Excite, AT&T Modify Agreement

REDWOOD CITY, Calif. — AT&T Corp. and Excite At Home, the high speed Internet-service provider that it controls, are in discussions to
simplify an arrangement announced in April.

Under the earlier agreement, AT&T was to provide Excite with $75 million to $85 million to allow it to restructure its backbone fiber-optic network and improve its network performance, and Excite agreed to outsource its engineering and operations services.

Excite said Friday that the companies have decided to negotiate a simpler transaction in which AT&T will provide consulting and support services on “commercially reasonable, arms-length terms.”