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TWO AT&T BUSINESS UNITS WIN MALCOLM BALDRIGE QUALITY AWARDS

 TWO AT&T BUSINESS UNITS WIN MALCOLM BALDRIGE QUALITY AWARDS
 NEW YORK, Oct. 14 /PRNewswire/ -- AT&T (NYSE: T) is the first corporation ever to win two Malcolm Baldrige National Quality Awards for excellence in quality management.
 In a Commerce Department announcement released today on the 1992 National Quality Awards, President Bush named two AT&T units as winners: AT&T's Universal Card Services in the service category and the company's Network Systems Transmission business unit in manufacturing.
 "Three years ago, we challenged ourselves to redefine quality from our customers' perspective," said AT&T Chairman Robert E. Allen at a press conference held in New York City today to acknowledge the awards. "We adopted the Baldrige criteria as a benchmark and set 1994 as our goal to apply for the award. I am delighted that two AT&T units have actually won two years ahead of schedule."
 The Baldrige awards were established in 1987 in memory of the late Secretary of Commerce Malcolm Baldrige, who was a leading proponent of renewing the spirit of excellence in American business by making quality an integral part of corporate strategy.
 The winning units operate two very different AT&T businesses, Allen said, but share a strong commitment to quality management and a devotion to ever-improving customer satisfaction.
 AT&T's Transmission Systems unit, which manufactures telecommunications equipment, is at the core of AT&T's traditional business -- its worldwide long-distance network.
 Universal Card Services, which is one of the company's newest businesses, markets and provides customer services for AT&T's combination long-distance calling and general-purpose credit card.
 While quality management helped the manufacturing unit re-engineer its existing business to retain its domestic market leadership and expand globally, quality principles also served as a blueprint for building AT&T's brand-new credit card business.
 Transmission Systems is one of six strategic business units within AT&T Network Systems, the company's largest manufacturing group and the leading worldwide supplier of network telecommunications equipment for public and private networks, including AT&T's own network. The business unit manufactures, sells and supports equipment and systems used to deliver telephone calls, data and video to and from customer locations and central-office like environments.
 "The award is a wonderful acknowledgement of our commitment to bring the highest value transmission systems and solutions to customers throughout the world," said Transmission Systems President Greg Hughes. "By focusing on customers, our people have brought home impressive results. But there's always room for improvement as we continue working to give our customers the excellent products and services they deserve."
 An increased focus on customer needs and priorities prompted major changes in the manufacturing unit, which was once known for its disciplined, hierarchical culture and structure. For example, senior executives have restructured the unit into teams that today run the business.
 Management and union-represented employees jointly serve on quality teams and carry out initiatives aimed at better serving customers. All aspects of design, manufacture, installation, sales and service of equipment are driven by customer needs and priorities.
 Results of the unit's quality efforts include: a tenfold improvement in product quality; a 50-percent reduction in the time it takes to bring a new product to market; a 50-percent reduction in manufacturing intervals; a 40-percent reduction in inventory, and roughly $400 million in cost savings during the past four years. In the last three years, Transmission Systems doubled its international sales, and is now selling to customers in more than 50 countries.
 AT&T Universal Card Services has had a comprehensive quality program in place since the card was first launched in March 1990. In just two and a half years, the combined long-distance calling and general-purpose credit card has become the second most popular card in the industry in terms of accounts opened -- 10.2 million -- and cards issued -- nearly 16 million.
 "From the start, we had a clear vision of the corporate culture we wanted to build," said Paul Kahn, president of AT&T Universal Card Services. "We defined customer delight, employee delight and continuous improvement as our goals and used the Baldrige process as a template to achieve them."
 Kahn said the award validates and strengthens the notion that business success and customer satisfaction go hand in hand. "In delighting our customers, we have in turn been delighted with their support and loyalty for the extraordinary value we deliver every day when they use their cards," he said.
 Universal Card Services' quality program includes daily measurements of more than 100 quality indicators; tying quality results to compensation for everyone from new hires to senior executives; and posting results for accuracy, speed, response time and customer satisfaction.
 Highlights of the program's results include: resolving during the first call 95 percent of the more than 1.2 million telephone inquiries handled per month; employees receive more than 2,000 customer commendations each month; industry leadership in all categories that focus groups have indicated comprise customer delight, including price and customer service.
 AT&T Transmission Systems Business Unit
 Key Facts and Profile
 Business Unit: AT&T Transmission Systems, one of six strategic
 business units with AT&T Network Systems.
 History: Created as a separate business unit in 1989, as part of
 AT&T's restructuring into 20 business units focused on
 specific sets of customers.
 Historically, up to the time of divestiture in 1984,
 unit was part of Western Electric Manufacturing Unit,
 AT&T Bell Laboratories and other organizations within
 the Bell System.
 Number of employees: 12,000 worldwide
 Domestic employees: 9,000
 International: 3,000
 Headquarters: Morristown, N.J.
 Other Bell Labs, product, market and sales locations:
 Holmdel, Whippany, Freehold and Berkeley Heights in N.J.;
 Denver, Colo.; Andover and North Andover, Mass. AT&T
 Transmission Systems has sales and installation service
 presence in every state.
 Domestic Factory Locations:
 1. Merrimack Valley Works -- North Andover, Massachusetts
 TBU's principal factory: Produces lightwave systems, digital
 radio systems, digital access and cross connect systems,
 multiplex systems, diversified products and components.
 2. Oklahoma City Works -- Oklahoma City, Oklahoma
 Manufactures subscriber loop systems and central office
 switching equipment.
 International Locations:
 The Netherlands:
 - Hilversum: International headquarters, including central
 staff product management, corporate operations support and
 information technology.
 - Huizen: Manufacturing facility for transmission products,
 product development and customer support and operations.
 - Other international manufacturing and sales facilities are
 located in Madrid, Spain; Dublin, Ireland and the United
 Kingdom.
 Summary/Description of Major Products:
 - Lightwave Systems (FT 2000 and FT Series G) -- These systems
 convert low speed electrical signals to high speed optical
 signals. Using lightwave systems, hundreds of thousands of
 phone calls can be routed over one strand of glass.
 - Digital Loop Carrier Systems (SLC Series 5 and SLC 2000) --
 These are digital systems that connect your home with your
 local telephone company. These digital systems improve the
 performance of your telephone line and allow you new services
 like high-speed data.
 - Digital Access and Cross-connect systems (DACS II, III-2000
 and IV-2000) -- Often, a local telephone office may have
 high-speed transmission facilities incoming from many different
 cities or offices. Each of these high-speed facilities
 may have just a few channels (e.g., phone calls) active to a
 common destination (say, Milton, Wisconsin). The DACS system
 selects all the individual channels destined to Milton from
 all the incoming facilities and combines them together onto
 one, more efficient high-speed facility to Milton. This
 ability to select and route (aka: cross-connect) saves
 considerable telephone company expense.
 - Multiplexors (DDM 1000 and DDM 2000) -- These digital systems
 take up to hundreds or thousands of different types of low-
 speed signals and combine them into one high-speed signal,
 usually for short or medium distance transmission.
 Market Facts:
 - AT&T Transmission Systems is the leading supplier of
 transmission equipment within the U.S., and is the second
 largest supplier worldwide.
 - Major Competitors: Major competitors in the United States are
 Fujitsu, Digital Systems Corporation, NEC, Northern Telecom,
 Tellabs and Alcatel. On a global basis, our primary competitor
 is Alcatel.
 - Major Customers: AT&T's Worldwide Network; local exchange
 carriers; inter-exchange carriers; private network providers,
 state governments, the federal government and PTTs throughout
 the world; competitive access providers; cable television
 companies and cellular service providers.
 - Market Performance: AT&T Transmission Systems is a profitable
 unit serving diverse domestic and international customers.
 If it were a stand-alone business, it would rank roughly 150
 among Fortune 500 companies.
 - AT&T Transmission Systems' international sales have doubled
 in three years. The business unit today sells products and
 systems solutions to customers in more than 50 countries.
 BACKGROUNDER - GENERAL BUSINESS NARRATIVE
 AT&T UNIVERSAL CARD SERVICES
 AT&T Universal Card Services markets and provides customer services for the AT&T Universal Card, a combined long-distance calling card and general-purpose credit card accepted by more than 10 million MasterCard and VISA merchants worldwide.
 With the AT&T Universal Card, customers can obtain cash advances at more than 500,000 banks and automated teller machines. In addition, the AT&T Universal Card can be used to make long-distance calls within the United States and to more than 280 countries and areas worldwide. Card members are able to call back to the United States from some 170 foreign countries, and in more than 110 countries callers can be connected to an AT&T operator through AT&T USADirect Service.
 Among the card member benefits are protection for purchases, discounts on AT&T services and an unparalleled service guarantee, which includes sending a $10 AT&T Universal Card gift certificate to any card member when AT&T Universal Card Services fails to meet its commitments.
 The AT&T Universal Card was launched March 26, 1990, and had a one- year charter-membership period. Charter members will never pay an annual fee as long as they use the card for one transaction (purchase, AT&T long-distance call or cash advance) at least once a year. Charter members also receive a 10-percent discount off AT&T calling-card rates on domestic and international AT&T long-distance calls made with the AT&T Universal Card calling number.
 As of September 1992, AT&T Universal Card had more than 10.2 million active accounts and nearly 16 million cardholders, making it number two in the bank card industry. The company has more than $5.5 billion in receivables. The AT&T Universal Card total 1991 sales volume was third- best in the industry at $13.2 billion -- a 200-percent increase vs. 1990.
 AT&T Universal Card Services currently has 2,500 employees in four cities: Jacksonville, Fla. (its headquarters), Columbus, Ga., Houston and Salt Lake City. In Jacksonville, 1500 employees serve customers directly and 600 provide support for the customer service team in technical, professional and managerial roles.
 Universal Bank of Columbus, Ga. -- a subsidiary of Synovus Financial Corp. -- issues the AT&T Universal Card. Another Synovus subsidiary, Total System Services Inc., also of Columbus, handles card transaction billing and maintains customer records.
 The AT&T Universal Card business unit is headed by Paul G. Kahn, president and CEO, and is part of AT&T's Communications Services Group, led by Victor A. Pelson, group executive.
 FACT SHEET
 AT&T UNIVERSAL CARD
 - The AT&T Universal Card combines credit card and long-
 distance calling card services, as well as AT&T value and
 service, into one convenient card.
 - The AT&T Universal Card is accepted by more than 10 million
 MasterCard and VISA merchants worldwide. Card members also
 can obtain cash advances at more than 500,000 banks and
 automated teller machines.
 - Card members can make long-distance calls within the United
 States and to more than 280 countries and areas worldwide.
 They also are able to call back to the United States from
 some 170 foreign countries, and in more than 110 countries
 can be connected directly to an AT&T operator through AT&T
 USADirect Service.
 - If lost or stolen, the AT&T Universal Card will be replaced
 within 24-48 hours in the United States as well as in many
 international locations.
 - Card member benefits include protection for purchases, AT&T
 services discounts and an unparalleled service guarantee.
 - AT&T service representatives are available 24 hours a day,
 365 days a year to answer questions, resolve card member
 problems and assist with emergencies.
 - The AT&T Universal Card was launched March 26, 1990, and had
 a one-year charter-membership period. Charter members will
 never pay an annual fee as long as they use the card for one
 transaction (purchase, AT&T long-distance call or cash
 advance) at least once a year.
 - The AT&T Universal Card features a 14.9 (prime plus 8.9
 percent) variable annual rate for charter members.
 - The standard AT&T Universal Card comes with a $20 annual
 membership fee. This fee is waived for life if a new card
 member transfers a balance of at least $1,000 from another
 card to AT&T.
 - New AT&T Universal Card members will pay a very competitive
 variable 15.9 annual percentage rate, below the 18-percent
 industry average.
 - Universal Bank of Columbus, Ga., -- a subsidiary of Synovus
 Financial Corp. -- issues the AT&T Universal Card. Another
 Synovus subsidiary, Total System Services Inc., also of
 Columbus, handles billing on card transactions and maintains
 customer records.
 -0- 10/14/92
 /CONTACT: Claire Diamond of AT&T Universal Card Services, 904-443-8896, or home, 904-367-0627, or Ray Zardetto of AT&T Transmission Systems, 201-606-2454, or home, 201-386-9061/
 (T) CO: AT&T ST: New Jersey, New York IN: TLS SU:


PS -- NY051 -- 9906 10/14/92 13:20 EDT
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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