WinStar launches nationwide Internet access services through agreement with DIGEX; WinStar to include Internet services in its telecommunications offerings; First major agreement with an Internet access company for Wireless Fiber service.

NEW YORK--(BUSINESS WIRE)--June 12, 1996--WinStar Communications Inc. (Nasdaq:WCII) has signed a strategic agreement with Internet access provider DIGEX Inc. for mutual provision of services.

WinStar will private label DIGEX's Industrial Strength Internet(SM) services to WinStar customers and will provide DIGEX with local access services. DIGEX is a national Internet service provider (ISP), focused on the business and institutional marketplace. WinStar is a local communications company.

WinStar will private label DIGEX's Internet services to business customers, either on a stand-alone basis, or bundled with WinStar's local and/or long-distance services. WinStar plans to purchase $10 million worth of DIGEX's Industrial Strength Internet services. These services include browsing the World Wide Web, transferring files, sending and receiving e-mail, conducting electronic commerce, and hosting servers for customer Web sites.

As part of the agreement, WinStar will be the preferred supplier to DIGEX for its local access and/or customer interconnection service requirements, through use of WinStar's 38 GHz Wireless Fiber(SM) services or through the resale of other local facilities, at competitive rates. This is WinStar's first major agreement to provide its Wireless Fiber broadband local communications service to an Internet carrier.

DIGEX is a Beltsville, Md.-based Internet service provider. Since 1991, DIGEX has delivered Internet solutions primarily for international ISPs, businesses, government agencies, and other institutional organizations. DIGEX prides itself on offering Industrial Strength Internet connections, servers, and security services, using its high speed redundant network backbone.

WinStar Communications Inc. is a full service, local telecommunications company. WinStar Wireless is a competitive access provider which provides its Wireless Fiber "last mile" telecommunications services to long-distance carriers, competitive access providers, mobile communications companies, local telephone companies, and other customers with broadband local communications needs. WinStar has licenses in the 38 GHz band in 41 of the top 45 MSAs in the United States, including the top 31 MSAs, and econcompassing more than 100 cities with populations over 100,000, with over 400 million channel pops. WinStar Telecommunications provides telecommunications services in competition with the incumbent local telephone companies. WinStar Gateway Network provides long-distance telephone service. WinStar New Media creates and distributes information services and entertainment content as a complement to WinStar's telecommunications activities. -0-

Wireless Fiber is a service mark of WinStar Communications Inc.

Industrial Strength Internet is a service mark of DIGEX Inc.

CONTACT: WinStar Communications Inc., New York

(Financial Community) Michelle Davis, Investor Relations

Manager, 212/687-7577, ext. 153

or

Technology Solutions Inc., New York

(Press) Steve Hein, 212/696-2000, ext. 250,

northstar@tsipr.com

or

DIGEX Inc., Beltsville

Nick Magliato, 301/847-5014, nickm@digex.net