AT&T Capital Reports Second Quarter Net Income of $27.9 Million, up 48 Percent.

Morristown, N.J.--(BUSINESS WIRE)--July 24, 1995-- AT&T Capital Corporation (NYSE - TCC) today announced second quarter net income of $27.9 million, a 48-percent increase from the $18.9 million reported for the second quarter of 1994. For the first six months of 1995, net income grew to $53.0 million, a 53-percent rise compared with the $34.7 million reported for the similar period in 1994. Earnings per share were $.59 for the second quarter and $1.13 for the first half of 1995.

"AT&T Capital has once again reported solid earnings growth at a time when the company continues to develop its position as a leading provider of leasing services worldwide," said Tom Wajnert, chairman and chief executive officer.

"For example, AT&T Capital created an innovative financing program for Executive Jet Aviation, a leader in business aircraft services," he said. Executive Jet sells individuals and companies fractional interests of specific aircraft based on the number of actual flight hours needed. AT&T Capital will provide both lease and loan financing for these interests, while Executive Jet manages the aircraft. Our work with Executive Jet is indicative of how we provide value-added services to thousands of other vendors, manufacturers and service providers.

"Overseas, in the second quarter we acquired a small Australian equipment finance company to supplement our operations in Australia," Wajnert added. "The acquired company, Hunter MMI, is a full-service provider of fixed-term financing for office and telecommunications equipment and has assets of approximately US$42 million. With this acquisition, based on assets, our Australian operation is now the second largest non-bank, non-captive equipment leasing company in Australia.

"Our ability to meet a vendor client's specific customer financing needs, as illustrated by the Executive Jet program, sets AT&T Capital apart," Wajnert said. "And as our acquisition in Australia demonstrates, we continue to invest outside the United States when local market conditions are attractive."

AT&T Capital's impressive earnings in the second quarter of 1995 can be attributed primarily to a higher average level of finance assets, a lower provision for credit losses as well as gains from equipment remarketing and lease renewals. Second quarter revenue was $382.0 million, a 15-percent increase from the $332.2 million reported for the second quarter of 1994. Revenue growth for the quarter resulted from higher average earning assets as well as strong secondary market and renewal activity. For the first half of 1995, revenue increased 13 percent to $744.8 million, compared with $658.2 billion for the same period in 1994.

The provision for credit losses decreased $4.6 million, or 20 percent for the second quarter of 1995 compared with the same period in 1994. This can be attributed, in part, to a continuing improvement in the company's delinquency and charge-off levels. Although the provision for credit losses decreased somewhat compared to the prior year, it continued to exceed quarterly write-offs by 50 percent. This demonstrates the company's adherence to maintaining credit quality despite lower write-offs.

Total assets advanced to $8.7 billion at June 30, 1995, a 9-percent increase from the $8.0 billion reported at December 31, 1994. For the quarter ended June 30, 1995, equipment and loans financed reached $1.0 billion, a 13-percent increase from the second quarter of 1994. For the first six months of 1995, volume totaled $2.0 billion, a 21-percent increase when compared with the $1.6 billion reported for the first half of 1994.

A majority-owned subsidiary of AT&T Corp., AT&T Capital's shares trade on the New York Stock Exchange under the ticker symbol "TCC."

As the largest publicly owned, diversified equipment leasing and finance company in the United States, AT&T Capital leases and finances both AT&T and non-AT&T equipment to approximately 500,000 businesses of all sizes in the United States, Canada, Mexico, Europe, Australia and Hong Kong.

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AT&T Capital will continuously replay a tape of its second quarter earnings conference call beginning Monday, July 24, at 2 p.m. EDT. Access to the replay will end on Wednesday, July 26 at 2 p.m. EDT. Chairman Thomas C. Wajnert and Chief Financial Officer Edward M. Dwyer will discuss the company's second quarter and first half results. The replay of the call is expected to run about 20 minutes.

Members of the financial community can access the replay by calling:

Within the United States 800-475-6701 code: 601111

Outside the United States 612-365-3844 code: 601111

Callers who have any questions after listening to the replay, or would like to request copies of the company's financial information, should call Investor Relations at 201-397-4444. -0-

      AT&T Capital Corporation Consolidated Statements of Income
            (Dollars in Thousands, except per share amounts)

                      For the Three Months        For the Six Months
                         Ended June 30                Ended June 30
                                            %                             %
                       1995       1994    Change    1995      1994      Change

REVENUE:
Finance Revenue      $ 42,247   $ 29,612    43%   $ 81,032   $ 57,401    41%
Capital Lease Revenue 142,237    114,638    24%    277,669    221,270    26%
Rental Revenue on
Operating Leases      136,408    117,237    16%    269,369    228,696    18%
Equipment Sales         9,049     30,379   (70%)    16,982     71,999   (76)%
Other Revenue          52,015     40,350    29%     99,718     78,862    26%
TOTAL REVENUE         381,956    332,216    15%    744,770    658,228    13%

EXPENSES:
Interest              100,806     65,654     54%   194,804    125,761     55%
Operating and
Administrative        121,505    102,351     19%   234,987    202,544     16%
Depreciation on
Operating Leases       85,907     77,910     10%   171,160    152,911     12%
Cost of Equipment
Sales                   8,247     28,744     (71%)  15,299     67,288    (77)%

Provision for
Credit Losses          18,624     23,224     (20%)  39,678     49,300    (20)%

TOTAL EXPENSES        335,089    297,883      12%  655,928    597,804     10%

Income Before
Income Taxes           46,867     34,333      37%   88,842     60,424     47%
Provision for
Income Taxes           18,955     15,432      23%   35,848     25,718     39%
NET INCOME           $ 27,912   $ 18,901      48% $ 52,994   $ 34,706     53%

EARNINGS PER SHARE       $.59       $.40             $1.13       $.74

Number of Shares
used to compute
Earnings per
share (thousands)      47,027     46,874            47,014     46,898

OTHER KEY FINANCIAL STATISTICS
(Dollars in Thousands)

                                          June 30,    December 31     %
                                           1995          1994       Change

Portfolio Assets:
Net Investment in Finance Receivables    $1,628,869    $1,452,947    12%
Net Investment in Capital Leases         $5,737,396    $5,129,326    12%
Net Investment in Operating Leases       $  946,869    $  902,525     5%

Total Portfolio Assets                   $8,313,134    $7,484,798     11%

Total Assets                             $8,741,899    $8,021,923      9%
Total  Managed Assets                    $2,483,296    $2,659,526     (7%)

Total Owned and Managed Assets          $11,225,195    $10,681,449     5%

Total Equity                            $ 1,050,793    $ 1,008,218     4%
Total Allowance                         $   202,661    $   176,428    15%

Debt to Equity                                 5.95           5.51
Allowance/Net Write-offs                       3.94           3.18
Allowance/Non-Accruals                         1.89           1.46
Allowance/Investment in Portfolio Assets       2.38%          2.30%

CONTACT: David Caouette

201-397-8724 (office)

201-435-3494 (home)