Far Eastern Group and AT&T consortium announces participation in Taiwan cellular phone license bid.

HONG KONG--(BUSINESS WIRE)--Sept. 30, 1996--The Far Eastern Group and AT&T today announced that their consortium, Far EasTone Telecommunications Co., Ltd., has applied to The Ministry of Transportation and Communications to operate a cellular phone license in Taiwan.

The Far Eastern Group, a leading conglomerate in Taiwan, heads the consortium together with AT&T. The other members of Far EasTone include Systex, Chaio Tung Bank, China Development Corporation and Cheung Hing Development Ltd.

AT&T, the world's largest cellular operator, has more than 6.8 million cellular subscribers around the world. In Asia, AT&T owns 27 percent of SmarTone's GSM system in Hong Kong and 49 percent of India's Birla AT&T Communications. The latter company recently won bids to provide cellular service in the states of Gujarat and Maharashtra in India, which have a population of almost 120 million people.

In addition to the cellular expertise AT&T brings to Far EasTone, the consortium is strengthened by a strategic services agreement with SmarTone, the company that successfully launched the first GSM system outside of Europe in 1992, and has led the development of Hong Kong's competitive cellular market.

"We will deliver the highest quality cellular phone system in Taiwan, at competitive rates, and deliver this service with a fast rollout that won't sacrifice quality," said Douglas Hsu, chairman and CEO of the Far Eastern Group. "One of the most exciting aspects of our bid is that we will establish a Research and Development Laboratory in Taiwan, that will be second to none in Asia."

"Our venture with The Far Eastern Group is key to AT&T's strategy to expand in the growing telecommunications markets in Taiwan and other parts of Asia," said John Legere, president and CEO, AT&T Asia/Pacific. " We are anxious to assist Taiwan in its efforts to develop into a regional business center by bringing efficient and reliable cellular technology to Taiwan's telecommunications infrastructure.

"We applaud the ROC's liberalisation efforts, which we believe will benefit businesses and consumers with increased choices and reduced prices."

The Far Eastern Group, one of Taiwan's premier business leaders, has participated in the development of Taiwan's economy for more than 50 years. It consists of 86 subsidiaries operating in such diverse industries as banking, manufacturing, retail, transportation, construction, textile and petrochemicals. The Far Eastern group has six of its subsidiaries publicly traded on the Taiwan Stock Exchange, more than any other conglomerate in Taiwan. In 1995, the Far Eastern Group was the second largest business group in Taiwan in terms of the size of equity, the fourth largest in assets, and the fifth largest in sales revenue.

AT&T was the first US carrier to establish international telecommunications services with Taiwan International Telephone Administration, in 1947. AT&T has also been supporting Taiwan through various projects, including the recent sponsorship of the Chinese Taipei Olympic Team.

As a founder of the global WorldPartners alliance, with 16 members across the world, AT&T is working closely with Chunghwa Telecom to provide advanced global business services for multinational companies operating in Taiwan.

CONTACT: Todd Wolfenbarger - AT&T Wireless Services

206-828-1851 - office

206-979-2677 - cellular

or

Sue Fleming - AT&T

908-221-8824 - office

908-230-3042 - cellular