AT&T Loses Its Biggest Advantage in the Competition to Provide New Media Products and Services; Survey Reveals that AT&T's Image Rating and Share of the Long Distance Market is Down on the Eve of Increased Competition.

SAN FRANCISCO--(BUSINESS WIRE)--June 24, 1996--Odyssey's annual survey of 4,500 consumers nationwide shows that AT&T's image rating and share of the long distance market has declined dramatically in the last two years.

Two years ago, for example, 74 percent of U.S. households used AT&T for their long distance service. In the most recent study, only 65 percent indicated that they used AT&T. In addition, while 68 percent of consumers rated the company's image as "very good" two years ago, now only 59 percent gave it such high ratings.

According to Odyssey President Nick Donatiello, AT&T is losing its biggest advantage in the competition to provide new media products and services. "AT&T was hoping to leverage its sterling image, strong market share, and close relationship with consumers," said Donatiello. "But the dike already has holes and the rainy season hasn't even started." Donatiello explained that AT&T is expected to face much greater competition as RBOCs and cable companies begin offering long distance services following the recent passage of the Telecommunications Act.

Odyssey is the nation's only independent market research firm dedicated exclusively to studying the complex and changing relationship between consumers, technology and at-home information and entertainment.

Each year, Odyssey conducts the largest and most comprehensive research study of consumers and new media. This massive research effort includes a national survey of 4,500 consumers in addition to in-depth, in-person interviews and 13 focus groups in various regions of the country. The objective is to determine and track the relevant market segments and understand what is going to motivate consumers to adopt new media products and services. Odyssey also conducts a separate survey, called Homefront, which is aimed at understanding what really is happening in homes with personal computers and involves a rigorous, twice-yearly national survey of 2,000 consumers. -0-

MARKET SHARE: Long Distance -- Percent of U.S. Households

     Company    Q1 - 96       Q4 - 95       Q1 - 95       Q4 - 94

     AT&T         65%           66%           71%           74%

     MCI          12%           13%           12%           11%

     SPRINT        5%            4%            4%            4%

     OTHER        12%           12%            7%           -----

     DON'T KNOW/
      NO ANSWER    6%            5%            6%           11%

Percent of U.S. Households Rating "Very Good"

     Company      ODYSSEY THREE     ODYSSEY TWO       ODYSSEY ONE

      AT&T             59%               63%               68%

      MCI              27%               22%               24%

      SPRINT           19%               16%               19%-0-

Odyssey is based in San Francisco, Calif. For additional information, press may contact Marivi Lerdo at tel. [phone]. Companies interested in purchasing Odyssey's research may reach the company at tel. [phone].

CONTACT: Marivi Lerdo de Tejada, 415/968-4033