Press Release - July 23, 2008

AT&T Global Business Services Unit Caps Second Quarter With Strategic Announcements, Enhancements to Core Services

DALLAS, July 23, 2008 — The rollout of AT&T Digital Media SolutionsSM portfolio of content distribution services and a global agreement with Cisco to provide an industry-first, fully managed intercompany Cisco® TelePresence solution for multinational customers capped a series of second-quarter 2008 achievements for the Global Business Solutions (GBS) unit of AT&T Inc. (NYSE:T).

AT&T’s Digital Media Solutions portfolio includes content distribution and management, broadcast video and digital signage services and solutions that are targeted to companies ranging from businesses with multiple small-office locations to the most sophisticated multinational companies in industries that include media, financial, education, medical, manufacturing and retail.

Built upon Cisco TelePresence, the AT&T Telepresence Solution provides business customers with High-Definition video conferencing systems that are a viable alternative to traditional face-to-face meetings. Businesses can improve collaboration among partners, suppliers and customers, accelerate productivity and achieve substantial cost savings through reduced travel.

Following the close of the quarter, Oracle was among the first business customers to deploy iPhone 3G, which went on sale July 11 and includes business-class wireless data features, and e-mail.

These announcements and others made by the business unit underscored AT&T’s industry leadership and commitment to delivering intelligent and secure networking, application-enabling platforms, business solution expertise and a world-class customer experience. The announcements also represent significant milestones in the company’s yearlong deployment of nearly $1 billion in network infrastructure upgrades designed to deliver IP-enabled services and solutions for businesses with operations in key markets worldwide.

Over the past two years, AT&T has delivered a major turnaround in enterprise growth rates, and in the second quarter results were highlighted by an 18.4 percent increase in enterprise IP data revenues, including areas such as Virtual Private Networks (VPN), managed Internet services and hosting. Enterprise fundamentals in terms of closed sales, a strong sales funnel and new service adoption remain solid. AT&T expects to deliver positive growth in total enterprise revenues for the full year 2008.

The business unit also announced significant contract wins in the quarter highlighted by a Government Solutions agreement worth $37.5 million to build a single global network for the National Polar-Orbiting Operational Environmental Satellite System. Other key sales include a global hosting service agreement with Hyatt Hotels and Resorts™, a three-year, networking services contract worth more than $3 million with Meredith Corporation to deliver managed Internet services and content distribution services, and a three-year, $4.3 million win with PepsiAmericas to enable its global operations with expanded VPN locations in the U.S., Hungary and Romania.

Following up its announcement earlier this year that it will serve as a primary SAP® hosting partner for business customers in North America, AT&T completed agreements to manage SAP enterprise applications for American Wood Moulding and MEI ― one of the world's leading manufacturers of electronic bill acceptors and coin mechanisms.

AT&T GBS also made news during the quarter by releasing the results of its annual study on business continuity and disaster recovery preparedness for U.S. businesses. This year’s survey revealed that one in five U.S. businesses does not have a business continuity plan in place. And AT&T’s BusinessDirect ® customer portal also was in the news as it was named the top telecom carrier Customer Web Portal for the fourth consecutive year in a study conducted by The Yankee Group1.

AT&T’s GBS unit serves the company’s enterprise and wholesale customers globally, providing networking services and solutions to companies ranging from the largest multinationals to national and smaller, regionally based domestic companies, plus U.S. governmental agencies.

Enhancements to the Core Portfolio

During 2Q08, AT&T made the following updates to its core portfolio of services for business customers:

Customer Experience

  • Converged Wireless/Wireline Portal: AT&T enhanced its AT&T BusinessDirect customer portal to give business customers who have both AT&T Wireless and Wireline Services, a single Internet access point to all of their online business management tools.

    In another enhancement to the customer portal, AT&T’s Mobility Services have been integrated within AT&T BusinessDirect eBill, allowing business customers that qualify to get a single, easy-to-read online bill for their AT&T Wireless and Wireline services.

Enterprise Mobility

  • Remote Access: AT&T’s Global Network Client Version 7.3 has enhanced support for roaming connections to a Virtual Private Network (VPN), including a persistent connection capability that automatically re-establishes network connectivity with minimal user interaction, as well as a VPN mobility capability where users can connect from a wired connection and move to their associated Wi-Fi connection.

VPN Enhancements

  • VPN Expansion: The AT&T VPN portfolio now offers clients six Classes of Service, which enhances the ability of customers to control the use of their bandwidth. AT&T also expanded its VPN global footprint to include 143 countries, and VPN access via Ethernet connections to 32 countries.

Voice Over IP

  • Global Resale Agreement With Avaya: This expanded agreement extends the reach of AT&T’s equipment services including Avaya equipment, installation and Day Two services to cover 47 countries globally, providing customers with a single source for Avaya-based unified communications and contact center solutions.
  • AT&T Business VoIP Usage-Based Billing Availability: Usage-based billing is now available with AT&T Business VoIP Service including AT&T Voice DNA, AT&T IP Flexible Reach and AT&T IP Toll Free. Usage-based billing provides price savings to customers who need bandwidths above a DS-1 circuit but can’t justify the full capability of a DS-3 circuit. Customers can specify a minimum committed rate with the ability to burst to the full DS-3 bandwidth as needed.
  • Equipment Certification With AT&T IP Flexible Reach: Two manufacturers have had their switches and telephone equipment certified with AT&T IP Flexible Reach, AT&T's premises-based Voice over IP solution:
    • ShoreTel®ShoreGear® Voice Switches and ShorePhone™ IP Telephones. ShoreGear voice switches and ShorePhone IP telephones deliver reliable unified communications across multiple enterprise locations, enabling organizations of any size to easily integrate all communications ― including voice, data, messaging and video ― with business processes.
    • The Toshiba Strata CIX family of IP business communication systems from Toshiba America Information Systems Inc. Telecommunication Systems Division. The combination of Toshiba voice communications systems and AT&T’s IP Flexible Reach service is now available from the network of Authorized Toshiba Dealers nationwide.

Traditional Voice

  • AT&T Business Network (ABN) Loyalty Pricing: AT&T introduced an improved AT&T Business Network long distance pricing structure effective July 1, 2008. Under this new pricing method customer get preferred rates for calls made using AT&T owned facilities and calls made to AT&T business mobile devices. This simplified pricing, which is now a standard part of ABN, makes it a more attractive offer for business customers nationwide.
  • AT&T NetPROTECT Expansion: AT&T has expanded our NetPROTECT service to include all eligible business customers who subscribe to AT&T voice services. This service provides increased fraud liability protection and a consistent customer experience for toll fraud monitoring and private branch exchange (PBX) dispute processing throughout our entire domestic network.

GBS Second-Quarter 2008 Highlights:

During the second quarter 2008, the GBS business unit issued these press releases:

AT&T Announces New Digital Media Solutions Portfolio to Deliver and Manage Multimedia Content for Businesses Worldwide (June 24)
Agreements Struck With ExtendMedia, Qumu and Stratacache to Deliver Rich Video, Web Content
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25853

AT&T First Service Provider to Deliver Intercompany Cisco Telepresence for Businesses around the World (April 21)
Fully Managed AT&T Telepresence Solution Enables New Way to Collaborate and Drive Business Productivity
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25523

AT&T to Offer Next-Generation iPhone on Its High-Performance 3G Network (June 9)
Broadband Speed and New Capabilities Enhance Iconic Mobile Device; $199 Starting Price Significantly Expands Mass Market Appeal; New Corporate E-Mail and Web Applications Move iPhone Further Into Business Market
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25791

Other GBS Announcements

AT&T Launches College Mobile Applications Developer Contest (April 1)
'Big Mobile on Campus Challenge' to Award $10,000 Scholarship to Winner
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25415

AT&T Launches New Services to Help Wholesale Customers Meet Increased Demand (April 2)
Offers Include VoIP With Ethernet Access and eMaintenance
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25422

AT&T Positioned In the Leaders Quadrant in Magic Quadrant for U.S. Network Service Providers, 1H08 (April 3)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25427

AT&T Positioned by Analyst Firm in 2008 Leaders Quadrant for Web Hosting Services (April 14)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25481

AT&T Recognized by Nemertes with a 2008 Nemertes Pilothouse Award (April 15)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25505

AT&T Appoints New Vice President for Germany and Central Europe (April 16)
Joachim Kathmann Appointed as Vice President for AT&T Germany, Austria, Switzerland and Eastern Europe
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25607

PepsiAmericas Awards $4.3 Million Networking Services Contract to AT&T (April 16)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25479

AT&T Expands Business Development Team in Asia Pacific (April 17)
Business Development Executive Appointed to Strengthen Sales and Support for Multinational Investments
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25614

AT&T Stands Ready, Helps Prepare Customers for Forecasted 'Active' Hurricane Season (May 5)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25616

AT&T and Pyxis Mobile Announce Exclusive Alliance to Deliver Mobile Applications to Financial Services Industry (May 7)
Companies to Extend Critical Business Data to AT&T Mobile Devices
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25646

MEI Migrates SAP Application to AT&T (May 14)
AT&T's Leading Application Services Capabilities Allow MEI to Manage Its Business in a Cost-Effective, Flexible Environment
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25694

AT&T Positioned in the Leaders Quadrant in Magic Quadrant for Managed and Professional Network Service Providers, North America (May 16)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25698

AT&T Offers Hyatt a Suite of Global Hosting and Managed Solutions (May 22)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25730

AT&T Launches the GPS-Enabled Blackberry Pearl 8110 Smartphone (May 23)
Built-In GPS Makes Navigation Easy With Maps and Audible Step-by-Step Directions
Perfect Handset for Small Businesses — Especially When Combined With New BusinessTalk Plans and BlackBerry Professional Software to Create Complete Voice and Data Solution
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25563

Gulf Finance House Signs Strategic Alliance with AT&T and NavLink (May 25)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25736AT&T

Study: One in Five U.S. Businesses Does Not Have a Business Continuity Plan in Place (June 2)
IT Execs: 'Hacking' Will Be Most Significant Threat to Cybersecurity in the Next Five Years
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25760

AT&T Launches Encryption Services to Help Businesses Secure E-Mail and Data (June 3)
AT&T Expands Managed Security Services Portfolio
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25761

Ramco Systems Delivers Software-As-A-Service via AT&T (June 4)
Enterprise Application Vendor Meets Midmarket Customer Needs by Presenting its Solution over the Internet, as a Service
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25783

AT&T Announces $37.5 Million Contract to Deploy Global Technology Solution for NPOESS (June 10)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25811

Meredith Corp. Boosts Bandwidth with AT&T (June 11)
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25814

AT&T BusinessDirect Leads the Pack in Analyst Firm's Review of Customer Portals (June 18)
AT&T Is the Only Carrier to Receive the Highest Measurement in All Areas Evaluated
www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25846

1 Source: Yankee Group Research, Inc., Fixed-Line Carrier Enterprise Portal Development Further Empowers the End User, June 2008.

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About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. In 2008, AT&T again ranked No. 1 on Fortune magazine’s World’s Most Admired Telecommunications Company list and No. 1 on America’s Most Admired Telecommunications Company list. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.

Cautionary Language Concerning Forward-Looking Statements
Information set forth in this press release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

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