BASKING RIDGE, N.J. -- Telework productivity at AT&T has increased roughly 10 percent in the past year, with employees typically gaining a full hour a day, according to AT&T's eighth annual telework survey of 1,500 employees.

However, the top barrier to telework continues to be a lack of high-speed data access to the home.

Over the last four years, about half of AT&T managers have worked from home at least once a month, about one-quarter at least once a week, and about 10 percent in a full-time "virtual office." About 70 percent of those surveyed cited increased productivity due to teleworking.

This increased productivity is valued at $65 million annually. When real estate and job retention savings are included, AT&T saves more than $100 million every year due to telework.

"Telework is a growing trend that's providing real value to AT&T," said Braden Allenby, Environment, Health & Safety vice president. "This year alone, we have several large units within the company that are moving to a full-time virtual office structure. Telework also has benefits to the environment. In 2001, AT&T teleworkers avoided driving 100 million miles, saving 5 million gallons of gasoline and preventing many thousands of tons of air pollutants."

However, the number of employees who work from home occasionally (less than one day a week) is shrinking because of lost productivity. Thirty six percent of those who stopped teleworking in the last year said they were less productive at home because of a lack of technology.

In fact, five of the top six reasons cited by office employees for not working from home relate to the need for speed. Typically, a teleworker who has a company-paid data line works twice as many days at home per month as one who doesn't. And those who have a high-speed, company-paid connection reported gaining about one additional productive work hour each day spent working from home.

As a result, hundreds of employees are moving out of traditional offices and working primarily or exclusively from their home offices.

Other benefits of telework include the ability to still conduct business in the event of a natural or man-made disaster. The survey also found that:
-82 percent of teleworkers said that balancing work and family responsibilities was a significant advantage of telework;
-About 70 percent of teleworkers are more satisfied with their current job and their personal and family lives; and
-56 percent of teleworkers who received competing job offers said that they factored telework into their decision to accept or reject the offer.

The full text of the 2001/2002 AT&T employee telework survey is available at http://www.att.com/telework .

About AT&T

AT&T is among the world's premier voice, video and data communications companies, serving consumers, businesses and government. Backed by the research and development capabilities of AT&T Labs, the company runs the largest, most sophisticated communications network and is the largest cable operator in the U.S. The company is a leading supplier of data, Internet and managed services for the public and private sectors, and offers outsourcing, consulting and networking-integration to large businesses and government. Serving nearly 60 million consumers, AT&T is a market leader in consumer communications services and operates AT&T WorldNet® Service, a leading Internet access service that has garnered several awards for outstanding performance and customer service.

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