Company Expects Adjusted EBITDA Growth of 20 to 25 Percent in 2012

Fourth Quarter and Full Year 2011 Highlights

Excluding the effects of the Global Crossing acquisition, completed on Oct. 4, 2011, on a standalone basis, Level 3:

• Grew Core Network Services revenue by 2.6 percent sequentially and 7.9 percent year-over-year, on a constant currency basis
• Achieved double-digit Consolidated Adjusted EBITDA growth of 13 percent for the full year 2011 compared to the full year 2010
• Generated $103 million of positive Free Cash Flow in the fourth quarter 2011 and negative $32 million for the full year 2011, exceeding annual Free Cash Flow projections by positive $83 million
• Capital expenditures were $443 million for the full year 2011, approximately 12 percent of total revenue

For the Global Crossing business on a standalone basis:

• Excluding UK Government revenue declines, “Invest and Grow” revenue was flat sequentially and increased three percent year-over-year, on a constant currency basis
• Grew GC Impsat “Invest and Grow” revenue by two percent sequentially, and nine percent year-over-year, on a constant currency basis

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The National Association for Female Executives (NAFE)  named AT&T one of the “Top 50 Companies for Executive Women.” This is the third consecutive year that AT&T has been named to the prestigious list, which recognizes companies for outstanding efforts in recruiting, retaining and advancing women into leadership roles.

Women represent 39 percent of AT&T’s workforce, 39 percent of its management ranks and 25 percent of its board of directors.

“Beyond the statistics, we’re proud of the contribution women are making at AT&T at all levels and in all functions of our company,” said Debbie Storey, AT&T’s senior vice president talent development and chief diversity officer.  “Inclusion has long been a business imperative at AT&T, and key to innovation and growth.   We’re honored by NAFE’s recognition of our inclusive work environment, where women play leading roles in driving sales, developing tomorrow’s technology and building our brand.”

Key to AT&T’s inclusive environment are the company’s 11 employee resource groups, which provide networking, mentoring and development opportunities for their members while connecting the company with the segment of the population they represent.  The Women of AT&T, has more than 4,100 members, is a platform for personal and professional development among AT&T’s female workforce.

“Women are doing great things at AT&T thanks to its inclusive culture,” said Theresa Spralling, chief executive officer Women of AT&T’s national organization, one of the company’s 11 ERGs.  “It’s both impressive and inspiring to see women in positions of great responsibility at AT&T, where we make a huge contribution to the business, the industry, and society in general.”

“The key concern of talent executives at major companies today is women’s advancement to the highest ranks. NAFE emphasized the importance of ensuring that women enter the leadership pipeline early and then have the training, exposure, and sponsorship they need to succeed,” said NAFE President Betty Spence, PhD.

AT&T is widely recognized for its diverse and inclusive workplace.  It ranked No. 4 overall in The DiversityInc 2011 Top 50 Companies for Diversity® list; No. 1 in Hispanic Business magazine’s 2011 Best Company for Diversity; 2010 Corporation of the Year by the National Minority Supplier Diversity Council; HACR’s 2011 Corporate Inclusion Index; Latina Style magazine (14 years on the list); and the Human Rights Campaign’s 2012 Corporate Equality Index, among others.

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AT&T plans to deploy new renewable energy installations in 2011 that will add 5 megawatts of renewable energy capacity. This new initiative builds on AT&T�s existing 3 megawatt renewable energy commitment and by the end of 2011 AT&T expects to have 8 megawatts of renewable energy capacity online.

�We are working to incorporate additional renewable and alternative energy resources into our overall energy portfolio in a way that makes sense from an environmental and economic perspective,� said John Schinter, AT&T�s director of energy. �As renewable and alternative energy costs continue to become more cost-comparable to traditional energy prices, we will look for new and innovative opportunities to utilize these resources,� added Schinter.

AT&T compressed natural gas (CNG) vehicle

In 2009, AT&T announced it would spend up to $565 million to deploy approximately 15,000 alternative fuel vehicles (AFVs) through 2018. Through 2013, AT&T expects to purchase up to 8,000 CNG vehicles at an anticipated cost of $350 million. As of March 2011, AT&T has deployed more than 3,500 AFVs, including more than 2,400 CNG vehicles in 543 cities in 35 states and the District of Columbia. AT&T�s total fleet numbers more than 73,500 vehicles.

AT&T is committed to integrating sustainable business practices across its business and was recently added to Corporate Responsibility Magazine�s 12th Annual 100 Best Corporate Citizens List. AT&T was also included in the 2010 Dow Jones Sustainability North America Index (DJSI) and in Carbon Disclosure Project�s (CDP) 2010 Carbon Disclosure Leadership Index (CDLI.) Visit www.att.com/csr and www.att.com/sustainability to learn more about sustainability at AT&T. Also visit www.att.com/csr to download the AT&T�s Citizenship & Sustainability Reports.

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AT&T and T-Mobile USA plan to file paperwork about their planned merger with the Federal Communications Commission next week. “We plan to file our public interest statement at the FCC around April 21,” AT&T’s Michael Balmoris said in an email on Thursday.

AT&T’s $39 billion bid to buy Deutsche Telekom AG’s T-Mobile USA will also be reviewed by the Justice Department to ensure it does not violate antitrust law. The request for the Justice Department review was filed last Friday.

The FCC will review the proposed deal to ensure it is in the public interest. The review process could easily take a year.

The deal would concentrate 80 percent of U.S. wireless contract customers in just two companies — AT&T/T-Mobile and Verizon Wireless, a joint venture of Verizon Communications and Vodafone Group Plc. AT&T, currently the No. 2 U.S. mobile carrier behind Verizon, has said the merger will spur innovation and economic growth by improving quality and expanding wireless service to 95 percent of Americans.

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AT&T has agreed to purchase spectrum licenses in the Lower 700 MHz frequency band from Qualcomm for $1.925 billion. The move will bolster AT&T�s ability to provide an advanced 4G mobile broadband experience for its customers in the years ahead.

Qualcomm currently uses the licenses to support the service business of FLO TV Incorporated, a wholly owned subsidiary of Qualcomm, and the sale follows Qualcomm�s previously announced plan to evaluate strategic options for the FLO TV business. Qualcomm expects that the FLO TV business and network will be shut down in March 2011.

The spectrum covers more than 300 million people total nationwide: 12 MHz of Lower 700 MHz D and E block spectrum covers more than 70 million people in five of the top 15 U.S. metropolitan areas � New York, Boston, Philadelphia, Los Angeles and San Francisco; 6 MHz of Lower 700 MHz D block spectrum covers more than 230 million people across the rest of the U.S.

As part of its longer-term 4G network plans, AT&T intends to deploy this spectrum as supplemental downlink, using carrier aggregation technology. This technology is designed to deliver substantial capacity gains and is expected to be enabled with the completion of 3GPP Release 10. AT&T expects to begin deploying this spectrum once compatible handsets and network equipment are developed.

As more fully described in its separate announcement today, Qualcomm intends to integrate carrier aggregation technology into its chipset roadmap, to enable supplemental downlink to address increased consumer demand for rich mobile media content. AT&T expects to deploy this technology, demonstrating its commitment to deliver a great mobile broadband experience � now and in the future.

The transaction is subject to regulatory approvals and other customary closing conditions, and AT&T and Qualcomm anticipate closing the sale during the second half of calendar year 2011.

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AT&T today announced a global networking agreement with Linde Group AG to provide a single and consistent wide area network for 1,700 Linde sites in more than 60 countries. The Linde Group is a world leading gases and engineering company. Linde products and services can be found in nearly every industry, in more than 100 countries. The new network is designed to underpin the on-going business transformation to streamline and optimize Linde�s operations worldwide and improve productivity while taking expense out of the business.

Under the terms of the seven year contract, AT&T has been appointed as Linde�s primary worldwide network services provider and will support the company�s operations with an integrated series of services including an advanced Virtual Private Network (VPN) to support critical business applications. The agreement will allow Linde businesses and their subsidiaries reliable access to a common network infrastructure from locations around the world while reducing costs.

Linde initiated a major global procurement program in 2009 to select a single global provider to assist them in transforming their regional networks to a single global network platform. The new single global network from AT&T will replace Linde�s current environment of multiple regional and national networks previously provided by a variety of vendors.

Having a single global VPN provides Linde with numerous advantages for design, implementation and flexibility in operation. It also facilitates standardized customer premise equipment configurations, and routing across the network.

Elimination of separate inter-region networks further simplifies routing and improves performance while reducing costs. Going forward AT&T will have the responsibility of enabling, provisioning and integrating network resources for Linde Group businesses around the world, meaning there is a single point of contact for the customer and a single seamless management under a single sourcing policy, allowing Linde to focus on core business activity.

�It is a critical objective to streamline, centralize and simplify the IT infrastructure and application platforms, to streamline operational practices across the businesses and support the development of integrated solutions,� said Ralf Stalinski, Head of Enterprise Services, The Linde Group. �It was apparent that the future network would become a key strategic milestone for Linde�s globalization strategy and after a comprehensive selection process we were pleased to choose AT&T. They provided us with the most comprehensive, cost effective, scalable and future proofed solution.�

Commenting on today�s announcement Joachim Kathmann, AT&T Regional Vice President for Germany and Central Europe said, �Meeting the demanding requirements of a true global company like Linde demonstrates AT&T�s ability to deliver the advanced, transformational services and applications demanded by the world�s largest companies. Our relationship with Linde is based on a true understanding of their business requirements and being able to deploy worldwide the people, resources and technologies needed to bring the benefits of advanced communications to their business.�

Reflecting the truly global nature of Linde�s business, the agreement sees AT&T providing services in every major region of the world supporting Linde�s 48,000 employees. There are more than 900 locations in EMEA, 430 in the Americas and over 370 in Asia Pacific. Major Linde locations include the company�s headquarters in Munich, Germany, and regional HQ�s in the UK (Guildford), North America (Murray Hills, NJ), Latin America (Sao Paulo, Brazil), Asia Pacific (Singapore) and China (Shanghai) as well as significant operations in India, the Middle East and Africa.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About The Linde Group
The Linde Group is a world leading gases and engineering company with almost 48,000 employees working in more than 100 countries worldwide. In the 2009 financial year it achieved sales of EUR 11.2 bn. The strategy of The Linde Group is geared towards sustainable earnings-based growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment � in every one of its business areas, regions and locations across the globe. Linde is committed to technologies and products that unite the goals of customer value and sustainable development. For more information, see The Linde Group online at http://www.Linde.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. With a powerful array of network resources that includes the nation�s fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse� and AT&T | DIRECTV brands. The company�s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE� magazine.

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. This AT&T news release and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or follow our news on Twitter at @ATT. Find us on Facebook at www.Facebook.com/ATT to discover more about our consumer and wireless services or at www.Facebook.com//ATTSmallBiz to discover more about our small business services.

� 2010 AT&T Intellectual Property. All rights reserved. Mobile broadband not available in all areas. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
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Leading industry analyst firm Gartner, Inc. has positioned AT&T in the Leaders Quadrant of the Magic Quadrant for Managed Security Service Providers (MSSPs), North America 2010 report^.

According to Gartner, �leaders have significant mind share among enterprises looking to buy a MSS from pure-play security services vendors, and they generally receive positive reports on service and performance from Gartner clients. Vendors in the Leaders quadrant are typically appropriate options for enterprises requiring frequent interaction with the MSSP for analyst expertise and advice, portal-based correlation and workflow support, and flexible reporting options.�

AT&T believes this report confirms its strong track record of continued investment in and commitment to a comprehensive portfolio of MSS monitoring and device management services including both Customer Premises Equipment (CPE) and security as a service offerings. AT&T has long been a pioneer in the development of cybersecurity capabilities, delivering some of today�s most powerful weapons to combat cybersecurity attacks.� Customers of AT&T, including global, national, midsize and regional businesses, rely on AT&T for reliable integrated services worldwide to maintain network integrity and business continuity.

This Magic Quadrant assessed the security services of 22 MSSPs in North America that offer remote management or monitoring of IT security information, assets and processes where the delivery of those services is via remote security operations centers based on which services can meet enterprise requirements.

AT&T delivers a suite of security, business continuity and Consulting services to help assess vulnerabilities, protect infrastructure, detect attacks and respond to suspicious activities and events on customer premises and in the network cloud. More information on AT&T�s managed security offerings can be found at www.att.com/security.

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AT&T and BT announced today the commercial availability of the industry�s first inter-provider exchange-to-exchange telepresence meeting capability. The new connection between AT&T and BT telepresence exchanges allows their business customers to schedule telepresence meetings and to connect their telepresence endpoints seamlessly.

With the new inter-provider telepresence capability, AT&T and BT customers can now meet �face to face� from their Cisco TelePresence� endpoints with an expanded network of customers and suppliers. Last summer, customers piloted this capability and successfully conducted numerous meetings between AT&T and BT telepresence locations.

AT&T and BT telepresence customers will enjoy a consistent service experience when using this new feature of their existing telepresence service. For example, AT&T customers may schedule business-to-business meetings involving a BT endpoint using the AT&T Telepresence Solution� scheduling portal in the same way they schedule business-to-business meetings today, and BT�s telepresence customers will be able to do the same on BT�s scheduling portal. Customers will continue to rely on their respective service providers as a single point of contact for meeting support, assistance, and billing.

Additionally, key features such as encrypted connections will be available and can be established for highly sensitive meetings to ensure both AT&T and BT customers enjoy the same high level of security as today�s business-to-business telepresence meetings. In the future, AT&T and BT customers will also have access to a directory that will help them determine what other registered organizations and locations are accessible through the inter-provider connection.

Brian Washburn, research analyst at Current Analysis, said: �AT&T and BT�s exchange-to-exchange connection marks a significant milestone in the industry. Exchange-to-exchange telepresence is a major stride forward in building smooth, end-to-end telepresence experiences for customers across network boundaries worldwide, and advancing Cisco�s efforts to support inter-provider connectivity for telepresence.�

Kevin Peters, chief marketing officer, AT&T Business Solutions, said: �Businesses are recognizing the value of telepresence as an effective global collaboration tool, and we�re seeing increasing adoption of our AT&T Telepresence Solution quarter after quarter by both small and large businesses across industries. The inter-provider connectivity established with BT is an important step forward for the industry and underscores our commitment to expanding the network of accessible telepresence locations for our customers and increasing the value of their investments.�

Chris Clark, managing director, BT Enterprise, said: �This is good news for BT and AT&T customers. Companies are looking for ways to make employees more productive, reduce carbon emissions, lower travel-related costs and create a competitive advantage. Being able to connect across telepresence networks greatly expands the reach and value of the service and maximizes the business benefits. With this industry-first, BT and AT&T are changing the way businesses collaborate. It is a testament to our commitment to unified communications and telepresence.�

Today�s announcement marks the latest of many joint BT and AT&T projects that are delivering benefits to customers across more than 100 countries today. Collaboration between the companies continues to offer tremendous potential for customers and both companies alike.

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The nation�s fastest mobile broadband network is getting even faster and delivering strong voice performance, according to comprehensive third-party national drive testing.

AT&T has invested nearly $6 billion in wireless-related initiatives over the first three quarters of 2010, a 55 percent increase over the first three quarters of 2009. These efforts are resulting in national average mobile broadband speeds that are substantially faster than the competition, with the nearest competitor running 20 percent slower than AT&T on average nationally, and our largest competitor by subscriber count running 60 percent slower than AT&T on average nationally.

These are the findings from the latest comprehensive, scientifically valid national drive testing conducted by industry expert testing firm Global Wireless Solutions Inc. (GWS). GWS compiles wireless network performance results covering more than 950,000 road miles in more than 400 U.S. markets representing about 88 percent of the U.S. population, making it one of the most comprehensive and thorough studies of U.S. mobile network performance.

Data has quickly emerged as a primary mode of mobile communication, as more and more Americans view video, upload pictures, send e-mail and surf the Internet from their wireless devices. And as people use more mobile broadband, a 20 percent difference in speed can make a real difference in getting things done. For example: based on national average speeds, AT&T customers could download an MP3 album (40 megabytes) more than a minute faster with AT&T than the next-fastest wireless network. An 80-megabyte video file would download about 2 minutes faster on average with AT&T as opposed to the next-fastest network. The same video file would take more than 5 minutes longer to download on average with AT&T�s largest competitor�s network.

�Data is now the preferred form of mobile communication, and faster mobile broadband speeds make virtually every app more enjoyable and efficient for the user,� said Iain Gillott, president of wireless industry analyst firm iGR. �As the market continues to develop, wide availability of fast mobile broadband will be increasingly important to mobile subscribers, both consumer and business users alike.�

The GWS drive tests also revealed that 98.59 percent of voice calls connected over the AT&T network nationwide are completed without interruption. That�s a difference of about one-tenth of one percentage point, or one call in 1,000, from the only higher score in the industry.

Assuming a positive regulatory environment, AT&T plans to invest between $18 billion and $19 billion in our wireless and wireline networks in 2010, including a $2 billion increase in wireless-related network investment over 2009 levels. AT&T is investing to enhance the speed and coverage of its mobile broadband network through the addition of hundreds of new cell sites; additional layers of wireless capacity in markets across the country; and deployment of HSPA 7.2 and HSPA+ software and fiber-optic backhaul connections to support even faster mobile broadband speeds.

�We�re very pleased with the nationwide results of GWS drive testing, which demonstrate that we�re delivering a superior mobile broadband experience on a nationwide basis,� said John Donovan, AT&T�s chief technology officer. �Our top priority for the weeks and months to come is to continue our focus on network enhancements and improvements to ensure continued access to fast mobile broadband speeds and reliable voice service.�

AT&T has focused on delivering the best overall mobile broadband experience for our customers, building a powerful network and leading the industry in multiple technologies that enhance the mobile experience, including:

• The nation�s largest Wi-Fi network, with more than 23,000 Hot Spots in all 50 states. Qualifying AT&T smartphone customers can access virtually all of these hotspots automatically. AT&T Wi-Fi connections continue to skyrocket, with 106.9 million connections on AT&T�s U.S. Wi-Fi network in the third quarter, exceeding the total of 85.5 million connections made during the entire year in 2009.
• Pilots of Wi-Fi hot zones to cover high-traffic areas in major cities to provide another powerful option for broadband on the go.
• Thousands of distributed antenna networks that enhance coverage and capacity in large buildings, campuses and public areas where people tend to congregate, like stadiums and convention centers. Such systems can increase capacity in their coverage areas by more than 1,000 percent.
• AT&T Microcell, which can enhance in-home coverage for customers.

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AT&T Government Solutions* announced it has been awarded a Blanket Purchase Agreement (BPA) for a suite of cloud computing products and services to government agencies. The U.S. General Services Administration announced the award on October 19, 2010.

Under the terms of the BPA, AT&T is now eligible to provide federal government agencies with cloud-based Infrastructure as a Service (IaaS) products and services. Agencies will be able to purchase cloud computing services through Apps.gov � a new online purchasing portal that allows agencies to purchase on-demand cloud services efficiently without a formal request for proposal, helping condense procurement cycles.

Government agencies at all levels have been looking to cloud computing and cloud services to help lower operation costs and improve efficiency. According to a recent forecast by Gartner, worldwide public cloud services are projected to reach $15.5 billion for the Government sector by 2014.[1]

�Cloud computing services provide a unique benefit to the government, allowing agencies to reduce capital expenses and increase productivity,� said Thomas Harvey, Senior Vice President, AT&T Government Solutions. �Through Apps.gov, government agencies will soon have access to AT&T cloud products and services that can help drive innovation, improve efficiency, and realize vital savings. As a leading government technology partner, AT&T looks forward to helping agencies utilize the benefit of cloud computing services.�

The BPA positions AT&T to provide cloud services to federal government agencies in AT&T operated data centers, located in geographically diverse locations, which are directly attached to the AT&T IP backbone.

The AT&T family of cloud computing services, combined with AT&T�s hosting and managed applications portfolio, offers government agencies a continuum of fully managed application services or user-managed hosting services, delivered from the network cloud on demand and at scale.

AT&T Synaptic Storage as a ServiceSM is a storage-on-demand offer that provides federal agencies with control over the storage, distribution, and retrieval of their data from any location, anytime, using any Web-enabled device. The service is scalable, and therefore very useful for agencies with fluctuating data storage requirements or for extended retention of data less frequently accessed.

AT&T Synaptic Compute as a ServiceSM provides a government agency with the option to �pay-as-they-go,� enabling them to obtain quick access to virtual servers without a long-term commitment, upfront, or termination fee. Agencies can quickly address demands for variable computing processing power and scale to meet new business requirements.

AT&T has a strong history of providing cloud-based services to government agencies through AT&T�s Managed Security services. This year, AT&T became the first GSA Networx contract holder to deploy Managed Trusted IP Services (MTIPS), a cloud-based cybersecurity network services that enables federal agencies to connect to the Internet via secure IP portals in full compliance with the Office of Management and Budget (OMB) Trusted Internet Connections (TIC) initiative. AT&T Government Solutions has disclosed MTIPS task orders with the Federal Trade Commission and the Environmental Protection Agency.

The cloud services BPA is an Indefinite Delivery � Indefinite Quality (IDIQ) contract with a 5-year term.

[1] Gartner, Forecast: Public Cloud Services, Worldwide and Regions, Industry Sectors, 2009-2014, June 2, 2010, ID Number G00200833

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

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Expanding its portfolio of mobile solutions, AT&T* is working with Interchange Solutions to deliver SalesNOW, an affordable yet robust mobile customer relationship management and sales force automation solution. SalesNOW from AT&T is the latest addition to AT&T�s portfolio of solutions to help businesses mobilize their workforce and is available on a variety of AT&T mobile devices including BlackBerry� smartphones.

SalesNOW from AT&T is a fully hosted, mobile contact and deal management application designed specifically for mobile sales teams to increase effectiveness by controlling customer contact information, tracking sales activity and email, and managing sales in the office or on the go. The solution enables the mobile sales force to capture call notes in real time, use down-time to remotely manage the deal pipeline and quickly view customer history information directly from a variety of mobile devices.

According to Frost & Sullivan, a business research and consulting firm, sales force automation tools have become ubiquitous in the North American workplace. As companies have deployed more feet on the street, sales automation applications had to mobilize and become real-time. �Especially with the economic conditions as they exist today, sales productivity remains a key concern across all business sizes and types,� said Jeanine Sterling, Senior Industry Analyst, Frost & Sullivan. �Applications such as mobile sales force automation, when implemented correctly, provide the field sales rep with the information to make the most of each sales call�and free up time to make additional selling efforts.�

According to Mike Roemerman, Managing Partner of Greenway Insurance and Financial out of St. Louis, Missouri, �since we deployed SalesNOW, our sales teams have truly increased their level of engagements with customers. We have benefited from a significant decrease in our sales-cycles and our executives love the new reporting tools available.�

SalesNOW from AT&T allows sales, sales management and executives to manage all aspects of the sales cycle including contact management, company tracking, lead management, deal management, activity and sales reporting. As a result, the solution offers improved sales rep effectiveness, better sales manager visibility and helps to reduce the burdens associated with traditional reporting tools.

�It is no secret that sales teams are constantly on the road,� said Chris Hill, vice president, Advanced Enterprise Mobility Solutions, AT&T Business Solutions. �Whether they are in the lobby waiting for appointments, in the airport en route to opportunities or at home researching new leads, it is crucial for these employees to maximize efficiency and manage sales activities on their schedule. The addition of SalesNOW to our portfolio of mobile applications can help our business customers to increase effectiveness of their sales cycle and ultimately help their business grow.�

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AT&T BusinessDirect� Premier and the AT&T Small Business Storefront won WebAwards in the 14th annual WebAward Competition for Web site development, presented by the Web Marketing Association. Both were recognized for excellence in effective design, copy writing, innovation, content, interactivity, navigation, and use of technology.

The Premier platform is the one-stop, customizable online site for business customers, to learn about, contract, purchase, monitor, and manage their wireless products and services. It helps businesses of all sizes maximize the value of their AT&T wireless assets.

The AT&T Small Business Storefront, accessed via att.com, provides new and existing customers with an easy-to-use online portal which offers a variety of business solutions. Customers can learn about various products and bundles, make purchases and register to manage their accounts via the internet. The website provides up to date information about wireless, wireline and application services along with pricing plans tailored to fit individual business needs and special �online only� promotions.

The Premier platform and AT&T Small Business Storefront are both part of the AT&T BusinessDirect Portfolio, a suite of more than 200 productivity-enhancing online tools that enable business customers to manage their AT&T products and services more efficiently. Each month, the AT&T BusinessDirect Portfolio handles more than 4.5 million customer transactions, helping to improve productivity, increase the speed and accuracy of network transactions, optimize network resources and reduce operating costs.

Founded by the Web Marketing Association in 1997, and now in its 14th year, the WebAwards is the premier annual website award competition that names the best Web sites in 96 industries while setting the standard of excellence for all website development. The goal of the WebAwards is to provide a forum to recognize the people and organizations responsible for developing some of the most effective websites on the Internet today.

For more information on AT&T BusinessDirect, go to AT&T Enterprise Business Customer Center.

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AT&T stands ready for the impact of Hurricane Earl, as it passes North Carolina, with an arsenal of disaster response equipment and personnel that enable a quick response post landfall. To help local consumers and businesses prepare, AT&T is also providing important communications tips for use before, during and after the storm.

AT&T has invested more than $500 million in its Network Disaster Recovery (NDR) organization since it was formed. The NDR function includes more than 300 technology and support trailers that AT&T is able to deploy quickly to respond to disaster situations such as severe hurricanes. AT&T invested $145 million in recovery and restoration efforts related to the 2008 hurricanes that included the opening of a third NDR equipment warehouse in the Southeast.

A critical element of AT&T’s efforts to maximize network reliability is its ability to respond swiftly when disaster strikes, made possible by extensive preparations. These include: ongoing readiness drills, topping off fuel at generators positioned at cell sites and switching centers, testing high-capacity back-up batteries, distributing additional extended battery life and portable generators, using natural gas in a portion of permanent generators to eliminate need for refueling, adding capacity to the wireless network as able, and staging of additional emergency response equipment in strategic locations near the anticipated landfall area.

AT&T continues to enhance network redundancy in hurricane-prone areas. These efforts include installation of more back-up and permanent generators at critical cell sites and switching facilities, location of critical equipment to less vulnerable areas, upgrade of electronics in many locations, replacement of copper wiring with fiber optic cable, elevation of switches critical to network operations above expected flood levels and protection of physical facilities against flooding.

AT&T offers the following recommendations for consumers and small business owners before and after the storm hits:

Consumer Tips:

• Be sure you have a �hurricane phone.� It’s a good idea to have a wireless phone on hand and at least one corded (landline) telephone that is not dependent on electricity in case of a power outage. Cordless telephones usually have receivers that are electronically charged, so they won’t work if you lose your power.
• Have a family communications plan in place. Designate someone out of the area as a central contact, and make certain that all family members know who to contact if they become separated. Most important, practice your emergency plans in advance.
• Program all of your emergency contact numbers and e-mail addresses into your mobile phone. Numbers should include the police department, fire station and hospital, as well as your family members.
• Keep your wireless phone batteries charged at all times. Have an alternative plan to recharge your battery in case of a power outage, such as charging your wireless device by using your car charger or having extra mobile phone batteries or disposable mobile phone batteries on hand.
• Keep your wireless phone dry. The biggest threat to your device during a hurricane is water, so keep your equipment safe from the elements by storing it in a plastic bag or some other type of protective covering.
• Forward your home number to your wireless number in the event of an evacuation. Because call forwarding is based out of the telephone central office, you will get incoming calls from your landline phone even if your local telephone service is disrupted at your home. In the unlikely event that the central office is not operational, services such as voicemail, call forwarding, remote access call forwarding and call forwarding busy line/don’t answer may be useful.
• Track the storm and access weather information on your wireless device. Many homes lose power during severe weather. If you have a wireless device that provides access to the Internet, you can watch weather reports through AT&T Mobile TV or keep updated with local radar and severe weather alerts through My-Cast^� Weather, if you subscribe to those services.
• Camera phones provide assistance. If you have a camera phone, take, store and send photos � and even video clips � of damaged property to your insurance company from your device.
• Take advantage of location-based mapping technology. Services such as AT&T Navigator and AT&T FamilyMap can help you seek evacuation routes or avoid traffic congestion from downed trees or power lines, as well as track a family member’s wireless device in case you get separated.

Small Business Tips:

• Set up a call-forwarding service to a predetermined backup location. Set up a single or multiple hotline number(s) for employees, employees’ families, customers and partners, as appropriate, to call so that all parties know about the business situation and emergency plan. For this to be most effective, maintain an updated contact list, including mobile and home phone numbers and e-mail addresses, for all employees.
• Protect hardware/software/data records/employee records, etc. Routinely back up these files to an off-site location. Use a generator for supplying backup power to vital computer hardware and other mission-critical equipment. Prearrange the replacement of damaged hardware with vendors to ensure quick business recovery.
• Outline detailed plans for evacuation and shelter-in-place plans. Practice these plans (employee training, etc.). Establish a backup location for your business and meeting place for all employees.
• Assemble a crisis-management team and coordinate efforts with neighboring businesses and building management. Be aware that disasters affecting your suppliers also affect your business. Outline a plan for supply chain continuity for business essentials.

Maximizing Service During and After a Hurricane:

• During an emergency, many people are trying to use their phones at the same time. The increased calling volume may create network congestion, leading to �fast busy� signals on your wireless phone or a slow dial tone on your landline phone. If this happens, hang up, wait several seconds and then try the call again. This allows your original call data to clear the network before you try again.
• Try text messaging. During an emergency situation, text messages may go through more quickly than voice calls because they require fewer network resources. All of AT&T’s wireless devices are text messaging capable. Depending on your data or text plan, additional charges may apply.
• Keep non-emergency calls to a minimum, and limit your calls to the most important ones. If there is severe weather, chances are many people will be attempting to place calls to loved ones, friends and business associates.

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On the one-year anniversary of AT&T Cares, a comprehensive and flexible volunteerism program for more than 270,000 employees, AT&T* is celebrating an impactful year with three prestigious national volunteerism awards and recognition for its commitment to education.

�We are very proud to see the extraordinary community service activities that our employees and retirees are engaged in receive national recognition,� said Laura Sanford, president of the AT&T Foundation. �AT&T Cares builds on the company�s long history of service and volunteerism and the change our employees and retirees create in communities is inspiring.�

So far this year, through the community service impact of its employees and retirees, AT&T has received the following national recognition:

• Most recently in June, AT&T was honored with the 2010 Corporate Engagement Award of Excellence from the Points of Light Institute, a national organization dedicated to advancing community service. The award recognizes extraordinary, effective volunteer programs that are helping to improve local communities.
• In March, AT&T received the Ladies� Home Journal �Do Good� Stamp in recognition of corporations that give back to the community and make a difference with strong employee volunteerism and innovative and results-oriented corporate and philanthropic initiatives.
• In January, AT&T was awarded the 2009 President�s Volunteer Service Award, as a commendation of Americans who contribute significant amounts of time to volunteer activities. AT&T received the award through its partnership with Junior Achievement Worldwide, an official certifying organization for the award, who honors corporations that provide volunteers to teach JA�s educational programs.

All of these honors highlight AT&T�s commitment to high school student success and workforce readiness, and the major role AT&T employees have in its success. Concerned that a third of America�s high school students drop out before graduating, AT&T decided to take action by creating AT&T Aspire, a $100 million philanthropic commitment to improve high school success. As part of AT&T Aspire, the company teamed up with Junior Achievement to launch the AT&T/JA Worldwide Job Shadow Initiative, a $5.5 million project reaching 100,000 students in five years. Through the Job Shadow Initiative, to date, 17,000 employees in 228 cities have helped reach 48,000 students with career exploration activities that help motivate them to stay in school and achieve meaningful careers. According to a recent independent report evaluating the AT&T/JA Worldwide Job Shadow Initiative, 88 percent of students felt that participating in Job Shadow made them realize the importance of staying in school.

AT&T Cares encourages employees to get engaged in community service that is meaningful to them and their communities, to create change and to stay engaged. The initiative builds on the company�s 100-year history of giving back through the AT&T Pioneers, one of the nation’s largest corporate volunteer organizations, with 325,000 employees and retirees as members. Last year, AT&T employees and retirees, donated more than 8.5 million hours of time, worth more than $176 million**, to community outreach activities.

AT&T Cares also provides employees with a resource to help them pursue their philanthropic passions. By teaming up with YourCause.com, employees are able to create personalized Web pages to raise awareness among their family and friends and increase donations to the causes of their choice. Since September 2009, employees have raised nearly $560,000 through their AT&T YourCause pages, including more than $253,000 for disaster relief-related causes.

To celebrate National Volunteer Week, in April 2010, the company held a special AT&T Cares National Volunteer Week Contest. Employees got the chance to present their own nonprofit volunteer project idea, apply for funding dollars to carry out the project and then rally other employees to vote for it. More than 12,000 AT&T employees cast their votes for their favorite employee volunteer project during this special contest. AT&T contributed a total of $40,000 to fund the top six projects, receiving the most employee votes.

In addition to volunteerism, AT&T also supports communities through charitable giving. AT&T and the AT&T Foundation combine more than $2 billion of historic charitable commitment to the communities they serve. In 2009 alone, nearly $160 million was contributed through AT&T corporate-, employee- and AT&T Foundation-giving programs.

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AT&T today announced the deployment of the 2,000^th alternative fuel vehicle and 1,500^th compressed natural gas (CNG) vehicle in its corporate vehicle fleet, giving it one of the largest CNG vehicle fleets in the U.S. �These milestones are part of a $565 million planned investment announced in March 2009 to replace more than 15,000 fleet vehicles with alternative fuel models through 2018.� Currently, the AT&T corporate fleet includes more than 75,900 vehicles.

AT&T compressed natural gas (CNG) vehicle

AT&T anticipates purchasing approximately 8,000 CNG vehicles over a five-year span, at an anticipated cost of $350 million.� AT&T expects to spend an additional $215 million through 2018 to replace 7,100 fleet passenger cars with alternative fuel models.� According to the Center for Automotive Research (CAR), AT&T�s alternative fuel vehicle initiative will:

• Save 49 million gallons of gasoline over the 10-year deployment period.
• Reduce carbon emissions by 211,000 metric tons� the greenhouse gas equivalent of removing 147,929 passenger vehicles from the road for one year.

�The deployment of our 2,000th alternative fuel vehicle is a significant milestone in an ongoing effort to reduce our dependence on foreign oil,� said Jerome Webber, vice president, AT&T Fleet Operations.� �To continue making progress, we are working with our suppliers and local municipalities to encourage the expansion of support infrastructure, which would allow the introduction of more fuel efficient vehicles in communities around the U.S.,� added Webber.

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AT&T today announced that Thaddeus Arroyo, CIO, and Yno Gonzalez, Senior Vice President � Network Operations, have been named to Hispanic Engineer & Information Technology (HE&IT) magazine�s list of �Most Important Hispanics in Technology.� The list recognizes Hispanic executives who are at the forefront of technology innovation for their respective firms.

�We are honored to include Thaddeus Arroyo and Yno Gonzalez among our Most Important Hispanics in Technology, Government and Business for 2010,� said Tyrone Taborn, Publisher & CEO, Carrier Communications Group, Inc. �They join a truly elite group of individuals who are changing the game and bettering our world. Their contributions to the field of telecommunications have broken through the digital divide and changed the ways we share information. Their leadership in the boardroom and out in their communities is a true inspiration.�

To determine this year�s �Most Important Hispanics in Technology� list, HE&IT conducted extensive research on thousands of employees from 100 candidate companies. Editors then evaluated and ranked the highest-achieving Hispanic executives, technologists, and researchers in industry, government, and academia, choosing candidates that demonstrated leadership in the workplace and in their communities.

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AT&T (NYSE:T) today announced it is the first service provider to bring to market a network-based videoconferencing bridging capability that enables users of Cisco TelePresenceTM technology to hold inter-company telepresence sessions with both standard- and high-definition video equipment from multiple vendors.

Available today, AT&T is offering this first-ever, network-based telepresence inter-company interoperability feature for Cisco TelePresenceTM through the AT&T Telepresence SolutionSM Business Exchange. Companies can use the capability to significantly increase the number of available endpoints that can join telepresence or videoconferencing calls using virtual private networks, or over ISDN links. This enables businesses to link to a greater number of customers, partners and suppliers using existing videoconferencing equipment from such brands as Polycom, LifeSize and Cisco�s recently-acquired Tandberg. AT&T�s solution provides a reliable and scalable solution designed to accommodate the requirements of organizations who desire a network-based interoperability solution for greater flexibility and ease of use.

�This new feature allows AT&T Telepresence SolutionSM customers using Cisco TelePresenceTM technology to strengthen the return on their investment, to drive greater productivity and expand the opportunity of business innovation throughout their enterprises, partners and suppliers,� said Joe Lueckenhoff, senior vice president, AT&T Business Solutions. �This is one more example of how AT&T is helping enterprise customers transform the way they do business by delivering advanced applications and capabilities through virtual private networks to endpoints large and small anywhere, anytime.�

�As the first provider with a Cisco license for inter-company interoperability and the first to offer exchange-based inter-company interoperability with Cisco TelePresenceTM, AT&T marks another major milestone in Cisco�s mission to change the way people communicate and collaborate,� said Mark Weidick, vice president and general manager, TelePresence Exchange Business Unit, Cisco. �AT&T is a leader in the development of creative video collaboration solutions and this feature, a result of our close relationship with AT&T and our joint commitment to interoperability between equipment made by multiple vendors, and between company networks, continues to build on those developments.�

Pfizer Inc. is an AT&T Telepresence SolutionSM customer that has been testing the inter-company interoperability feature over its installed base of videoconferencing systems purchased from a variety of vendors.

“The addition of this interoperability capability to the AT&T Business Exchange will allow Pfizer to leverage our existing base of video endpoints to get even more value from AT&T Telepresence SolutionSM,” said Beth Boucher, senior director, Connectivity Enablement Solutions, Pfizer Business Technology. “With AT&T Telepresence SolutionSM, Pfizer is able to enhance collaboration among our colleagues internally, and with our business partners externally.”

AT&T demonstrated this capability to industry analysts at a forum May 19 at its Global Network Operations Center. The company conducted multipoint business-to-business between Cisco TelePresenceTM rooms and H.320 and H.323 high-definition videoconferencing endpoints from several endpoints.

�The universe of reachable endpoints for the AT&T Business Exchange has just become a whole lot larger,� said Brian Washburn, research director, Network Services at the research firm Current Analysis. �In the past, telepresence systems from the major vendors did not all connect with each other easily. AT&T�s telepresence interoperability capability lets Cisco TelePresenceTM endpoints and other standards based-videoconferencing equipment interoperate in the cloud, a good example of how service providers are evolving the telepresence landscape.”

This inter-company, interoperability feature is the latest innovation in AT&T�s telepresence strategy. Other industry firsts that AT&T previously brought to market for Cisco TelePresenceTM included the first multipoint �meet-me� business-to-business calling, the first automatic set up of One Button to Push and the first multipoint business-to-business call encryption service. In recognition of AT&T�s leadership in videoconferencing, Cisco named AT&T as Cisco�s Service Provider Business Video Partner of the Year.

The AT&T Business Exchange is integrated into the AT&T MPLS-enabled network, utilizing a high availability, fully redundant architecture. Globally, more than 100 companies and organizations can access the AT&T Business Exchange, and have the ability to connect with one another via more than 1,100 telepresence endpoints worldwide.

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Communications is always cited as priority number one in the drama that unfolds when natural or manmade disaster strikes and puts lives, property, and business assets at risk. With that in mind, AT&T*, working with local officials and business leaders, is conducting a full-scale disaster recovery simulation � a Network Disaster Recovery Exercise � in the Metro Detroit area from May 6 to May 14 near The Dearborn Inn.

�The city of Dearborn and the greater Detroit area business community are committed to continued sustainable economic growth � something that demands reliable and effective networks of communication,� said Robert Ficano, chief executive officer of Wayne County. �Today�s exercise gives our businesses and local government operations greater security in knowing the network and their connectivity are a top priority when dealing with major storms, terrorism or other disasters.�

AT&T�s 2010 Business Continuity Study found that many local Detroit businesses are prepared for disasters and several are investing in additional technology. Eighty-six percent of Detroit companies have business continuity plans and 77 percent are planning to invest in new technologies this year.

Some additional local results from the study include:

• A majority of companies (55%) provide employees access to social networking tools, and 72 percent are concerned about the increasing use of this technology and its impact on security threats.
• Similarly, 73 percent are concerned about the increasing use of mobile networks and devices and their impact on security threats.
• A vast majority (80%) indicate they have special arrangements for communicating with key executives, while 81 percent have e-mail or text messaging capabilities to reach employees.
• Seven out of 10 (70%) Detroit businesses have systems in place that enable most employees to work from remote locations, and almost half (44%) have automated calling systems to reach employees by telephone or cell phone outside of work.

�In crises, communications are vital to help save lives by connecting emergency services and families to each other,� said Jim Murray, President of AT&T Michigan. �While today�s exercise shows the capability AT&T has get our network back online in case of a disaster, it pales in comparison to capabilities shown by our first responders.� Not only do we owe them a tremendous debt of gratitude for the sacrifices they make on a daily basis, but we also owe them our best in repairing our network to allow them to do their jobs in case of an emergency.�

The AT&T NDR exercise simulates the loss of network operations because of manmade or natural conditions. Last week, 22 semi-tractor trailers rolled into Dearborn, each with essential networking technology for creating a temporary central network office. A crew of more than 60 permanent and volunteer NDR team members will assemble and turn up the central network office, first using satellite communications and a satellite COLT (cell on light truck). The exercise tests and refines their speed and efficiency in restoring wired and wireline network operations in the event of an actual disaster. Essential to AT&T�s own comprehensive business continuity plan, the Detroit NDR exercise will feature more than 25 disaster recovery trailers and vehicles, including emergency communications vehicles, and a variety of smaller utility and support trailers, as well as a search-and-rescue dog team demonstration.

�We live and work in a connected world, where a local manmade or natural disaster could have effects on productivity and progress at a global scale,� said Mark Francis, Vice President � Global Network Operations Center, AT&T. �AT&T NDR activities and team are vital to ensuring our wireline and wireless networks experience the minimal amount of downtime in the event of an emergency. It�s our commitment to our customers� safety, their businesses� sustainability and continued innovation and possibility.�

During the last 15 years, AT&T has invested more than $500 million in its NDR program, which includes specially trained managers, engineers and technicians from across the United States, as well as a fleet of more than 300 self-contained equipment trailers and support vehicles that house the same equipment and components as an AT&T data-routing or voice-switching center.�In 2008, AT&T announced that its NDR organization had consolidated wireless, wired and backbone network recovery capabilities, enabling AT&T to bring an integrated approach to disaster recovery that helps ensure the flow of both wireless and wired communications during times of need.

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AT&T (NYSE:T) plans to invest approximately $1 billion in 2010 to scale its delivery of applications, mobility and cloud services for global companies, to expand small business services within the United States and to continue extending its network globally.

The 2010 investment program for businesses is part of AT&T�s overall existing capital plan.� With business customers seizing the opportunities created by the continued proliferation of high speed communication networks and mobile computing devices worldwide, AT&T�s 2010 program includes:

• Scaling Application Services � enhancing AT&T�s current portfolio of flexible collaboration services and applications such as managed hosting, cloud-based services, Telepresence, Unified Communications, Digital Media Solutions and security.
• Enterprise Mobility Applications � continuing AT&T�s focus on delivering mobile solutions, applications and integrated devices to companies of all sizes.� This includes continued investment in LTE- and Wi-Fi-based applications to support the dramatic increase in demand for mobile broadband-based services.
• Vertical Industry Focus � creating and deploying applications in the finance, manufacturing, retail, healthcare, education and government sectors, expanding its presence in emerging applications including markets such as machine-to- machine communication and rolling out fixed mobile convergence and location based solutions, along with mobile platform and portal enhancements.
• Enhancing Small Business � deploying platforms and systems across its 22-state U.S. footprint to deliver an enhanced customer experience and to accelerate the provisioning of multiple products and services. �AT&T also plans to increase broadband speeds up to 24 Mbps downstream where possible in more than 120 markets across AT&T�s 22-state U.S. footprint.
• Global Network Expansion � continuing to build out its global network to deliver services and applications to the markets and geographies where multinational companies today are doing business and/or housing their operations. The AT&T network now reaches countries that represent 99% of the global economy.

�Despite the continuing challenges of today�s economic environment, we continue to deliver on our commitment to provide companies with the network-centric capabilities and applications they need to enhance their operations,� said Ron Spears, President and CEO of AT&T Business Solutions.� �IP-based solutions and applications have become ever more important to companies aiming to take their productivity to a new level while transforming their operations to adapt to their customers� changing needs.�
Including this year�s planned investment, AT&T will have invested more than $4 billion since 2006 in business-focused network, systems and applications to provide a globally consistent set of robust and highly-secure services to the more than 3.5 million business customers it serves.

AT&T is capitalizing on the ongoing shift in network traffic from voice to data and video � and more importantly to IP-based data and video � as customers migrate from legacy data networks to MPLS-based virtual private networks and managed applications.

Specific areas of AT&T�s planned investment in 2010 include:

Global Network Expansion:

• Deploy, upgrade or add diverse IPv6-capable MPLS nodes to support Layer 3 VPN and Global Managed Internet Services, including gigabit ethernet customer access across multiple locations in:
  • Europe: Belgium, France, Germany, Hungary, Netherlands, Portugal, Romania, Russia, Spain and Sweden.
  • Asia Pac: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore and Vietnam.
  • C&LA: Argentina, Brazil, Canada, Mexico, Panama and Peru.
• Leverage AT&T�s network expansion to improve capacity and diversity, and offer services in new markets, expanding the global OPT-E-WAN service footprint from 31 countries to 37 countries.
• Enhance application reporting and performance management.
• Expand the footprint and capabilities of carrier class switched Ethernet Wireless Backhaul solutions.
• Continue to expand Ethernet over copper deployment over AT&T�s U.S. footprint to better support customers as they evolve from lower-speed connectivity to Ethernet.
• Introduce a new metro switched Ethernet service across AT&T�s 22 state U.S. footprint, delivering additional capabilities and bandwidth options while eventually streamlining our Ethernet portfolio.
• Continue to enhance capabilities of managed AT&T Virtual Private Network Services on a global basis.
• Deploy IPv6 capable MPLS core routers in Hawaii and Guam to provide an interconnection point for Transpacific cables between the U.S., Australia, Singapore, China and Japan to improve resiliency and performance in the Asia Pacific network.

Additional sub sea cable capacity to ensure diversity and resilience including:

• 180G of new capacity into the Caribbean and South America
• Over 350G of new capacity from the US to and within Asia Pacific
• 70G of capacity from the U.S. to Europe
• This capacity spans multiple subsea cables with more diverse cable landings and terrestrial routing into major cities

Emerging Mobility Applications:

• Extend offers and solutions in three core categories – applications, machine-to-machine (M2M) and integrated network solutions.
• Continue to expand AT&T�s portfolio of mobile applications across multiple vertical industries, focusing on smart grid solutions and mHealth.
• Offer enhanced solutions that take advantage of AT&T�s converged fixed and mobile networks including network-based and premise based fixed mobile convergence and super femtocell technology.
• Increase support for the more than 750 wireless devices already connected to the AT&T network � such as e-readers, netbooks, digital photo frames, personal navigation devices, and home security monitoring and smart grid devices � for use by business customers.

Hosting/Cloud Infrastructure Services:

• Continue to develop and deploy cloud based managed hosting and Infrastructure as a Service capabilities.
• Add cloud enablers to AT&T Synaptic Storage as a Service that serve as a gateway between customers� storage systems and AT&T�s cloud.
• Introduce new turnkey Synaptic Hosting (Utility Computing) products, tailored to small and medium sized businesses.
• Add new managed hosting standardized packages, making it faster and easier to turn up AT&T Managed Hosting Services.
• Open an additional internet data center in London.
• Completing expansions of the Ashburn, Va. and Piscataway, N.J.� data centers.

AT&T Digital Media Solutions:

• Additional distribution with the addition of a node in Spain and increased capacity in the U.K. and Germany.
• Add additional software features, such as Download Manager, to improve customer control and user experience.
• Improve support for latest streaming technologies.
• Broaden range of content creation and management tools and services.

Unified Communications:

• AT&T Telepresence Solution:
  • Install additional telepresence rooms in AT&T offices in:
    • Europe: Belgium (Brussels), U.K. (Redditch), and Slovakia (Bratislava, Kosice).
    • Asia Pac: Singapore (Singapore) and Malaysia (Cyberjaya)
    • India: Bangalore and Hinjewadi
    • Latin America: Brazil (Campinas)
    • Canada: Toronto
  • Install new AT&T Business Exchange nodes in Hong Kong and Netherlands to provide regional access and expanded support for Telepresence services.
• AT&T Connect� Global Conferencing enhancements:
  • Expansion of audio conferencing platform to Europe, providing seamless, global, cloud conferencing solutions.
  • Continued investments in enhancements and additional capacity supporting web and video conferencing solutions.
  • Add mobile applications designed to improved productivity of mobility users.

Customer contact points:

• Small Business Transformation:
  • Back-office platform � deliver a streamlined customer experience that includes IP-based bundled offers, integrating wireline and mobility portfolios across the 22-state local footprint.
  • Increase broadband speeds � up to a maximum of 24Mbps downstream in more than 120 markets across the 22-state footprint.
  • Online storefront consolidation � integration of all public internet B2B storefronts into a single att.com/small business storefront, �with a consistent look and feel, intuitive offer buy flows, and consistent back office support processes.
• Application Services: online inventory, ticketing, router monitoring and performance statistics via AT&T BusinessDirect� for existing VPN-managed router services
• Mobility:
  • Mobile to Any Number for Business � unlimited calling to a user-defined list of wireless/wireline numbers with any carrier.� List will be easily established and maintained online via the AT&T Premier Mobility portal.
  • Online Activation � quick and easy customer online activation of new mobility device/service via the AT&T Premier Mobility portal.
  • Network-Based Fixed Mobile Convergence � developing a network-based integrated wireline/wireless solution to provide fixed mobile convergence services for enterprises.
  • User Ratings �customers will be able to provide product ratings and reviews on new device purchases via the AT&T Premier Mobility portal.
  • Online Employee Shopping � employees of its corporate customers will be able to take advantage of AT&T Premier Mobility online buying and self-servicing utilities, even if their company does not establish a corporate site.
  • Usability Enhancements � improvements to AT&T Premier Mobility inventory reports and downloads, end user dashboards and platform performance.
• Other
  • Real-Time Provisioning – provisioning new service/logical change orders in minutes for AVPN and OPT-E-MAN services.� Logical changes can be implemented �real time� by customers via an intuitive AT&T BusinessDirect online ordering map.
  • AT&T BusinessDirect Enhancements � additional map-based ticketing, inventory, alarms and SLA credit requests; improved platform performance;� increased mechanization for service order flow through/higher order quality with shorter delivery intervals.

Vertical Market Segments:

• AT&T Healthcare Community Online � deploy enhancements to our flagship healthcare solution, which is a highly-secure, cloud-based health information exchange and collaboration portal that improves real-time access to a patient�s health records and relevant applications so that physicians and medical staff can provide faster and more accurate diagnosis at the point of care.

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AT&T Government Solutions business unit announced it has won a task order worth approximately $29 million, if all options are exercised, to deploy a Wide Area Network (WAN) solution for the U.S. Environmental Protection Agency (EPA) WAN 2010 Project as the primary provider of communications services to the agency. AT&T will also provide Managed Trusted Internet Protocol Services (MTIPS) to enhance the security of the EPA network.

The task order was awarded under the U.S. General Services Administration (GSA) Networx Enterprise contract vehicle.

The EPA has more than 17,000 employees, more than half of whom are engineers, scientists, and policy analysts, located throughout the Washington, D.C., headquarters, 10 regional offices, and 27 laboratories. The EPA leads the nation’s environmental science, research, education and assessment efforts and is entrusted with the mission of protecting and safeguarding human health and the environment.

Under the terms of the task order, AT&T will leverage its transition planning and network management services to deploy a converged, managed IP network solution that will enable the EPA to transform and modernize its WAN architecture. AT&T will be responsible for ownership, management, and maintenance of the EPA WAN 2010 Project.

AT&T will use MTIPS to secure the EPA�s Internet traffic with services such as Intrusion Detection Services, Intrusion Protection Services, Incident Response, Managed Firewall Services, and Anti-Virus Management.

MTIPS is an offering under the Networx Enterprise contract that allows federal agencies to order IP services that comply with Office of Management and Budget (OMB) Memorandum 08-05. The OMB action calls for implementation of the Trusted Internet Connection (TIC) mandate, which requires agencies to reduce the number of connections to the public Internet and provide secure IP portals for agency traffic to and from the public Internet. AT&T�s MTIPS Certification & Accreditation (C&A) documentation conforms to the GSA�s requirements for the MTIPS product and is an approved service offering under the Networx contracts.

�The EPA needs an approach to security that not only enables the agency to exchange data in a secure fashion, but also stops threats before they make it to the front door,� said Don Herring, Senior Vice President, AT&T Government Solutions, AT&T Global Services. �This new singular, converged IP network infrastructure for the EPA will not only deliver enhanced security and increased capacity, but also provide a solid, flexible, and scalable technological platform for expanding bandwidth and applications as the EPA�s needs evolve in the future.�

The foundation for the AT&T WAN solution is the state-of-the-art AT&T Multiprotocol Label Switching (MPLS)-enabled network, a fully managed, highly secure, scalable data network, which enables customers to incorporate leading edge applications on the network. This powerful foundation provides the secure, reliable VPN network best suited to support EPA needs for an IP-converged network connecting EPA�s sites nationwide.

With the new architecture and inclusion of MTIPS, the EPA will improve its ability to securely share environmental information between its many nationwide offices and stakeholders, including businesses, state and local government partners, and public citizens.

AT&T will also provide Managed Network services such as Project Management Office (PMO), operations, site deployment, network engineering and design, on-site installation, maintenance, training and proactive network management and reporting. AT&T will deliver these services at EPA locations supporting systems and applications for the EPA workforce.

AT&T has serviced the communications needs of the EPA for several years, providing mission-critical communications services that include private line services, local exchange services, Internet and Mobility/Wireless services via GSA�s Federal Telecommunications Service 2001 (FTS2001) Crossover contract, and other vehicles.

The Department of Homeland Security (DHS) also provided AT&T with formal notification indicating AT&T�s MTIPS solution meets all DHS requirements for operation of a Trusted Internet Connections Access Provider, certifying the company�s TIC/MTIPS solution is fully compliant with OMB�s TIC requirements.

The EPA task order has a term of seven years, which includes a one-year base with six one-year options.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

About AT&T Government Solutions
AT&T Government Solutions is a long-standing, trusted source of�network-enabled solutions for the federal government, integrating unmatched network resources and IT and software engineering expertise with innovative technologies from AT&T Labs and industry-leading partners. With headquarters in Oakton, Va., AT&T Government Solutions is best known for network leadership in voice, data, video and managed services. AT&T Government Solutions is a proven solutions integrator, with expertise in areas such asInformation Assurance, Network Solutions, Application Solutions and Mission Support.

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