Press Release

AT&T Inaugurates New India Business Operation

Company to Serve Enterprise Market With Corporate Enterprise Telecommunications Services

San Antonio, Texas, November 6, 2006

Bangalore, India - AT&T Global Network Services India (AT&T India), a joint venture between AT&T Inc. (NYSE: T) and Mahindra Telecommunications Investment Private Ltd. announced the inauguration of its new business at a press conference today. AT&T recently became the first foreign telecom operator to secure a new telecommunications licence under the Indian government's revised policy on foreign direct investment (FDI) allowing up to 74 percent foreign ownership, which was enacted in November 2005.

"We were honoured to become the first foreign telecom operator in India to be granted a new business licence last month and excited to be here inaugurating our new business just three weeks later," said John Finnegan, senior vice president AT&T Global Sales.

"India is one of the fastest-growing and most exciting telecom markets in the world — it is where our key multinational customers have told us they need to be. While AT&T has already been operating a successful India business for more than six years in partnership with VSNL, this new telecom licence will enable us to further strengthen our commitment to our global customers wishing to operate here," he said. "We look forward to introducing an even broader range of advanced networking services and solutions more rapidly, and to fully integrating India into AT&T's global network that now serves 97 percent of the world's economy."

Speaking at the business inauguration event today, Virgil Palmer, chairman of the AT&T Asia Pacific Regional Advisory Council and head of Global IT Sourcing Management Office for international industrial gas giant Air Products and Chemicals, Inc. said that AT&T customers would benefit from greater simplicity and improved efficiency under the new arrangements.

"On behalf of the many large AT&T customers that I represent as chairman of the AT&T Asia Pacific Regional Advisory Council, we are extremely pleased that we can now work directly with AT&T. We are confident that it will lead to significant improvements in quality and reliability, as well as simplifying key areas such as negotiating, contracting and billing arrangements. India is a high-priority market for just about every global MNC. And I believe that this will be a major factor in helping to attract further foreign investment and expansion into India."

Noting AT&T's growing strength in the US and its expanding global presence, especially its unique position in serving the world's manufacturing and IT services centres, Mike Cansfield, research director of Ovum, the analyst and consulting company said, "This makes the new AT&T unique and this is big news for the ICT sector."

As part of the new business inauguration celebrations, AT&T is conducting a week-long roadshow with customer seminars and hospitality events in Bangalore, Hyderabad, Mumbai, Chennai and Delhi from November 6 to10, 2006. The company is also running an extensive advertising campaign to coincide with the launch.

AT&T has been investing in the AT&T Global Network since 2001 and now has access to MPLS-based IP services in 137 countries around the world. As well as obtaining telecommunications licenses in key countries such as India and China, in 2006 AT&T will have installed additional network nodes in Malaysia, Vietnam, Pakistan, Cyprus, Dubai and Saudi Arabia and new network interconnections giving greater access penetration in Vietnam, Russia, the Nordics, Brazil, Azerbaijan, Georgia, Kazakhstan and Uzbekistan.

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.

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