, with 312,000 customers at year-end,
is the largest residential CLEC in the nation.

GTE Directories revenue increased $40 million to $939 million
for the year.  Contributing to this revenue growth was the
success of GTE's Internet directory web site, SuperPages.com,
which achieved 82 percent growth in revenue to $26 million,
81 percent growth in customers, and a 96 percent increase in
page views compared to 1998.

                  International Operations

Net income from International Operations in the fourth
quarter was $152 million, an increase of 14 percent from the
same quarter last year, while annual adjusted net income
increased 25 percent to $551 million.  Proportionate revenues
grew to $1.1 billion in the quarter, an increase of $289
million, or 37 percent, from the same quarter last year.
Despite weak economic growth in Venezuela and Argentina,
proportionate revenue for the year was $3.8 billion, an
increase of $897 million, or 31 percent.  The investment in
the Puerto Rico Telephone Company and operations in Latin
America and Taiwan contributed to this increase.
Proportionate wireless customers more than doubled from last
year, due to strong demand for prepaid wireless services in
Latin America and rapid growth of the Taiwan wireless market.

                          About GTE

With 1999 revenues of more than $25 billion, GTE is a leading
telecommunications provider with one of the industry's
broadest arrays of products and services.  In the United
States, GTE provides local service in 28 states and wireless
service in 18 states, as well as nationwide long-distance,
directory, and internetworking services ranging from dial-up
Internet access for residential and small-business consumers
to Web-based applications for Fortune 500 companies.  Outside
the United States, the company serves customers on five
continents.  Additional information about GTE can be obtained
at http://www.gte.com.

GTE's community and philanthropic programs target excellence
in education, particularly math, science, technology and
literacy.  GTE also supports job training, delivery of health
and human services, and the arts.  The company's newest
program is GTE Reads, a public charity designed to create
public awareness, increase fundraising and support
organizations dedicated to improving America's literacy
levels.  GTE customers can contribute to GTE
Reads by checking off a box on their bill.  Others can
contribute through GTESuperPages.com http://www.superpages.com

Note:   All  references  above to  earnings  per  share  (EPS)
reflect diluted earnings per share.

A  copy of this release and associated tables can be found  on
the Internet at www.gte.com


                 Forward-Looking Statements

This announcement contains forward-looking statements.  For
each of these statements, GTE claims the protection of the
safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995.  If future
events and actual performance differ materially from GTE's
assumptions, actual results could vary significantly from the
performance projected in these forward-looking statements.

The following important factors could affect future results
and could cause those results to differ materially from those
expressed in this announcement: materially adverse changes in
economic conditions in the markets served by us or by
companies in which we have substantial investments; material
changes in available technology; the final outcome of federal,
state, and local regulatory initiatives and proceedings,
including arbitration proceedings, and judicial review of
those initiatives and proceedings, pertaining to, among other
matters, the terms of interconnection, access charges,
universal service, and unbundled network element and resale
rates; the extent, timing, success, and overall effects of
competition from others in the local telephone and toll
service markets; the success of our efforts to expand service
capability in the data communication, long-distance and
enhanced services segments of the telecommunications
marketplace and to provide a bundle of products and services
both in and outside of its traditional service territories;
the timing of, and regulatory or other conditions associated
with, the completion of our merger with Bell Atlantic and our
ability to combine operations and obtain revenue enhancements
and cost savings following the merger; and the timing of, and
regulatory or other conditions associated with, the completion
of the wireless joint venture between Bell Atlantic
Corporation and Vodafone AirTouch Plc, and the ability of the
new wireless enterprise to combine operations and obtain
revenue enhancements and cost savings.

GTE's Current Report on Form 10-Q for the quarter ended
September 30, 1999 discusses in greater detail the important
factors that could cause its actual results to differ
materially.


GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME

In Millions, Except Per-Share Amounts)

Unaudited


                              Fourth Quarter 1999
                       ----------------------------------
                       Reported  Adjustments(1)  Adjusted
                       ----------------------------------
REVENUES AND SALES     $ 6,741    $    -        $ 6,741

OPERATING COSTS AND EXPENSES
  Cost of services and
    sales                2,824         -          2,824
  Selling, general &
    administrative       1,181         -          1,181
  Depreciation and
   amortization          1,011         -          1,011
  Special items            (90)       90              -
                        ----------------------------------
TOTAL OPERATING COSTS
 AND EXPENSES            4,926        90          5,016
                        ----------------------------------
OPERATING INCOME         1,815       (90)         1,725

OTHER (INCOME) EXPENSE
  Interest - net           353         -            353
  Other - net              (82)        -            (82)
                        ----------------------------------
INCOME BEFORE INCOME
 TAXES                    1,544       (90)         1,454
  Income taxes              537       (44)           493
                       ----------------------------------
NET INCOME              $ 1,007   $   (46)       $   961
                       ==================================


DILUTED EARNINGS PER
 COMMON SHARE           $  1.03   $  (.05)       $   .98


AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING -
ASSUMING DILUTION           979        -             979



See accompanying Notes to Consolidated Adjusted Statements of
Income


GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
(In Millions, Except Per-Share Amounts)

Unaudited


                                 Fourth Quarter 1998
                        -----------------------------------
                         Reported  Adjustments(2)  Adjusted
                        -----------------------------------

REVENUES AND SALES       $   6,831    $ (840)       $ 5,991

OPERATING COSTS AND EXPENSES
  Cost of services
 and sales                   2,955      (416)         2,539
  Selling, general &
 administrative              1,269      (172)         1,097
  Depreciation and
  amortization                 945       (72)           873
  Special items                -         -              -
                        -----------------------------------
TOTAL OPERATING COSTS
  AND EXPENSES               5,169      (660)         4,509
                        -----------------------------------

OPERATING INCOME             1,662      (180)         1,482

OTHER (INCOME) EXPENSE
  Interest - net               341       (19)           322
  Other - net                  (16)     (100)          (116)
                        -----------------------------------
INCOME BEFORE INCOME
   TAXES                     1,337       (61)         1,276
  Income taxes                 482       (61)           421
                        -----------------------------------

NET INCOME               $     855    $    -       $    855
                        ===================================


DILUTED EARNINGS PER
   COMMON SHARE          $     .88    $    -       $    .88


AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING - ASSUMING
 DILUTION                      972         -            972


See accompanying Notes to Consolidated Adjusted Statements of
Income

GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
(In Millions, Except Per-Share Amounts)

Unaudited



                        Fourth Quarter Adjusted
                      ------------------------ Adjusted
                          1999        1998     % Change
                      ---------------------------------

REVENUES AND SALES       $    6,741  $    5,991      12.5

OPERATING COSTS AND EXPENSES
  Cost of services and
   sales                      2,824       2,539      11.2
  Selling, general &
   administrative             1,181       1,097       7.7
  Depreciation and
 amortization                 1,011         873      15.8
  Special items                  -           -         -
                         ---------------------------------
TOTAL OPERATING COSTS
   AND EXPENSES               5,016       4,509      11.2
                         ---------------------------------

OPERATING INCOME              1,725       1,482      16.4

OTHER (INCOME) EXPENSE
  Interest - net                353         322       9.6
  Other - net                   (82)       (116)    (29.3)
                         ---------------------------------
INCOME BEFORE INCOME TAXES    1,454       1,276      13.9
  Income taxes                  493         421      17.1
                         ---------------------------------
NET INCOME               $      961  $      855      12.4
                         =================================

DILUTED EARNINGS PER
   COMMON SHARE          $      .98  $      .88      11.4


AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING - ASSUMING
   DILUTION                     979         972        .7

See accompanying Notes to Consolidated Adjusted Statements of
Income


GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
 (In Millions, Except Per-Share Amounts)

Unaudited

                         Twelve Months Ended December 31, 1999
                         -------------------------------------
                         Reported   Adjustments(3)  Adjusted
                         -------------------------------------
REVENUES AND SALES       $  25,336      $    -      $ 25,336

OPERATING COSTS AND EXPENSES
  Cost of services
   and sales                10,954           -        10,954
  Selling, general &
    administrative           4,405           -         4,405
  Depreciation and
   amortization              3,757           -         3,757
  Special items             (1,116)      1,116             -
                        ------------------------------------
TOTAL OPERATING COSTS
   AND EXPENSES             18,000       1,116        19,116
                        ------------------------------------

OPERATING INCOME             7,336      (1,116)        6,220

OTHER (INCOME) EXPENSE
  Interest - net             1,277           -         1,277
  Other - net                 (295)          -          (295)
                         ------------------------------------
INCOME BEFORE INCOME
   TAXES                     6,354      (1,116)        5,238
  Income taxes               2,291        (465)        1,826
                         ------------------------------------
INCOME BEFORE
   EXTRAORDINARY
   CHARGES                   4,063        (651)        3,412
  Extraordinary charges        (30)         30             -
                         ------------------------------------
NET INCOME               $   4,033      $ (621)     $  3,412
                         ====================================

DILUTED EARNINGS PER
  COMMON SHARE           $    4.12      $ (.63)     $   3.49

AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING - ASSUMING
   DILUTION                    979           -           979

See accompanying Notes to Consolidated Adjusted Statements of
Income


GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
In Millions, Except Per-Share Amounts)
Unaudited


                        Twelve Months Ended December 31, 1998
                        -------------------------------------
                        Reported    Adjustments(4)  Adjusted
                       -------------------------------------

REVENUES AND SALES       $ 25,473    $ (2,174)      $ 23,299

OPERATING COSTS AND
 EXPENSES
  Cost of services and
   sales                   10,741        (900)         9,841
  Selling, general
    & administrative        4,821        (416)         4,405
  Depreciation and
   amortization             3,820        (231)         3,589
  Special items               755        (755)             -
                         ------------------------------------
TOTAL OPERATING COSTS
   AND EXPENSES            20,137      (2,302)        17,835
                         ------------------------------------

OPERATING INCOME            5,336         128          5,464

OTHER (INCOME) EXPENSE
  Interest - net            1,253         (20)         1,233
  Other - net                  38        (368)          (330)
                          ------------------------------------
INCOME BEFORE INCOME
  TAXES                     4,045         516          4,561
  Income taxes              1,553          34          1,587
                          ------------------------------------

INCOME BEFORE
  EXTRAORDINARY CHARGES     2,492         482          2,974
   Extraordinary charges     (320)        320              -
                         ------------------------------------

NET INCOME               $  2,172    $    802       $  2,974
                         ====================================

DILUTED EARNINGS PER
   COMMON SHARE          $   2.24    $    .83       $   3.07

AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING - ASSUMING
    DILUTION                  968           -            968

See accompanying Notes to Consolidated Adjusted Statements of
Income

GTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED ADJUSTED STATEMENTS OF INCOME
(In Millions, Except Per-Share Amounts)

Unaudited

                             Adjusted Twelve
                         Months Ended December 31,
                    ------------------------------ Adjusted
                          1999           1998     % Change
                    ---------------------------------------

REVENUES AND SALES    $  25,336      $  23,299         8.7

OPERATING COSTS AND EXPENSES
  Cost of services
   and sales             10,954          9,841        11.3
  Selling, general
    & administrative      4,405          4,405           -
  Depreciation and
   amortization           3,757          3,589         4.7
  Special items             -              -           -
                     ---------------------------------------
TOTAL OPERATING COSTS
  AND EXPENSES           19,116         17,835         7.2
                     ---------------------------------------

OPERATING INCOME          6,220          5,464        13.8

OTHER (INCOME) EXPENSE
  Interest - net          1,277          1,233         3.6
  Other - net              (295)          (330)      (10.6)
                      ---------------------------------------
INCOME BEFORE INCOME
   TAXES                  5,238          4,561        14.8
  Income taxes            1,826          1,587        15.1
                     ---------------------------------------

INCOME BEFORE
  EXTRAORDINARY
    CHARGES               3,412          2,974        14.7
   Extraordinary charges      -              -           -
                     ---------------------------------------

NET INCOME            $   3,412      $   2,974        14.7
                    =======================================

DILUTED EARNINGS PER
  COMMON SHARE        $    3.49      $    3.07        13.7


AVERAGE NUMBER OF COMMON SHARES
  OUTSTANDING - ASSUMING
    DILUTION                979            968         1.1

See accompanying Notes to Consolidated Adjusted Statements of
Income

GTE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED ADJUSTED STATEMENTS OF INCOME


(1) On December 10, 1999, GTE completed the sale of its
remaining Government Systems business, GTE Information
Systems, LLC (ISD), to DynCorp.  Reported results for the
fourth quarter of 1999 include a $90 million net gain,
primarily associated with the sale of ISD, partially offset by
a special charge taken to exit certain small non-strategic
businesses.  The after-tax impact of this net gain is $46
million or $.05 per diluted share.

(2) Reported results for the fourth quarter of 1998 have been
adjusted for the following items:

On September 1, 1999, substantially all of GTE's Government
Systems business was sold to General Dynamics, and on
December 10, 1999, the remainder of its Government Systems
business, ISD, was sold to DynCorp (see Note 1).  Reported
results for 1999 include activity associated with these
business units through their respective closing dates.
For comparative purposes, fourth quarter and year-to-date
revenues and operating expenses for 1998 have been adjusted
to include activity only through the corresponding periods
in 1998 for the Government Systems units sold.  Net income
and EPS for 1998 are not affected by these adjustments.

On January 31, 1999, BC TELECOM, previously a majority-owned
Canadian subsidiary of GTE, merged with TELUS.  GTE's owner-
ship interest in the merged company, TELUS, is 26.7%; there-
fore, during the first quarter of 1999, GTE deconsolidated
BC TELECOM and began accounting for the investment in TELUS
using the equity method of accounting.  For consistency,
1998 revenues and expenses have been adjusted to reflect
the current method of accounting for this investment.  Net
income and EPS are not affected by these adjustments.

(3) Reported results for 1999 include the special items
described in Note 1 above, as well as the following special
and extraordinary items recorded during 1999:

Special items of $705 million, recorded in the third
quarter, include the gain associated with the sale of
substantially all of the Government Systems business on
September 1, 1999 to General Dynamics for $1.03 billion in
cash, partially offset by a special charge related to the
impairment of assets associated with the Company's decision
to exit certain small, non-core business activities.  The
after-tax impact of these special items is $416 million
or $.42 per diluted share.

A pretax gain of $513 million, recorded as a special item
in the first quarter, associated with the merger of BC
TELECOM and TELUS on January 31, 1999.  The after-tax
impact of this gain is $308 million, or $.31 per diluted
share.

Special charges of $192 million ($119 million after-tax,
or $.12 per diluted share), recorded in the first quarter,
associated with employee separation programs completed in
early April 1999.  The charges include separation and
related benefits such as outplacement and benefit
continuation costs.

Extraordinary charges of $30 million after-tax, or $.03 per
diluted share resulting from the repurchase of $338 million
in high coupon debt prior to stated maturity.

(4) Reported results for 1998 have been adjusted for the items
described in Note 2 above, as well as the following items:

During the fourth quarter of 1998, GTE increased its
ownership interest in CTI Holdings, an Argentine wireless
company, and began accounting for CTI Holdings on a consoli-
dated basis.  For consistency, 1998 revenues and expenses
have been adjusted, where appropriate, to reflect the
current method of accounting for this investment.  Net
income and EPS are not affected by these adjustments.

Special charges of $755 million ($482 million after-tax, or
$.50 per diluted share) related to asset impairments, the
cost of exiting certain business activities and employee
related costs recorded during the first quarter of 1998.

Extraordinary charges of $320 million after-tax, or $.33 per
diluted share, resulting from the discontinued use of
Statement of Financial Accounting Standards No. 71,
'Accounting for the Effects of Certain Types of Regulation'
(SFAS No. 71), by GTE's Canadian operations, and the early
retirement of long-term debt and preferred stock recorded
during the first quarter of 1998.

Note: Reclassifications and restatements of prior period
operating statistics on the following schedules have been
made, where appropriate, to conform to the 1999 presentation.


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