AT&T Corp. Computation of Ratio of Earnings to Fixed Charges (Dollars in Millions) (Unaudited) For the years ended December 31, 1999 1998 1997 1996 1995 Income from continuing operations before income taxes $6,685 $8,307 $6,972 $8,697 $4,925 Less interest capitalized during the period 143 197 254 193 107 Add equity investment losses, net of distributions of less than 50% owned affiliates 966 288 144 155 205 Add fixed charges 2,387 872 846 855 730 Total earnings from continuing operations before income taxes and fixed charges $9,895 $9,270 $7,708 $9,514 $5,753 Fixed Charges: Total interest expense including capitalized interest $1,794 $ 624 $ 562 $ 610 $ 508 Interest portion of rental expense 276 248 284 245 222 Dividend requirements on subsidiary preferred stock and interest on trust preferred securities 317 - - - - Total fixed charges $2,387 $ 872 $ 846 $ 855 $ 730 Ratio of earnings to fixed charges 4.1 10.6 9.1 11.1 7.9