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 AT & T Wireless

On July 9, 2001, AT & T completed the distribution of the common stock of AT & T Wireless it owned to its shareholders of record on June 22, 2001.  Shareholders of AT & T received 32 shares of AT & T Wireless common stock for every 100 shares of AT & T owned.  Since this special distribution (of Wireless stock) was a tax-free distribution, the tax basis allocation of the spin-off should be:

                        AT & T Corp                                     77.66%

                        AT & T Wireless                                22.34%

(Based upon the cost basis of AT & T stock purchased or owned prior to 06/22/2001)

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