AT&T ANNOUNCES *** Predicting that video phones will be as popular in 10
years as cordless and cellular phones, AT&T today introduced the world's
first full-color, motion videophone that works in any home in the United
States.  The AT&T VideoPhone 2500 sends and receives video calls over
existing telephone lines, for the same price as voice calls.  "We are
bringing human sight and sound together at last," said Bob Kavner, group
executive, AT&T Communications Products.  "Not just for the rich.  Not
just for big corporations.   But for everybody.  Visual communications
has begun."

The AT&T VideoPhone 2500 is the first in a series of video products and
services AT&T intends to introduce over the next several months.  Until
now, video communications primarily has been limited to business
videoconferencing using digital networks.  "This breakthrough makes
video communications so simple that people can take the VideoPhone 2500
home, plug it in and use it," said Ken Bertaccini, president of AT&T
Consumer Products. The AT&T VideoPhone 2500 is a standard-size feature
telephone, with a fold-up panel holding its 3.3-inch liquid crystal
display (LCD) screen and camera lens.  It plugs into standard telephone
and power outlets.  Once a voice call is made, the users each touch the
"video" key, which activates the video call.  The color video moves at
up to 10 frames per second.  Callers can ensure privacy by closing a
shutter over the lens at any time.

The VideoPhone 2500 development, led by AT&T Consumer Products,
represents a major collaborative effort among AT&T Bell Laboratories and
several business units.  Compression Labs Inc., of San Jose, Calif., in
a joint development agreement with AT&T, provided the video compression
technology.  The AT&T VideoPhone 2500 will be available in May at AT&T
Phone Centers nationwide for $1,499, and in mid-summer, it will be
available for sale at major retailers across the country.  The Phone
Centers also will offer lease-to-buy plans and will rent the VideoPhone
for under $30 per day.  In Phone Centers, for a fee, AT&T will make
VideoPhones available for people to place calls.  Later this year, AT&T
also will offer a public VideoPhone for locations such as hotel lobbies
and airport lounges.

