AT&T to Keystone State Long Distance Customers: Thanks for Your Loyalty.

Business & Telecommunications Editors

BASKING RIDGE, N.J.--(BUSINESS WIRE)--Aug. 14, 2001

AT&T said today that it is using an innovative new approach to reward many of its loyal residential customers in Pennsylvania.

During the brief time between their dialing of a call and its connection, AT&T will say "thank you" and inform customers about their automatic award of free minutes of long distance service.

Beginning this week, selected AT&T residential customers will hear a short message before their call from home is connected: "Thank you for being a loyal AT&T customer. Please enjoy 30 minutes of free domestic long distance calling on us for a month. Look for the free-minute credit on your upcoming bill - and thanks again for using AT&T."

The Pennsylvania promotion is part of AT&T's continuing application of this innovative network-based technology to reward customers.

"Our customers love being surprised with a reward that they can take advantage of so quickly and easily," said Lou Delery, vice president of consumer long distance in AT&T Consumer. "And it's a pleasure for us to have an innovative way to say `thank you for your loyalty' to so many Pennsylvania customers. When technology is combined with real value, customers win."

Customers don't have to call or sign up for the promotion. They simply use their free domestic long distance minutes and look for the credit on an upcoming bill. Customers have to use the free minutes before they expire at the end of a month.

About AT&T

AT&T (www.att.com) is among the world's premier voice, video and data communications companies, serving consumers, businesses and government. In 2000, AT&T had annual revenues of nearly $66 billion. Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and is the largest cable operator in the U.S. The company is a leading supplier of data and Internet services for businesses and offers outsourcing, consulting and networking-integration to large businesses. Concert, the AT&T/BT Global Venture, serves the communications needs of multinational companies and international carriers worldwide.

The foregoing are "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. 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's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T.