Press Release - August 21, 2007

AT&T Government Solutions Awarded $22 Million by The United States Postal Service For Enterprise VPN Network Services

VIENNA, Va., Aug. 21 /PRNewswire-FirstCall/ -- AT&T Inc. (NYSE: T) has announced that AT&T Government Solutions has been awarded up to $22 million under the Postal Advanced Telecommunications Network (PATN) contract. AT&T will upgrade 1,800 United States Postal Service (USPS) facilities with its Enhanced Virtual Private Network (EVPN) service.

The project will increase the total number of AT&T-managed EVPN sites to more than 5,500. The EVPN service provides seamless, integrated high speed connectivity to support next-generation applications across the USPS nationwide network. The period of performance is up to three years.

"AT&T is delighted in the U.S. Postal Service's continued trust in our proven ability to deliver our industry-leading VPN services, which help the Postal Service meet its business objectives," said Don Herring, senior vice president, AT&T Government Solutions. "With our proven track record for large implementations, AT&T has the expertise to help the U.S. Postal Service reduce costs and achieve better network efficiencies. In addition, our AT&T VPN platform also provides the U.S. Postal Service with the opportunity to leverage AT&T's other core services, such as VoIP, security and disaster recovery."

AT&T will provide Managed Services, which include engineering and design, on-site installation and proactive network management and reporting. AT&T's global Multiprotocol Label Switching (MPLS)-enabled network will serve as the platform for this VPN solution.

The USPS is one of many federal agencies facing increased traffic demands from the widespread deployment of next-generation application deployments across their organizations. EVPN solutions are a robust, scalable and cost-effective way to address federal agencies' growing bandwidth demands while increasing overall network performance.

In 2006, AT&T upgraded more than 3,000 fully managed EVPN sites as part of a widespread USPS-Enterprise Site Upgrade initiative.

# # #

Note: This AT&T release and other news announcements are available as part of an RSS feed at www.att.com/rss.

AT&T Government Solutions, headquartered in Vienna, Va., is a long-standing, trusted source of information technology solutions for the federal government, integrating unmatched network resources and professional services expertise with innovative technologies from AT&T Labs and industry-leading partners. Best known for network leadership in voice, data, video and managed services, AT&T Government Solutions is a proven solutions integrator, with professional services expertise in areas such as business transformation, knowledge management, training, program management, systems engineering and security.

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. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

©2007 AT&T Knowledge Ventures. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Knowledge Ventures. For more information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom.