AT&T Brings Home Entertainment To Consumers in Northern California.

SAN FRANCISCO--(BUSINESS WIRE)--June 17, 1996--A full month ahead of scheduled, AT&T today announced that it will begin selling DIRECTV satellite entertainment service and DSS equipment to consumers in Northern California, making it the only communications company to offer California residents a fully array of communications and home entertainment services.

DIRECTV Service and equipment was first offered by AT&T on March 25, 1996, in Los Angeles, Dallas, Tampa/St. Petersburg, Fla., and Connecticut. The offer also is available today to customers in Florida, Illinois, Maryland, Michigan, Texas, Virginia and the District of Columbia. AT&T will expand its offer to the rest of the country by mid-summer.

AT&T long-distance and AT&T Universal Card customers will be able to take advantage of special offers and options.

AT&T's offer includes more than 200 channels of DIRECTV and U.S. Satellite Broadcasting (USSB) programming - featuring movies, sports, news and pay-per-view events.

"This announcement marks another milestone in AT&T's strategy to offer customers in Northern California an innovative package of services that includes home entertainment, local, long-distance, wireless and on-line services," said Michael Antieri, AT&T president, Pacific States.

"Now, not even the sky is the limit," added Antieri. "With AT&T's offer it's like having a combination movie theater and sports arena right in your own living room. There are always plenty of programs to choose from. And there's never a line at the ticket counter."

As part of the offer, AT&T customers will receive:

- A free pay-per-view movie each week for one year from

AT&T and DIRECTV;

- A free month of DIRECTV Total Choice Platinum(a) programming

after 12 consecutive months as an AT&T long-distance

and DIRECTV Total Choice Platinum service customer;

- One month of Total Choice Platinum Service at the DIRECTV

Total Choice programming package price;

- One Free Month of USSB Entertainment Plus, which includes

more than 800 movies a month from the premium movie networks

and a selection of entertainment channels;

- 0 percent financing for one year for up to $600 on equipment

purchased with the AT&T Universal Card, and other

financing options;

- Redemption of AT&T True Rewards points toward the purchase

of Digital Satellite System (DSS) equipment.

Consumers who call 800/4-TRUE-TV to order the AT&T package will receive DSS equipment consisting of the Generation Two RCA 18-inch dish; set-top box and universal remote; the DIRECTV Total Choice programming package that offers more than 65 channels, including ESPN and ESPN2, The Disney Channel, American Movie Classics, Discovery Channel, and Music Choice with 31 audio channels; USSB Entertainment Plus package featuring popular entertainment services including multichannel HBO, multichannel Showtime, Nickelodeon, and MTV; and professional installation.

(a) Total Choice Platinum Service is a premium programming package offered through DIRECTV, which includes the Independent Film Channel, Sports Choice and STARZ! movie package, plus the standard Total Choice package.

"By dialing a single, toll-free number - 800/4-TRUE-TV - consumers can take advantage of AT&T's one-stop shopping - from ordering DSS equipment and DIRECTV service to home installation, customer service and financing," said Antieri.

AT&T is the first national communications company to bring consumers unprecedented programming choice from DIRECTV and USSB, with laser disc quality pictures and CD quality sound using high-power direct broadcast satellites (DBS).

DIRECTV Inc., a unit of Hughes Electronics Corp., is the world's leading provider of DBS service.

U.S. Satellite Broadcasting is the DBS licensee of longest standing in the United States.

To learn more about the AT&T Presents DIRECTV offer, visit AT&T's home page on the World Wide Web at http://www.att.com.

Offer Pricing Sheet

Consumers who call AT&T at 800/4-TRUE-TV can take advantage of one-stop shopping - from ordering DIRECTV satellite entertainment service and DSS to home installation, customer service and financing.

Prices are:

$499 Standard DSS equipment for hook up to one television

includes an RCA 18-inch satellite dish, standard

set-top box and universal remote. Price reflects a

$100 manufacturer's rebate.

or $649 Deluxe DSS equipment for viewing on multiple TV sets

includes an RCA 18-inch satellite dish, deluxe set-top

box and universal remote. Price reflects a $100

manufacturer's rebate.

$499 For each additional set-top box.

$29.95/mo. DIRECTV Total Choice service package, that offers a

selection of more than 65 channels, including ESPN

and ESPN2, The Disney Channel, Discovery Channel,

American Movie Classics and Music Choice with 31

commercial-free, digital-quality audio channels and

access to 55 pay-per-view channels.

$34.95/mo. USSB Entertainment Plus includes multiple channels of

the top premium movie networks featuring over 800 movies a

month and a hand-picked selection of the most

popular entertainment channels available. Programming

includes Multichannel HBO, Multichannel Showtime,

Nickelodeon, and MTV. Customers receive this

package free for the first month of service.

$75 Do-It-Yourself Installation Kits make the system as

simple to install as ceiling fans, basketball hoops

or electronic garage door openers.

$175-$200 Professional Installation can be included when a

customer requests it when ordering their AT&T

Presents DIRECTV package.

As a bonus, AT&T long-distance customers will receive:

- A free pay-per-view movie each week for one year from AT&T and DIRECTV (a $150 value). - A free month of DIRECTV Total Choice Platinum programming after 12 consecutive months as an AT&T long-distance and DIRECTV Total Choice Platinum service customer ($45 value). - One month of Total Choice Platinum Service at the DIRECTV Total Choice programming package price ($15 value). - One Free Month of USSB Entertainment Plus, which includes more than 800 movies a month from the premium movie networks and a selection of entertainment channels ($34.95 value). - 0 percent financing for one year for up to $600 on equipment purchased with the AT&T Universal Card, and other financing options. - Redemption of AT&T True Rewards points in increments of $50 discount off the purchase of DSS equipment.

CONTACT: AT&T Public Relations, San Francisco

Kathi Oram, 415/442-2223

415/721-7124 (home)

or

USSB

Debra Cottone, 612/659-7095

612/927-8707 (home)

or

DIRECTV Inc.

Linda Brill, 310/535-5062