AT&T Finalizes Arrangements for the Purchase of the Publicly Held Shares of AT&T Canada.

Business and Technology Editors

NEW YORK--(BUSINESS WIRE)--July 18, 2002

AT&T today announced that it has arranged for Tricap Investments Corporation, a wholly owned subsidiary of Brascan Financial Corporation, to purchase approximately a 63 percent equity interest and a 50 percent voting interest in AT&T Canada upon closing. As previously announced, the public shares of AT&T Canada will be purchased according to the terms of the 1999 merger agreement, by Canadian investors.

Also upon closing, CIBC Capital Partners will acquire approximately a six percent equity interest and approximately a 27 percent voting interest in the shares of AT&T Canada. The balance of ownership of AT&T Canada will be retained by AT&T, which represents approximately a 31 percent equity interest and a 23 percent voting interest. AT&T will also have a call right on CIBC's voting shares.

AT&T has agreed to pay the purchase price for the AT&T Canada shares, on behalf of Tricap and CIBC Capital Partners. Tricap and CIBC Capital Partners will make a nominal payment to AT&T upon completion of the transaction, which is expected to occur in the fourth quarter.

CIBC World Markets is acting as a financial advisor to AT&T in this transaction.

"We are pleased to conclude this agreement with AT&T," said Jeff Blidner, Managing Director, Tricap Investments Corporation. "From our position as a significant shareholder of AT&T Canada, we will look to play a constructive role in AT&T Canada's previously announced efforts to pursue a consensual restructuring of the company's public debt and to support the board and management in their endeavors to enhance and grow the company's business and operations."

About Brascan Financial Corporation

Brascan Financial Corporation (www. brascanfinancial.com) is a financial services company that provides asset management and merchant banking services. Brascan Financial manages the Tricap Restructuring Fund. Backed by distinguished participants, which include Canada Pension Plan Investment Board, Toronto Dominion Bank and GE Capital Corporation, the Tricap Restructuring Fund is the first of its kind in Canada to focus on restructuring opportunities. Brascan Financial also provides select business services to its clients that include governments, institutions and corporations.

About CIBC Capital Partners

CIBC Capital Partners is the merchant banking division of Canadian Imperial Bank of Commerce, a Canadian chartered bank.

The foregoing are "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management.

Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially from such statements. These factors include the rate of decline of traditional long distance voice services, technology change and substitution, the actions of competitors in all segments in setting prices, conditions of excess capacity, and rates of implementation of regulatory changes that favor competitors and promote remonopolization.

For a more detailed description of the factors that could cause actual results to differ from forecast, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.