BOSTON  -- Northeast Utilities (NYSE:  NU) today announced it has awarded AT&T a multi-million dollar, three-year contract to provide voice and data services over an integrated network.  The move facilitates Northeast Utilities goals to provide its operating subsidiaries with greater efficiency, reduced communications costs and consolidating network services and platforms utilizing Northeast Utilities' existing tandem infrastructure and AT&T's fiber network.

The new contract provides integrated Internet, long distance, local service, call center features, local fiber, microwave, data services and PRI T1.5 services in a comprehensive business communications network for New England's largest utility system.

The commitment between the two companies applies AT&T's unique network design, coupled with a bundled concept strategy to effectively consolidate Northeast Utilities call center operations and platforms onto a regional foundation; enables lower costs per minute while optimizing staff, systems and site facilities; and results in operating efficiencies in the management and maintenance of Northeast Utilities' network infrastructure and improved access to customer service in both daily and emergency communication situations.

"This cost effective business solution provides an enhanced secure and reliable voice and data communications network," said John A. Kosciuk, IT-Networking & Communications Systems of Northeast Utilities.  "At each step of the process, AT&T was able to deliver the business and technical expertise requested to enhance our existing network and enable us to evolve our infrastructure toward the future deployment of new services as they are required."

"We are very pleased to continue our relationship with Northeast Utilities under this new agreement, "said Rick Freidel, vice president, AT&T business.  "By viewing their challenges as our own, we have been able to effectively leverage the breadth of AT&T's portfolio of services to uniquely address their business needs."

AT&T will integrate Northeast Utilities' services through its industry-leading AT&T Business Network (ABN) offer, which unifies multiple communications services into a single contract, with a single bill and provides discounts across all services. In addition, through the award-winning secure AT&T BusinessDirect® portal, Northeast Utilities gains online access to tools that provide near-real-time reports on network performance and direct access to AT&T's ordering, status, inventory and trouble management and billing systems.

About Northeast Utilities

Northeast Utilities (NYSE: NU) is a Fortune 500 diversified energy company located in Connecticut with operations throughout the Northeast.  Through its competitive and regulated subsidiaries, NU provides Energy for a Changing World, with a full range of energy products and services to millions of residential and business customers from Maine to Maryland.  From delivering electricity and natural gas, to marketing energy commodities, to operating and maintaining power plant facilities, NU is committed to safety, reliability and expanding consumers' energy options. For more information on Northeast Utilities and its subsidiaries, visit the NU family of Web sites at www.nu.com.