AT&T Long Distance Customers in the Cavalier State Get the Message: Thanks for Your Loyalty.

Business & Telecommunications Editors

MORRISTOWN, N.J.--(BUSINESS WIRE)--Oct. 30, 2002

AT&T said today that it is using an innovative new approach to reward many of its loyal residential customers in Virginia.

During the brief time between their dialing of a long distance call and its connection, AT&T will say "thank you" and inform customers about their automatic award of free minutes of domestic long distance calling.

Beginning next Tuesday, selected AT&T residential customers will hear a short message before their call from home is connected: "Thank you for being a loyal AT&T customer. Please enjoy 30 minutes of free domestic long distance calling on us for a month. Look for the free-minute credit on your upcoming bill - and thanks again for using AT&T."

"It's an opportunity for AT&T to say `thank you for your loyalty' to many of our customers in the Cavalier State," said Lou Delery, vice president of consumer long distance in AT&T Consumer. "We've found that our customers love being surprised in this innovative way with a reward that they can take advantage of so quickly and easily. When technology is combined with real value, customers win."

The Virginia promotion is part of AT&T's continuing application of this innovative network-based technology to reward customers. Customers don't have to call or sign up for the promotion. They simply use their free domestic long distance minutes and look for the credit on an upcoming bill. Customers have to use the free minutes before the time expires at the end of a given billing period.

About AT&T

AT&T (www.att.com) is among the world's premier voice, video and data communications companies, serving consumers, businesses and government. Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and is the largest cable operator in the U.S. The company is a leading supplier of data, Internet and managed services for the public and private sectors, and offers outsourcing, consulting and networking-integration to large businesses and government. Serving nearly 60 million consumers, AT&T is the market leader in consumer communications services and operates AT&T Worldnet(R) Service, a leading Internet access service that has garnered several awards for outstanding customer service.

This press release contains "forward-looking statements" within the means 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 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.