Tax Basis Worksheet

Please be aware that the information contained herein is general in nature and should not be construed to be legal, business, or tax advice.  You should consult your personal tax advisor as to the particular tax consequences of each transaction highlighted here, including the applicability and effect of any state, local, and foreign tax laws.

AT & T Spin-off of Lucent

On September 30, 1996 AT & T and Lucent Technologies became independent companies.  Shareholders of AT & T received 32 shares of Lucent for every 100 shares of AT & T owned.  Since this special distribution (of Lucent stock) was a tax-free distribution, the tax basis allocation of the spin-off should be:

                        A T & T Corp                                     72.01%

                        Lucent Technologies                            27.99%

 (Based upon the cost basis of AT & T stock purchased or owned prior to 9/17/96)

Tax Basis Update New Comcast and  AT & T Broadband Merger

AT&T Corp received a ruling from the IRS to the effect that the spin-off of AT & T Broadband will be tax free to the AT&T shareholders.  Since all shares of the AT&T Broadband stock were converted to Comcast Corp, the tax basis of the new Comcast stock (via AT&T) should be allocated as follows (based on cost basis paid for AT&T stock):

                AT&T Corp                                                     37.4 %

For detailed information please go to Investor Relations on the AT&T website www.att.com