AT&T Wireless To Receive $436 Million Refund on Federal Tax Carry Back Claim.

Business Editors

REDMOND, Wash.--(BUSINESS WIRE)--Jan. 6, 2003

AT&T Wireless (NYSE: AWE) today announced that, under an agreement with AT&T, the company will soon receive $436 million relating to a federal tax refund claim.

AT&T Wireless said the claim arose from its consolidated tax net operating loss for the tax year-ended December 31, 2001, which was carried back for a refund of taxes paid by AT&T, as the common parent of an affiliated group that included AT&T Wireless.

AT&T Wireless said the refund would further strengthen its balance sheet and liquidity position. Given the expedited process used to submit the refund claim, the IRS still may audit the refund claim.

AT&T Wireless said it expects a tax net operating loss for the tax year-ended December 31, 2002 and plans to seek AT&T's consent regarding a federal tax refund carry back claim for a portion of that loss as well.

Concurrently, AT&T Wireless said it had increased volume commitments and extended its Master Carrier Agreement with AT&T by six months to January 31, 2007. Under the agreement, AT&T provides voice and data services. AT&T Wireless said that it doesn't anticipate any increase in costs associated with the service agreement extension.

About AT&T Wireless

AT&T Wireless (NYSE: AWE) is the largest independently traded wireless carrier in the United States, following our split from AT&T on July 9, 2001. We operate one of the largest digital wireless networks in North America. With 20.2 million subscribers, and full-year 2001 revenues exceeding $13.6 billion, AT&T Wireless is committed to being among the first to deliver the next generation of wireless products and services. Today, we offer customers high-quality mobile wireless communications services, voice or data, to businesses or consumers, in the U.S. and internationally. AT&T Wireless Customer Advantage is our commitment to ensure that customers have the right equipment, the right calling plan, and the right customer services options -- today and tomorrow. For more information, please visit us at www.attwireless.com.

This press release contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by management with information that is currently available to management. Forward-looking statements include, without limitation, management's expectations regarding: our future financial and operating performance and financial condition, including specific projections and guidance for the fourth quarter and full fiscal year 2002 and 2003; subscriber growth; industry conditions; the strength of our balance sheet; and our liquidity and needs for additional financing.

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 Wireless' control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of our technology migration strategy, the effects of vigorous competition in the markets in which we operate, the risk of decreased consumer spending due to softening economic conditions, the outbreak of war or acts of terrorism, and consumer response to new service offerings.

For a more detailed description of the factors that could cause such a difference, please see AT&T Wireless' filings with the Securities and Exchange Commission, including the information under the heading "Additional Factors That May Affect Our Business, Future Operating Results and Financial Condition" and "Forward Looking Statements" in its quarterly report of Form 10-Q filed on November 12, 2002.