Press Release

Arvato to Use AT&T Network to Support Global Call Centers Located in Argentina and Canada

AT&T and arvato services sign agreement to optimize global telemarketing services provided from Argentina and Canada

San Antonio, Texas, October 19, 2006

Gütersloh, Germany - AT&T Inc. (NYSE: T) today announced a networking contract with arvato services — a division of the media and communication services provider arvato AG, part of Bertelsmann AG — to support arvato's call centers in Argentina and Canada. AT&T will provide an Internet Protocol Virtual Private Network that will enable arvato to rapidly provide services to affiliated companies in the arvato group, delivering telemarketing services to Spanish and English-speaking markets around the world.

The network services from AT&T will allow arvato to further expand their already large client base of banks, insurance companies, airlines, technology firms and automotive companies. The benefits to arvato will include shorter deployment times, lower installation costs and easier access to a pool of highly-efficient and knowledgeable agents.

"The strategy behind the project is quite simple", said Andreas Jung, Global Director IT for arvato services, "arvato is bringing together the growing demand for telemarketing services in Spanish and in English from its customers around the world, with the top talent and service attitude available from arvato agents in Argentina and in Canada. And is doing so through the reliable and cost efficient network services of AT&T".

Earlier this year AT&T announced the global availability of solutions to manage one of the most significant technology evolutions customers face — the migration to Voice over IP telephony. Services provided by AT&T include network design and management expertise to deliver end-to-end managed solutions from the wide area network to the IP phone on the desktop.

"With this contract, our company is seeking to get the support of AT&T's global network, which is known for its high quality technology and global reach, since we want to ensure a reliable, efficient service with optimal availability and responsiveness 24x7," said Andreas Jung.

About arvato
With more than 270 subsidiaries worldwide, arvato is one of the biggest internationally networked media and communication service providers. In fiscal 2005, the group of companies that is part of Bertelsmann AG generated sales of € 4.37 bn. arvato's worldwide subsidiaries employ more than 45,000 people. arvato AG comprises the divisions arvato print (numerous printers in Europe and America), arvato services (e.g. customer loyalty systems, service center services, logistics/supply chain management), arvato storage media (e.g. production of CD-ROMs, DVDs and audio CDs) and arvato systems (international provider of qualified and customized IT services) as well as empolis, a leading provider of company-wide content and knowledge management solutions, and the mobile entertainment provider arvato mobile. Further information on arvato AG is available on the Internet at www.arvato.com.

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.

© 2006 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.

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