earnings in the third quarter 1999.

The company said in a statement that the charge is for anticipated expenses for consolidating locations, streamlining operations and exiting certain product lines/distribution channels, including telemarketing and certain prepaid calling card plans.

In its second quarter 1999 earnings release issued in July, the company announced its intent to take such a charge. The company expects to release third quarter 1999 earnings on Friday, October 29, before the NASDAQ stock market opens.

As part of its global reorganization announced in August, the company realigned reporting responsibility in several country operations. That, combined with the geographic consolidation of office space, will result in a downsizing of nearly 200 employees. the company said. The consolidation or elimination of office space in the United States and six European countries will necessitate the termination of leases and the payment of penalties. RSL COM will also terminate leases for certain underutilized telecommunications facilities, primarily in the United States.

The charge is composed of approximately $13 million for terminating various operating leases, $12 million for the severance of nearly 200 employees and $7 million for the cost of exiting certain product lines and other items.