NHC Announces its Intention to Acquire U.K. - Based The Fiber Company
Limited and its Plans for a $5 Million Special Warrants Offering

Montreal, Canada - May 23, 1996 - NHC Communications Inc. (NHC) today
announced that it has reached an agreement in principle to acquire The
Fiber Company Limited and its division BIT Communications (BIT), subject
to regulatory approval and the entering of definitive agreements and
compliance with stock exchange requirements.

"It is rare to be able to reach a mutual agreement for an acquisition that
will strengthen distribution while delivering key technology. It is
anticipated that this addition will put NHC in a strong position to
address market opportunities in emerging high-speed applications provided
by Bell operating companies and Internet access providers," said Sylvain
Abitbol, NHC's president.

The planned acquisition of BIT is aligned with NHC's vision to become a
leading developer of high-speed switching and transport networks for mixed
media. BIT's expertise in fiber optic transmission and its active
participation in the definition of fiber optic standards is complementary
to NHC's core competencies in network connectivity and high-speed
mixed-media switching.

Under the terms of the agreement in principle, NHC would issue an aggregate
of 750,000 common shares and provide cash consideration of approximately
$920,000. NHC would also issue a total of 526,000 options to purchase
common shares. Following this acquisition, the number of common shares of
the Company would be 10,075,536 (12,229,225 on a fully diluted basis). For
the 12 month period ended June 30, 1995, BIT's sales and operating income
were $4 million and $325, 000 respectively.

As part of the BIT acquisition, NHC would enter into employment agreements
with Mr. Richard Bellis, Mr. Simon Moseley and Mr. Reginald Armitage,
respectively President, VP Engineering and VP Sales and Marketing of BIT.

The BIT acquisition will be financed by a proposed $5 million sale of
special warrants. This issue is subject to the approval of The Toronto
Stock Exchange and shareholders of NHC, if required. The net proceeds of
the special warrants offering will be used to finance the cash
consideration of the acquisition of BIT and provide the working capital
required to fund the anticipated growth of the combined organizations,
particularly through marketing and research and development programs. NHC
has engaged First Marathon Securities Limited as its exclusive agent for
the offering.

NHC's vision is to be a leading developer of products that increase the
competitive edge of our customers by applying innovative switching
technology to the delivery of high-speed mixed-media networks. NHC is
committed to its customers by delivering superior solutions for physical
layer network infrastructures. Utilizing the best of technology, process
and strategic partnerships, NHC maximizes stakeholders' returns by
building lasting value in both the Company and in its solutions.

NHC sells through leading resellers supported by sales locations in
Atlanta, Chicago, Dallas, Los Angeles, Montreal, New York and Washington,
D.C. Its European head quarters are Paris. Some of NHC's customers
include: American Express, Ameritech, BBN, Citicorp, Merrill Lynch,
Nortel, U.S. Navy and Travellers.
 
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