AT&T Receives Tax-Free Ruling From the IRS For Future Split Off of Liberty Media

Apr 11, 2001, 01:00 ET from AT&T

    NEW YORK, April 11 /PRNewswire/ -- AT&T today announced that the Internal
 Revenue Service has ruled that the proposed split off of Liberty Media
 Corporation, which will own all of the assets reflected in the Liberty Media
 Group (NYSE:   LMG.A, LMG.B), qualifies as tax free for AT&T, Liberty Media and
 their shareowners.  AT&T acquired Liberty Media through its acquisition of
 Tele-Communications, Inc. (TCI) in March 1999.
     By mid summer of 2001, AT&T plans to convert the Liberty Media tracking
 stock into an asset-based security and launch Liberty Media Corporation as an
 independent, publicly-traded company.   This will be accomplished by the
 redemption of Class A and Class B Liberty Media tracking stock in exchange for
 a corresponding class of shares of Liberty Media Corporation common stock.
     AT&T said that the split-off will better enable Liberty Media to raise
 capital on its own, use its stock as currency in acquiring, merging or
 partnering with other companies and help the public markets to better value
 the company.  The action will also help Liberty Media and AT&T address
 regulatory, competitive and conflicts of interest concerns.
     AT&T said that it needs to complete certain reorganization steps, which
 require some reviews, before the split-off can be completed.
     Liberty Media Corporation, as a separate company, plans to change its
 listing ticker symbols to LMC.A and LMC.B on the New York Stock Exchange.
     As previously announced, the company said that following the split off of
 Liberty Media from AT&T, John Malone, Chairman and CEO of Liberty Media, will
 retire from the AT&T Board.
 
     The foregoing are "forward-looking statements" which are based on
 management's beliefs as well as on a number of assumptions concerning future
 events made by and information currently available to management. Readers are
 cautioned not to put undue reliance on such forward-looking statements, which
 are not a guarantee of performance and are subject to a number of
 uncertainties and other factors, many of which are outside AT&T's control,
 that could cause actual results to differ materially from such statements. For
 a more detailed description of the factors that could cause such a difference,
 please see AT&T's filings with the Securities and Exchange Commission.
 Investors and security holders may obtain a free copy of AT&T's filings when
 they become available at the Securities and Exchange Commission's website at
 http://www.sec.gov.  In addition, these materials and other documents may be
 obtained for free from AT&T by directing a request to AT&T at 295 North Maple
 Drive, Basking Ridge, NJ 07920; Attn: Investor Relations.  AT&T disclaims any
 intention or obligation to update or revise any forward-looking statements,
 whether as a result of new information, future events or otherwise.
 
     Logo: http://www.att.com/identity/library/
 
 

SOURCE AT&T
    NEW YORK, April 11 /PRNewswire/ -- AT&T today announced that the Internal
 Revenue Service has ruled that the proposed split off of Liberty Media
 Corporation, which will own all of the assets reflected in the Liberty Media
 Group (NYSE:   LMG.A, LMG.B), qualifies as tax free for AT&T, Liberty Media and
 their shareowners.  AT&T acquired Liberty Media through its acquisition of
 Tele-Communications, Inc. (TCI) in March 1999.
     By mid summer of 2001, AT&T plans to convert the Liberty Media tracking
 stock into an asset-based security and launch Liberty Media Corporation as an
 independent, publicly-traded company.   This will be accomplished by the
 redemption of Class A and Class B Liberty Media tracking stock in exchange for
 a corresponding class of shares of Liberty Media Corporation common stock.
     AT&T said that the split-off will better enable Liberty Media to raise
 capital on its own, use its stock as currency in acquiring, merging or
 partnering with other companies and help the public markets to better value
 the company.  The action will also help Liberty Media and AT&T address
 regulatory, competitive and conflicts of interest concerns.
     AT&T said that it needs to complete certain reorganization steps, which
 require some reviews, before the split-off can be completed.
     Liberty Media Corporation, as a separate company, plans to change its
 listing ticker symbols to LMC.A and LMC.B on the New York Stock Exchange.
     As previously announced, the company said that following the split off of
 Liberty Media from AT&T, John Malone, Chairman and CEO of Liberty Media, will
 retire from the AT&T Board.
 
     The foregoing are "forward-looking statements" which are based on
 management's beliefs as well as on a number of assumptions concerning future
 events made by and information currently available to management. Readers are
 cautioned not to put undue reliance on such forward-looking statements, which
 are not a guarantee of performance and are subject to a number of
 uncertainties and other factors, many of which are outside AT&T's control,
 that could cause actual results to differ materially from such statements. For
 a more detailed description of the factors that could cause such a difference,
 please see AT&T's filings with the Securities and Exchange Commission.
 Investors and security holders may obtain a free copy of AT&T's filings when
 they become available at the Securities and Exchange Commission's website at
 http://www.sec.gov.  In addition, these materials and other documents may be
 obtained for free from AT&T by directing a request to AT&T at 295 North Maple
 Drive, Basking Ridge, NJ 07920; Attn: Investor Relations.  AT&T disclaims any
 intention or obligation to update or revise any forward-looking statements,
 whether as a result of new information, future events or otherwise.
 
     Logo: http://www.att.com/identity/library/
 
 SOURCE  AT&T