SBC Communications to Guarantee Portion of AT&T Corp. Debt

SBC Communications Inc. (NYSE: SBC) announced today
that, contingent upon the closing of its acquisition of AT&T Corp.,
SBC will unconditionally and irrevocably guarantee AT&T Corp.'s
Euro-denominated 7.75% (original coupon 6.00%) Notes due November 21,
2006. The principal amount currently outstanding on these notes is
Euro 721,229,000.
   Complete terms of the guarantee will be set forth in a filing with
the Securities and Exchange Commission to be made next week.
   SBC Communications Inc. is a Fortune 50 company whose
subsidiaries, operating under the SBC brand, provide a full range of
voice, data, networking, e-business, directory publishing and
advertising, and related services to businesses, consumers and other
telecommunications providers. SBC holds a 60 percent ownership
interest in Cingular Wireless, which serves more than 52 million
wireless customers. SBC companies provide high-speed DSL Internet
access lines to more American consumers than any other provider and
are among the nation's leading providers of Internet services. SBC
companies also offer satellite TV service. Additional information
about SBC and SBC products and services is available at www.sbc.com.

   Cautionary Language Concerning Forward-Looking Statements

   Information set forth in this news release contains financial
estimates and other forward-looking statements that are subject to
risks and uncertainties, and actual results may differ materially. A
discussion of factors that may affect future results is contained in
SBC's filings with the Securities and Exchange Commission. SBC
disclaims any obligation to update or revise statements contained in
this news release based on new information or otherwise.