'Click and Shop' Till You Drop; Prodigy Unveils New Shopping Channel with Expanded Features for Easier Holiday Shopping.

Business Editors

WHITE PLAINS, N.Y.--(BUSINESS WIRE--Oct. 23, 2000--Just in time to help online shoppers with their holiday purchases, Prodigy Communications Corporation, (NASDAQ: PRGY) the nation's largest retail high-speed DSL Internet service provider for consumers and small businesses, launched today its new and improved Shopping Channel, designed to make online shopping quick and easy. According to most industry estimates, overall spending online this holiday season is expected to hit the $10 billion mark, and in a recent survey of Prodigy members, close to 50 percent of the respondents said that they plan to purchase gifts online this holiday season.

The innovative Prodigy Shopping Channel, powered by E-Commerce Solutions LLC, one of the country's leading e-commerce applications service providers (ASP), arms Prodigy members with powerful shopping tools to help make online shopping easier. It presents members with an easy-to-use-shopping environment complete with compelling offers from reputable online merchants on the latest products.

Enhanced features of the Prodigy Shopping Channel include:

-- Addition of a universal shopping cart Acting as a "first-generation"
intelligent agent the shopping cart feature allows users to make purchases and
product selections across a variety of integrated merchants via one single
checkout. After creating their member profiles the shopping cart feature even
saves selections for purchasing at a later date.

-- Expansion of online merchants and shopping offers Prodigy has compiled a
greater selection of compelling offers from a wider variety of merchants. Over
five million brand name products are offered from more than 60 online
merchants. Members using the Prodigy Internet MasterCard(R) can quickly
accumulate Prodigy rewards.

-- Integration of shopping search technology Prodigy's new shopping search
technology provides improved functionality by searching and locating products
across sites more quickly.

"Most online shoppers don't want to spend valuable time combing websites and paying for purchases over and over," said Charles Roesslein, Prodigy's chairman and CEO. "Our new Prodigy Shopping Channel simplifies online shopping, and truly enhances our members' online experiences. Additionally, we expect the Prodigy Shopping Channel will drive greater revenues through merchant affiliate programs, expanded advertising sponsorship opportunities and placements across well targeted shopping areas."

The new Prodigy Shopping Channel is scheduled to be available for Prodigy DSL(TM) subscribers in early November, and to non-members outside the Prodigy firewall, at prodigy.com, in the beginning of next year.

About Prodigy Communications Corporation (www.prodigy.com):

Prodigy Communications Corporation. (NASDAQ: PRGY), since its alliance with SBC Communications Inc. (NYSE: SBC), joining consumer, small business Internet operations, has become the nation's largest provider of retail DSL broadband Internet access to consumers and small businesses. Prodigy Internet delivers fast and reliable Internet access and user-friendly Internet-based products, services and information resources to help its members unlock the potential of the Internet to improve their lives. Prodigy utilizes a nationwide network covering more than 850 cities in all 50 states allowing more than 90% of the United States population to access the Prodigy Internet service with a local telephone call. Prodigy tailors its services and technology to three fast-growing Internet markets: consumers, small business owners and the U.S. Hispanic population. Prodigy Internet features best-of-breed content, Prodigy Instant Messaging, Prodigy Chat, and Prodigy Online Communities combined with the accessibility and freedom of direct access to the World Wide Web for all users. Prodigy Biz Corporation, a subsidiary of Prodigy, offers a powerful suite of specially designed Internet products and services for small business owners. Prodigy(R) en espanol, is the nation's first-ever, fully bilingual Spanish/English-language Internet service created especially for the U.S. Spanish-speaking population.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the expected benefits from the improvement of the Shopping Channel, from the agreement with E-Commerce Solutions LLC or its early termination, intense competition in the Company's industry, subscriber turnover, disruption in the Company's network services or in other services provided by third parties, the challenges of integrating the Internet businesses of Prodigy and SBC Communications, Inc., as well as the risk factors detailed from time to time in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. Prodigy's business and operations are operated by a limited partnership, called Prodigy Communications Limited Partnership, of which Prodigy is the general partner and owns an approximate 57% interest, and SBC Communications owns an approximate 43% interest.