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EXHIBIT 12
AT&T CORP.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
<Table>
<Caption>
FOR THE YEARS ENDED DECEMBER 31,
-----------------------------------------
2004 2003 2002 2001 2000
---- ------ ------ ------ -------
(DOLLARS IN MILLIONS)
Income from continuing operations before income
taxes............................................ -- $2,690 $2,836 $7,666 $12,480
Add distributions of less than 50% owned
affiliates....................................... -- 6 1 5 11
Add fixed charges, excluding capitalized
interest......................................... -- 1,319 1,624 1,677 1,697
---- ------ ------ ------ -------
Total earnings from continuing operations before
income taxes and fixed charges................... -- $4,015 $4,461 $9,348 $14,188
==== ====== ====== ====== =======
Fixed Charges:
Total interest expense............................. -- 1,158 1,448 1,493 1,503
Capitalized interest............................... -- 35 61 121 143
Interest portion of rental expense................. -- 161 176 184 194
---- ------ ------ ------ -------
Total fixed charges................................ -- $1,354 $1,685 $1,798 $ 1,840
==== ====== ====== ====== =======
Ratio of earnings to fixed charges................. (a) 3.0 2.6 5.2 7.7
</Table>
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(a) AT&T's pretax earnings for the year ended December 31, 2004, were inadequate
to cover fixed charges by $11.1 billion.