AT&T Establishes New Network for Winn-Dixie

Network Upgrade Will Ensure Scalability as the Leading Grocer Implements a New Business Plan

Jacksonville, Florida, July 30, 2007

AT&T Inc. (NYSE:T) has announced a three-year contract with Winn-Dixie Stores Inc. Under the agreement, AT&T will upgrade Winn Dixie's network to AT&T Virtual Private Network (VPN) services and will help Winn-Dixie, one of the nation's leading food retailers, implement a networking solution to support the rollout of new in-store applications.

Winn-Dixie will leverage AT&T's network services to operate stores more efficiently and profitably. The AT&T VPN service will bolster the advance of in-store applications, which require a higher level of network connectivity and scalability. AT&T's Multiprotocol Label Switching (MPLS)-enabled VPN solution offers a path to migrate from the legacy data networks that Winn-Dixie currently uses and allows the company to expand Internet Protocol (IP)-based infrastructure to fulfill Winn-Dixie's networking needs.

"These AT&T services will provide an architecture to fulfill Winn-Dixie's needs as we build on our new business plan," said Rich Dubnick, senior director-IT Operations, Winn-Dixie. "While our current network is efficient and reliable, it does not have the bandwidth necessary for our future plans. AT&T's VPN service ensures that we will be able to scale our communications and data capabilities in the future. AT&T is helping Winn-Dixie deliver on its promise of getting better all the time."

The contracted solution will bring AT&T services to 520 Winn-Dixie store locations across the Southeast.

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About Winn-Dixie
Winn-Dixie Stores, Inc., is one of the nation's largest food retailers with 520 stores. Founded in 1925, the company is headquartered in Jacksonville, Florida. For more information, please visit www.winn-dixie.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.

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