AT&T And Priceline.com Sign Broad-Based Marketing Agreement.

BASKING RIDGE, N.J. and STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 1, 1999--

. . . Agreement leverages priceline.com's Sponsor Dollars program

and AT&T's WorldNet(R) service to generate tens of thousands of

customers for each other's products and services

AT&T (NYSE:T) and priceline.com (Nasdaq:PCLN) today announced a broad-based marketing agreement to add tens of thousands of new customers for each other's products and services.

Under the agreement, AT&T will participate in priceline.com's travel services sponsor dollars program. AT&T will help priceline.com customers save even more money on leisure airline tickets and hotel rooms in return for becoming customers of selected AT&T wireless, long-distance, and AT&T WorldNet Service.

Each time a priceline.com customer signs up for any of these AT&T services while making an offer for a leisure airline ticket or hotel room, up to $75 in sponsor dollars can be added to the customer's priceline.com purchase offer. Adding sponsor dollars increases the total amount of an offer at no cost to the customer, increasing the likelihood that a major airline or hotel will accept the customer's price.

Nearly 1,000,000 priceline.com customers have used sponsor dollars as part of their priceline.com offers. Sponsor dollars have helped priceline.com attract almost 3,000,000 unique customers in its first 18 months of operation. Sponsor dollars are part of priceline.com's adaptive marketing programs, which help bridge the gap between consumer offers and seller prices, provide users of the priceline.com service with other desired products, and generate revenue for priceline.com.

The agreement also calls for priceline.com to be featured on the AT&T WorldNet(R) Service in key content areas viewable by the service's 1.8 million members. AT&T WorldNet members can simply click the priceline.com icon, open up a window containing the priceline.com Website, and name their own price for leisure airline tickets, hotel rooms, groceries, new cars and home mortgages.

"AT&T has always delivered the highest quality, most reliable products and services at the best possible prices, which makes this agreement so beneficial to priceline.com's millions of customers," said Marlene Beeler, AT&T Interactive Group vice president. "Now, in addition to saving even more money on leisure airline tickets and hotel rooms, customers can save on long-distance service, Internet access and more."

"We believe that the combination of priceline.com's brand, which is already the second most-recognized e-commerce brand in the U.S., and our access to AT&T WorldNet Service's rapidly growing customer base will result in many new and repeat customers for priceline.com and our various services," said Daniel H. Schulman, president and COO of priceline.com.

About AT&T

AT&T (www.att.com) is among the premier voice and data communications companies, serving more than 80 million customers, including consumers, businesses and government. With annual revenues of more than $53 billion and 149,000 employees, AT&T provides services to customers worldwide.

Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and has the largest digital wireless network in North America. The company is a leading supplier of data and Internet services for businesses and offers outsourcing, consulting and network-integration to large businesses. It is also the nation's largest direct Internet access service for consumers. Through its recent cable acquisitions, AT&T will bring its bundle of broadband video, voice and data services to customers throughout the United States. Internationally, the AT&T/BT Global Venture will serve the communications needs of multinational companies and international carriers worldwide.

About priceline.com

Priceline.com is the patented Internet pricing system that enables consumers to achieve significant savings by naming their own price for goods and services. Priceline.com takes consumer offers and then presents them to sellers who can fill as much of that guaranteed demand as they wish at price points determined by buyers.

Priceline.com's "virtual" business model allows for rapid scaling using the Internet. Because the Company electronically collects consumer demand, it can fill this demand directly with sellers or by using proprietary databases. Priceline.com does not maintain or warehouse inventories in any of its product lines.

Priceline.com's business system currently sells multiple services to customers across three product categories: a travel service that offers leisure airline tickets and hotel rooms, a personal finance service that offers home mortgages, refinancing and home equity loans and an automotive service that sells new cars in five states. Recently, priceline.com announced that in the fourth quarter it will begin offering a name-your-own-price service for rental cars. The Company has also licensed its business system and brand to a privately held licensee, the priceline.com WebHouse Club, which is launching a name-your-own-price service for groceries in the New York metro area this week.

This press release may contain forward-looking statements which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions including, without limitation, "may," "will," "believes," "should," "could," "hope," "expects," "expected," "does not currently expect," "anticipates," "predicts," "potential," and "forecast," reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies and other factors described in the Company's filing with the Securities and Exchange Commission. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.