London – July 28, 2005 – AT&T today announced it has been positioned by Gartner in the Leaders Quadrant in the “Magic Quadrant for Pan-European Network Service Providers, 2005“ (1) report.

According to Gartner, “leaders” are vendors who are performing well today, have a clear vision of market direction, and are actively building competencies to sustain their leadership position in the market.

Among the many criteria Gartner defined to evaluate AT&T and other providers the most important were long-term strategy, customer focus, quality of service, pricing and the ability to innovate.

To qualify for inclusion in the magic quadrant, according to Gartner, suppliers must offer managed network services in at least six European countries and focus on cross-border networks. Suppliers must offer data networking services and will be given extra credit if they support voice and convergence services.

“We are particularly pleased to have been positioned in the ‘Leader’quadrant in the Pan-European Network Services Provider report by Gartner.  We feel this further confirms our position in the provision of complex networking services both on a regional and global basis,” said Bill Archer, AT&T President EMEA.

AT&T recently announced that between 2002 and year end 2005 the company will have invested more than $10 billion in capital expenditures to update the global network and integrate systems while further rationalizing its cost structure and growing next-generation services.

AT&T also announced global enhancements to its portfolio of IP VPN-based services, hosting, managed services and security offers, including Internet Protect (sm) and said that by year-end, it will expand the reach and in-country coverage of its global portfolio in critical high-growth regions in Europe, Middle East, Latin America, India and China.

AT&T’s global network in Europe, Middle East and Asia (EMEA ) consists of more than 230 service nodes in 32 countries offering dedicated access to MPLS services. AT&T’s EMEA-based services also include more than 4,000 remote access points of presence in 93 countries, including access to over 1,700 WiFi hotspots in 22 countries and 188 wired Ethernet access points in 15 countries within the region.  AT&T also offers DSL service in 10 countries and cellular access in 5 countries in the EMEA region.  Six of AT&T’s thirteen  internationally deployed internet data centers are located in Europe: Frankfurt, Amsterdam, London, Birmingham, Paris and Nice.

About the Magic Quadrant

The Magic Quadrant is copyrighted June 2005 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the .Leaders quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

(1) Gartner Research “Magic Quadrant for Pan-European Network Service Providers, 2005“ by Neil Rickard and Jean-Claude Delcroix, June 30, 2005