AT&T First Quarter Reported Earnings Per Share Are 54 Cents, Up 42 Percent, Operational Profits Are 53 Cents Per Share, Pro Forma Revenue Increases 5.8 Percent, Reported Revenue Up 12.3 Percent.

     Business Editors

     NEW YORK--(BUSINESS WIRE)--May 2, 2000--AT&T said today reported
earnings for AT&T Group were $0.54 per diluted share, or $1.741
billion, compared to $0.38 per diluted share, or $1.076 billion, for
the first quarter of 1999. AT&T's operational earnings, which exclude
certain gains and charges as well as the impact of certain ownership
interests, were $0.53 per diluted share, or $1.732 billion, lower from
the year-ago quarter of $0.61 per diluted share or $1.717 billion,
primarily as a result of the company's acquisition of TCI, including
the impact of additional shares issued.
     Revenue for the first quarter increased 5.8 percent
year-over-year, after giving pro forma effect to the TCI (now AT&T
Broadband) and the IBM Global Network (now AT&T Global Network
Services) acquisitions, as well as the impact of the Concert joint
venture and certain international divestments. First quarter revenue
was $15.836 billion compared to $14.974 billion a year ago on a pro
forma basis, and on a reported basis, revenue increased 12.3 percent
from the year-ago quarter.
     The company's Business Services, Wireless Services and
Broadband segments all reported strong revenue gains for the quarter.
Lower Consumer Services revenue reflects a competitive long distance
market but is also indicative of accelerated movement of customers to
optional calling plans and increased use of wireless services as a
substitute for calling card and direct dial wireline services.
     "AT&T's growth businesses are delivering," said AT&T Chairman and
CEO C. Michael Armstrong. "We'll continue to cut costs in our legacy
businesses while ramping up our high-growth businesses."
     "Wireless revenue grew more than 40 percent and we now have
nearly 10 million subscribers. In Business Services, our high speed
data and Internet protocol revenue grew at a high-teen rate and AT&T
Solutions posted a 25 percent increase in revenue. Broadband leads the
industry with nearly 2 million Digital Cable customers, adding an
average of 3,000 new customers per day. Our Consumer business margins
continue to generate significant cash flow to reinvest in our growth
businesses and our local market entry efforts are getting strong
customer response."

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1st Quarter at a Glance
                                                 1Q00   vs.1Q99
-------------------------------------------- --------- ---------
Business Services Revenue (1)                   $7.1b      6.0%
Consumer Services Revenue (1)                   $5.1b    (5.6%)
Wireless Services Revenue (2)                   $2.2b     40.7%
Broadband Revenue (3)                           $1.5b      7.9%
-------------------------------------------- --------- ---------
Operational EBITDA (4)                          $5.3b     20.8%
Operational EBIT (4)                            $3.4b     15.0%
-------------------------------------------- --------- ---------
Wireless Subscribers - Consolidated Mkts        10.0m     32.3%
Wireless Subscribers - Total (5)                13.1m     30.2%
-------------------------------------------- --------- ---------


                             1st Quarter Highlights
                             - Total Revenue            $15.8b
                             - Reported EPS             $0.54
                             - Operational EPS (4)      $0.53
                             - Operational Cash EPS(4)  $0.61
                             - SG&A and Costs of Services
                                and                     45.1%
                                Products to-Revenue
                             - Total Assets           $131.7 b
                             - Capital Expenditures     $2.8b

(1) Revenue growth represents a comparison to first quarter 1999
revenue, adjusted for the pro forma impact of the Concert joint
venture and IBM Global Network acquisition, as applicable

(2) Includes the acquisition of Vanguard Cellular Systems (Vanguard)
in 1999. Excluding Vanguard, revenue increased 33.1%.

(3) 1999 revenue adjusted for the pro forma impact of the TCI
acquisition and adjusted for all closed cable transactions and At Home
Corporation (Excite @ Home)
(4) Excludes certain gains and charges as well as the impact of AT&T's
ownership interests in Cablevision Systems Corp. (Cablevision) and
Excite @ Home

(5) Includes partnership markets

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AT&T Group Highlights

--   Reported revenue increased 12.3 percent compared with the prior
     year quarter. Revenue was $15.836 billion, an increase of 5.8
     percent from the year-ago quarter after giving pro forma effect
     to the TCI and IBM Global Network acquisitions, the impact of
     Concert and international divestments.

--   Reported earnings were $0.54 per diluted share, an increase of
     42.1 percent compared to $0.38 per share in the first quarter of
     1999. The increase was principally due to higher gains on the
     sales of businesses and investments, lower net restructuring and
     other charges, revenue growth and operational efficiencies across
     most AT&T business units. The increases were partially offset by
     the impact of the TCI acquisition, including AT&T shares issued.

--   Operational earnings (which excludes certain gains and charges),
     were $0.53 per diluted share, a decrease of 13.1 percent from
     $0.61 per share for the year-ago quarter, primarily as a result
     of the impact of the TCI acquisition.

--   Operational cash earnings per diluted share, which excludes the
     amortization of franchise costs, goodwill associated with
     acquisitions and equity investments, and other purchased
     intangibles, were $0.61 for the first quarter.

     AT&T also announced it recorded a pretax charge of $773
million against first-quarter earnings, reducing net income by $477
million, or $0.14 per diluted share. The charge includes $682 million
relating to business unit restructuring actions including severance
costs for approximately 6,200 employees, nearly all of which are from
the company's traditional businesses. These employees have been
notified and will be leaving the company by the end of the year. These
actions were taken in line with the company's commitment to streamline
operations and reduce costs by $2 billion by the end of the year. The
company also recorded a $91 million charge related to the
government-mandated disposition of AT&T Communications (U.K.) Ltd.,
which would have competed with Concert.


AT&T Business Unit Highlights:

--       Business Services first quarter revenue of $7.136 billion
         represents an increase of 6.0 percent compared to pro forma
         revenue of $6.732 billion for the first quarter of 1999. The
         increase was driven by strength in data/IP and outsourcing
         services. Total calling volumes, including local services,
         grew at a high-teens rate compared to the year-ago quarter.

         Business Services operational EBITDA was $2.477 billion for
         the first quarter of 2000, an increase of 6.3 percent from
         the $2.332 billion reported for the same period last year.
         The increase was primarily due to revenue growth combined
         with continued cost reductions, partially offset by the
         impact of customer accounts contributed to the Concert joint
         venture. The equity earnings of Concert are reported within
         Corporate and Other.

         AT&T Solutions, part of Business Services, saw outsourcing
         revenue increase 24.6 percent to $782 million in the first
         quarter, compared to pro forma revenue of $627 million for
         the first quarter of 1999. Excluding the impact of the IBM
         outsourcing contract, revenue grew more than 35 percent in
         the first quarter from the comparable 1999 period. The
         increase is primarily due to new client contracts signed in
         1999, and additional business secured from existing clients.

--       Consumer Services had $5.059 billion in revenue for the first
         quarter, a decline of 5.6 percent compared to pro forma
         revenue of $5.362 billion for the year-ago quarter. The
         decline reflects technology substitution with an increasing
         velocity of calling card and direct dial wireline services
         moving to wireless services. Also, customers are migrating to
         optional calling plans in an extremely competitive long
         distance environment. AT&T's One Rate offer continues to be
         well received with nearly 8 million customers enrolled since
         its introduction seven months ago. In December AT&T
         introduced an any-distance New York Local One Rate offer that
         combines local and long distance service. Since that time,
         the company has seen strong interest in the offer with more
         than 300,000 sales.

         Consumer WorldNet Services revenue increased 26.3 percent
         compared to the year-ago quarter. WorldNet Services has
         nearly 1.5 million residential subscribers, an increase of
         4.5 percent from the first quarter of 1999.

         Consumer Services reported an increase in first quarter 2000
         operational EBITDA of 4.0 percent to $1.966 billion, compared
         to $1.891 billion for the comparable 1999 period. The
         increase reflects continued cost control initiatives,
         primarily in selling, general and administrative (SG&A) and
         cost of services and products. The cost reductions were
         partially offset by lower revenue and the impact of new
         any-distance market penetration offers.

--       Wireless Services, including mobility and fixed services,
         grew first quarter revenue 40.7 percent to $2.198 billion
         compared to $1.562 billion for the year-ago quarter. The
         increase is primarily due to consolidated subscriber growth
         of 32.3 percent and increased average revenue per user.
         Excluding the 1999 acquisition of Vanguard, revenue increased
         33.1 percent.  Average monthly revenue per user continues to
         increase reaching $67.20 for the first quarter of 2000, an
         increase of 10.5 percent from the $60.80 reported for the
         first quarter of 1999.  Consolidated subscribers totaled nearly
         10.0 million at the end of the first quarter, a 32.3 percent
         increase from the prior year.  Total subscribers, including
         partnership markets in which AT&T does not have a controlling
         interest, were more than 13.1 million at the end of the
         first quarter, a 30.2 percent increase over the prior year.

         Operational EBITDA, excluding other income, increased 117.9
         percent to $401 million compared to $184 million in the first
         quarter of 1999. The increase was primarily the result of
         revenue growth and expense leveraging, mostly off-network
         roaming expenses, partially offset by increased customer
         acquisition and customer care costs associated with growth in
         the subscriber base.

--       Broadband had first quarter revenue of $1.492 billion, an
         increase of 7.9 percent, compared to pro forma revenue of
         $1.382 billion for the year-ago quarter.  Pro forma revenue
         for 1999 includes a full quarter of Broadband's results,
         adjusted for all closed cable transactions and Excite @ Home.
         Broadband's high-speed data service, AT&T @ Home, had
         approximately 294,000 customers at the end of the quarter.
         In the first quarter of 2000, Broadband added 91,000
         high-speed customers as compared to the 78,000 customers
         added in the previous quarter.  The company continues to ramp
         its Broadband telephony efforts.  At the end of the first
         quarter, AT&T provided broadband telephony service to about
         39,500 customers, an increase of 31,200 customers from the
         previous quarter.  In March 2000, AT&T installed an average
         of 500 telephony customers per day, a ten-fold increase from
         an average of 50 per day in December 1999.

         Broadband pro forma operational EBITDA, excluding other
         income, increased 39.8 percent in the first quarter of 2000
         to $366 million, versus $262 million for the first quarter of
         1999. The increase was primarily due to higher revenue and
         lower stock appreciation rights (SARs) expense, partially
         offset by increased cost of sports and children's programming
         and salary and benefit expenses.

--       Corporate and Other primarily includes revenue from
         international operations and ventures, and the elimination of
         inter-segment revenue. Corporate and Other revenue was a
         negative $49 million for the first quarter of 2000, compared
         with pro forma revenue of negative $64 million for the
         year-ago quarter.

         Operational EBITDA was $9 million for the first quarter of
         2000, compared to a negative $228 million for the first
         quarter of 1999. The improvement was primarily due to sales
         of miscellaneous investments, a larger pension credit in 2000
         as a result of a higher pension trust asset base and an
         increased discount rate used to measure the pension and
         post-retirement obligations, continued expense reductions and
         equity earnings from Concert of $43 million. These
         improvements were partially offset by distributions on trust
         preferred securities.

     Today's earnings announcement refers only to AT&T common stock
group and does not include the financial results of Liberty Media
Group, which reports its results separately. A detailed explanation of
AT&T's first quarter business unit performance can be found on the
Internet at http://www.att.com/ir/

Expense Highlights:

--       Total operating expenses for the first quarter were $13.434
         billion compared to $11.980 billion for the first quarter of
         1999. The increase primarily reflects the impact of the TCI
         and IBM Global Network acquisitions, partially offset by the
         impact of customer accounts contributed to the Concert joint
         venture.

--       Costs of services and products, previously reported as
         "Network and Other Costs of Services," increased 34.0 percent
         to $3.850 billion in the first quarter of 2000 compared to
         the year-ago quarter. The increase is primarily due to the
         TCI and IBM Global Network acquisitions, partially offset by
         the impact of customer accounts contributed to the Concert
         joint venture. Excluding these factors, cost of services and
         products increased slightly.

--       Selling, general and administrative (SG&A) expenses increased
         $132 million, or 4.2 percent, in the first quarter of 2000
         compared with the first quarter of 1999. The increase was
         primarily driven by the TCI and IBM Global Network
         acquisitions in 1999 partially offset by the impact of
         businesses contributed to Concert. Excluding these items,
         SG&A expenses declined by approximately 2 percent. The
         decline was primarily due to continued cost control
         initiatives, partially offset by increased spending in
         wireless services.

--       Depreciation and other amortization expenses in the first
         quarter of 2000 increased 20.1 percent compared to the same
         quarter in 1999. The increase was primarily due to the TCI
         and IBM Global Network acquisitions as well as growth in
         AT&T's depreciable asset base.


Balance Sheet Highlights

--       Total assets at March 31, 2000, were $131.699 billion, an
         increase from the $130.973 billion reported at December 31,
         1999.

--       AT&T Group's net-debt-to-operational EBITDA ratio was 1.81x
         at March 31, 2000, compared with 1.74x at December 31, 1999.
         Debt-to-capital (debt divided by total debt and equity) was
         47.2 percent at March 31, 2000, compared to 44.3 percent at
         December 31, 1999. Equity includes the convertible trust
         preferred securities and debt includes redeemable
         nonconvertible trust preferred securities. The increase was
         driven by an increase in borrowings and a lower equity base
         following the acquisition of AT&T stock in an exchange
         transaction with Cox Communications, Inc.




Definitions

EBIT refers to earnings before interest and taxes.

EBITDA refers to earnings before interest, taxes and depreciation and
amortization.

Operational Cash Earnings: Refers to operational earnings excluding
the amortization of franchise costs, goodwill associated with
acquisitions and equity investments, and other purchased intangibles.

Operational Earnings:  These results exclude certain gains and charges
as well as the impact of AT&T's ownership interests in Cablevision
Systems Corp. and Excite @ Home.

Reported Earnings:  The attached income statement reflects Reported
Earnings in accordance with generally accepted accounting
principles.

Pro forma Revenue: Revenue is adjusted for the TCI acquisition,
adjusted all closed cable transactions, the IBM Global Network,
various divestments of international businesses, the impact of Concert
and proposed regulatory reform.

     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. For a more detailed
description of the factors that could cause such a difference, 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. This document also contains certain
information such as operational EPS, operational cash EPS and reported
and operational EBIT and EBITDA that are not presented in accordance
with generally accepted accounting principles. This information is
presented solely to provide additional information to further
understand the results of AT&T.
     ADDITIONAL NOTE TO FINANCIAL MEDIA: AT&T Chairman C. Michael
Armstrong, Chief Financial Officer Charles H. Noski and members of the
executive team will discuss the company's performance in a two-way
conference call for financial analysts at 8:15 a.m. Eastern time
today. Reporters are invited to listen to the call. From the U.S.,
callers should dial 800-230-1093 to access the call. Callers outside
the U.S. should dial 612-288-0337.
     An audio rebroadcast of the conference call will be available
from noon Eastern time on Tuesday, May 2, 2000 until midnight on May
4, 2000. To listen to the audio rebroadcast, U.S. callers can call
800-475-6701 and enter access code 510077. Outside the U.S., the
rebroadcast is available by dialing 320-365-3844, and then entering
the access code 510077. In addition, Internet rebroadcasts of the call
will be available on the AT&T Web site beginning later today. The Web
site address is http://www.att.com/ir/.


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AT&T Group
                   Combined Statements of Income (Unaudited)
----------------------------------------------------------------------
                                          For the Three
                                          Months Ended
Dollars in Millions                       March 31,
(except per share                    2000              1999
amounts)
----------------------------------------------------------------------

Revenue                           $15,836            $14,096

Operating Expenses
 Access and other connection        3,588              3,732
 Costs of services and products     3,850              2,872
 Selling, general and
  administrative                    3,289              3,157
 Depreciation and other
  amortization                      1,566              1,304
 Amortization of goodwill, franchise
  costs and other purchased
  intangibles                         368                184
 Net restructuring and other
  charges                             773                731
                                 --------------      --------------
Total operating expenses           13,434              11,980
                                 --------------       -------------

Operating income                    2,402               2,116

Other income                          262                 149
Interest expense                      555                 190
                                 --------------       --------------
Income before income taxes          2,109               2,075
Provision for income taxes            368                 999
                                 --------------        --------------
Income available to AT&T
 shareowners                      $ 1,741             $ 1,076
                                  ==============      ==============

Weighted average common shares and
  potential common shares
  (millions)(a)                     3,256                2,809

AT&T Group Earnings:
Per AT&T common share - basic       $0.55                $0.39
Per AT&T common share - diluted     $0.54                $0.38

Dividends declared per common share $0.22                $0.22

----------------------------------------------------------------------

(a) Amounts represent the weighted-average shares assuming dilution
from the potential conversion of debt and equity securities and the
potential exercise of outstanding stock options and other performance
awards. Basic shares, assuming no dilution, were 3,185 million and
2,751 million for the three month periods ended March 31, 2000 and
1999, respectively.
----------------------------------------------------------------------

EPS Reconciliation
----------------------------------------------------------------------
                                     For the three months ended
                                                                              -
(Dollars in millions, except
per share amounts)            March 31, 2000            March 31, 1999
                              --------------            --------------
                             After-     Diluted         After- Diluted
After-tax                    tax        EPS             tax     EPS
----------------------------------------------------------------------

Income attributable to
 AT&T Group                  $1,741       $0.54       $1,076     $0.38

Add:
Net restructuring and other charges
 (pretax $773 1Q00 and
  $731 1Q99)                    477        0.14          679      0.24
Losses of Cablevision and Excite@Home
 (pretax $358 1Q00 and
  $73 1Q99)                     221        0.07           57      0.02

Less:
Gains on sales (pretax  $442
 1Q00 and $153 1Q99)(A)         707        0.22           95      0.03

Operational earnings
 attributable to AT&T Group   $1,732      $0.53        $1,717    $0.61

----------------------------------------------------------------------

(A) 1Q00 included pretax gains of $231 million from the sale of
Lenfest Communications and $211 million from the exchange with Cox of
certain cable systems for AT&T stock, and 1Q99 included a pretax gain
of $153 million on the sale of Language Line Services.

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     --30--eb/ny*

     CONTACT: Eileen M. Connolly
              908-221-6731
              [e-mail]
                       OR
              David P. Caouette
              908-221-6382
              [e-mail]


     KEYWORD: NEW YORK
     INDUSTRY KEYWORD: TELECOMMUNICATIONS EARNINGS