AT&T and BBN join forces to provide Internet services.

NEW YORK--(BUSINESS WIRE)--June 20, 1995--AT&T and BBN (NYSE) today announced an agreement to provide businesses with a broad range of services for reliable, safe access to the Internet.

The companies will combine their strengths in networking and Internet access to offer businesses the means to access, plan, set up, operate, and maintain dedicated, leased-line connections to the Internet.

"Our customers will benefit from the synergy between AT&T and BBN," said Tom Evslin, AT&T vice president of Gateway Services. "BBN is the nation's largest provider of Internet services to business and organizations, and AT&T is the recognized leader in network quality and reliability. Together, we'll make the Internet as much a part of modern business as the telephone is today."

This agreement is expected to generate more than $120 million for BBN Planet Corporation, BBN's Internet services subsidiary, over a three-year period, and is planned to be exclusive.

Combined with AT&T's networking know-how, BBN's well-established consulting services will provide customers with unparalleled expertise in managed connectivity to the Internet. In addition to managed Internet access, businesses will be able to call on a wide array of strategic Internet business services from BBN Planet, such as World Wide Web site development, Internet security and training.

AT&T will provide a thorough knowledge of businesses' communications needs, as well as the resources -- physical and technical -- to address those needs.

Beginning Aug. 1, AT&T and BBN will begin providing services in selected markets, and will make the services available nationally on Sept. 1.

The companies plan to coordinate their sales forces in support of the project.

"The AT&T and BBN teams combined will provide a broad set of Internet services that will enable businesses to take advantage of the knowledge that is distributed both inside and outside their enterprises," said George H. Conrades, BBN chief executive officer and president. "Our objective is to help customers make the Internet part of the way they do business." Paul Gudonis, BBN Planet CEO, added, "AT&T's experience as a provider of communications services to the business marketplace is extremely attractive to BBN Planet because it complements our technical strengths and opens us to new markets made possible through AT&T's vast customer base."

AT&T has a long involvement with the Internet, including development of the InterNIC Directory and leadership in the technologies the Internet is built on. The BBN-based services will complement other AT&T Internet access options, including InterSpan Frame Relay Service and dial-up InterSpan Information Access Service, as well as access planned through AT&T NetWare Connect Services, which interconnects and provides remote access to local area networks.

AT&T is the World's network leader, providing communications services and products, as well as network equipment and computer systems, to businesses, consumers, telecommunications services providers and government agencies.

Headquartered in Cambridge, Massachusetts, BBN Planet provides managed Internet access and value-added services to leading companies and educational, medical and research institutions nationwide. This year BBN is celebrating the 25th anniversary of its development of the ARPAnet, which led to the modern Internet. For its fiscal year ended June 30, 1994, BBN had revenues of $196 million.

CONTACT: AT&T

Mike Miller, 201/331-4141 (office), 908/879-4212 (home)

or

BBN

Peter Thonis, 617/873-3512 (office), 617/237-4163 (home)