News Release

LA Weight Loss Slims Down Costs, Strengthens Network With AT&T

Leading weight loss company selects integrated AT&T networking solution

BEDMINSTER, N.J. -- AT&T announced today it has won a three-year, $10.5 million contract from LA Weight Loss to provide a fully managed wide-area network. LA Weight Loss, based in Horsham, Pa., is one of the fastest growing organizations in the country providing clients with effective weight-loss programs.

AT&T's integrated networking solution improves LA Weight Loss' point-of-sale process and reduces costs by seamlessly connecting 310 of the company's centers across the United States and providing faster, on-demand processing of sales and inventory. "AT&T estimated our return on investment during the sales process, and the potential was tremendous," said John Janthor, director of information technology for LA Weight Loss. "AT&T showed us probable savings, monthly budget stabilization, and the benefits of an 'always-on' network. And the demonstration of the technology was amazing. Reports that formerly took 30 or more minutes to download come through in just minutes with the AT&T solution."

The AT&T managed solution allows better inventory management by enabling quick elimination - and restocking - of inventory. It also reduces costs by eliminating local toll charges the company previously incurred for dial-up service. Long-distance costs are better controlled as well, as the service prevents unauthorized long-distance calls. Finally, the solution offers better control over public Web access, and positions LA Weight Loss to expand e-commerce initiatives.

"In what was a very competitive bidding situation, our team was able to demonstrate real solutions to address business challenges that help LA Weight Loss become more productive in its day-to-day business," said Steve Taylor, sales center vice president for AT&T. "We are pleased to work with such a growth-oriented leader as LA Weight Loss as it seeks to increase its business."

About LA Weight Loss

Headquartered in Horsham, PA, L A Weight Loss Centers was established in 1989 and has over 650 centers throughout the United States. In addition, LA Weight Loss Center has begun operations worldwide in Canada, UK and Puerto Rico. Further information and locations can be obtained by calling (888) 258-7099 or by visiting LAWeightLoss.com.

About AT&T

For more than 125 years, AT&T (NYSE 'T') has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.