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                                                                    EXHIBIT 99.1


[TCI LETTERHEAD]                                                     [AT&T LOGO]

NEWS RELEASE
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For Further Information:




Adele Ambrose, AT&T                                    Eileen Connolly, AT&T
908-221-6900/office                                    908-221-6731/office
888-602-5420/pager                                     888-602-5417/pager

LaRae Marsik/TCI                                       Katina Vlahadamis/TCI
303-267-5277/office                                    303-267-5659/office
888-788-1282/pager                                     800-209-5011/pager

                              AT&T AND TCI TO MERGE

 AT&T TO CREATE SEPARATELY TRADED UNIT TO PROVIDE CONSUMER COMMUNICATIONS
                           AND ENTERTAINMENT SERVICES

               AT&T'S SECOND QUARTER EARNINGS TO EXCEED ESTIMATES

FOR RELEASE WEDNESDAY, JUNE 24, 1998

         NEW YORK -- AT&T announced today that it has signed a definitive merger
agreement with Tele-Communications, Inc. (TCI) for an all-stock transaction
valued at approximately $48 billion. Under the agreement, AT&T will issue 0.7757
shares of AT&T common stock for each share of TCI Group Series A stock and
0.8533 shares of AT&T for each share of TCI Group Series B stock.

         Immediately following the merger, AT&T will combine its current
consumer long distance, wireless and Internet services units with TCI's cable,
telecommunications, and high-speed Internet businesses to create a new
subsidiary - AT&T Consumer Services. The company will trade as a "letter" or
"tracking stock" on the New York Stock Exchange and have a significant public
ownership. AT&T will also issue separate tracking stock to holders of TCI's
programming arm, Liberty Media Group, to continue the holders' interests in the
assets now represented by those shares.

         Separately, AT&T announced that its second quarter earnings would 
exceed analyst estimates of 80 cents to 82 cents per share by 8 cents to 10 
cents due to earlier

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and better than expected benefits from its on-going cost reduction efforts. The
company anticipates 1998 earnings of $3.35 to $3.45 per share, adjusted for the 
effects of the company's pending merger with TCG.

AT&T Consumer Services

         AT&T Consumer Services will provide the broadest set of consumer
communications services -- including local, long distance, wireless and
international communications, cable television, dial-up and high-speed Internet
access services -- all under the AT&T brand name.

         AT&T Consumer Services will own and operate the nation's most
extensive, broadband local network platform. Following the merger, the new unit
intends to significantly accelerate the upgrading of its cable infrastructure,
enabling it to begin providing digital telephony and data services to consumers
by the end of 1999, in addition to digital video services.

         "Today we are beginning to answer a big part of the question about how
we will provide local service to U.S. consumers," said C. Michael Armstrong,
chairman and CEO of AT&T.
        
         "We are merging with TCI not only for what it is but for what we can
become together," Armstrong explained. "Through its own systems and in
partnership with affiliates, AT&T Consumer Services will bring to people's homes
the first fully integrated package of communications, electronic commerce and
video entertainment services. And it will do it with the quality and reliability
that people have come to expect from AT&T."

         "This merger is a tremendous growth opportunity for TCI's shareowners
and employees," said John C. Malone, chairman and CEO of TCI. "As TCI continues
the large-scale deployment of advanced digital set-top devices, AT&T's
extraordinary brand and resources are ideal complements to TCI's broadband cable
distribution and operations. AT&T Consumer Services will offer consumers a wide
variety of entertainment, information and communications products, which
thoughtfully address personal tastes, needs, choice and convenience."

         John D. Zeglis, currently president of AT&T, will be chairman and CEO
of AT&T Consumer Services and will remain on the AT&T Board of Directors. Leo J.
Hindery, Jr., currently president of TCI, will be the new unit's president and
chief operating officer. Malone has agreed to become a member of the AT&T Board
of Directors.

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         AT&T Consumer Services will provide its services to consumers through a
combination of its own broadband networks and services it will procure from
others, including AT&T. The new unit will include all of the cable television
systems AT&T is acquiring in the merger with TCI, as well as AT&T's fixed
wireless technology and related spectrum rights covering more than 90 percent of
the nation. When the merger and pending TCI cable system transactions are
complete, AT&T Consumer Services' wholly owned and affiliated cable systems will
pass 33 million homes.

         In addition to these physical assets, AT&T Consumer Services will also
include all elements of AT&T's existing consumer businesses, except network
operations that it will procure from its parent. AT&T's consumer businesses
include the nation's leading long distance services, with annual revenues of
approximately $23 billion, and the most broadly available wireless services,
with annual revenues greater than $3 billion.

         AT&T's consumer businesses include WorldNet, one of the industry's
leading dial-up Internet access services. Through the acquisition of TCI, AT&T
Consumer Services will also hold a controlling interest in the @Home Network,
the leading provider of high-speed Internet access and content services. @Home
currently has affiliate agreements with TCI and several major cable companies
that collectively pass more than 50 million homes.

         On a pro forma basis, before considering synergies, the company
projects that AT&T Consumer Services could have 1999 revenue of approximately
$33 billion and earnings before interest, taxes, depreciation and amortization
(EBITDA) of approximately $7 billion to $7.5 billion. AT&T and TCI anticipate
their merger will result in increased revenue and lower costs, producing
synergies of approximately $2 billion per year beginning three years after the
merger closes. For example, the merger is expected to improve TCI's cable
service penetration and improve customer retention for AT&T's consumer long
distance service. It will also help reduce the charges AT&T pays to local
telephone companies to handle long distance calls and allow both companies to
reduce their respective customer care, billing and advertising expenses.

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Business Communications and Wholesale Networking Services

AT&T itself will remain the world leader in business communications services and
become the leader in wholesale networking services. On a pro forma basis, the
company projects its 1999 revenues from those businesses could exceed $29
billion and its EBITDA could reach approximately $12 billion. AT&T will continue
to provide global communications, outsourcing and systems integration services
to more than 15 million businesses and institutions. It will own and operate the
world's most extensive and advanced communications network, the nation's largest
wireless infrastructure, and, following the pending acquisition of TCG, a local
access network reaching more than 250 cities from coast to coast.

         "AT&T is now better positioned for growth," said Armstrong. "When this
transaction is completed, AT&T will be the undisputed leader in three of the
fastest growing segments of the communications services industry consumer,
business and wholesale networking services."

         Neither AT&T nor TCI anticipates any significant downsizing to result
from the merger. Most AT&T and TCI employees will follow their jobs, and both
companies have established senior management teams to ensure a smooth
transition. In fact, both companies expect the merger and the creation of AT&T
Consumer Services to accelerate their growth, significantly enhancing career
opportunities for all employees involved.

         AT&T and TCI said that they expect the merger, which is contingent on
regulatory and other approvals, to be tax-free to their respective shareholders
and to close in the first half of 1999.

EDITOR'S NOTE: NEWS CONFERENCE - AT&T will hold a news conference at NOON EDT
today at its world headquarters at 32 Avenue of the Americas in New York City.
AT&T Chairman C. Michael Armstrong and TCI Chairman John C. Malone will co-host
the news conference. Reporters who cannot attend can participate by calling in
prior to noontime at 1-800-553-0351 in the U.S. or 1-612-332-1020 elsewhere. A
replay of the news conference will be available for 48 hours starting at 4:00
p.m. EDT today at 1-800-248-7600 in the U.S. or 1-402-496-9635 elsewhere.

ANALYST CALL - Reporters can LISTEN ONLY to a briefing for analysts at 9:00 a.m.
EDT today. The briefing will feature Armstrong and Malone as well as AT&T's
chief financial officer, Daniel E. Somers. Leaders of the proposed new AT&T
Consumer Services - John D. Zeglis, chairman and CEO, and Leo J. Hindery, Jr.,
president and COO - will also participate. Reporters in the U.S. can call
1-800-553-0272 or 1-612-332-1210 elsewhere.

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SATELLITE COORDINATES - A satellite feed of the news conference is available at
the following coordinates: Ku band satellite TELSTAR 5, transponder 11. Downlink
polarity, vertical; downlink frequency, 11929 Mhz; location, 97 degrees west.

         The foregoing are forward looking statements within the meaning of the
Securities Act, including statements concerning future operating performance,
AT&T's share of new and existing markets, and AT&T's revenue and earnings growth
rates. Such forward looking statements, which are not a guarantee of
performance, are subject to a number of uncertainties and other factors, that
could cause actual results to differ materially from such statements, including
the ability to realize potential synergies and integrate operations; competitive
pressures, including the timing and level of RBOC entry into long distance; and
the success and market acceptance of new products and services. For a more
detailed description of the factors that could cause such a difference, please
see AT&T's filings with the Securities and Exchange Commission. AT&T disclaims
any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

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