AT&T WorldNet Service issues reliability challenge, announces revised hourly plan and flat-rate incentive.

BRIDGEWATER, N.J.--(BUSINESS WIRE)--Feb. 26, 1997--AT&T today began posting statistics on the World Wide Web comparing the reliability of AT&T WorldNetSM Service with an Internet industry average, and challenged other service providers to match AT&T's performance. AT&T also added a revised hourly pricing plan for its value-added Internet access service and offered an incentive for users to trade up to its unlimited use plan. And beginning June 1, if customers leave the service at any time, for any reason, AT&T will forward their electronic mail to their new service free for 60 days. "Customers want assurances of fast, reliable access to the Internet, so we're tracking our results and challenging other service providers to match them," said Tom Evslin, AT&T WorldNet Service vice president. "We are committed to providing the quality and reliability that will make people want to stay with AT&T WorldNet Service. If we and other Internet access providers can't do that, we should give them an easy way to leave, such as forwarding email to their new address."

AT&T WorldNet Service will continue to offer its unlimited usage pricing plan of $19.95 a month, citing customer demand and AT&T's ability to support such pricing through its network expertise, economies of scale and successful customer acquisition programs. Customers on an AT&T WorldNet Service hourly pricing plan as of March 2, and whose Internet use is growing, now have an extra incentive to adopt the flat-rate option: They'll receive their third month of the $19.95 unlimited usage plan free if they trade up by April 30.

Starting March 31, a revised hourly pricing option gives AT&T long distance customers who anticipate low monthly usage their first five hours each month for $4.95. AT&T long distance customers who sign up for the introductory promotion -- which expires March 31 -- giving them their first five hours a month free for a year will be enrolled in the revised hourly plan when their year ends. Customers of long distance carriers other than AT&T can continue to receive the first three hours each month for $4.95. All hourly plan customers pay $2.50 for each additional hour, and pay separately for telephone access or 800 number access to reach the service (taxes and other charges may apply).

AT&T's introductory offer of five free hours a month to its long distance customers brought many new users to the Internet and helped make AT&T WorldNet Service the largest pure dial-up Internet access provider in the U.S., with more than 750,000 members. However, members have also indicated that the reliability of their Internet service, and of their ability to send and receive electronic mail, is of increasing importance in their personal and professional lives. Accordingly, AT&T will regularly report reliability figures for AT&T WorldNet Service on its main home page (www.att.com) and on the AT&T WorldNet Service home page. AT&T has retained Inverse Network Technology, Inc., an independent company that measures the performance of Internet service providers, to measure the average percentage of customers who successfully dial into the service on their first try. Results are tracked and reported over a rolling 14-day period and compared with an industry average that includes AT&T WorldNet Service and nine other leading Internet access providers. For example, in the most recent period for which results are available, the success rate was 93.5 percent for AT&T WorldNet Service members, compared with an industry average of 86.8 percent. During peak Internet usage (6 pm to midnight local time), the success rates were 87.1 percent for AT&T WorldNet Service, compared with an industry average of 79.1 percent.

AT&T also said a number of customers will begin trialing personal Web pages on AT&T WorldNet Service beginning in April, with general availability planned June 1. During an initial promotional period, members will be able to create a two-megabyte Web site free. At the end of the promotional period, all members may register for the personal Web page feature for either $1.95 per month for a two-megabyte Web site, or $4.95 a month for five megabytes. AT&T WorldNet Service offers directories and topical areas to help people find useful information, guided tours for newcomers, navigational aids for users of all skill levels, as well as electronic mail. AT&T WorldNet Service works with popular browsers, but for the convenience of customers offers a preconfigured version of Microsoft Internet Explorer 3.0 for Windows95 -- the primary preconfigured AT&T WorldNet Service browser for Windows 95 users -- or preconfigured versions of Netscape Navigator for Windows 95, Windows 3.1 and Windows 3.11 for Workgroups, as well as for the Macintosh operating system. Access to AT&T WorldNet Service is provided in the Online Services folder of Windows 95 software installed on new computers, and a rapidly growing number of consumer- and business-oriented software products include integrated access to AT&T WorldNet Service as a standard feature. AT&T WorldNet Service software can be downloaded without charge from the AT&T WorldNet Service Web site at http://www.att.com/worldnet, and also is available free of charge by calling 1-800-WORLDNET. -0-

AT&T WorldNet is a service mark of AT&T.

Macintosh is a registered trademark of Apple Computer, Inc.

Microsoft and Windows are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

Netscape Navigator is a trademark of Netscape Communications Corp.

The industry average consists of the following Internet access providers: AT&T, Concentric, IBM, MCI, Mindspring, Netcom and Sprint Internet Passport; CompuServe, MSN and Prodigy. -0-

AT&T WORLDNET(sm) SERVICE PRICING AND RELIABILITY

PRICING Status/Effective Date

Unlimited: $19.95/month all subscribers Unchanged Hourly rate for AT&T LD Customers: 4/1/97 $4.95 with 5 hours. $2.50 per hour above 5. Hourly rate for OCC Customers: Unchanged $4.95 with 3 hours. $2.50 per hour above 3. 800 number access: $4.50/hr. Unchanged

FLAT-RATE PRICING TRADE-UP PLAN

Any usage-based customer registered as an AT&T WorldNet Service subscriber as of 3/2/97, regardless of Long Distance carrier, will have until 4/30/97 to trade-up to the unlimited ($19.95) Price Plan. If they do so, they will get their 3rd month of Unlimited Price Plan Service free. (Note: Customers of record after the 3/2/97 cut-off date will not be eligible to take advantage of this offer.)

RELIABILITY RESULTS NOTIFICATION

Inverse Network Technology measurements for a rolling 14-day period will be posted daily beginning 2/26/96 on the AT&T home page (http://www.att.com) and on the AT&T WorldNet Service Web page.

E-MAIL FORWARDING 

-- Will forward e-mail once a day for 60 days for any subscriber

-- Subscribers may invoke at anytime beginning June 1, 1997

-- Subscriber must leave service/close account to take advantage of forwarding

AT&T PERSONAL WEB PAGES

-- Initial free-trial promotional period beginning June 1, 1997, for 2 mg Web Page

-- Following promotional period, pricing will be:

-- $1.95 per month for a 2 mg Web Page

-- $4.95 per month for a 5 mg Web Page

Offers subject to change by AT&T

NOTE TO EDITORS;

AT&T WorldNet(sm) Service today will announce new dial access pricing, as well as steps it's taking to promote Internet service reliability. The announcements will be made via a teleconference at 12 noon EST, Wednesday, Feb. 26, by Tom Evslin, AT&T vice president responsible for AT&T WorldNet Service.

To join the teleconference, reporters may call 1-800-553-5260 5-10 minutes before 12 noon EST. For 800 service help, call 1-800-932-1100.

Reporters outside the U.S. may call 612-332-0632.

A replay of the teleconference will be available at 1-800-475- 6701, access code 333290, beginning at 2 p.m. EST  today for 48 hours. International callers may listen to replays during the same period by calling 320-365-3844, access code 333290.

In addition, the conference call may be accessed on the Internet by going to the following location on the AT&T homepage: http://www.att.com/features/0297/worldnet.html From this page reporters will be able to click on a link and go the AudioNet Web site, where the RealAudio conference call can be heard. At the AudioNet site, visitors can download the RealAudio player to hear the event (download time is 4 minutes at 28.8 kbps). Once the plugin is configured, reporters can click on the RealAudio player control when the conference call starts.

If reporters don't have the RealAudio player but would like to a live transcript of the conference call, they can click on a link to connect to a chat room that will provide the transcript. They will need IRC chat software for this, and a link will be provided to get the necessary software (download time 4 minutes at 28.8 kbps) They can also view a live transcript of the conference call by clicking on a link to connect to a chat room that will provide the transcript (they will need IRC Chat software for this).

CONTACT: Mike Miller

908-658-2815 (work)

1-800-865-9460 PIN 4141 (pager)

[e-mail] (email)

or

Jonathan Varman

908-658-5383 (work)

1-800-865-9460 PIN 2060 (pager)

[e-mail] (email)