Stock Event: AT&T Broadband Corp. Spin-Off and Merger with Comcast - November 18, 2002

As a result of the spin-off of AT&T Broadband on November 18, 2002, AT&T shareowners of record as of November 15, 2002 (the "Record Date") were entitled to receive a distribution of 1 share of AT&T Broadband stock for each share of AT&T stock held by such shareowner as of the Record Date (the "Distribution"). All shares of AT&T Broadband stock were converted into shares of Comcast Corporation shortly after the Distribution as a result of the merger of a wholly owned subsidiary of Comcast Corporation with and into AT&T Broadband (the "Merger"). Shareowners entitled to receive a fractional share of Comcast Corporation received a cash payment instead.

Example

Please Enter:

Initial Aggregate AT&T Tax Basis (in dollars) (required)

Number of AT&T Shares (required)

Post-2002 AT&T Broadband Spin-Off/Merger with Comcast Results:

Aggregate AT&T Tax Basis (in dollars)

Number of AT&T Shares

AT&T Tax Basis Per Share (in dollars)

AT&T Broadband Stock Information:

Aggregate AT&T Broadband Tax Basis (in dollars)

Comcast Stock Information:

Aggregate Comcast Tax Basis (in dollars)

Number of Comcast Shares

Comcast Tax Basis Per Share (in dollars)

Example

On November 15, 2002, you owned 100 AT&T shares and had an aggregate tax basis in those shares of $1,200. The AT&T Broadband distribution ratio was 1 AT&T Broadband share for each AT&T share you owned. AT&T Broadband shares were immediately converted into shares of Comcast Corporation as a result of the Comcast Merger. Because the Comcast exchange ratio was .3235 for each AT&T Broadband share, you received 32 shares of Comcast and were entitled to receive an additional .35 of a share (but received cash in lieu of that fractional share).* Using the tax basis allocation ratios, 37.4% of the $1,200 aggregate tax basis (i.e., $448.80) was allocated to your AT&T shares and 62.6% was allocated to your AT&T Broadband shares (i.e., $751.20). Thus, the post-spin-off aggregate tax basis of the AT&T shares is $448.80. To determine your post-AT&T Broadband spin-off tax basis per share of AT&T stock, divide your aggregate post-spin-off tax basis ($448.80) by the number of AT&T shares you hold (100). This results in a post-spin-off tax basis of $4.49 per AT&T share. Your aggregate tax basis in the Comcast Corporation shares received in the Comcast Merger equals your aggregate tax basis in the AT&T Broadband shares (i.e. $751.20). You were entitled to receive 32.35 shares of Comcast Corporation as a result of the Merger. This results in a tax basis of $23.22 per share of Comcast Corporation (including any fractional share for which cash was received).

* The tax basis of a fractional share interest would be a proportional part of the basis of a whole share.

Consult Your Tax Advisor

The information on this web site does not constitute tax advice. It does not purport to be complete or to describe the consequences that may apply to particular categories of shareowners. For example, we assume that you purchased your AT&T shares on the "regular" market and not with rights to particular transactions (i.e. due bills), that you held your AT&T shares continuously from the record date of a particular transaction until the effective date thereof, and that you are a shareowner who did not trade your AT&T shares in a "when-issued" or "when-distributed" market. You should consult your own tax advisor regarding the calculation of your tax basis.

The information provided on this web site is historical content only. Such information was valid only for the date of its publication. AT&T Inc. 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 Inc. filings with the Securities and Exchange Commission for current information concerning the Company.