NEW YORK -- AT&T said today that AT&T Wireless (NYSE: AWE) revenue increased 36.6 percent to $2.799 billion in the third quarter compared to the year-ago period. The significant increase was driven by continued strong growth in mobility services revenue as AT&T Wireless continues to grow its subscriber base. Mobility services revenue increased 34.3 percent to $2.508 billion and equipment revenue increased 59.9 percent to $290 million for the third quarter. Excluding the acquisition of properties in the San Francisco Bay area, total revenue increased 27.3 percent.

Consolidated net subscriber additions totaled approximately 750,000 in the third quarter, a steep increase of 195.1 percent from the prior year quarter. Total consolidated subscribers grew 38.4 percent to 12.6 million, including subscribers associated with acquisitions in 2000. Including partnership markets which AT&T does not have a controlling interest, AT&T Wireless had nearly 15 million wireless subscribers at the end of the third quarter.

Earnings before interest, taxes, depreciation and amortization (EBITDA) excluding other income for AT&T Wireless Group increased 17.5 percent for the third quarter of 2000 compared to the year-ago quarter. EBITDA excluding other income for the mobility unit increased 24.1 percent over the year-ago quarter. The strong growth was primarily the result of revenue growth and lower off-network roaming expenses. These improvements were partially offset by increased customer acquisition costs associated with higher gross subscriber additions, increased network costs attributable to subscriber growth and their minutes of use, and increased information technology costs to support growth in the subscriber base.

"AT&T Wireless is all about growth," said AT&T Wireless Group chairman and CEO John D. Zeglis. "We’re exceeding our own projections with healthy doses of market expansion complemented by some of the most compelling wireless offers in the industry. This quarter marks another record quarter for net subscriber additions."

"Our continued success is due to the creation of the most attractive portfolio of consumer and business offers in the industry," said Mohan Gyani, AT&T Wireless president.

This year, AT&T Wireless continued to enhance its portfolio of voice and data services. Additional pricing plans are now available for the flagship AT&T Digital One Rate(sm) plan. AT&T Wireless also continued to lead the wireless data market by introducing AT&T Digital PocketNet® Service and last week launched AT&T 2-Way Text Messaging service – a nationwide short messaging service that has been extremely popular throughout Europe and parts of Asia. AT&T Wireless now has more than 300,000 customers on AT&T Digital PocketNet service.

In addition, the Wireless Group’s fixed wireless services, which are currently available in Dallas/Ft. Worth and San Diego, provide residential customers with any-distance voice services from their homes as well as "always on" high-speed Internet access. At the end of third quarter, AT&T Wireless had more than 6,100 subscribers using approximately 13,000 lines.

AT&T completed an initial public offering of 15.6 percent of AT&T Wireless Group tracking stock on April 27, 2000. A detailed explanation of AT&T Wireless’ third quarter financial results can be found at http://www.att.com/wirelessir.

The foregoing are "forward-looking statements" which are based on management’s beliefs as well as on a number of assumptions concerning future events made by and information currently available to management.