AT&T and ADT Sign Co-Marketing Agreement; ADT Sales Force To Market AT&T Long Distance

BASKING RIDGE, N.J.--(BUSINESS WIRE)--March 4, 1997--AT&T and ADT (NYSE: ADT) today announced a joint marketing agreement in which ADT, the nation's largest provider of electronic security services, will market AT&T long distance services to ADT's current and new customers. This move is another step by AT&T to build alternative channels to expand and deepen its customer base. Under the agreement: - Consumers who sign up for AT&T residential long distance service under the AT&T/ADT program will get from ADT special offers and discounts on installations, upgrades, and monthly monitoring fees for security services. - AT&T's current residential customers will be eligible for special offers and discounts on ADT security services just because they are AT&T customers. These offers will be conveyed in targeted communications that AT&T sends directly to its customers, for example, the "True Rewards" member newsletter. - ADT will extend special offers and discounts to its business customers who are AT&T customers. In a reciprocal arrangement, AT&T salespeople will be able to refer their AT&T business customers to ADT for special ADT offers and discounts on security services. Financial terms of the agreement were not disclosed. "This joint marketing agreement enables AT&T to make it even more attractive for new residential customers to choose AT&T, and also gives our current customers more value and benefits," said Gail McGovern, Executive Vice President, Consumer Markets Division, AT&T. "When people purchase a security system, they want to deal with a company they can trust and have confidence in -- qualities we know they'll have with ADT," said McGovern. "This is another important initiative to bring our AT&T residential services to a consumer's doorstep. This agreement brings together two important home services -- communications and home protection -- for the convenience and benefit of consumers." This arrangement also represents a significant step in expanding ADT's channels of distribution. "The agreement combines two strong brand names and promises to be a highly efficient and very cost effective method of adding new customers for us," said Michael A. Ashcroft, Chairman and Chief Executive Officer, ADT. "We know the strength of the AT&T brand will help us bring unparalleled opportunities to our existing and future customers," said Ashcroft. ADT, through its subsidiaries, is the largest provider of electronic security services in North America and the United Kingdom, providing continuous monitoring of commercial and residential security systems to over 1.8 million customers in North America and Europe. With the most powerful network in the world, AT&T offers consumers communications and information services including long distance, wireless, online, home entertainment, and local, that can make their personal lives richer. For AT&T, today's announcement is the latest in a series of initiatives the company is undertaking to broaden its reach into the consumer market. Last November, AT&T and Shaklee Corporation, a leading direct marketing company, reached an agreement allowing potentially all of Shaklee's 500,000 independent distributors to market AT&T residential long distance services. Independent distributors began marketing services in January. CONTACT: AT&T Karyn Vaughn-Fritz, 908/221-7974 (office) kvaughn@attmail.com or ADT Angela Entwistle, 561/988-3600 COPYRIGHT 1997 Business Wire COPYRIGHT 2004 Gale Group