CheckFree Brings AT&T Consumers Their Long Distance Phone Bills Online.

Millions of AT&T Residential Long Distance Customers Can Now Enroll to View

And Pay Their Long Distance Bills at Their Choice of More Than 150 Web Sites

With Checkfree

ATLANTA, July 31 /PRNewswire/ --

CheckFree (Nasdaq: CKFR) and AT&T (NYSE: T) today announced that AT&T residential customers can now view and pay their long distance phone bills online at more than 150 Web sites in CheckFree's electronic billing and payment (EBP) network. AT&T's 60 million long distance customers can now realize the convenience of viewing and paying their bills via the Internet.

"The momentum that AT&T can bring to electronic billing and payment is tremendous because today they are among the largest issuers of paper bills in the United States," said Tom Stampiglia, president of CheckFree Software Division. "CheckFree Web distribution partners, including portals such as Yahoo!, the United Stated Postal Service, leading banks, brokerages and credit unions, will benefit because consumers will be able to see their AT&T bill from the site of their choice. Consumers will find they can quickly and easily pay AT&T and other accounts they've set up electronically, saving time month after month."

"AT&T is committed to delivering to our customers all of the advantages the Internet has to offer. Electronic billing and payment offers customers tremendous convenience and interactivity that they can't get in any other medium," said Michael Tempora, vice president for AT&T Billing Services and Solutions. "Customers want to aggregate and pay all of their bills from a single web site -- whenever they want, wherever they want. Our arrangement with CheckFree, a leader in electronic payment services, brings our residential customers the benefit of being able to view and pay their AT&T long distance bill along with any of their other bills which they have enrolled for electronic billing and payment all at a single web site."

AT&T residential long distance customers will be able to view and pay their monthly long distance phone bills at more than 150 financial services Web sites offering the CheckFree electronic billing and payment service, as well as Intuit's Quicken(R) personal financial management software. The appearance of the AT&T electronic bill is very similar to that of its paper- based counterpart, however AT&T online bills also include new interactive capabilities not available in a traditional paper bill.

AT&T residential long distance customers can approve their bill payment with the click of a mouse and have the amount deducted electronically from a designated bank account. In addition, consumers who pay bills electronically are protected from unauthorized transactions or processing delays by the CheckFree Guarantee.

Consumers can enroll to access their AT&T residential long distance bill, and pay all of their bills via CheckFree's "pay everyone" capability, at a number of electronic billing and payment Web sites, including:

* Charles Schwab at https://www.mybills.com/schwab;

* Citizens Bank at https://www.mybills.com/citizens or

http://www.citizensbank.com/;

* First Union at https://www.mybills.com/firstunion;

* Merrill Lynch at https://www.mybills.com/mlol;

* Morgan Stanley Dean Witter at https://www.dwdean.com;

* Navy Federal Credit Union at

https://www.mybills.com/NavyFederalWebBillPay;

* NetBank http://www.netbank.com;

* Prudential Securities at https://www.mybills.com/Prudential/WBP;

* Quicken 98/99 software and Quicken.com at

http://www.quicken.com/banking_and_credit/;

* Summit Bank at https://www.mybills.com/summitbank;

* United States Postal Service http://www.usps.com/ebpp/splash.html;

* Yahoo! at http://bills.yahoo.com

(Please note that an "s" is required after the "http" on several of the Web sites in order to access the service. This indicates that the site is secured.)

Since the market introduction of its electronic billing and payment service, CheckFree has signed multi-year contracts with leading companies representing more than 500 million bills delivered each month. These billers include other leading telecommunications providers, mortgage, utility, cable, cellular and credit card companies.

About AT&T Corp.

AT&T (www.att.com ) is among the world's premier voice, data, and video communications company. In addition to 60 million business and residential long-distance customers, AT&T serves over 10 million cable subscribers, nearly 12 million wireless customers, and provides Internet access to more than 2 million users. With annual revenues of more than $62 billion and 148,000 employees, AT&T provides services to customers worldwide.

About CheckFree

CheckFree (www.checkfree.com ) is the leading provider of financial electronic commerce services and products. Founded as an electronic payments processor in 1981, CheckFree launched the first fully integrated electronic billing and payment solution, CheckFree E-Bill, in March of 1997. Today, CheckFree services enable 3.3 million consumers to receive and pay bills over the Internet or electronically. The Company has multi-year contracts with 121 of the nation's top billers to provide online billing and payment through its network of partnerships with more than 150 consumer service providers (CSPs), including banks, brokerage firms, Internet portals and content sites, and personal financial management (PFM) software. CheckFree's Investment Services division provides a range of investment management services to help more than 255 institutions provide portfolio management and reporting services to their clients. CheckFree clients manage over 820,000 portfolios totaling more than $480 billion in assets. Software and services provided by CheckFree's Compliance and Financial Service division are used to process more than two-thirds of the nation's six billion Automated Clearing House (ACH) payments. In addition, nearly 400 banks and businesses use reconciliation products and services the division provides.

Certain of CheckFree's statements in this press release are not purely historical, and as such are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding management's intentions, plans, beliefs, expectations or projections of the future. Forward-looking statements involve risks and uncertainties, including without limitation, the various risks inherent in the Company's business, and other risks and uncertainties detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including Form 10-K/A for the year ended June 30, 1999 (filed July 10, 2000), Form 10-Q/A for the quarter ended March 31, 2000 (filed July 10, 2000), Form S-3 Registration Statement, as amended (filed January 14, 2000, and amended on January 26 and April 10, 2000), and Form S-4 Registration Statement (filed July 10, 2000). One or more of these factors have affected, and could in the future affect, the Company's business and financial results in future periods, and could cause actual results to differ materially from plans and projections. There can be no assurance that the forward-looking statements made in this document will prove to be accurate, and issuance of such forward-looking statements should not be regarded as a representation by the Company, or any other person, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to management, and the Company assumes no obligation to update any forward-looking statements.