Best Buy and AT&T Broadband Finalize Retail Agreement; Number One Electronics Retailer To Offer AT&T Broadband Services to Customers.

Business Editors

ENGLEWOOD, Colo. & MINNEAPOLIS--(BUSINESS WIRE)--Aug. 6, 2001

Best Buy Co., Inc., and AT&T Broadband have finalized an agreement to offer broadband services at Best Buy retail stores within AT&T Broadband service areas around the nation, the companies said today. The companies signed a letter of intent for this strategic alliance last fall.

Through this agreement, Best Buy consumers in AT&T Broadband's service areas will be able to use in-store, interactive displays to learn more about AT&T Broadband services and to check for service availability. Beginning later this month, more than 100 Best Buy locations will offer two AT&T Broadband services: AT&T Digital Cable, featuring more than a hundred channels of television programming; and AT&T@Home, a high-speed, cable Internet service. Prices for the activation kits, which include rebates, installation coupons and other values, are $19.95 for Digital Cable and $19.95 for AT&T@Home. Best Buy has been offering these AT&T Broadband services at its Dallas stores since last fall.

"Best Buy's interactive displays allow customers to see how broadband services actually work, which makes it easier for them to select the best service to meet their needs," said Nancy McGee, acting senior vice president of marketing for AT&T Broadband. "The retail channel is also important for AT&T Broadband because it allows us to reach more customers with our products and services, and it gives us another source of customer feedback to help us create even more innovative products for the future."

Phil Schoonover, Best Buy executive vice president - Digital Technology Solutions said, "AT&T Broadband's offerings are precisely the kinds of services we're finding consumers like to shop for in a retail store. When a customer buys a TV, they also like to be able to consider programming options like AT&T's Digital Cable, and when they're buying a PC, they like to be able to experiment with Broadband options like AT&T@Home. By expanding our connection and content offerings through this relationship, we're giving our customers even more of what they're looking for at our store locations."

About Best Buy Co., Inc.

Minneapolis-based Best Buy Co., Inc. (NYSE:BBY) is the nation's number one specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The Enterprise operates retail stores and commercial Web sites under the names: Best Buy (BestBuy.com), Magnolia Hi-Fi, Media Play (MediaPlay.com), One Cue (OnCue.com), Sam Goody (SamGoody.com) and Suncoast (Suncoast.com). The Company reaches consumers through more than 1,800 retail stores nationwide, in Puerto Rico and the U.S. Virgin Islands.

About AT&T Broadband

AT&T Broadband, a business unit of AT&T, is the nation's largest broadband services company, providing analog and digital television entertainment services to more than 15 million customers across the nation. The company also provides advanced services, such as high-speed cable Internet services and competitive local phone service. AT&T Corp. (NYSE:T) is the world's leader in telecommunications services and technology.

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