AT&T Settles Lawsuits With MCI, Onvoy

NEW YORK -- AT&T (NYSE: T) and MCI (WCOEQ, MCWEQ) today jointly announced they have reached an out-of-court resolution of all claims the two companies have had against each other, bothbefore and after MCI filed Chapter 11 petitions in July 2002. Theagreement includes resolution of AT&T’s call routing claims against MCI and MCI’s dismissal of its contempt of court motion against AT&T.

No other terms of the agreement were disclosed. The agreement has been submitted for approval to the federal Bankruptcy Court for the Southern District of New York.

“AT&T is pleased with the resolution, which fully addresses the interests of AT&T’s shareholders,” said Jim Cicconi, Executive Vice President and General Counsel of AT&T.

“This resolution is good for our creditors as well as both companies overall,” according to Stasia Kelly, MCI Executive Vice President and General Counsel. “It allows us to better focus on the common good of the industry – fostering healthy competition and serving our customers.”

In a separate release:

AT&T (NYSE: T) and Onvoy, Inc. today announced that they have agreed to settle all matters related to claims made by AT&T against Onvoy in a lawsuit filed in September 2003 in U.S. District Court for the Eastern District of Virginia. Terms of the settlement are confidential and are not being disclosed.

AT&T Corp.