SBC Telecom Executive Paul Roth Named CEO, President of Prodigy; Charles Foster Remains Chairman.

Business/Technology Editors

AUSTIN, Texas--(BUSINESS WIRE)--Feb. 28, 2001

Prodigy Communications Corporation (Nasdaq:PRGY), one of the nation's leading Internet service providers (ISP) serving the largest number of DSL subscribers, today named SBC Communications (NYSE:SBC) executive Paul Roth as president and chief executive officer, effective March 1. Charles Foster, interim president and CEO since December, will remain chairman of the Prodigy board of directors.

Roth most recently was vice president for SBC Telecom, Inc., responsible for sales and customer care. SBC Telecom is a subsidiary of SBC Communications Inc., which has undertaken a national expansion into 30 major U.S. markets outside its traditional service areas.

Before being appointed to this position in October 1999, Roth has served as vice president, consumer sales for Southwestern Bell Telephone in St. Louis where he was responsible for consumer sales and service in Missouri, Kansas, Arkansas, and Oklahoma. Prior to moving to St. Louis, Roth worked for 13 years for Southwestern Bell Wireless in Boston, Kansas City, Dallas, West Texas and Oklahoma City. He also previously worked for AT&T and Southwestern Bell Telephone in Dallas, where he began his career in 1981.

Prodigy is the nation's fifth largest Internet service provider (ISP) with more than 2.8 million customers, including 600,000 DSL Internet service customers. Prodigy's recently revised nine-year agreement with SBC establishes Prodigy as the preferred portal for SBC DSL and business dial customers and as SBC's preferred ISP for residential dial customers.

"Roth is an excellent fit for Prodigy president and CEO given his strong consumer services background," Foster said. "Roth is a great marketer who can lead Prodigy to success by delivering a great product, embracing technology that enhances the Internet experience for customers, and providing the kind of customer care that builds customer loyalty."

In its recent announcement about fourth-quarter and year-end 2000 financial results, Foster reiterated Prodigy's strong financial position given the steady revenue stream from wholesale fees for SBC's DSL customers, new dial growth from co-marketing opportunities with SBC within its 13-state region, and increased advertising revenue from the Prodigy portal.

"Given the tremendous demand for DSL and Prodigy's position as the leading ISP serving consumer DSL subscribers, this is an exciting time to be in the Internet business and to help develop the next-generation broadband portal that we believe can deliver the best of the Internet, the way customers want to use the Internet," Roth said.

About Prodigy Communications Corporation (www.prodigy.com): Prodigy Communications Corporation (Nasdaq:PRGY) is one of the nation's largest retail Internet service providers serving both dial and DSL subscribers. With its alliance with SBC Communications, Prodigy is the industry leader in serving DSL subscribers. Prodigy Internet delivers fast and reliable Internet access and user-friendly Internet-based products, services and information via a nationwide network covering more than 850 locations in all 50 states, allowing more than 90 percent of the U.S. population to access the Prodigy Internet service with a local telephone call. Prodigy Internet features superior content, e-mail and e-mail attachment capabilities, Prodigy Instant Messaging, Prodigy Chat, and Prodigy Online Communities, combined with the accessibility and freedom of direct access to the World Wide Web for all users. Prodigy Biz Corporation, a subsidiary of Prodigy, offers a powerful suite of specially designed Internet products and services for small business owners. Prodigy(R) en Espanol, is the nation's first-ever, fully bilingual Spanish/English-language Internet service created especially for the U.S. Spanish-speaking population.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the intense competition in Prodigy's industry, subscriber turnover, disruption in Prodigy's network services or in other services provided by third parties, the challenges of integrating the Internet businesses of Prodigy and SBC Communications Inc., the possible failure to achieve the anticipated benefits of the agreements between Prodigy and SBC, the possible unavailability of sufficient financing to Prodigy as needed, as well as the risk factors detailed from time to time in Prodigy's periodic reports and registration statements filed with the Securities and Exchange Commission. Prodigy's business and operations are operated by a limited partnership, called Prodigy Communications Limited Partnership, of which Prodigy is the general partner and owns an approximate 57 percent interest and SBC Communications owns an approximate 43 percent interest.