BellSouth to Sell DirecTV

ATLANTA, and EL SEGUNDO, Calif. -- Making BellSouth Answers the most comprehensive bundle of services available in the marketplace, BellSouth and DIRECTV, Inc., announced today a strategic marketing alliance to offer BellSouth customers in residential homes, DIRECTV® digital satellite television service in early 2004. Today, BellSouth customers can make one call to order and receive one bill for all their communication services through BellSouth:

* High-speed DSL or dial-up Internet service;
* Local and long distance service with an array of calling features;
* Wireless; and
* Voicemail and e-mail services.

Starting early next year, BellSouth residential customers will be able to bundle DIRECTV with their other communications services at packaged, discounted savings each month. Through this agreement, the companies will deliver unsurpassed value, quality and convenience to their customers.

DIRECTV and BellSouth also announced immediate plans to begin exploring the integration of digital satellite and DSL technology, including options for enhanced networking solutions over the BellSouth fiber network.

BellSouth Corp.

DirecTV Broadband Inc.