AT&T AWARDS MORE THAN $1 BILLION IN CONTRACTS TO MINORITY- AND WOMEN-OWNED BUSINESSES.

NEW YORK--(BUSINESS WIRE)--Feb. 20, 1995--Businesses owned by minorities and women won more contracts from AT&T in 1994 than ever before.

At a celebration today with its top 50 minority and women suppliers, AT&T said it purchased a record-setting $1 billion in goods and services from more than 3,000 minority- and women-owned businesses last year.

The purchases were made through AT&T's Minority and Women Business Enterprises (MWBE) program, which was created in 1968 to encourage the growth and development of minority- and women-owned firms.

"We are marking the coming of age of the MWBE program," said AT&T Chairman Robert E. Allen. "Our program has evolved from a social mandate to a strategic business asset that gives AT&T a competitive advantage."

"The growth of our MWBE program has been nothing short of phenomenal," said Dan Carroll, AT&T's chief procurement officer. "Just 10 years ago, we celebrated reaching the $100 million milestone and look at us now -- $1 billion and 34% growth over 1993."

Last year, as part of an accelerated diversity strategy, AT&T set a goal to increase MWBE purchases from both minority- and women-owned businesses by 10 percent, annually. By year's end, that goal was far exceeded. There was a 41 percent increase in minority business expenditures over 1993 and a 27 percent increase in spending with women-owned businesses. Total MWBE contracts for 1994 represented 20 percent of the $5 billion AT&T has spent since the program began.

Allen said there is a bigger story behind the numbers, "What we are really celebrating today are strategic alliances -- the bonds between AT&T and minority and women suppliers that are secured by mutual benefit.

"We've seen these alliances pay off -- for all involved -- in increased quality, productivity and profits," said Allen. "They've led to cost savings, more customized goods and services, and new distribution outlets."

The MWBE program was once confined to AT&T's purchasing department. It is now embedded in the business plans of every AT&T division and business unit.

AT&T Communications Services Group and AT&T Network Systems lead all business units in spending with minority and women suppliers. Last year, both business units accounted for 64 percent of all MWBE expenditures.

"Our companywide commitment has set the pace for success," said Carroll. "There are many more celebrations to come." Today's celebration was held at AT&T's operational headquarters in Basking Ridge, N.J.

AT&T's MWBE program defines a minority- or women-owned business as an enterprise that is owned, controlled and operated by minority or women group members. At least 51 percent of a company must be owned by a woman or a member of a minority group. The woman or minority owner must be involved in the day-to-day management of the company and must exercise decision-making power.

AT&T is the world's networking leader, providing communications services and products, as well as network equipment and computer systems, to businesses, consumers, communications services providers and government agencies. -0-

AT&T AWARDS MORE THAN $1 BILLION IN CONTRACTS

TO MINORITY- AND WOMEN-OWNED BUSINESSES

SIDEBAR 

AT&T's contract with Complas, Inc., an Hispanic, woman-owned firm in Corona, California, is an example of how the AT&T MWBE (Minority and Women Business Enterprises) program benefits all involved. Complas supplies cable, switching and transmission equipment directly to customers. Complas warehouses AT&T Network Systems equipment, tailors it to specific customer needs, guarantees 24-hour delivery as needed, and provides emergency repair and restoration services.

Last year the AT&T/Complas alliance resulted in $28 million in sales to telephone companies and another $7 million in sales to customers outside the telecommunications industry. Recently, Complas started shipping AT&T equipment to build a $15 million network for Southern California Edison. It is one of the largest private fiber networks of its kind ever sold. It is also business neither AT&T nor Complas would have landed without their partnership.

CONTACT:

Holly Echols OR Paula Horii

908/221-2562 office 908/204-8260 office

201/593-0498 home 212/228-1812 home