FOR IMMEDIATE RELEASE

May 6, 1999




                                                         
Contact:      Steve Lang                                      Adele Ambrose
              MediaOne Group                                  AT&T
              303-858-3406                                    908-221-6900



                 MEDIAONE GROUP AND AT&T SIGN DEFINITIVE MERGER AGREEMENT

     MediaOne Group and AT&T have entered into a definitive merger agreement
under which MediaOne Group's shareowners  will receive .95 of a share of AT&T
common stock and at least $30.85 in cash for each share of MediaOne  Group stock
they own, the companies said today.

     The  action  came  after  MediaOne  Group's  board  of  directors  voted to
terminate the company's  earlier  agreement with Comcast,  which Tuesday said it
would not try to outbid  AT&T's  offer.  As part of the  termination  agreement,
Comcast today received the agreed-upon break-up fee of $1.5 billion.

    "This is an excellent  agreement  for  consumers,  who will be able to take
full advantage of packaged  services on broadband  networks," said Chuck Lillis,
MediaOne  Group  chairman and chief  executive  officer.  "Our  shareowners  are
getting  great  value for their  investments,  and more of the nation will get a
great competitive brand in the local phone market."

     "Obviously, we're delighted," said C. Michael Armstrong, chairman and chief
executive  officer of AT&T. "We look forward to completing the merger as soon as
possible,  probably in the first quarter of 2000, so millions of consumers will
have more choice in phone and Internet access services."

     MediaOne  Group (NYSE:  UMG,  www.mediaonegroup.com)  is one of the world's
largest broadband communications companies,  bringing the power of broadband and
the  Internet to customers in the United  States,  Europe and Asia. The company
also  has  interests  in some  of the  fastest-growing  wireless  communications
businesses  outside the U.S. For 1998,  the  businesses  that comprise  MediaOne
Group produced $7.1 billion in proportionate revenue.

     AT&T (NYSE: T,  www.att.com)  is the world's premier  provider of voice and
data communications,  with more than 80 million customers, including businesses,
government and consumers.  AT&T  runs  the  world's  largest,  most  powerful
long-distance  network and the largest  wireless  network in North America.  The
company is a leading  supplier of data and Internet  services for businesses and
the nation's largest direct Internet  service  provider to consumers.  AT&T also
provides local telephone service to a growing number of businesses.

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