AT&T AND TATA SIGN AGREEMENT TO BRING ADVANCED CONSUMER PRODUCTS TO INDIA.

PARSIPPANY, N.J.--(BUSINESS WIRE)--Jan. 17, 1995--AT&T and Tata Keltron Limited, a Tata Company, today anounced an agreement to market a wide range of consumer telecommunications products and to manufacture select models of telephones for the Indian market.

Under the terms of the agreement,

AT&T Consumer Products has received more than 15 quality and service awards, including Sears' "Source of the Year" distinction.

The agreement was signed by Mr. Vijay K. Gupta, managing director, Tata Telecom Limited, and director, Tata Keltron Limited, and Ms. Ooi Lay Yong, managing director, Asia/Pacific Region, AT&T Consumer Products. The products will be available immediately in selected metropolitan cities and state capitals and nationwide by mid-1995.

"We are delighted to bring Indian consumers a wide range of consumer products from AT&T," said Mr. Vijay Gupta. "AT&T's technology and our distributor network and strong sales force make this alliance unique."

"The launch of the latest range of AT&T consumer products in India further underscores our commitment to bring the most advanced technology and products to the country," said Yong. "This is excellent news for consumers in India, who will now benefit from world-class technology and an alliance that will give them more choices than ever before."

Tata Keltron Ltd. (Tatafone), established in 1987 by Tata, is a leading manufacturer of telephone instruments, with more than one million telephones already in the marketplace. Tatafone has the unique distinction of being the only telephone supplier in India to win a category "A" supplier certificate from the India Department of Telecommunications because of the high quality of its phones.

Tatafone R&D facilities at Madras helped the company launch a range of new products comparable both in quality and aesthetics to the best in the world. Its wide product range now includes a number of pulse-tone switchable phones, feature phones, compact phones and cordless phones. By starting an exclusive telecom showroon called "Tatafone Centre", Tatafone has provided a new concept in telecom equipment retailing.

AT&T already has two manufacturing joint ventures with Tata, with AT&T Switching Systems (India) Pvt. Ltd. for manufacture of 5ESS Switching Systems; and with Trans India Network Systems Ltd. for manufacture of Transmission Systems. AT&T also has a joint venture to manufacture fiber optic cables, AT&T Finolex Fibre Optic Cables Ltd.

AT&T has provided international long-distance services through the Department of Telecommunications in India for more than 25 years. AT&T has distribution, sales, research and development, software development and other business operations in India, which are offered through AT&T Global Business Communications Systems and AT&T Global Information Solutions.

AT&T, a global communications and computer company, was recently awarded the Deming Award in Japan, the Taiwan National Quality Award, and its third Malcolm Baldrige National Quality Award in the United States. AT&T operates the world's biggest and most advanced long distance network, handling 175 million voice, data and video calls every day. The company provides communications services and products, as well as network equipment and computer systems, to businesses, consumers, telecommunications service providers and government agencies worldwide. AT&T Bell Laboratories is the world's foremost research and development institution. With revenues of US$70 billion, AT&T has a major presence in Asia/Pacific, with more than 16,000 employees regionwide.

CONTACT: Angela Cowan Ryan

AT&T Consumer Products

201-581-4451 (home)

201-895-4284 (office)

or

Virat Bhatia

AT&T India

91-11-331 0513 (office)

92-11-462 6032 (home)