Exhibit 99.1

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News Release
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FOR IMMEDIATE RELEASE:  WEDNESDAY, DECEMBER 20, 2000

                      AT&T DECLARES NEW QUARTERLY DIVIDEND

         NEW YORK - AT&T's (NYSE-T) Board of Directors today declared a dividend
of 3.75 cents per share payable  February 1, 2001, to  shareowners  of record on
December 29, 2000. The fourth-quarter  dividend,  as indicated in AT&T's October
restructuring  announcement,  is a decrease from the  previously  paid quarterly
dividend of 22 cents per share.

         "While  we did  not  make  this  decision  lightly,  we  believe  it is
necessary  and in the best  long-term  interests of our  shareowners  to adopt a
dividend  policy  comparable  to the  policies  of our  competitors,"  said AT&T
Chairman C. Michael Armstrong.

         At the time of its  restructuring  announcement,  AT&T  said its  Board
would establish a capital structure and specific dividend policy  appropriate to
each of the four  new AT&T  companies.  For  example,  the  company  said,  AT&T
Consumer is expected to allocate a greater portion of its earnings to dividends.
AT&T's other businesses are expected to focus primarily on growth by reinvesting
more of their profits over time.  The company said it did not expect either AT&T
Wireless or AT&T Broadband to pay a dividend in the foreseeable future.

         Noting that it is premature to declare future quarterly dividends,  the
company said the total dividend,  which will be allocated  between AT&T Business
and AT&T  Consumer,  is expected in the  aggregate to maintain the new quarterly
amount announced today.

         AT&T said it expects the Consumer  tracking  stock to be distributed to
shareowners  in the second half of 2001. At that time, the Board will decide the
specific dividend amount paid by AT&T and its Consumer tracking stock. In making
that decision,  the Board will consider each company's financial performance and
on-going  capital  needs,  the  dividend  policies  and  capital  structures  of
comparable companies, and other factors deemed relevant.

The foregoing are  "forward-looking  statements" which are based on 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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