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AT&T PREPAID PHONE CARD TERMS AND
CONDITIONS NOTICE AGREEMENT

By using this Phone Card, you consent to the Terms and Conditions below and, beginning August 1, 2001, to the applicable provisions of the AT&T Consumer Services Agreement, including AT&T Service Guides for prepaid cards, which you may access at www.att.com/serviceguide/home or by calling Customer Service at 1 800 530-6744.

1. AT&T PrePaid Phone Cards can be used to place the following types of calls: In-state and state-to-state consumer calls where AT&T is authorized to carry such calls; Outbound international calls from the U.S. to over 200 locations around the world; and Inbound international calls to the U.S. and from country to country outside the U.S. from select countries with the use of the AT&T Direct Service. Call Customer Service for complete rates and available countries before you leave the U.S. Cards cannot be used to place 500, 700, 800, 888, 877, 866, 855, 900, 976, 411 or 555 number service calls: or to place certain operator-assisted calls such as third-party-billed and collect calls. For Directory Assistance calls, follow the dialing instructions on the back of your Card and press option 4 after you have entered your Card number. Rates for Directory Assistance calls are higher than other domestic calls.

2. Safeguard your Card and Card number. You are responsible for unauthorized use, loss or theft.

3. AT&T does not makes any warranty, express or implied, regarding the condition(s) or fitness of the services offered for any particular use or purpose. As permitted by law, the liability of AT&T shall be limited to direct damages for any personal or property injury, and for all other claims to an amount equal to the charge for the affected service(s). IN NO EVENT WILL AT&T, THEIR EMPLOYEES, AGENTS OR ANY COOPERATING SERVICE PROVIDER(S) BE LIABLE FOR ANY PUNITIVE, SPECIAL, INDIRECT, RELIANCE, INCIDENTAL OR CONSEQUENTIAL DAMAGES.

4. You and AT&T agree that the exclusive remedy for all disputes arising out of purchase or use of this AT&T PrePaid Phone Card, except for matters you take to small claims court, is arbitration under the Consumer Arbitration Rules of the
American Arbitration Assoc. and under the Consumer Services Agreement referenced above. YOUR DISPUTE WILL NOT BE HEARD BY A JURY OR IN COURT AND MAY NOT BE MADE PART OF A CLASS ACTION.

5. If AT&T reasonably suspects fraudulent use of this Card, it may be suspended or terminated without notice. AT&T PrePaid Phone Cards are not refundable or exchangeable unless defective.

6. Service provided by AT&T or by AT&T Alascom in Alaska.

7. A surcharge of at least 9 minutes (subject to increase) applies to pay phone calls. Calls are billed in one-minute increments with partial minutes used rounded up to the next full minute. Minutes are based on U.S. domestic calling. International flat rates are higher than U.S. domestic flat rates, differ according to destination called. All rates and surcharges are subject to change without notice. Rates may be higher for calls to International mobile phones. Call Customer Service for current international rates, available countries and surcharge information.

Customer service Is available 24 hours a day, 7 days a week at 1 800 530-6744.

2002 AT&T. All Rights Reserved.
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