AT&T Corp. Computation of Ratio of Earnings to Fixed Charges (Dollars in Millions) (Unaudited) For the Year Ended December 31, 1997 1996 1995 1994 1993 ---- ---- ---- ---- ---- Earnings Before Income Taxes $7,193 $8,810 $4,978 $7,020 $6,210 Less Interest Capitalized during the Period 254 193 107 39 61 Add Equity Investment Losses, Net of Distributions of Less than 50% Owned Affiliates 144 155 205 91 59 Add Fixed Charges 720 775 699 764 1,008 Total Earnings $7,803 $9,547 $5,775 $7,836 $7,216 Fixed Charges Total Interest Expense Including Capitalized Interest $ 446 $ 536 $ 481 $ 531 $ 761 Interest Portion of Rental Expense 274 239 218 233 247 Total Fixed Charges $ 720 $ 775 $ 699 $ 764 $1,008 Ratio of Earnings to Fixed Charges 10.8 12.3 8.3 10.3 7.2