AT&T PrePaid Internet Service Now Available At Walgreens.

Business Editors

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

AT&T and Walgreens today announced that AT&T PrePaid Internet Service is now available in more than 3,900 of the drugstore chain's stores across the United States.

AT&T PrePaid Internet Service is a flexible, pay-as-you-go Internet service powered by the company's award-winning AT&T Worldnet(R) Service. It comes with one e-mail account and is perfect for consumers who want to access the Web without a monthly fee, need a travel Internet service to complement their home or office connection or want a back-up service.

"Walgreens customers can now pick up an AT&T PrePaid Internet Service start-up kit along with the other household electronics products we offer," said Gary Platek, Walgreens divisional merchandise manager for electronics. "Customers appreciate our convenient services, and with AT&T, we're making Internet access more convenient for them."

"Getting our product on the shelves of the nation's largest drugstore chains makes prepaid Internet readily available to more people just as prepaid phone cards expanded the long distance market," said Mark Evans, vice president of AT&T PrePaid Services. "More consumers can now pay cash for a block of time to access the Internet without a monthly recurring charge or the use of a credit card."

The AT&T PrePaid Internet Service start-up CD is available in two denominations: eight hours of Internet Service time for $9.99 or 20 hours for $19.99. Additional minutes can be purchased online for $19.99 (20 hours) or $29.99 (30 hours). The Service can be used on most compatible modem-equipped computers, whether the user is at home or traveling. Both dial-up and 800/888 access numbers are available. Internet Service minutes will be used up more quickly with the 800/888 access numbers.

After loading the CD, users enter the PIN and serial number printed on the AT&T PrePaid Internet card included in the start-up CD. Once logged on to the Service, they can access the Internet, set up their e-mail account or check the minutes remaining in their account.

AT&T Worldnet Service, AT&T's consumer subscription Internet service, provides the network and Internet services for the prepaid offer. One of the leading Internet service providers in the United States, AT&T Worldnet Service has been consistently rated as among the most reliable. With faster log-on times and fewer disconnects, AT&T Worldnet customers get on and stay on the Internet when they want.

Introduced a year ago, AT&T PrePaid Internet Service is now available in more than 10,000 participating retail outlets nationwide. Customers can also visit www.att.com/prepaidinternet to purchase start-up CDs, refill minutes or search the AT&T PrePaid Internet Service database to find a list of participating retailers in their area based on zip code.

About Walgreen Co.: Walgreen Co. is the nation's largest drugstore chain with fiscal 2002 sales of $28.7 billion. The company operates 3,900 stores in 43 states and Puerto Rico, in addition to Walgreens Health Initiatives, which provides mail service prescriptions, pharmacy benefits management and other clinical services.

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 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 a market leader in consumer communications services. The company now offers local residential service in California, Georgia, Illinois, Michigan, New Jersey, New York, Ohio and Texas and operates AT&T Worldnet(R) Service, a leading Internet access service that has garnered numerous awards for outstanding performance and 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 undue reliance on forward-looking statements.