Y2K Program Update Contingency Planning

1. Y2K Program Update Contingency Planning

2. Contingency Planning Principles Create operations capabilities to maximize service availability • Protect critical functions necessary for service continuity • Implement pro-active measures to prevent outages • Plan for early detection and clear contingency activation • Partner with suppliers and compliance teams for planning and activation • Ensure flexible crisis management plan to handle multiple events

3. Contingency Planning: Approach Business Processes • Validate critical business priorities • Conduct risk assessments • Identify business resumption issues • Develop and test Y2K-specific contingency plans,as needed • Staff and train business resumption andcommand centerteams Sub-Processes Critical Business Deliverables Work Function Tolerance / Dependencies / Risk Process Infrastructure Components Y2K Compliance / Contingency Plans Work Center / Facility Applications Platforms Networks Suppliers Data

4. Contingency Planning Approach Business Needs Planning Assumptions • Analyze business impact and assessexisting/new contingencies • Develop, review and baseline: • Specific contingency plans • Flexible crisis management • Train teams and test plans • Communicate heavily to create awareness and ensure commitment • Maintain plans active through Y2K transition time frame • Execute rigorous project management on all phases above Assessment Plan Development Plan Maintenance State of Readiness

5. Contingency Planning: Timeline Criticalprocesses Importantprocesses Supportprocesses • Identified business processes / functions • Applied “triage” • critical processes • (necessary for the delivery of service) • important processes • (directly supports critical processes) • support processes • (administrative processes, i.e., time reporting) Initial plans developed January1999 Initial plans developed Plan revisions completed Initial plans developed Plan revisions completed Contingency plans tested and certified June 1999 Plan revisions completed Contingency plans tested and certified September 1999 Contingency plans tested and certified December 1999

6. Key Areas for Special Attention • Vendor and supplier problems: • Power failures, water/fuel supplies, equipment vendor assistance • Access and egress traffic conditions: • LECs, CLECs, PTTs and international gateways • Software “bugs” • Customer requests for assistance • Operations tools and communications deficiencies • Network management control monitoring • Personnel availability • Government regulations/requests

7. Communications, Command and Control EmergencyCommunications Information Management Command and Control Center Emergency Operations Centers Business Resumption Teams Ask Yourself Program Y2K Restricted Work Days

8. Emergency Communications Network Operations Center Field Centers • Multiple paths and technologies • Survivability to failures • Connectivity: centers and field • Clear procedures and contacts

9. Network command and control is activated and conducted by the Network Operations Center Network Control Centers and Technical Support Centers work together to assess and resolve condition Field reports and works on problem with support from Centers Centers have back-ups for survivability Technical Support Center NOC 2000 Field Network Command and Control Center Network Control Center

10. Network Emergency Operations Centers Logistic management under crisis mode • Activate EOCs during Y2K rollover • Coordinate processes and personnel to execute on contingencies • Manage field resource mobilization within a region to support plans • Interface with local suppliers, emergency agencies and authorities

11. Business Resumption Teams • Clearly defined roles for potential Y2K problems • Process resumption • Network service restoration • System recovery • Team and individual responsibilities/accountabilities identified • Trained, competent, specialized personnel ready to mobilize • On call • On site

12. Redundant Systems On-Duty Back-up Staff On-Site Subject Matter Experts Back-up Site Support Multiple Contingency Personnel Support Network Redundancies Modems Remote Access

13. Network Management Reroutes • Partner with overseas carriers to track warning signs • Monitor international gateways and facilities to activate contingencies • Deliver traffic to destination-country via available alternate outlets • Route traffic through third-country to bypass failures UK CHCG BW55 KSCY France HSTN ATLN

14. Vendor Support Goal Ensure vendors’ support and repair processes are consistent and available during Y2K issues Requirements set for: • Compliance status • On-site support • First right-of-refusal • Inventory availability

15. Communications Processes Intra-company, customers, industry partners Multiple paths and technologies Connectivity: centers and field Formalized procedures and contacts “Follow the Sun” Contingency Plans : Examples Network Management • State of alert: Monitor and act • Network Control Center backups • International country reroutes • Capacity & controls: Overload, congestion, corruption • Network capacity expansion Personnel Availability • Year-end vacation advisory • Pre-positioning of AT&T personnel • Agreements with vendors / contractors • Business resumption teams Infrastructure Dependencies Proactive staging for: • Power / fuel / water • Heating/ air conditioning/ ventilation • Alternate power supplies • Uninterruptible power supplies

16. Intimate Relationships International / Industry Readiness Interoperability Testing Contingency Planning Mergers / Acquisitions

17. AT&T Actions • Continue with interoperability testing to determine areas of concern • Share Y2K process, procedures, test plans / results and contingency plans • Use diverse traffic routing plans to circumvent trouble spots • Deploy alternative technology to bypass troubled wireline access • Engineer additional network capacity to absorb anticipated volume increases • Partner with customers to establish AT&T-based alternate access arrangements and other contingency plans

18. Demonstrate that AT&T is on target to be Y2K-compliant Deliver consistent message to external communities (customers, financial and industry analysts, media) Y2K Customer Support team as single point-of-contact for information Sales support tools Presentation package Customer discussion points Customer information package Internet Web site: http://www.att.com/year2000 Extensive customer interactions Active participation in government forums Y2K hotline: 1-877-Y2K4ATT Communications Strategies External Communications Internal Communications • Deliver consistent message • Increase AT&T associate awareness of Y2K issues and project framework • Engage participation and support • Instill sense of urgency • Y2K Communications Project Office as single point-of-contact for information • Intranet Web sites refreshed monthly • Y2K conferences/forums • Targeted communications via newsletters, TV monitor messages, etc.