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[September 30, 2004]

AT&T Lowers Price of Its Residential VoIP Service

BEDMINSTER, N.J., Sept. 30 /PRNewswire/ -- As part of its continuing efforts to spur growth in emerging technologies, AT&T today announced it is lowering the price of AT&T CallVantage(SM) Service, its popular residential broadband phone service, from $34.99 to $29.99 per month beginning October 1.
In addition, under some offers AT&T will provide the first month of service free to new subscribers who sign up before January 31, 2005. The new $29.99 pricing will be effective for all existing subscribers beginning October 1 and includes unlimited local and long distance calling in the U.S. and to Canada. This offer replaces the well-received introductory promotional offer in the market for the past six months.
"Having completed the initial market build-out to support AT&T CallVantage Service, we're now concentrating on expanding our distribution channels through retail and online sales," said Cathy Martine, AT&T senior vice president for Internet Telephony. "Pricing the service for the holiday shopping season fits our expansion strategy and makes AT&T CallVantage Service even more affordable, which is great news for consumers as we give them more of what they want for less.
"In fact, we believe that once those consumers evaluate VoIP and compare it to their existing telephone service, they will recognize AT&T CallVantage Service provides more features and savings making it a compelling offer."
AT&T CallVantage Service is available to any U.S. consumer and provides a local footprint to 62 percent of the households in America due to its broad penetration in more than 170 markets coast-to-coast.
Upon signing up, all that's required to use AT&T CallVantage is a telephone adapter provided by AT&T or its valued retailers, and a broadband connection, which lets consumers talk over high-speed Internet connections instead of traditional circuit-switched phone networks.
AT&T CallVantage Service is different than traditional phone services because, through the use of IP-based networks, it can offer customers typical features such as call waiting, three-way calling, and call forwarding, and far more advanced ones as well. Indeed, consumers will get unprecedented convenience, cost savings and control with innovative features including:
* "Call Logs," to track incoming and outgoing;
* "Do Not Disturb," to receive calls only when wanted;
* "Locate Me," which rings up to five phones, all at once, or
sequentially;
* "Voicemail with eFeatures," to listen to messages from any phone or PC
and forward them to anyone on the Web;
* "Simple Reach(SM) Number, which enables AT&T CallVantage Service
customers to add up to nine telephone numbers with area codes anywhere
in the country where AT&T offers residential VoIP service; and
* "Personal Conferencing," to set up meetings with up to nine additional
callers.


AT&T also recently began shipping a "Home Wiring Do-It-Yourself Guide" with each self-install kit that provides customers step-by-step instructions for connecting the service to multiple home phones to replicate the traditional home calling environment and make the most efficient use of their existing telephone equipment.
For those homeowners who prefer that a trained technician perform the work, AT&T has a fee-based inside wiring service to reconfigure existing lines and telephone jacks, install additional jacks if required, and provide limited assistance with service set-up.
Continuing its market momentum, AT&T has expanded its distribution channel by adding leading retailers Amazon.com, Best Buy and Circuit City to its sales team.
To learn more about AT&T CallVantage Service, consumers can visit http://www.callvantage.com/, call 1-866-816-3815, extension 70339, or visit one of these retailers.
About AT&T
For more than 125 years, AT&T (NYSE "T") has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.
The foregoing contains "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 currently 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 revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(Logo: http://www.newscom.com/cgi-bin/prnh/19991018/ATT )


Photo: http://www.newscom.com/cgi-bin/prnh/19991018/ATT

AT&T


CONTACT: Tom Hopkins, +1-312-230-4889, thomashopkins@att.com, GaryMorgenstern, +1-908-234-6416, gmorgenstern@att.com, both of AT&T


Web site: http://www.att.com/http://www.callvantage.com/

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