Press Release: May 24, 2000

WR Hambrecht + Co Initiates Coverage of AT&T Wireless Group (AWE) With Market Neutral Rating and $32 Price Target

Dominant name in telecom positioned to expand reach to Internet services and fixed wireless markets

San Francisco, CA, May 24, 2000—WR Hambrecht + Co today initiated research coverage on AT&T Wireless Group (AWE) with a market neutral rating and an 18-month price target of $32. WR Hambrecht + Co.’s eWireless analyst Peter Friedland cited AT&T Wireless Group’s dominant brand name and high-usage customers resulting from its Digital One Rate plan offset by the lack of near-term EBITDA margin expansion and an uncertain wireless Internet strategy as key reasons for the rating. WR Hambrecht + Co offers all its research reports free and real-time at www.wrhambrecht.com.

"We believe that AT&T Mobile will complete its national footprint and in turn improve its cost structure. Though we believe there is reasonable appreciation potential, we believe near-term upside potential is limited until the company can show improving EBITDA margins, successful wireless Internet services penetration and traction with the company’s fixed wireless service," Friedland said.

Friedland projects AT&T Wireless Group’s total revenues will reach $9.5 billion in 2000 and $11.5 billion in 2001, up from $7.6 billion in 1999.

AT&T Wireless Group tracks the performance of AT&T’s mobile and fixed wireless businesses.