Exercise and assignment activity of YYZ options (adjusted Mediaone Group Inc ("UMG") options) has been delayed pending the determination of the cash in lieu amount for .57 AT&T Wireless Services Inc ("AWE") Common Shares (See The Options Clearing Corporation ("OCC") Information Memo #17232).

OCC has been informed that a price of $16.44275 per whole AWE share will be used to determine the cash in lieu amount. Accordingly, the cash in lieu amount is:

.57 x $16.44275 = $9.37 per YYZ Contract

YYZ options exercised July 9, 2001, through July 16, 2001, which were subject to delayed settlement, will settle July 19, 2001. YYZ options exercised July 17, 2001, and thereafter will be subject to normal three business day settlement.

The terms of YYZ options are as follows:

1) 95 AT&T Corp ("T") Common Shares
2) 30 (New) AT&T Wireless Services Inc ("AWE") Common Shares
3) $3,636.37 Cash ($3,627.00 + $9.37)*

*The cash portion of the deliverable remains permanently fixed as part of the option deliverable, and does not vary with price changes of securities also included in the deliverable.

SETTLEMENT

The T and AWE components of the YYZ option deliverable will settle through National Securities Clearing Corporation ("NSCC"); 80% of the aggregate strike amount will be allocated to the T component and 20% to the AWE component. The $3,636.37 cash component will settle through OCC's cash settlement system.

PRICING

The underlying price of YYZ options will be determined as follows:

YYZ = .95(T) + .30(AWE) + 36.3637

For example if T closes at 21 and AWE closes at 17, the YYZ price would be:

YYZ = .95(21) + .30(17) + 36.3637 = 61.4

CATEGORY: CONTRACT ADJUSTMENT

SUB-CATEGORY: ADJUSTED SETTLEMENT