ATC Atlantic Coal

RNS Number:6174G
AT & T Corp (IRS)
9 July 2001

For more information, contact:

Eileen M. Connolly
908-221-6731 (office)
econnolly@att.com

June Rochford
908-221-8165 (office)
jrochford@att.com


                          AT&T Splits Off AT&T Wireless

FOR RELEASE MONDAY, JULY 9, 2001

NEW YORK - Marking the final milestone in its split off of AT&T Wireless, AT&T
today began converting all AT&T Wireless tracking stock into AT&T Wireless
common shares and distributing 1,136,258,587 shares of AT&T Wireless common
stock, currently held by AT&T, to AT&T common stockowners. As a result of the
redemption and distribution, AT&T Wireless today will become a separate,
independent company.

As previously announced, the distribution is on the basis of .3218 of a share of
AT&T Wireless for each AT&T share outstanding. The redemption of AT&T Wireless
tracking stock and conversion to AT&T Wireless common stock is on a one-for-one
basis.

AT&T common shareowners will receive whole shares of AT&T Wireless and cash
payments for fractional shares. As previously announced, AT&T received a ruling
from the Internal Revenue Service that the stock dividend to U.S. shareowners
and the redemption of the tracking stock qualifies as tax-free for federal
income tax purposes, with the exception of cash received for fractional shares.

"Today is a great day for AT&T, AT&T Wireless and our shareowners," said AT&T
Chairman and CEO C. Michael Armstrong. "After investing more than $15 billion in
key acquisitions, and network expansion and improvement, we've taken a local
analog cellular operation and built a national digital wireless network with
more than 15 million customers. Thanks to those investments and the hard work of
more than 29,000 employees, AT&T Wireless last year grew its customer base by 58
percent and its revenue by nearly 40 percent. I know AT&T Wireless has what it
takes to capitalize on its many opportunities and succeed as an independent
company."

Under its restructuring plan, AT&T is creating a family of four publicly-traded
businesses, the first of which is AT&T Wireless. Each will operate under the
"AT&T" brand and commit to uniform standards of quality. Each is a leader in its
industry. AT&T Wireless is one of the fastest-growing wireless providers in the
United States. AT&T Broadband is the largest cable TV and broadband services
provider. AT&T Business is the leading enterprise communications and networking
provider. AT&T Consumer is a leading consumer communications provider.

AT&T said its restructuring plan remains on track. The plan is designed to give
greater visibility to the market value of each of AT&T'S individual businesses,
allow them to be more responsive to their specific markets, and move more
quickly to seize growth opportunities. When the restructuring plan is completed,
AT&T shareowners will receive shares designed to represent each of the
businesses. Going forward, the company noted that investors would be able to
select the securities that best suit their investment needs.

AT&T also noted the company will adjust its financial reporting to reflect the
split off of AT&T Wireless. Effective with second-quarter earnings, AT&T will
report AT&T Wireless results as "discontinued operations," in accordance with
generally accepted accounting principles. As a result, AT&T Wireless revenue and
expenses will not be included in the total revenue and expense lines of the
company's income statement, and AT&T Wireless net results will be excluded from
AT&T'S earnings from continuing operations. At the same time, AT&T Wireless
assets and liabilities will be excluded from the assets and liabilities lines of
the company's balance sheet, but will be included in net assets from
discontinued operations. AT&T said it will restate prior financial results to
conform to the new method of presentation after it files second quarter results
with the SEC.

The foregoing are "forward-looking statements'" which are based on management's
beliefs as well as on a number of assumptions concerning future events made by
and information currency available to management. Readers are cautioned not to
put undue reliance on such forward-looking statements, which are not a guarantee
of performance and are subject to a number of uncertainties and other factors,
many of which are outside AT&T'S control, that could cause actual results to
differ materially from such statements. For a more detailed description of the
factors that could cause such a difference, please see AT&T's filings with the
Securities and Exchange Commission. AT&T disclaims any intention or obligation
to update or to revise any forward-looking statements, whether as a result of
new information, future events or otherwise. This information is presented
solely to provide additional information to further understand the results of
AT&T.
           

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