AT&T Wireless Signs Agreement with Bechtel for Network Services; Firm Pricing Structure to Reduce Capital Expenses and Quicken Network Expansion

Business Wire, Jan 28, 2003

Business Editors/High-Tech Writers

NEW YORK--(BUSINESS WIRE)--Jan. 28, 2003

AT&T Wireless (NYSE:AWE) today announced an agreement with Bechtel that establishes firm pricing for all phases of cell-site development, allowing the companies to better manage costs and reduce build cycle times associated with network expansion.

The agreement also limits any additional costs for network build out to pre-approved expenses specified in the agreement. AT&T Wireless said the agreement supports its goals of reducing capital spending and becoming free cash flow positive.

"We'll be able to expand and enhance our network faster and at lower cost, bringing our high quality voice and data services to more customers sooner," said Greg Slemons, AT&T Wireless executive vice president-network services.

"Bechtel has committed itself to bringing down AT&T Wireless' network costs in all phases of cell site realization and deployment," said George Conniff, president, Bechtel Telecommunications. "This agreement will help us bring sites on-line faster, without sacrificing one iota of the high quality work we've been delivering to AT&T Wireless for three years."

Financial details of the agreement were not disclosed.

About AT&T Wireless

AT&T Wireless (NYSE:AWE) is the second-largest wireless carrier, based on revenues, in the United States. With 20.859 million subscribers, and full-year 2002 revenues exceeding $15.6 billion, AT&T Wireless will continue delivering advanced high-quality mobile wireless communications services, voice or data, to businesses and consumers, in the U.S. and internationally. For more information, please visit us at www.attwireless.com.

About Bechtel Telecommunications

Bechtel Telecommunications is a unit of Bechtel Corporation, a privately held company with 50,000 employees, more than 50 offices worldwide, and 2001 revenues of $13.4 billion. Bechtel Telecommunications provides design, engineering, project management, and construction management for a full range of telecommunication systems, through major offices in London, Hong Kong, and its Frederick, Maryland headquarters. For more information visit: www.bechteltelecoms.com.

This press release contains "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by management with information that is currently available to management. Forward-looking statements include, without limitation, management's expectations regarding: our future financial and operating performance and financial condition, including the company's outlook for the fiscal year 2003 and subsequent periods; subscriber growth; industry conditions; the strength of our balance sheet; our liquidity and needs for additional financing; and our ability to generate operating free cash flow.

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 Wireless' control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of our technology migration strategy, our ability to continue to reduce costs, the potential competitive impacts of industry consolidation or alternative technologies, potential impacts on revenue and ARPU from competitive pricing and slowing penetration in the wireless industry, the effects of vigorous competition in the markets in which we operate, the risk of decreased consumer spending due to softening economic conditions, the outbreak of war or acts of terrorism, and consumer response to new service offerings.

For a more detailed description of the factors that could cause such a difference, please see AT&T Wireless' filings with the Securities and Exchange Commission, including the information under the heading "Additional Factors That May Affect Our Business, Future Operating Results and Financial Condition" and "Forward Looking Statements" in its quarterly report of Form 10-Q filed on November 13, 2002.