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first solo year with string of customer wins

AT&T Australia ends first solo year with string of customer wins

AT&T Australia, which began serving business customers directly in Australia in April this year, today announced that it has already exceeded its business targets and won a string of new customers.

AT&T started providing services – including network connectivity, managed networking services, remote access, network integration and outsourcing services – directly to Australian business customers from April 1 after ending its local service provider agreement with Telstra. The company has also invested heavily to enhance its network infrastructure and bandwidth, and recruited a number of key personnel.

At the formal business launch in May, Steve Lowe, Managing Director for AT&T Australia and New Zealand, said that the company had set a very aggressive growth target of 20% for the rest of the year.

“The response from our business customers has been extremely positive and we’re delighted by the results so far,” said Lowe. “We’ve exceeded our revenue growth target and we’ve won several significant customer contracts in recent months. This is a strong endorsement by business customers of our experience, service quality and customer support.”
Customer wins include: Arnott’s/Campbell’s Soups – AT&T Global Managed Internet Services (GMIS); Lend Lease – AT&T Global Managed Internet Services and AT&T Business Internet Services – corporate Internet dial for approximately 3,000 staff; BASF – AT&T Managed Data network services (MDNS) for Australia and Asia Pacific;

“I believe the success of our business since the launch earlier this year not only demonstrates that we are delivering on our commitments to Australian businesses, it also indicates that during this period of turmoil and uncertainty in the telecomm industry, customers are looking for reliable, financially sound partners who offer stability, integrity and world-class service quality,” Lowe said.

“Clearly, the message is that business communications is a strategic and non-discretionary investment that has a key impact on how effectively an enterprise operates, so the choice of service provider is critical to organisations of all sizes.”

Lowe said a key factor in AT&T Australia’s success has been the 'flight to quality' trend.

“AT&T has been in Asia Pacific for around 30 years. While other telecomm companies are cutting back, we continue to expand and invest in our network and people to better serve businesses in this region. We are committed to being a long-term partner for our customers to serve their existing and future communications needs,” Lowe added.

In order to support the expansion of its business in Australia, AT&T has invested in six new multiprotocol label-switching (MPLS) nodes, which have now been installed in Sydney (2), Melbourne, Brisbane, Perth and Adelaide. In 2002 alone, AT&T is investing US$300 million to upgrade its entire global network. Twenty-five out of a total of 122 new MPLS-enabled network nodes being installed this year are located in the Asia Pacific region. The enhanced network will have higher bandwidths and network redundancy, enabling AT&T to offer services -- including GMIS, MDNS and the recently announced Enhanced VPN services -- at even higher levels of quality and reliability.

In addition, AT&T has recently selected new alternative domestic fibre backbone providers for the Australian network. They are NextGen Networks, PowerTel and IP1, all local companies which provide AT&T with the necessary domestic bandwidth to ensure its services can be delivered to customers around the country.

“It is great to be able to support new local Australian telecom companies in this marketplace as part of our new go-to-market strategy,” Lowe said.

About AT&T Australia Established in 1992, AT&T Australia is committed to providing the Australia market with high quality data communications and networking services. AT&T offers a comprehensive service portfolio in Australia, including network consulting, design and implementation, managed security services, managed data network services, frame relay connectivity, multi-protocol network connectivity, managed virtual private network, remote dial-up access with global roaming, and network outsourcing services.

Safe Harbour The foregoing are "forward-looking statements" which are based on AT&T 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. 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. This information is presented solely to provide additional information to further understand the results of AT&T.

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