Basking Ridge, NJ

The first Sino-foreign telecom services joint venture officially launched its business today. Shanghai Symphony Telecom, which will market its services under the brand name—Unisiti—is a joint venture between AT&T, Shanghai Telecom (STC), and Shanghai Information Investment (SII).

Unisiti is the first and only joint venture company in China with foreign participation to provide IP-based data services to business customers in the Pudong business district of Shanghai. In addition to its own portfolio of products and services, Unisiti will offer a range of services from parent companies AT&T and China Telecom.

The joint venture was formed in response to growing demand from multinational corporations for advanced data communications in China and the ability to connect seamlessly with other global operations. With China's entry into the World Trade Organization, Unisiti's communications services will greatly benefit the rising number of foreign investors in Shanghai. A showcase for China's economic development, the Pudong area is home to more than 100 of the Fortune 500 multinational companies.

Although the services announced today are initially available in Pudong, Unisiti intends to extend its services to the rest of Shanghai, and other major cities in China.

"Our customers want to reduce the complexity, challenges and risks of operating enterprise and global networks," said C. Michael Armstrong, Chairman and CEO of AT&T, who participated in today's launch in Shanghai. "Unisiti is the answer to our customers' needs in China, and an important milestone in AT&T's overall global strategy to provide customers with high-value, high-quality services worldwide."

The AT&T offers included in the joint venture portfolio are an extension of AT&T's managed services portfolio, which was launched worldwide in January. Managed services are a core component of AT&T's overall strategy for serving business customers.

"The fact that so many of our most important customers from the United States and around the region are here in Shanghai to celebrate this launch is testament to how critical the China market is to their businesses," Mr. Armstrong added.

Customers attending today's launch included Kodak, Tyco Electronics and Air Products and Chemicals, a market leader in the global electronics and chemical processing industries, and long-standing innovator in basic manufacturing sectors, including steel, metal, glass and food processing.

"With operations in 30 countries worldwide Air Products is looking for a truly global service provider and that's why we use AT&T," said Virgil Palmer, Director of Global Communications and Network Services, Air Products. "We're very encouraged by today's service launch and look forward to benefiting from better communications to and from our Shanghai office through Unisiti."

Palmer is also AT&T's Global Customer Advisory Council Chairman, representing the interests of more than 40 of AT&T's largest global customers. "Speaking on behalf of the Customer Advisory Council members, among the most significant benefits offered by Unisiti are the ability to have a single global contract and single point of contact, the highest levels of service, flexible billing and truly global reach with the same features we enjoy in other parts of the world."

"Our mission is to provide global business customers with the same choice, quality and reliability of seamless communications services in Pudong, as they enjoy in other major cities around the world," said Mr. Rick Luk, President and General Manager of Unisiti. "In creating Unisiti, we have combined the superior network infrastructure and local business expertise of our Chinese partners with the services, technology, operational expertise and global reach of AT&T to serve even the most demanding business customers."

About Unisiti

Unisiti, the first Sino-foreign telecom joint venture in China, is a joint venture between Shanghai Telecom (STC), AT&T and Shanghai Information Investments Inc. (SII). Unisiti is uniquely positioned to serve multinational customers in China through strategic cooperation between the partners. Unisiti will ensure that MNCs can enjoy the same high quality of communications as they do in other parts of the world. Unisiti has set its stage to offer a range of advanced IP broadband-based value added services and solutions including Enterprise and Internet VPN, Managed Hosting and other related Professional Services that the new economy has created increasing demand for in China and internationally, among enterprises from all industries.

About STC

Shanghai Telecom is a subsidiary of China Telecom. It was established in 1 July 2000, under the principle set by Ministry of Information Industry separating post from telecom, wireless from fixed line, political from administration and the principle of telecom reconstruction. Shanghai Telecom is a wholly owned subsidiary of China Telecom, which reconstructed from fixed network and related assets. The company has a capital of RMB6.4 billion and assets worth RMB25.3 billion, and has 20,048 employees nationwide. The company has 10 departments, three administrative divisions, 16 telecom bureaus and owns a majority share of Shanghai Telecom (Group) Co Ltd.

The major businesses of Shanghai Telecom include local and international fixed networks and equipment (including wireless local loop) in the Shanghai area. It provides voice, data, graphic and multimedia communications and information services. The company provides system integration related with communication and information, technology development, technology services, advertising, telecom equipment distribution and retailing, design and construction and other operations authorized by China Telecom.

About AT&T

AT&T, www.att.com is among the world's premier voice, video and data communications companies, serving consumers, businesses and government. Backed by the research and development capabilities of AT&T Labs, the company runs the world's largest, most sophisticated communications network and is the largest cable operator in the U.S. The company is a leading supplier of data, Internet and managed services for the public and private sectors, and offers outsourcing, consulting and networking-integration to large businesses and government. AT&T also is the market leader in consumer communications services and operates AT&T WorldNet Service, a leading Internet access service that has garnered several awards for outstanding customer service.

AT&T Asia Pacific www.ap.att.com has a significant presence in the region, with headquarters in Hong Kong and key offices in 13 markets. The company offers advanced communication services to governments, businesses and consumers, which include voice, data and online. In addition, NTT Communications has acquired a 15 percent equity interest in AT&T Global Network Services Japan.

AT&T China has been providing communications services to China for over nineteen years, and has been enjoying the leading market share in traditional bilateral voice and data services between the US and China. AT&T is also a major provider of high-speed bandwidth for Chinese ISPs to access the Internet. In addition to the traditional bilateral services, AT&T in China also provides network related professional services to corporate customers and communications operators, including network consulting, implementation and on going technical support. AT&T in China operates under a Wholly Owned Foreign Enterprise, AT&T (China) Co. Ltd. which is headquartered in Beijing with branch offices in Shanghai and Guangzhou.

About SII

Shanghai Information Investment Inc (SII) is a professional investment company focusing on the information industry and is one of the major projects of Shanghai Information Harbor. Under government instruction and market regulation, SII invests in large projects that have strategic importance with cross-ministry and cross-industry alliances. It invests mainly in projects that enhance regional information flow in people's daily lives, that have functions and set examples for promoting the information development in society. Its major investments include the reconstruction of Shanghai cable TV's two-way network, Shanghai's broadband ATM backbone transmission and switch platform, Shanghai IP broadband test network, Shanghai broadband Information Interactive Centre, e-commerce security and certification systems and Shanghai Super Computer Centre.

NOTE: The foregoing are "forward-looking statements" which are based on Shanghai Symphony Telecom management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. 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 Shanghai Symphony Telecom's control, that could cause actual results to differ materially from such statements.

AT&T Contacts: 
Miranda Duff
908 221 2822 (office)
908 391 3268 (cell)

Patricia Stortz
908-221-2737 (office)
908-385-0635 (cell)
pstortz@att.com