AT&T announces first Managed Internet Service customers

September 12, 1995 -- BASKING RIDGE, N.J. -- AT&T today announced the first
three customers and general availability for AT&T WorldNet(sm) Managed
Internet Service. Already leaders in their respective industries, these
customers gain a competitive advantage through Internet-based
applications: lodging -- Promus Hotel Corporation; insurance -- The
Associated Group, and advertising -- McCann-Erickson Worldwide.

Now available nationwide, just one month after it was announced, AT&T
WorldNet Managed Internet Service enables businesses to access, plan,
operate, manage, and maintain leased-line connections to the Internet. In
addition to basic service, customers receive expert implementation support
and active monitoring of service levels with problem diagnosis and
resolution from AT&T. AT&T also announced pricing for the service.

AT&T WorldNet Managed Internet Service is a comprehensive turnkey offer
provided in conjunction with BBN Planet; a subsidiary of BBN (Bolt Beranek
& Newman Inc.).

"The customers are pioneering a new way of working," said Tom Evslin, AT&T
vice president for Gateway Services. "AT&T WorldNet Managed Internet
Service will provide a solid foundation for building exciting new
electronic businesses. AT&T gives them a single- vendor relationship for
end-to-end managed Internet connectivity, provides world-class customer
care and value-added components such as an easy-to-use browser and edited
navigational tools and directories."

The nationwide availability of AT&T WorldNet Managed Internet Service has
attracted many potential customers, many of whom are interested in taking
advantage of AT&T's value-added services, especially directory and
navigation features. AT&T WorldNet Managed Internet Service customers are
already being served using infrastructure based on AT&T components. The
service is being marketed by AT&T's sales force, which has undergone
extensive training on WorldNet offerings.

"Businesses are rapidly recognizing the value of doing business on the
Internet, from online transactions and publishing to resource and
information location," said Paul Gudonis, BBN Planet chief executive
officer and president. "AT&T and BBN offer, through AT&T WorldNet Managed
Internet Service, a soup-to-nuts operation that is customizable, fully
reliable, and offers a greater range of service and pricing plans than any
other dedicated Internet service."

New customers of AT&T WorldNet Managed Internet Service include:

THE ASSOCIATED GROUP

This leading insurance company based in Indianapolis, Indiana, will use
AT&T's WorldNet Managed Internet Service to create subsidiary home pages,
and eventually provide Internet access to the company's approximately 200
office locations across the U.S., while providing enhanced products and
services to clients.

"We needed a company that could provide Internet access to every office
location within The Associated Group," said Ed Leer, vice president for
corporate networks for The Associated Group. "We already had a partner
with nationwide capability and that was AT&T. We have many bright,
talented people working very hard to provide better client service through
the Internet. AT&T service will help us maximize the effectiveness of
those people."

MCCANN-ERICKSON WORLDWIDE

AT&T WorldNet Managed Internet Service will be used by the worldwide
advertising agency to provide a unified McCann-Erickson home page for the
company's many affiliated agencies working in 103 countries, as well as
offer a direct marketing and informational resource for customers.

"In approaching the creation of a McCann-Erickson home page, we determined
that we needed a partner that had a number of qualifications in addition
to being able to manage our Internet access," said Nic Di Iorio, Senior
Vice President and Director of Information Technology for McCann-Erickson
Worldwide. We wanted a company with a reputation for reliability and one
we could trust to handle our security concerns. AT&T was hands-down best
in class."

PROMUS HOTEL CORPORATION

Based in Memphis, Tennessee, this leading hotel chain's customer
reservation capabilities will greatly expand with the integration of AT&T
WorldNet Managed Internet Service. Promus will also use WorldNet to
complement its current sales and marketing efforts.

"AT&T's network reliability, high-quality customer care, and open
architecture provide our company with a secure, long-term online business
platform," said Norman Cavin, director of consumer marketing for Promus.

AT&T WorldNet Managed Internet Service presents customers with a variety of
pricing options based on their specific needs. For example, a large to
mid-sized company might require managed Internet access for applications
such as collaborating with customers, suppliers, and employees, or
accessing existing company home pages and Internet resources. Another
typical application would be running standard Internet applications such
as FTP, Telnet, and e-mail.

The company would need the following items, a T1 line at a cost of about
$2,600 per month, and options such as Network Newsfeeds for $100 per
month. Local access costs would range from $0 to standard tariff prices
depending on existing access arrangements with AT&T.

Another example might be a small to mid-size company user who needs an
end-to-end managed Internet access solution in order to communicate with
customers and suppliers. The company might also want to provide Internet
access to its employees for Web browsing, e-mail, and FTP applications.
They would need 56 Kbps access at $1200 per month.

Options include the lease of premises equipment at $125 per month and
Primary DNS at $100 per month. Local access ranges from $0 to standard
tariff prices depending on existing access arrangements with AT&T.

Within sixty days, AT&T will begin testing of its dial-up Internet service
which, combined with managed Internet access, will provide customers with
a single, one-stop solution for business and home use of the Internet.

Business customers seeking information on AT&T WorldNet Services can call
1-800-309-3349. Any customer can access the AT&T WorldNet Services home
page on the Internet at http://www.att.com/worldnet or send electronic
mail questions about the service to worldnet@attmail.com.

AT&T, a global communications and computer company, operates the world's
largest and most advanced long distance network and provides
communications services and products, as well as network equipment and
computer systems to businesses, consumers, telecommunications services
providers and government agencies. In 1994, AT&T was awarded Japan's
Deming Prize and its third Malcolm Baldrige National Quality Award in the
U.S. for quality processes in support of its products and services.

Headquartered in Cambridge, Massachusetts, BBN Planet provides managed
Internet access as value-added services to leading companies and
educational, medical and research institutions nationwide. BBN focuses its
business on internetworking, data analysis, software, collaborative
systems and acoustics. BBN reported revenue of $215 million for the fiscal
year ended June 30, 1995.

Background on AT&T WorldNet Service

On June 20, 1995, AT&T and BBN Planet announced an agreement to provide
businesses with a broad range of services for reliable managed access to
the Internet.

On August 15, 1995, AT&T announced its Internet strategy and WorldNet
Services Internet access team, led by Tom Evslin. AT&T's Internet business
includes the Hosting and Transactions team, led by Kathleen Earley; and
the Content team, led by Caroline Vanderlip, vice president of Content
Services and Michael Kolowich, President of AT&T Interchange Online
Network.

AT&T also announced on August 15 that it is working with several leaders in
the Internet industry to develop AT&T WorldNet Services for dial-up
access, including: NETSCAPE, a leading provider of browsers and other
Internet client/server software, which will provide a preconfigured,
AT&T-branded browser;

ADOBE SYSTEMS INCORPORATED, which will provide its leading-edge
Acrobat&#153; software for viewing, navigating and printing rich digital
information, Internet text and images;

VERITY CORP., the leading designer of Internet search and retrieval tools,
which will offer the Verity Topic technology for powerful Internet
full-text search and personalized information agent capabilities within
AT&T WorldNet Services;

MCKINLEY INC., a leader in developing Internet resource directories, which
will develop navigation tools to guide AT&T WorldNet users around the
Internet;

HARLEY HAHN, internationally-recognized Internet author of the popular
Internet Yellow Pages Directory, and its publisher, Osborne/McGraw Hill,
which will develop exclusive Internet exploration capabilities for AT&T
WorldNet Service offering users guided tours of the Internet organized by
themes and special interest areas.

Technical trials of AT&T WorldNet dial-up service will begin within 60
days. More extensive customer trials will quickly follow, with expansion
to full service availability in a regional rollout.

AT&T WorldNet Managed Internet Service options

CPE (Router + CSU/DSU) Primary DNS (up to 15 zones and 150 Kbytes of
associated zone file data) Network News Feeds Packet Filtering Usage
Reports Additional Secondary DNS (up to 30 zones and 300 Kbytes of
associated file data) AT&T Internet Server

Special arrangements can be made to provide redundant configuration,
security features, and hosting.

The Associated Group Customer Profile

The Associated Group is a diversified network of insurance and financial
services companies doing business across the United States. In 1994, the
company had revenue of $3.5 billion, assets of $3.4 billion and
policyholders' surplus of $784.3 million. The company has more than 13,000
employees. The principal subsidiaries of The Associated Group are:

ACORDIA, INC. -- a nationwide network of companies that provide insurance
brokering, managed health care integration and consulting services,
Accordia, which is listed on the New York Stock Exchange (symbol: ACO), is
the seventh largest insurance brokerage organization in the world.

AMERICAN HEALTH NETWORK -- a network of regional, equity-model group
medical practices offering significant advantages to physicians, patients,
corporate customers and payers in selected markets in the United States.

ANTHEM HEALTH -- a network of health insurance and managed health care
organizations providing a wide range of products and services to group and
individual clients primarily in the midwest, southeast and southwest
sections of the United States.

SOUTHEASTERN GROUP -- a health insurance and managed health care
organization providing a wide range of products and services to clients in
Kentucky.

ANTHEM LIFE -- a network of life insurance organizations providing
individual and group life and disability insurance products and services
to clients across the United States.

ANTHEM CASUALTY -- a network of companies that provide property and
casualty insurance products and services to individual and business
clients primarily in the eastern United States.

ANTHEM FINANCIAL -- a network of companies that provide innovative
financial services products to clients across the United States.

ADMINASTAR -- a network of companies that provide health care
administration services for federal and state governments and government
agencies.

The Associated Group will use AT&T's WorldNet Managed Internet Service to:


* Provide Internet access to the company's approximately 200 office
  locations across the U.S.
* Provide better products and services to their clients through
  Internet resources.
* Provide electronic commerce opportunities through the Internet.
* Create subsidiary home pages.
* Transfer files between offices Provide greater workplace
  productivity.

"We needed a company that could provide Internet access to every office
location within the Associated Group. We already had a partner with
nationwide capability and that was AT&T," said Ed Leer, Vice President for
Corporate Networks for The Associated Group. "We have many bright,
talented people working very hard to provide better client service through
the Internet. AT&T service will help us maximize the effectiveness of
those people."

McCann-Erickson Customer Profile

McCann-Erickson, an industry leader in global advertising has embraced the
worldwide web to link all its agencies to better serve its clients
worldwide.

The agency, which was founded in 1902, took its first steps toward becoming
the largest worldwide advertising agency in 1927. At that time, McCann
began opening its first agencies in Europe in response to the strategic
needs of its client, the Standard Oil Company (Esso/Exxon), which sought
to organize its European operations as single market opportunity. Today
over two-thirds of McCann-Erickson's business is outside the U.S. And, its
worldwide network of agencies far outstrips the nearest competition.

Nic Di Iorio, Sr. Vice President, Director of Information Technology of
McCann-Erickson Worldwide, "In approaching the creation of a McCann home
page, we determined that we needed a partner who had a number of
qualifications. In addition to being able to manage our Internet access,
we wanted a company with a reputation for the high quality and reliability
of its service. AT&T is the best in the business."

McCann-Erickson has built its global presence by taking advantage of
advanced networking technology to help foster communications throughout
the 103 countries in which it operates.

The agency is planning to use AT&T WorldNet Services to: 

* Unify McCann-Erickson's presence on Internet Web pages worldwide.
* Provide Internet access for the marketing communications needs
  of its clients.
* Establish interactive exchange of content and data with its 3,000
  individual client accounts around the world, as well as with its
  worldwide suppliers.
* Create a reliable environment for advertising research within the
  global Internet community.

McCann-Erickson is planning to explore the Internet both as a
communications tool to foster enhanced productivity among its own network
of agencies and as an exciting new capability to add to the arsenal of its
clients.

Promus Hotel Corporation Customer Profile

Promus Hotel Corporation, based in Memphis, Tennessee, is one of the
largest companies in the hotel industry, with more than 635 hotels and
approximately 85,000 rooms and suites. Promus owns and manages Embassy
Suites, Hampton Inn, Hampton Inn & Suites and Homewood Suites hotel
chains. Formerly the Holiday Corporation, the company started business in
the 1950s as Holiday Inns and, on June 30, 1995, became Promus Hotel
Corporation following the split of The Promus Companies Incorporated into
two separate public companies. Promus hotels have popularized several
innovations in the lodging industry, including free breakfast included in
the price of the room and the first 100% Satisfaction Guarantee.

Promus Hotel Corporation will use AT&T's WorldNet(sm) Managed Internet
Service to: 

* Offer customers reservation capabilities through the Internet;
  a competitive advantage.
* Offer customers detailed information about hotel.
* Benefits and features, including a map of each hotel location.
* Provide company with access to Internet's rich informational
  resources.
* Create a secure e-mail channel between customers and the company.
* Expand company's direct marketing efforts through AT&T's 800
  toll-free service.

"Prior to our relationship with AT&T, Promus' designs for its Internet
business were not being met, primarily due to unreliable Internet
service," said Norman Cavin,, director of consumer marketing for Promus
Hotel Corporation. "Now, AT&T's network reliability, high-quality customer
care, and open architecture provide our company with a secure, long-term
online business platform."
 
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