AT&T OPENS FIRST CANADIAN INTERNET DATA CENTRE AND THIRD METRO NEW YORK REGION FACILITY TO EXTEND FULLY MANAGED SUITE OF SERVICES

Demand drives expansion at a further six Data Centres In the U.S. and around the world

TORONTO, October 30, 2007 - AT&T Inc. (NYSE:T) today said the addition of two new AT&T Internet data centres in Toronto, Canada and Piscataway, N.J., are part of its year-long expansion of its global data centre footprint that includes the addition of more space at six existing centres in the U.S. and around the world. AT&T has been steadily adding more space to selected data centres to help meet the growing global demand for application services, fully managed hosting, advanced monitoring, hosted storage, colocation and other services.

AT&T will offer hosting services at its Toronto based facility by the end of 2007. The opening of this data centre will ensure that the local operations of multi-national corporations which are AT&T customers within Canada have the same quality of service and availability of value-added services as their international counterparts already utilize.

The Piscataway data centre, which officially opened this month, became the third AT&T data centre serving customers in the metropolitan New York City market, joining centres in Manhattan and Secaucus, N.J. Part of the company's $750 million investment in its international infrastructure announced earlier this year, these additions will bring the total number of AT&T global Internet data centres to 38. Beyond these openings, in the U.S., AT&T is adding more space to data centres in Mesa, Ariz.; Irvine, Calif.; and Ashburn, Va. and globally, AT&T has added to its data centres in London, Amsterdam and Singapore which cumulatively broadens its total global footprint of hosting space to exceed 2.1 million square feet.

"We continue to invest in growing our business to support customers and to meet the demands of the multi-national corporations we serve, for managed and application services," said David Denault, president and general manager for AT&T in Canada. "The addition of our new facility means that organizations operating on a global scale from within Canada are now supported for both integrated hosting and network solutions, allowing them to focus on running their business."

The first of the 2007 centre expansions was completed in January with additions to the facility in Ashburn and other expansions have been occurring throughout the year. All expansions will be completed by January 2008, and AT&T expects to announce other managed service enhancements and data centre expansions during the coming year.

AT&T launched its data centre growth project to meet the unprecedented demand for its managed hosting and application management services. The additional data centre capacity will help AT&T accommodate growth from existing hosting customers and improve its ability to provide value-added services for current and new customers. AT&T offers capabilities designed to deliver greater efficiencies for hosting customers through the use of technologies such as server virtualization, application acceleration and patent-pending visual monitoring tools, all of which are integrated with AT&T's network services. These and other services allow AT&T to deliver hosted solutions that range from monitoring and managing infrastructure components all the way through full application lifecycle. In addition, AT&T provides remote monitoring and management of IT infrastructure located at customer sites.

AT&T is on track to see double-digit growth in its hosting business for three consecutive years. This growth also was the catalyst for the acquisition in October 2006 of application service provider USi as a way to complement AT&T's existing managed services capabilities and to pave the way for the company to drive more deeply into the applications management space with new offers for businesses of all sizes. Today AT&T offers clients managed applications services around offerings such as: human resources and financial management systems, eCommerce development and hosting, spend management and procurement, and enterprise messaging. AT&T's application management services allow clients to realize higher returns on their technology and applications investment, while also improving the performance of their packaged and custom applications.

AT&T is one of the leading global hosting services providers. The new and expanded data centres will further help AT&T position itself to remain a leading force in the global hosting services market, which the research firm IDC predicts will grow from $8.2 billion in 2006 to $16.3 billion in 2011¹.

"The increased volume of Internet-based content, digital content and transactions, along with the continuing trend to data centre consolidation, have given the hosting industry a rebirth of sorts in the last two years," said Melanie Posey of the research firm IDC. "This has fueled significant demand for the type of experience with performance optimization and technology solutions that most businesses don't possess. As a result, more companies are turning to hosting service providers to get the increased flexibility, service functionality and support to help them implement hosted platforms to scale their Web site and application infrastructure, while keeping costs under control."

AT&T designs its data centres to exceed the most stringent industry standards that include multiple active power and cooling distribution paths, redundant components and fault-tolerant design to provide the highest reliability.

What's more, AT&T data centres use the capabilities of the AT&T global network to offer a rich portfolio of hosting solutions with unparalleled network performance and features. Those features provide greater agility when making real-time changes to IT environments, more control to extend applications to the customer's premise or to other data centres, and security capabilities such as denial of service prevention, hosted firewall, intrusion detection and anti-virus options all based in the network.

AT&T designs its data centres practices and controls with redundancy and reliability in mind and are audited under SAS 70 Type II.

For more information on AT&T's Enterprise Hosting Services, visit http://www.att.com/hosting.

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^1. 'U.S. Web Hosting Services 2007-2011 Forecast," IDC #206858, May 2007