NTT, AT&T AND SONY AGREE TO FORM A JOINT VENTURE TO TEST A NEW MULTIMEDIA NETWORK SERVICE IN JAPAN BASED ON AT&T PersonaLink(a) TECHNOLOGY.

TOKYO--(BUSINESS WIRE)--July 31, 1995--Nippon Telegraph and Telephone Corporation (NTT), AT&T and Sony Corporation have agreed to form a joint venture company, NTT FAN, Inc., that will begin testing an online multimedia communications service in Japan by the beginning of next year.

The new company will combine NTT's network technology and know-how, AT&T's experience in developing PersonaLink Services and Sony's expertise in consumer electronics marketing.

NTT FAN (which stands for NTT -- Future Agent Network) will be capitalized at 499 million Yen ($5.8 million U.S.). NTT will invest 219.6 million Yen, ($2.6 million U.S.) which accounts for 44% of the capital. AT&T and Sony will each invest 139.7 million Yen, (approximately $1.6 million U.S.) which will represent a 28% stake of the venture for each of the two companies. (U.S. dollars are computed based on an exchange rate of 85 Yen to the Dollar.)

The trial service will initially be similar to AT&T's PersonaLink Services. PersonaLink Services was introduced in the United States last September and is the foundation for an electronic community where people can meet, shop, work and play and where merchants will offer products and services. PersonaLink Services is the first network service to make use of intelligent assistants, mobile software programs that go to places on the network to carry out their originators' instructions. Intelligent assistants are brought to life by Telescript(b) technology, a new communications language developed by General Magic, Inc. which is incorporated into its Magic Cap(b) software.

Subscribers in Japan will access the new NTT-FAN service through devices running Magic Cap software such as Sony's Magic Link(c) Personal Intelligent Communicator. NTT FAN test subscribers will be able to exchange electronic multimedia messages, including handwritten or typewritten text, drawings, animations and voice messages over ordinary phone connections. They will also be able to send text and graphics messages by fax.

During the test the NTT-FAN service will be enhanced to include content from information providers such as news reports, entertainment listings, business listings and subscriber bulletin boards. The NTT-FAN test service will be evaluated on an ongoing basis and results will be used to determine whether the service will be made more widely available in Japan.

"Today's agreement between our three companies is significant because it will help NTT understand the evolving communications networking needs in Japan," said Junichiro Miyazu, senior executive vice president of NTT. "We expect that the joint venture with AT&T and Sony will demonstrate the powerful potential of intelligent assistant enhanced communications and will mark the beginning of the multimedia age in Japan."

"AT&T is delighted to join NTT and Sony in today's agreement, which offers the promise of a new and versatile multimedia messaging capability for people in Japan," said Lou Golm, president and CEO of AT&T Japan. "Together, we intend to bring a new dimension to electronic communications that will help enrich life for people at home or on the go."

"We at Sony are excited about our participation in a joint effort to create new business opportunities in the field of multimedia communications services in Japan," said Fumio Kohno, senior managing director of Sony Corporation. "We hope to contribute Sony's marketing know-how and expertise in the field of consumer electronics, communications and entertainment to this venture."

NTT, AT&T and Sony are members of the General Magic Alliance, which includes 15 businesses that support the development of personal intelligent communications.

NTT is the leading telecommunications provider in Japan. The company recently conducted a successful pilot research project based on General Magic technology with 250 people who were dubbed "Multi-Media Experience Monitors."

AT&T is a world leader in networking, providing communications services and products, network equipment and computer systems to businesses, consumers, telecommunications services providers and government agencies worldwide.

Sony Corporation is a world leader in the electronics and entertainment businesses, and maintains a leading position in new technologies. It is the first company to introduce Personal Intelligent Communicators that use Magic Cap software. -0-

(a) PersonaLink is a service mark of AT&T (b) Magic Cap and Telescript are trademarks of General Magic, Inc. (c) Magic Link is a trademark of Sony Corp.

CONTACT: Katsumi Nakata -- NTT America, Inc.

212-808-2250

or

Fun Nishida -- NTT

813-5200-9052 (office telephone)

or

Henry Bassman -- AT&T in the U.S.

201-331-4143 (office telephone)

908-273-3462 (home telephone)

[e-mail] (internet mail id)

or

Teizo Hotta -- AT&T in Japan

813-5561-3171 (office telephone)

813-3590-3656 (home telephone)

[e-mail] (internet mail id)

or

Manny Vara -- Sony Electronics, Inc. (U.S.)

408-955-5142 (office telephone)

or

Sony Corporation (Japan)

Corporate Communications 

813-5448-2200 (office telephone)