AT&T WorldNet Service, Citing New Price Plan, Achieves Significant Improvement in Reliability.

BASKING RIDGE, N.J.--(BUSINESS WIRE)--June 3, 1998--

Service Also Will Add 218 Points of Presence in Next Year

AT&T WorldNet(R) Service today reported it has enhanced its already high reliability through a combination of innovative pricing and network improvements, and announced it will significantly expand access to its network with the addition of 218 points of presence (POPs) over the next year. The additional POPs will be provided through an arrangement with Teleport Communications Group, which is in the process of merging with AT&T.

"We are delivering on our promise to provide our customers with industry-leading network performance at a fair price in the midst of rapidly growing usage," said Dan Schulman, president of AT&T WorldNet Service. "Since March, when we announced an innovative new pricing plan and added some additional modems and lines to our network, our reliability has increased sharply."

Schulman said the first-time connect rates for AT&T WorldNet Serviceduring periods of peak usage, during business hours and over a 24-hour period have increased steadily since the new pricing plan was announced on March 31. For example, first-time connect rates during the evening peak usage period, as measured by Inverse Technology, jumped 8.4 points to 96.8 percent between March and May. AT&T WorldNet Service first time connect rates were above the industry average for all three periods in May. Also significant, the number of AT&T WorldNet Service POPs filled to capacity has plummeted 52 percent since March.

The Standard Price Plan, which took effect May 1, is designed to address the disproportionate use of network resources by a relatively small number of very heavy users. The plan provides 150 hours of access per month for $19.95, with a charge of 99 cents for each additional hour. About 97 percent of all AT&T WorldNet Service consumers on the plan should continue to pay $19.95 a month for access to the service, since they average only about 22 hours hours of access a month. Only about three percent of AT&T WorldNet Service members are likely to exceed 150 hours of usage a month and thus incur the 99-cent-an-hour charge on such excess usage.

There has been no significant change in churn on AT&T WorldNet Service since the plan was introduced.

"We're pleased with the increase in the already high reliability of AT&T WorldNet Service," Schulman said, "but we're not satisfied. Beginning in August, our new target will be an A or A+ rating from Inverse Technology on at least 80 percent of our POPs during the peak hour period." To earn an A+ rating from Inverse during peak usage, an ISP must have a first-time connect rate of better than 95 percent, and better than 92 percent for an A rating.

In another move to bolster the value of its network for customers, AT&T WorldNet Service will add 218 POPs during the next year, from 357 at present to 575, an increase of 62 percent. The additional POPs will be provided by Teleport Communications Group, and will mean 76 percent of the people in the United States should be able to reach AT&T WorldNet Service with a local call. Plans call for the addition of 40 POPs in the next six months, with the remainder installed by mid-1999.

AT&T WorldNet Service is the largest direct Internet service provider in the United States, serving more than 1.1 million subscribers. It has some 357 points of presence in the United States and offers each subscriber a free 5-megabyte personal Web page. AT&T WorldNet Service has received awards for both its customer care and high reliability. AT&T WorldNet Service provides subscribers with the option of consolidating their Internet access, AT&T Long Distance and AT&T Wireless charges, where available, on a single bill. Separately, AT&T WorldNet Service enables its subscribers on the Standard Plan to electronically register for AT&T Long Distance service at a low 9-cent-a-minute rate for direct dialed, state-to-state calls from home, payable with a credit card.

AT&T WorldNet Service consumer software for Windows 95, Windows 3.1, Windows 3.11 for Workgroups and Macintosh is available by download free of charge from the public AT&T WorldNet Web site (http://www.att.net) and from the AT&T Corporate Web site (http://www.att.com) or by calling 1-800-WORLDNET.

AT&T WorldNet Business Dial Service is targeted to business customers and priced at $24.95 per month per user. Included in the service is unlimited Internet access, one 10MB POP3 e-mail account, Microsoft Internet Explorer(R) 3.x or Netscape Navigator(R) 3.x browser with dialer and TCP/IP stack, corporate invoicing, access to a business-specific content page through the AT&T WorldNet Business Dial Web site (http://www.worldnet.att.net/os/ncs), and business class 24x7 technical support (12x5 billing support). Internet access via an 800/888 number also is available.

For an additional $5 per month businesses can integrate their brand name in their email address ([e-mail]) and get a bigger mailbox - 30MB per user - for e-mail storage. These customers also have the option of adding e-mail-only accounts for users who do not need to browse the Web.

AT&T WorldNet Business Dial Service customers can consolidate their Internet access, long distance, toll-free, international, in-state, IntraLATA, local (where available), business calling card, and AT&T Wireless Services (where available) on one ATT.ALL bill. For more information on AT&T WorldNet Business Dial Service, business customers can contact their AT&T sales agent directly, call 1-888-888-5409 or visit www.att.com/worldnet/wmis. -0- AT&T WorldNet is a registered service mark of AT&T.

    CONTACT: AT&T WorldNet Service, Basking Ridge
              Mike Miller, 908/221-5372
              Page: 800/471-3599
              E-mail: [e-mail]
              or
              Jonathan Varman, 908/221-8790
              Page: 800/759-8888, pin 2889838
              E-mail: [e-mail]