Exhibit 3
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Eileen M. Connolly June Rochford
908-221-6731 (office) 908-221-8165 (office)
888-602-5417 (pager) 888-602-5416 (pager)
FOR RELEASE FRIDAY, JANUARY 12, 2001
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AT&T UPDATES SEC FILING ON EXCITE@HOME
AT&T today is updating its Securities and Exchange Commission filing
concerning Excite@Home to reflect decisions by Comcast Corporation and Cox
Communications to each exchange shares in Excite@Home for shares of AT&T Common
Stock with a total value of approximately $2.9 billion.
Comcast and Cox were given the right to sell a total of approximately 60
million shares of Excite@Home to AT&T as part of an agreement announced in March
2000 to reorganize Excite@Home governance. Following the transactions, on a
fully diluted basis, AT&T will hold about 38 percent of the economic interest in
Excite@Home, as compared to about 23 percent today. AT&T's approximately 74
percent voting interest will increase to about 79 percent.
The number of AT&T shares issued in the transactions will depend on their
average price during a 30-day trading period that began in mid-December.
Comcast and Cox's decision to exchange their previously vested shares in
Excite@Home for shares of AT&T Common Stock does not affect their business
relationship with Excite@Home. Under agreements announced last March, Comcast
and Cox will use Excite@Home to provide platform/connectivity services, and
feature the Excite portal, in delivering their high-speed Internet services to
residential customers through June 2006. The exclusivity provisions of those
distribution agreements remain in effect until June 2002. In consideration of
this, Excite@Home issued new warrants to Comcast and Cox, which vest through
2006, concurrent with this new distribution agreement. Subject to the forfeiture
of those warrants, Comcast and Cox will each have the right to end the
exclusivity provisions and may also terminate the entire distribution
arrangement beginning in December 2001.
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