AT&T UNIT SECURITIZES $1 BILLION OF CREDIT CARD RECEIVABLES

Business Wire, August 23, 1995

NEW YORK--(BUSINESS WIRE)--August 23, 1995--AT&T Universal Card Services Corp. (UCS) which markets a consumer credit card, today announced that it has priced a $1 billion credit card securitization transaction.

The securitization, Series 1995-1, consists of two classes of publicly traded floating rate certificates which will be issued by AT&T Universal Card Master Trust.

The senior class, Class A, represents $870 million in receivables. The three-year Class A certificates will accrue interest at 8 basis points over the three-month London Interbank Offered Rate (LIBOR), and were priced at par.

The $60 million in subordinated three-year Class B Certificates were also priced at par and will accrue interest at three-month LIBOR plus 20 basis points. The initial interest rate on both the Class A and Class B certificates will be set on August 29, 1995 and will reset quarterly.

Series 1995-1 also includes a privately-funded $70 million collateral invested amount, which will be subordinated to the Class A and Class B certificates and will provide credit enhancement for the benefit of certificate-holders.

The transaction was negotiated by an underwriting group led by Merrill Lynch & Co. with CS First Boston and Salomon Brothers Inc as co-managers.

The Class A Certificates are expected to be rated "AAA" by Standard & Poor's and Fitch, and "Aaa" by Moody's; the Class B Certificates are expected to be rated "A" by Standard & Poor's and Fitch, and "A2" by Moody's.

AT&T UCS will retain the servicing and customer relationships of the credit card accounts. UCS currently has 16.4 million accounts and 23 million cards issued. It has $12.5 billion in outstanding receivables.

This notice does not constitute an offering to sell securities, which can be made only by means of a prospectus.

CONTACT: Eileen M. Connolly

908-221-6731 (office)

914-361-4615 (home)

or

Mitch Montagna

904-954-8896 (office)

904-241-6589 (home)