Reciprocal Compensation

Bellsouth Corp
10 July 2001


FOR MORE INFORMATION          

Jeff Battcher
[phone]


Bellsouth to Adjust Accrual for Reciprocal Compensation

ATLANTA - July 10, 2001 - Bellsouth Corporation (NYSE: BLS) stated today that it
is adjusting its accrual for prior claims from competitive local exchange
carriers regarding reciprocal compensation for ISP traffic. The adjustment
reflects the company's current estimate of its liability for these claims.

The Company indicated it would take a charge to earnings of approximately $90M
or five cents per share in the second quarter.


About Bellsouth Corporation

Bellsouth Corporation is a Fortune 100 communications services company
headquartered in Atlanta, GA, serving more than 45 million customers in the
United States and 16 other countries. Consistently recognized for customer
satisfaction, Bellsouth provides a full array of broadband data and e-commerce
solutions to business customers, including Web hosting and other Internet
services. In the residential market, Bellsouth offers DSL high-speed Internet
access, advanced voice features and other services. Bellsouth also provides
online and directory advertising services, including Bellsouth(R) Real Pages
(SM).com. Bellsouth owns 40 percent of Cingular Wireless, the nation's second
largest wireless company, which provides innovative wireless data and voice
services.


Safe Harbor

In addition to historical information, this document contains statements
regarding our beliefs, expectations, intentions or strategies for future events
and financial trends, which may be 'forward-looking statements' under the
Private Securities Litigation Reform Act of 1995. Factors that could affect
future results and could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include: (i) changes in
U.S. or foreign laws or regulations, or in their interpretation; (ii) the
outcome of pending litigation; and (iii) those factors contained in Bellsouth's
periodic filings with the SEC. The forward-looking information in this document
is given as of this date only, and Bellsouth assumes no duty to update this
information.