May 28, 2002 -- Heidelberg, the world's leading solution provider for the print media industry has chosen AT&T to consolidate telecommunications services currently provided by more than 30 other providers. This will make AT&T Heidelberg’s preferred supplier of business data communications and networking worldwide. AT&T will provide a fully managed global wide area network (WAN) service, connecting 150 locations on all continents, enhancing herewith the growing globalisation of the Heidelberg group. It will also provide managed internet services. Under the terms of an initial three-year agreement, worth €14m, AT&T will migrate Heidelberg’s current network, based on global Frame Relay technology, to its IP/MPLS based infrastructure. A further €6m agreement will see AT&T provide a fully managed hosting Center solution for Heidelberg. This new structure is expected to result in substantial cost savings for Heidelberg, estimated at up to 40% versus its current solution and emphasises Heidelberg´s long term commitment to further cost reductions in the communication and IT sector. AT&T will deliver one seamless network, with standard network services, pro-active monitoring and network management. This will facilitate the ready introduction of global remote access services for Heidelberg employees worldwide, supported by a global helpdesk for network services. Heidelberg made the decision to appoint AT&T post the development of its new strategic plan, “Heidelberg Global Network” which defined demands on networking capabilities based on future business developments and processes. Over the last years, the group has made enormous investments in enterprise resource planning, supply chain management, and customer relationship management systems. It therefore recognised the need for a new, highly-flexible, networking solution which would enable it rapidly to introduce new applications, connect new sites and have immediate access to additional bandwidth. As part of the new arrangement, Heidelberg will cooperate with AT&T Labs on future developments, ranging from new e-commerce services to web based remote maintenance applications. According to Dr. Herbert Meyer, Heidelberg’s CFO, “We recognise that if we are to maintain our global leadership in our industry, we need to grasp opportunities for change and innovation ahead of our competitors. This new network solution enables us to introduce new innovative networking technologies and cost effective management processes while reducing our budget spent considerably. We chose AT&T as a networking partner as it is able to provide us with a global network that can deliver optimal performance for a wide mix of enterprise applications.” Michael Neff, CIO of Heidelberg commented “Heidelberg looked for a networking partner with “Thought Leadership” expertise, capable of contributing to the evaluation of new e-business opportunities. It also clearly has the resources to help us realise such projects. We have entrusted our operations to a stable carrier with a network capable of providing us with consistent performance and reliability.” Jon Stretch, VP AT&T EMEA, "Today’s most critical business applications ride on networking. In this environment networking is not a commodity, it is a source of competitive advantage. We are proud to help Heidelberg maintaining and extending its leadership position in its industry. This is an exciting announcement for AT&T because it demonstrates that European companies trust in AT&T as a truly global service provider."