AT&T ANNOUNCES FIRST CUSTOMERS FOR MANAGED INTERNET SERVICE FOR BUSINESSES.

today announced the first three customers and general availability for AT&T WorldNet (SM) Managed Internet Service. Already leaders in their respective industries, these customers gain a competitive advantage through Internet-based applications: lodging - Promus Hotel Corporation; insurance - The Associated Group, and advertising - McCann-Erickson Worldwide.

Now available nationwide, just one month after it was announced, AT&T WorldNet Managed Internet Service enables businesses to access, plan, operate, manage, and maintain leased-line connections to the Internet. In addition to basic service, customers receive expert implementation support and active monitoring of service levels with problem diagnosis and resolution from AT&T. AT&T also announced pricing for the service.

AT&T WorldNet Managed Internet Service is a comprehensive turnkey offer provided in conjunction with BBN Planet; a subsidiary of BBN (Bolt Beranek & Newman Inc.).

"The customers are pioneering a new way of working," said Tom Evslin, AT&T vice president for Gateway Services. "AT&T WorldNet Managed Internet Service will provide a solid foundation for building exciting new electronic businesses. AT&T gives them a single-vendor relationship for end-to-end managed Internet connectivity, provides world-class customer care and value-added components such as an easy-to-use browser and edited navigational tools and directories."

The nationwide availability of AT&T WorldNet Managed Internet Service has attracted many potential customers, many of whom are interested in taking advantage of AT&T's value-added services, especially directory and navigation features. AT&T WorldNet Managed Internet Service customers are already being served using infrastructure based on AT&T components. The service is being marketed by AT&T's sales force, which has undergone extensive training on WorldNet offerings.

"Businesses are rapidly recognizing the value of doing business on the Internet, from online transactions and publishing to resource and information location," said Paul Gudonis, BBN Planet chief executive officer and president. "AT&T and BBN offer, through AT&T WorldNet Managed Internet Service, a soup-to-nuts operation that is customizable, fully reliable, and offers a greater range of service and pricing plans than any other dedicated Internet service."

New customers of AT&T WorldNet Managed Internet Service include:

The Associated Group

This leading insurance company based in Indianapolis,

Indiana, will use AT&T's WorldNet Managed Internet

Service to create subsidiary home pages, and eventually

provide Internet access to the company's approximately

200 office locations across the U.S., while providing

enhanced products and services to clients.

"We needed a company that could provide Internet access

to every office location within The Associated Group,"

said Ed Leer, vice president for corporate networks for

The Associated Group. "We already had a partner with

nationwide capability and that was AT&T. We have many

bright, talented people working very hard to provide

better client service through the Internet. AT&T

service will help us maximize the effectiveness of

those people."

McCann-Erickson Worldwide

AT&T WorldNet Managed Internet Service will be used by

the worldwide advertising agency to provide a unified

McCann-Erickson home page for the company's many

affiliated agencies working in 103 countries, as well

as offer a direct marketing and informational resource

for customers.

"In approaching the creation of a McCann-Erickson home

page, we determined that we needed a partner that had a

number of qualifications in addition to being able to

manage our Internet access," said Nic Di Iorio, Senior

Vice President and Director of Information Technology

for McCann-Erickson Worldwide. We wanted a company

with a reputation for reliability and one we could

trust to handle our security concerns. AT&T was hands-

down best in class."

Promus Hotel Corporation

Based in Memphis, Tennessee, this leading hotel chain's

customer reservation capabilities will greatly expand

with the integration of AT&T WorldNet Managed Internet

Service. Promus will also use WorldNet to complement

its current sales and marketing efforts.

"AT&T's network reliability, high-quality customer

care, and open architecture provide our company with a

secure, long-term online business platform," said

Norman Cavin, director of consumer marketing for

Promus.

AT&T WorldNet Managed Internet Service presents customers with a variety of pricing options based on their specific needs. For example, a large to mid-sized company might require managed Internet access for applications such as collaborating with customers, suppliers, and employees, or accessing existing company home pages and Internet resources. Another typical application would be running standard Internet applications such as FTP, Telnet, and e- mail.

The company would need the following items, a T1 line at a cost of about $2,600 per month, and options such as Network Newsfeeds for $100 per month. Local access costs would range from $0 to standard tariff prices depending on existing access arrangements with AT&T.

Another example might be a small to mid-size company user who needs an end-to-end managed Internet access solution in order to communicate with customers and suppliers. The company might also want to provide Internet access to its employees for Web browsing, e-mail, and FTP applications. They would need 56 Kbps access at $1200 per month.

Options include the lease of premises equipment at $125 per month and Primary DNS at $100 per month. Local access ranges from $0 to standard tariff prices depending on existing access arrangements with AT&T.

Within sixty days, AT&T will begin testing of its dial-up Internet service which, combined with managed Internet access, will provide customers with a single, one-stop solution for business and home use of the Internet.

Business customers seeking information on AT&T WorldNet Services can call 1-800-309-3349. Any customer can access the AT&T WorldNet Services home page on the Internet at http://www.att.com/worldnet or send electronic mail questions about the service to [e-mail]

AT&T, a global communications and computer company, operates the world's largest and most advanced long distance network and provides communications services and products, as well as network equipment and computer systems to businesses, consumers, telecommunications services providers and government agencies. In 1994, AT&T was awarded Japan's Deming Prize and its third Malcolm Baldrige National Quality Award in the U.S. for quality processes in support of its products and services.

Headquartered in Cambridge, Massachusetts, BBN Planet provides managed Internet access as value-added services to leading companies and educational, medical and research institutions nationwide. BBN focuses its business on internetworking, data analysis, software, collaborative systems and acoustics. BBN reported revenue of $215 million for the fiscal year ended June 30, 1995.

(SM) - service mark of AT&T

AT&T WorldNet (SM) Service Background

On June 20, 1995, AT&T and BBN Planet announced an agreement to provide businesses with a broad range of services for reliable managed access to the Internet.

On August 15, 1995, AT&T announced its Internet strategy and WorldNet Services Internet access team, led by Tom Evslin. AT&T's Internet business includes the Hosting and Transactions team, led by Kathleen Earley, vice president of AT&T Business Multimedia Groupware Services; and the Content team, led by Caroline Vanderlip, vice president of Content Services and Michael Kolowich, President of AT&T Interchange Online Network.

AT&T also announced on August 15 that it is working with several leaders in the Internet industry to develop AT&T WorldNet Services for dial-up access, including:

- Netscape, a leading provider of browsers and other

Internet client/server software, which will provide a

preconfigured, AT&T-branded browser;

- Adobe Systems Incorporated, which will provide its

leading-edge Acrobat (TM) software for viewing,

navigating and printing rich digital information,

Internet text and images;

- Verity Corp., the leading designer of Internet search

and retrieval tools, which will offer the Verity Topic

technology for powerful Internet full-text search and

personalized information agent capabilities within AT&T

WorldNet Services;

- McKinley Inc., a leader in developing Internet

resource directories, which will develop navigation

tools to guide AT&T WorldNet users around the Internet;

- Harley Hahn, internationally-recognized Internet

author of the popular Internet Yellow Pages Directory,

and its publisher, Osborne/McGraw Hill, which will

develop exclusive Internet exploration capabilities for

AT&T WorldNet Service offering users guided tours of

the Internet organized by themes and special interest

areas.

Technical trials of AT&T WorldNet dial-up service will begin within 60 days. More extensive customer trials will quickly follow, with expansion to full service availability in a regional rollout.

AT&T WORLDNET (SM) MANAGED INTERNET SERVICE OPTIONS

CPE (Router + CSU/DSU)

Primary DNS (up to 15 zones and 150 Kbytes of

associated zone file data)

Network News Feeds

Packet Filtering 

Usage Reports

Additional Secondary DNS (up to 30 zones and 300

Kbytes of associated file data)

AT&T Internet Server

Special arrangements can be made to provide

redundant configuration, security features, and

hosting

The Associated Group Customer Profile

Contact: Don Stengle, 317-488-6255

The Associated Group is a diversified network of insurance and financial services companies doing business across the United States. In 1994, the company had revenue of $3.5 billion, assets of $3.4 billion and policyholders' surplus of $784.3 million. The company has more than 13,000 employees. The principal subsidiaries of The Associated Group are:

Acordia, Inc. -- a nationwide network of companies that provide insurance brokering, managed health care integration and consulting services, Accordia, which is listed on the New York Stock Exchange (symbol: ACO), is the seventh largest insurance brokerage organization in the world.

American Health Network -- a network of regional, equity- model group medical practices offering significant advantages to physicians, patients, corporate customers and payers in selected markets in the United States.

Anthem Health -- a network of health insurance and managed health care organizations providing a wide range of products and services to group and individual clients primarily in the midwest, southeast and southwest sections of the United States.

Southeastern Group -- a health insurance and managed health care organization providing a wide range of products and services to clients in Kentucky.

Anthem Life -- a network of life insurance organizations providing individual and group life and disability insurance products and services to clients across the United States.

Anthem Casualty -- a network of companies that provide property and casualty insurance products and services to individual and business clients primarily in the eastern United States.

Anthem Financial -- a network of companies that provide innovative financial services products to clients across the United States.

AdminaStar -- a network of companies that provide health care administration services for federal and state governments and government agencies.

The Associated Group will use AT&T's WorldNet Managed Internet Service to:

Provide Internet access to the company's approximately 200 office

locations across the U.S.

Provide better products and services to their clients through

Internet resources

Provide electronic commerce opportunities through the Internet

Create subsidiary home pages

Transfer files between offices

Provide greater workplace productivity

"We needed a company that could provide Internet access to every office location within the Associated Group. We already had a partner with nationwide capability and that was AT&T," said Ed Leer, Vice President for Corporate Networks for The Associated Group. "We have many bright, talented people working very hard to provide better client service through the Internet. AT&T service will help us maximize the effectiveness of those people."

McCann-Erickson Customer Profile

Contact: Susan Irwin

212-984-3004

McCann-Erickson, an industry leader in global advertising, has embraced the Worldwide Web to link all its agencies to better serve its clients worldwide.

The agency, which was founded in 1902, took its first steps toward becoming the largest worldwide advertising agency in 1927. At that time, McCann began opening its first agencies in Europe in response to the strategic needs of its client, the Standard Oil Company (Esso/Exxon), which sought to organize its European operations as single market opportunity. Today over two-thirds of McCann-Erickson's business is outside the U.S. And, its worldwide network of agencies far outstrips the nearest competition.

Nic Di Iorio, Sr. Vice President, Director of Information Technology of McCann-Erickson Worldwide, "In approaching the creation of a McCann home page, we determined that we needed a partner who had a number of qualifications. In addition to being able to manage our Internet access, we wanted a company with a reputation for the high quality and reliability of its service. AT&T is the best in the business."

McCann-Erickson has built its global presence by taking advantage of advanced networking technology to help foster communications throughout the 103 countries in which it operates.

The agency is planning to use AT&T WorldNet Services to:

O Unify McCann-Erickson's presence on Internet Web pages

worldwide

O Provide Internet access for the marketing communications 

needs of its clients

O Establish interactive exchange of content and data with

its 3,000 individual client accounts around the world,

as well as with its worldwide suppliers

O Create a reliable environment for advertising research within

the global Internet community

McCann-Erickson is planning to explore the Internet both as a communications tool to foster enhanced productivity among its own network of agencies and as an exciting new capability to add to the arsenal of its clients.

Promus Hotel Corporation Customer Profile

Contact: Kathleen Eyman

Public Relations Director

214-953-0808

Promus Hotel Corporation, based in Memphis, Tennessee, is one of the largest companies in the hotel industry, with more than 635 hotels and approximately 85,000 rooms and suites. Promus owns and manages Embassy Suites, Hampton Inn, Hampton Inn & Suites and Homewood Suites hotel chains. Formerly the Holiday Corporation, the company started business in the 1950s as Holiday Inns and, on June 30, 1995, became Promus Hotel Corporation following the split of The Promus Companies Incorporated into two separate public companies. Promus hotels have popularized several innovations in the lodging industry, including free breakfast included in the price of the room and the first 100% Satisfaction Guarantee.

Promus Hotel Corporation will use AT&T's WorldNet (SM) Managed Internet Service to:

-- offer customers reservation capabilities through the Internet; a competitive advantage

-- offer customers detailed information about hotel benefits and features, including a map of each hotel location

-- provide the company with access to Internet's rich informational resources

-- create a secure e-mail channel between customers and the company

-- expand the company's direct marketing efforts through AT&T's 800 toll-free service

"Prior to our relationship with AT&T, Promus' designs for its Internet business were not being met, primarily due to unreliable Internet service," said Norman Cavin,, director of consumer marketing for Promus Hotel Corporation. "Now, AT&T's network reliability, high-quality customer care, and open architecture provide our company with a secure, long-term online business platform."

CONTACT: Chris Pfaff 

908-658-5804 (office)

212-866-1643 (home)

or

Mike Miller

201-331-4141 (office)

908-879-4212 (home)