T/AWE Exchange Offer Participants

Determining Your Tax Basis in AT&T Wireless Group Tracking Shares Received.

• T/AWE Exchange Offer
• Prospectus

If you sell or otherwise dispose of stock in a taxable transaction, you need to determine your tax basis in order to compute the taxable gain or loss recognized in that transaction. Your tax basis is compared with the sales price of the stock to determine the gain or loss. The starting point for determining the tax basis of your stock depends on when and how the shares were acquired (for example, by purchase or gift or in a distribution or exchange).

As a result of the exchange of AT&T Corp. common stock for AT&T Wireless Group tracking stock, your tax basis in the AT&T Wireless Group tracking stock received in the exchange will generally be determined as described below. These basic guidelines do not address the tax considerations that may be relevant to particular shareholders (including shareholders who own blocks of AT&T Corp. common stock with different per-share tax bases) and do not address any state, local or foreign tax consequences. You should contact your tax adviser to determine how these guidelines apply in your specific case.

The tax basis in the shares of the AT&T Wireless Group tracking stock you received will depend on your tax basis in the shares of AT&T Corp. common stock you exchanged in the offer. To determine your tax basis in each share of AT&T Wireless Group tracking stock, divide your aggregate tax basis in your AT&T Corp. common stock exchanged by the number of shares of AT&T Wireless Group tracking stock (including fractional shares) received. The following worksheet may help you calculate your tax basis in your AT&T Wireless Group tracking stock received in the exchange.

For example, if you exchanged 100 shares of AT&T Corp. common stock with a tax basis of $3000, you received 117 shares of AT&T Wireless Group tracking stock in the exchange, as well as cash for .60 fraction of a share (based on the exchange rate of 1.176 AT&T Wireless Group tracking stock shares for each share of AT&T Corp. common stock). Your tax basis in each share of your AT&T Wireless Group tracking stock would be calculated as follows:

The information above is provided solely as a service to our stockholders and does not constitute tax advice. It does not purport to be complete or describe the consequences that may apply to particular categories of stockholders. Remember that every stockholder's circumstances will be different. We suggest that you contact your tax adviser or the Internal Revenue Service concerning the extent to which this information applies in your personal case and how to calculate your tax basis in the shares of AT&T Wireless Group tracking stock you received in the exchange.

July 9, 2001
The information provided on this Web site is historical content only. Such information was valid only for the date of its publication. AT&T Corp. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are urged to see AT&T Corp.'s filings with the Securities and Exchange Commission for current information concerning the Company.