ATT <T> FORMS COMPUTER SALES GROUPS
American Telephone and Telegraph Co
said it formed a 600-member sales force dedicated exclusively
to its computers and other data systems products.
    Separately, ATT denied reports that it plans to buy back a
large chunk of its stock. ATT's stock was up 1/4 points at
25-1/8 in heavy trading.
    The company said it also created a separate 600-member team
that will educate the computer sales force and its other sales
groups on ATT's computer products. This group, ATT said,
reports directly to Vittorio Cassoni, senior vice president of
its computer unit, called the Data Systems division.
    Cassoni, speaking at a news conference at which ATT
unveiled its most powerful mid-range computer, said the sales
groups will provide a "sharper focus" to ATT's computer
marketing efforts.
    The executive, hired from Olivetti to bolster ATT's
unsuccessful campaign to become a major vendor of computer
gear, also said the company is committed to its 3B line of
mid-range computers. He said ATT backed the 3B line despite
widespread criticism throughout the industry that it is
inferior to mid-range systems made by International Business
Machines Corp <IBM>, Digital Equipment Corp <DEC> and others.
    Cassoni, however, said ATT would strenghten the 3B line
within the next three or four months. He said ATT will offer
new, more powerful mid-range computers that will protect the
investments of existing 3B users in ATT hardware and software.
    In justifying the company's commitment to the 3B line,
which was originally developed for internal use by ATT and its
former Bell telephone company units, Cassoni pointed to several
recent sales that he said proved the mid-range line's
commercial viability.
    One example he provided was a recent 34 mln dlr deal ATT
signed with the United States Postal Service.
    Cassoni also said ATT will announce a new personal computer
based on the powerful 80386 microprocessor from Intel Corp
<INTC>.
   Compaq Computer Corp <CPQ> is already selling a 386-based PC
and IBM is widely expected to announce a 386 machine sometime
this year.
   Cassoni said the Data Systems division is unprofitable and
that it will take "a couple of years" for the division to meet
its goal of making a "substantial contribution to ATT's
earnings stream." But, he added, the division is "approaching"
the point where it can start making money.
    Cassoni said the new products introduced today are "a very
significant step to foster our efforts in the computer
business."
    Among the new offerings is the 3B2/600 minicomputer, which
ATT said can provide up to four times the processing power of
the 3B2/400, previously its biggest computer.
    But with a top speed of 4.0 mips, or million instructions
per second, the top-of-line 3B cannot match the computing power
of rival systems from IBM and DEC.
 Reuter
