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EXCITE@HOME TO REDO DEAL WITH AT&T

Published on .

(June 8, 2001) -- Broadband company Excite@Home announced it will "negotiate a simpler transaction" with AT&T Corp. to outsource its engineering and operations services and restructure an agreement made in April.

Instead, the two companies will develop and design an enhanced network performance plan. As part of the deal to be negotiated, AT&T would provide consulting and support services on "commercially reasonable, arms-length terms." AT&T would assist Excite@Home in implementing an updated network plan to augment performance levels in the company's network, instead of the outsourcing arrangement of the previous agreement.

In addition, both parties will continue to negotiate separately a restructured agreement that would provide Excite@Home at least $75 million. -- Adrienne Mand

Copyright June 2001, Crain Communications Inc.

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