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AT&T Launches "Ecosystem for Media"; Creates the Industry's Premiere End-to-End Digital Media Platform to Serve 10 Million Simultaneous Streaming Media Internet Users.

    Business/Internet Editors

      BEDMINSTER, N.J.--(BUSINESS WIRE)--July 10, 2000--AT&T announced
today its "Ecosystem for Media," a network services platform with a
comprehensive co-marketing and distribution program that will allow
companies to create, manage and distribute audio and video to millions
of users over the Internet. Working closely with Inktomi (NASDAQ:
INKT), Microsoft (NASDAQ: MSFT), RealNetworks (NASDAQ: RNWK) and other
industry leaders, AT&T will leverage its world-class data and Internet
infrastructure, its digital media production capabilities and its
broad network reach to build this unique suite of media services.
      AT&T's Ecosystem for Media will enable businesses to unleash the
power of applications such as website acceleration, streaming media,
distance learning and media-enriched e-commerce. The initiative is
currently in controlled introduction with general availability slated
for the first quarter of 2001.
      "One of AT&T's core competencies is scaling technologies," said
Kathleen Earley, president AT&T Data and Internet Services. "We're
applying this skill to our media infrastructure and building the
capability to stream real-time media to 10 million simultaneous
Internet users. We're fully committed to providing businesses with the
ability to reach as many people over the Internet as national
prime-time television reaches today."
      "AT&T's commitment to this market underscores the importance of
content distribution networks," said David Peterschmidt, president and
chief executive officer of Inktomi. "Its selection of Inktomi as a
core technology provider is a strong testament to our role in
delivering essential Internet infrastructure. A key aspect of
Inktomi's relationship with AT&T is how closely we are working with
leading Internet companies to deliver streaming media and other rich
content for a compelling Internet experience."

Content Delivery Services

      AT&T's Ecosystem for Media provides its customers with a continuum
of content distribution options. For businesses that want to use the
public Internet to distribute their content, AT&T's Intelligent
Content Distribution Services provide customers with a variety of
options for accelerating website performance, video-on-demand and
webcasting capabilities. For businesses with enterprise-class
networking needs that want to distribute their content within a
private, high-performing and highly reliable network, AT&T offers its
high-speed packet services.

Internet Based Streaming Media Services

      AT&T's streaming media services provide customers with a
broadcast-scale service for reaching large audiences over the
Internet. One-to-many multimedia applications can now operate at
vastly improved levels by optimizing network bandwidth and efficiently
managing traffic destined for multiple endpoints. During the next 18
to 24 months, AT&T's streaming media infrastructure will scale to
support 10 million simultaneous Internet users.
      For its streaming media services, AT&T plans to use Microsoft's
Windows Media and RealNetworks'(R) RealSystem(R) 8 as its initial
media formats to provide an industrial-strength platform with the
scalability and performance streaming-media applications demand.
      "Today's announcement clearly demonstrates how digital media is
becoming mainstream," said Will Poole, vice president, Microsoft
Corporation Digital Media Division. "AT&T's plan for a scalable
delivery network running on Windows Media Services with Windows 2000
supports our mutual goal of creating an infrastructure to broaden the
role of digital media in entertainment and e-commerce."
      "RealNetworks is delighted to team with AT&T to provide audiences
with superior digital media experiences," said Jeff Pancottine, senior
vice president, media systems, RealNetworks. "The unparalleled quality
of RealVideo 8 combined with RealSystem 8's distributed broadband
solutions are ideal complements to AT&T's leading networking
services."
      AT&T's streaming media offers supplement AT&T's Intelligent
Content Distribution (ICD) Services. AT&T's ICD services employ
technology from AT&T Labs as well as Alteon WebSystems, Dell, Inktomi
and Novell to improve the performance and reliability of websites as
well as protect against unexpected spikes in traffic.

Private Data Network Services

      To meet the growing need of enterprises to distribute large media
files throughout their private corporate networks, AT&T is announcing
Asynchronous Transfer Mode (ATM) multicast capabilities.
      Providing a "universal port" in the AT&T network via simple
logical connections, AT&T's ATM multicast service takes content from a
single ATM virtual circuit and replicates it within the AT&T data
network for distribution to multiple end sites. AT&T's ATM multicast
service is backed by industry-leading service level agreements and
comes with a wide array of web-based reporting and network management
tools.
      "With AT&T's Ecosystem for Media we have a total communications
provider who is genuinely concerned with our success as a company and
works hard to help us achieve our objectives," said Jamie Thingelstad,
chief technology officer at CBS MarketWatch. "AT&T provides us with
expert solutions to meet our data, IP and voice needs - all from one
company. We no longer have to juggle multiple vendors to get our
services to the customer reliably and securely."

Media Management Services

      To provide businesses with a complete turnkey solution, the AT&T
Ecosystem for Media will also offer customers the ability to encode
and manage their digital media. For encoding services, the company
will use AT&T Broadband Services' Digital Media Centers to digitize
'traditional' media, such as VHS or audiocassette tapes, and convert
them for use as "downloadable" or streaming Internet media.
      Representing a critical link between content creation and
delivery, AT&T also plans to work closely with Loudeye Technologies,
Inc., (NASDAQ: LOUD) which provides Internet-based audio and video
solutions for the encoding, management and distribution of digital
media. Loudeye will supply its industry-leading digital media
solutions to ensure that customers of AT&T's Ecosystem for Media
receive high-quality digital audio and video content, as well as
robust applications to effectively manage their media assets.
      "Statistics indicate that more than 70 million hours of audio and
video content is shelved away in archives and storage facilities,"
said Martin Tobias, minister of order and reason, founder and CEO,
Loudeye Technologies, Inc. "Loudeye's membership in AT&T's Ecosystem
for Media provides a channel to begin unlocking this content,
ultimately giving customers the opportunity to re-purpose their
existing media assets and use it to generate new revenue streams."
      For customers with extensive video assets, especially those in the
corporate media, broadcast or entertainment industries, AT&T will
provide its Digital Video Library technology for video archival and
retrieval services. These services will be made available through
Excalibur Technologies -- a founding member of AT&T's Ecosystem for
Media. Excalibur's Screening Room(tm), a powerful end-to-end video
asset management solution, allows users to access video and text
assets with a standard web browser over private data networks,
corporate intranets or the public Internet.

Content Creation Services

      AT&T's Ecosystem for Media also will include the ability for
customers -- corporate, dot com, advertising, entertainment and others
-- to create original content through its Digital Media Centers.
Located in Denver, New York, Los Angeles and Hong Kong, these centers
offer extensive production capabilities including studio, mobile and
post-production services. Using advanced digital technology, AT&T's
Digital Media Centers provide customers with a complete suite of
services to create world-class video, audio and multimedia content.

Ecosystem for Media Co-marketing Program

      AT&T also is launching a co-marketing program for the Ecosystem
for Media designed to ensure the success of businesses of all sizes
who are creating, managing or distributing digital media. The program
-- available today -- will allow companies who purchase AT&T's
Intelligent Content Distribution services and who host in AT&T data
centers to leverage the power of AT&T's brand through multiple levels
of co-marketing support. In addition, qualified businesses can apply
for membership in the company's award-winning Alliance Program, a
complementary sales channel that will enable them to market and sell
AT&T's Internet services. Lastly, AT&T will make available an online
business services directory as well as a set of sales and support
tools for its Ecosystem for Media members.
      "The evolution of digital imaging and networking technology has
created a significant market opportunity for Kodak. So, we are teaming
with AT&T through its Alliance Program and the Ecosystem for Media
initiative to make it easier for companies to get, move and use images
anywhere, anytime," said Marty Graen, Kodak global customer service
and support - chief marketing officer and general manager of Kodak's
Image Integration Services. "We will leverage our extensive experience
in this space to provide a wide array of imaging network, encoding and
digital asset management services."

About AT&T

      AT&T (www.att.com) is among the world's premier voice, video and
data communications companies, serving more than 80 million customers,
including consumers, businesses and government. AT&T has annual
revenues of more than $62 billion and 160,000 employees, and provides
services to customers worldwide. Backed by the research and
development capabilities of AT&T Labs, the company runs the world's
largest, most sophisticated communications network, is the largest
cable operator in the U.S., and has one of the largest digital
wireless networks in North America.

Editor's note:

      Kathleen Earley, president of AT&T Data and Internet Services,
will discuss the AT&T "Ecosystem for Media" in an audioconference for
reporters and industry analysts at 10 a.m. EDT today. The call-in
number is (800) 230-1092 in the United States and (612) 332-0107 for
callers outside the U.S. A set of visuals to be used during the call
is available via the Web at http://www.att.com. Beginning at 1 p.m.
EDT today, a replay of the audioconference will be available for 48
hours by calling 1-800-475-6701 and the access code 527-279.

                              Sidebar

                       AT&T Ecosystem for Media

The AT&T Ecosystem for Media is built on a foundation of core data and
IP infrastructure resources:

-   AT&T's Internet Data Centers (44 centers planned for hosting and
    co-location services).

-   OC-48/OC-192 IP backbone.

-   A complete portfolio of broadband services including Cable
    Internet Access, Digital Subscriber Line and Fixed Wireless
    services.

-   A broad portfolio of private label and virtual Internet Service
    Provider offers.

-   A continuum of VPN offers with access to 59 countries around the
    world.

-   Value-added design and implementation professional services from
    AT&T Solutions.

-   Monitoring and management services to ensure end-user performance
    and content delivery.



                   Participating Companies

    Alteon WebSystems                  www.alteonwebsystems.com

    Audible.Com                        www.audible.com

    CBS Marketwatch                    www.cbs.marketwatch.com

    Dell                               www.dell.com

    Eastman Kodak Company              www.kodak.com

    Excalibur                          www.excalib.com

    helloNetwork.com                   www.hellonetwork.com

    Inktomi                            www.inktomi.com

    Liberty Livewire                   www.libertymedia.com

    Loudeye                            www.loudeye.com

    Microsoft Corp                     www.microsoft.com

    NextAudio                          www.nextaudio.com

    Novell                             www.novell.com

    RealNetworks                       www.realnetworks.com

    VideoSnap                          www.videosnap.com

    WebADTV                            www.webadtv.com


    --30--sm/ny*

    CONTACT: AT&T
             William Hoffman
             908-658-6402 (office)
             800-291-0185 (pager)
             wwh@att.com
              or
             AT&T
             Kate Rankin
             908-658-6499 (office)
             201-755-5468 (mobile)
             korankin@att.com

    KEYWORD: NEW JERSEY
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS INTERNET
TELECOMMUNICATIONS PRODUCT
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