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For release May 23, 2002

Nation's Oldest Workplace Non-Discrimination Policy Under Attack

AT&T Shareholders to vote on EEO Non-Discrimination Policy

Basking Ridge, N.J. -- When the 118th Annual Meeting of AT&T Corp. takes place on July 10, 2002 in Charleston, S.C., shareholders will be deciding on a proposal to eliminate the nation's oldest corporate non-discrimination policy affecting lesbians and gays. In the proxy statement, the AT&T Board of Directors strongly recommended the rejection of this proposal.

"This proposal would negatively impact our workplace environment and the resolution would not be in the best interests of the Company. We also strive to create an environment that enhances creativity and innovation where our employees work well together to better serve our customers. This helps us attract talented individuals to become employees and to contribute fully to meeting our business objectives. We believe this is in the best interests of AT&T, our employees, our customers and our shareholders."

According to Gregory P. Srnick, co-president of AT&T's Lesbian and Gay Business Resource Group (LEAGUE), "We are proud of the continued support of AT&T's leadership. The primary purpose of this twenty-seven year old policy has always been to foster an inclusive workplace. This is not a special right. All employees should be free of discrimination."

LEAGUE encourages all AT&T Shareholders to follow the recommendation of the AT&T Board of Directors.

For further information, please contact the following person or refer to the following website.

Mark F. Carden
EVP of Communication
LEAGUE at AT&T
202-583-9612
http://www.league-att.org

AT&T Investor Relations: http://www.att.com/ir/
2002 Joint Proxy Statement/Prospectus: http://www.att.com/ir/sec/2002proxy.html


Shareholder Proposal (Item 8 on Proxy Card)

Steve J. Stefan and Marcia A. Stefan, 704 Grafton Avenue, Dayton, Ohio 45460, have submitted the following proposal:

     "Whereas, some people are inclined to engage in sexual activity with members of the opposite sex, some people are inclined to engage in sexual activity with members of their own sex, some people are inclined to engage in sexual activity with members of both sexes.

     "Whereas, the terms "sexual orientation" or "sexual preference" are broad terms that could encompass the sexual interests described above.

     "Whereas, certain practices are legally proscribed in every state in the United States.

     "Resolved, The shareholders request the Board of Directors to amend AT&T's Equal Opportunity Statement and eliminate the words "sexual preference or orientation."

     "Supporting Statement: The sexual interest and activities of our employees are a private matter, not a corporate concern. Unless these interests and activities violate the law, they should remain private."

     Your directors recommend a vote against the above proposal. At AT&T's 2001 Annual meeting of Shareholders, this proposal was defeated by more than 85% of the votes cast. The AT&T Board believes XIV-16 that adoption of this proposal would inappropriately signal a departure from historic policy, wrongly suggest tolerance for discrimination based on sexual orientation, negatively impact our workplace environment, and would not be in the best interests of AT&T.

     AT&T has a long standing policy of non-discrimination in the workplace and abides by applicable federal, state and local laws. Our corporate policy is, in part, "to prohibit unlawful discrimination or harassment because of race, color, creed, religion, national origin, citizenship, sex, marital status, age, physical or mental disability, sexual orientation, or because of one's status as a special disabled veteran or veteran of the Vietnam era, in any employment decision or in the administration of any personnel policy."

     The primary purpose of this policy is to foster an inclusive workplace which does not subject any of our employees to abuse, harassment, or discrimination.

     We strive to foster an atmosphere of respect for responsible opinions and views of all kinds, crossing the full spectrum of beliefs and issues. We also strive to create an environment that enhances creativity and innovation where our employees work well together to better serve our customers. This helps us to attract talented individuals to become employees and to contribute fully to meeting our business objectives.

     We believe this is in the best interests of AT&T, our employees, our customers, and our shareholders.

     Therefore, your directors recommend that shareholders vote AGAINST the above proposal.

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Updated March 12, 2004.
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