Press Release

AT&T Completes Interwise Acquisition

Launches Converged Conferencing Service as First in Comprehensive Portfolio of Unified Communications Solutions for Companies Worldwide

San Antonio, Texas, November 2, 2007

AT&T Inc. (NYSE:T) today announced the completion of the acquisition of Interwise, a leading global provider of Internet Protocol (IP)-based voice, Web and video conferencing services. In parallel, AT&T announced the launch of AT&T ConnectTM, the first in a planned series of converged AT&T-branded voice, video and web conferencing products and services that will accelerate the delivery of unified communications to companies worldwide.

With the introduction of AT&T Connect, the company is advancing its focus on delivering a comprehensive, global portfolio of unified communications solutions. The demand for such services is expected to total $5.9 billion in 2007, with continued growth expected in 2008 and beyond (source: Frost & Sullivan).

"With the capabilities of Interwise integrated into AT&T's industry-leading global IP-based network, we've got the reach, scale and customer base to quickly deliver to businesses what other players can only promise in the unified communications space," said Ronald E. Spears, group president, AT&T Global Business Services.

"We believe that our IP network is the lynchpin to delivering a rich set of unified communications capabilities at the scale needed by enterprises operating in global and dynamic environments."

"Unified communications will improve how people work as a result of their ability to enable more effective collaboration among distributed project team members and to reduce process time for key business activities," said Frank Zvi, vice president, AT&T Unified Communications. "Over time, AT&T's Unified Communication Solutions will enable businesses to leverage the power of communications to create more agile, effective organizations and to connect their employees, partners and vendors in a manner that suits them wherever they are and over any device — wired or wireless, PDA or personal computer."

AT&T is rapidly integrating its wired and wireless network assets, over which it intends to deliver a portfolio of services to help businesses integrate all of their communications applications — wired and wireless voice services, conferencing capabilities, including VoIP, Web and video, and presence-based applications, such as instant messaging and directories.

Communications is the basic component of commerce, and collaboration has become mission-critical for today's enterprises. Businesses are using their combined software and communications networking capabilities to drive decision-making, swiftly react to their competition and use the inherent productivity and cost-savings returns of collaboration tools to invest in furthering their core capabilities.

AT&T's enhanced solutions are designed to bring the broad benefits of collaboration to where they matter most by enhancing enterprise's ability to compete more effectively while improving the bottom line.

AT&T's first unified communications solution is AT&T Connect, a converged IP conferencing service that provides unlimited voice, Web and video conferencing capabilities and can be scaled for businesses of all sizes. In addition to offering on-premises and fully hosted conferencing capabilities, AT&T will now be able to offer a unique, hybrid solution that allows enterprises to receive the cost and security benefits of on-site software with the rapid startup, geographic reach and capacity protection of its hosted service.

The company intends to integrate its existing award-winning portfolio of voice, Web and video conferencing services with the capabilities it gains from the Interwise acquisition by the fourth quarter of 2008. Existing AT&T conferencing and messaging services will be key elements in AT&T's ongoing development plans to deliver expanded unified communications solutions.

In October, the company said it would acquire Interwise for $121 million in cash. With today's announcement, Interwise joins AT&T's existing enterprise services organization as a subsidiary of AT&T Communications Corp.

With headquarters in Cambridge, Mass., Interwise employs approximately 150 people and operates in the United States, Europe and Asia and has offices in six countries.

AT&T is among the leading conferencing providers in the world. The company provides a suite of conferencing services that support the operations of customers ranging from small and medium businesses up to the largest global corporations.

Find more information online:

Web Site Links: Related Media Kits:
AT&T Web Site
AT&T Enterprise Business Solutions
AT&T Conferencing Solutions
AT&T Conferencing Service Demos
Unified communications Web Site

AT&T Enterprise Mobility Solutions
AT&T BusinessDirect

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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's Web site at Accompanying financial statements follow. Previously released pro forma comparisons are available on AT&T's Investor Relations Web site at

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

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