AT&T Closes $8 Billion Global Bond Offering Offering Sets Record.

NEW YORK--(BUSINESS WIRE)--March 26, 1999--AT&T today completed the world's largest global bond offering, exceeding company expectations and earning a place in the corporate history books.

This transaction broke records on three fronts: it is the largest corporate bond offering, the largest global bond offering and the single-largest long bond (30-year) offering.

"We're delighted with the offer's success and the investor confidence it shows," said AT&T Chairman and CEO C. Michael Armstrong. "And it's gratifying to know that demand for the AT&T bonds far-exceeded supply."

The $8 billion offering consisted of three tranches: $2 billion in five-year notes due 3/15/2004; $3 billion in ten-year notes due 3/15/2009; and $3 billion in thirty-year notes due 3/15/2029. The securities will be listed on the New York Stock Exchange. U.S. investors were joined by international investors, who represented about 15 percent of the total offering.

AT&T said it plans to use the proceeds from the offering to repay commercial paper raised in connection with its acquisition of TCI and recently completed $4 billion share repurchase program. The proceeds will also help AT&T continue its aggressive efforts to transform from a long distance company to an "any distance" company - one that connects people using voice, data and video.

AT&T assembled a top-notch team to assist with the offering. The team included joint-lead managers Merrill Lynch & Co. and Salomon Smith Barney and eight co-managers: Blaylock & Partners, L.P.; BNY Capital Markets, Inc.; Chase Securities Inc.; Deutsche Bank Securities; First Chicago Capital Markets, Inc.; J.P. Morgan & Co.; Lehman Brothers; and NationsBanc Montgomery Securities LLC.

Another first of the transaction was AT&T's selection of minority-owned Blaylock & Partners as a co-manager in the global bond deal. According to Armstrong, Blaylock's expertise in corporate bond placement produced exceptional results and helped the company reach new investors.

In January, Armstrong said AT&T would take a leadership role by appointing a minority-owned firm to assist with the company's historic bond deal. He also pledged to use an all-minority led and co-managed team of financial firms to raise $200 million to $300 million dollars in debt at an undetermined date in the future.

"Blaylock's role in executing an offering of this size demonstrates the growth of minority firms in the financial community," said Armstrong.

AT&T's long-term debt is rated AA- by Standard & Poor's Corp., AA- by Duff and Phelps Credit Rating Company, and A1 by Moody's Investors Service Inc.