AT&T announces agreements with five companies to provide access to AT&T customers in 70 cities.

RICHMOND, Va.--(BUSINESS WIRE)--April 11, 1996--AT&T today announced agreements with five companies allowing business customers in 70 cities -- including Richmond and Charlottesville -- to connect with AT&T's network for some services as an alternative to access provided by local phone companies.

Terms of the agreements were not disclosed.

The alternative access providers are: American Communications Services, Inc., Annapolis, Md.; Brooks Fiber Properties, St. Louis; Hyperion Telecommunications, Coudersport, Pa.; IntelCom Group, Denver; and Time Warner Communications, Denver.

"At the `new' AT&T, we intend to use a variety of means for offering long distance and local phone service to our customers," said Jack McMaster, AT&T President for the Atlantic states. "These agreements give us the flexibility to provide high-quality service at competitive prices and are part of our commitment to meet customer needs for business and personal communications, on-line and home entertainment services."

The Time Warner Communications agreement includes dedicated and switched local phone service and switched access for business services. American Communications Services, Inc., Brooks Fiber Properties, Hyperion Telecommunications and IntelCom Group will supply dedicated connections for businesses, and AT&T is discussing terms for an agreement with them that would provide switched local phone service and switched access service. None of the agreements involves an equity investment from AT&T.

"These agreements demonstrate that AT&T will not limit itself to reselling local service obtained from Bell Atlantic," said McMaster. "We will continue to pursue arrangements with other companies that provide access to customers as well as build network facilities on a selective basis to offer local service.

"Our goal is to ensure that our customers receive the greatest value from our offers by delivering the highest quality end-to-end communications services in the industry."

In early March AT&T announced it had filed with state commissions in all 50 states to provide local service to business and residence customers. Under terms of the Telecommunications Act of 1996, AT&T also is discussing with the seven regional Bell companies and GTE fair and reasonable terms to connect with their networks and the prices at which AT&T will purchase local phone service at cost-based wholesale rates to sell at retail. The Telecommunications Act requires local phone monopolies to unbundle their local network elements and price them at cost.

AT&T plans to offer local phone service throughout the country beginning as early as this summer in some areas. The company also recently announced an Internet access service, AT&T WorldNet(sm) Service, and that it would begin selling DIRECTV(r) satellite entertainment service.

CONTACT: AT&T

Ritch Blasi (for Lowell Connor)

908 204-2281

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Deb DeFago

908 204-2263

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