AT&T Broadband Begins Migrating Broadband Internet Customers to New High-Speed Network.

Business Editors & Hi-Tech Writers

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Dec. 1, 2001

Company Moves Aggressively to Maintain and Restore Broadband

Internet Service for Customers Following Excite@Home Service

Interruptions

AT&T Broadband has moved about 86,000 customers in Oregon and the Vancouver area of Washington from the Excite@Home network to the new AT&T Broadband Internet network, the company said today.

In addition, in the next two to 10 days, the company will move its Broadband Internet customers in Chicago, Dallas, Denver, Hartford, Pittsburgh, Sacramento, Salt Lake City, Seattle, the Bay Area, some Michigan markets, and its Rocky Mountain region in the mountain West, to the new network. Customers may experience temporary service disruption during the migration.

The action follows Friday's decision in U.S. Bankruptcy Court to cancel the Master Distribution Agreements between cable companies and the At Home Corporation, and the subsequent shut down of the Excite@Home network to AT&T Broadband users following sporadic Excite@Home service disruptions.

AT&T continued negotiations with At Home Corporation late into Friday evening and early Saturday morning only to see the Excite@Home service cut off.

AT&T moved its Oregon and Vancouver, Wash., Broadband Internet customers to the new high-speed network during a six-and-a-half hour period overnight and is working to migrate the balance of its customers to the new network in the coming days. Customers benefiting from last night's network migration represent more than 10 percent of AT&T Broadband's base of Excite@Home customers. At the end of the third quarter, AT&T Broadband had 1.4 million Broadband Internet customers. Of those, about 850,000 were served by the Excite@Home network.

AT&T Broadband has communicated with all of its high-speed cable Internet customers during the past few weeks to help them prepare for these developments.

The company will automatically issue credits to any customers who experience an interruption of service. Credits will be issued at the rate of two days free service for every day of interruption. In cases where the temporary outage is a bit longer, customers will receive free dial-up service from AT&T Broadband until they are restored to a high-speed network.

All affected customers will see these changes as part of their new service:

- Email domain names will automatically change from (username)@home.com to
(username)@attbi.com. User names will stay the same;

- AT&T Broadband Internet will feature AT&T WorldNet High Speed service
content;

- Upstream and downstream speeds will be managed to provide a faster and more
consistent broadband service.

Customers formerly served by MediaOne will remain on a separately operated network. The markets encompassing those customers include Ann Arbor, Mich.; Atlanta; Jacksonville; Los Angeles; New England; Richmond, Va.; and St. Paul, Minn. In addition, a group of several thousand AT&T Broadband Excite@Home customers in Boston and Chamblee, Ga., - who had been acquired as part of recent cable system acquisitions - today are being migrated to that separately operated network.

For the group of customers in the markets being served by this separately operated network, the service will be re-branded as AT&T Broadband Internet. For the majority of customers in these markets, the network, Internet service connectivity, email domain names, and data transmission speed won't be affected. The only change these customers will see is new content provided by Yahoo! To access this new content, customers can direct their browsers to http://home.attbroadband.com.

AT&T Broadband cable and local telephone service won't be affected by these developments. Uncertainty around the future of the Excite@Home service, coupled with service interruptions necessitating migration of customers to the new high-speed network, is expected to negatively impact growth in the company's number of Broadband Internet customers and revenue generating units.

About AT&T Broadband

AT&T Broadband, a business unit of AT&T, is the nation's largest broadband services company, providing television entertainment services to about 14 million customers across the nation. The company also provides advanced services, such as digital cable, high-speed cable Internet services and competitive local phone service. More information on AT&T Broadband services can be found at www.attbroadband.com. AT&T (NYSE:T) is the world's leader in telecommunications services and technology.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding the Company's plans, intentions and expectations. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include increased levels of competition, shortages of cellular handsets and other key equipment, restrictions on the Company's ability to finance its growth and other factors. A more extensive discussion of the risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.