[July 25, 2008]

AT&T Announces $400 Million Planned Investment to Bring New Technology to Consumers in Alabama

BIRMINGHAM, Ala., July 25 /PRNewswire-FirstCall/ -- AT&T Inc. announced plans to invest approximately $400 million over the next several years in fiber network upgrades, further broadband deployment and Internet-based technologies to bring new services, including innovative television, to Alabama consumers, upon approval of agreements being considered by city and county governments.

"We commend the 213 city and county leaders in 34 individual Alabama communities for their vision in helping to ensure that Alabama is not left behind in efforts to give consumers more choices in the video services market," said Fred McCallum, state president of AT&T Alabama. "The local support shown most recently by the Birmingham City Council, including council President Carole Smitherman, and Birmingham Mayor Larry Langford, and the Jefferson County commissioners, including commission President Bettye Fine Collins, will give consumers a new communications and entertainment experience. We look forward to delivering advanced television, voice and Internet services to Alabama."

On July 8, the Birmingham City Council, with support from the mayor, approved an agreement with AT&T that will enable AT&T to provide these new services to local consumers. That same day, the Jefferson County commission approved a similar agreement.

They join 34 communities across the state in approving similar agreements with AT&T, including Hoover, Bessemer, Midfield, Helena, Bay Minette, Vestavia Hills, Clanton, Tuscaloosa County, Jasper, Madison and Albertville.

"We are continuing to work with other cities and counties around the state that are critical to our investment decisions and look forward to completing these negotiations in the near future," said McCallum.

In part, the new technology upgrades being considered by AT&T will support Internet Protocol (IP)-based television, high speed Internet and Voice over Internet Protocol (VoIP) services. AT&T is the only national provider to offer a 100 percent IP-based television service, making AT&T U-verse(SM) TV one of the most robust and feature-rich services available today. The service includes features such as the ability to record up to four programs at once using a digital video recorder (DVR); Web and Mobile Remote Access to a DVR; access to customized weather, sports, traffic and stock information; and built-in picture-in-picture browsing.

About AT&T
AT&T Inc. 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. In 2008, AT&T again ranked No. 1 on Fortune magazine's World's Most Admired Telecommunications Company list and No. 1 on America's Most Admired Telecommunications Company list. 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/.

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.

(C) 2008 AT&T Intellectual Property. All rights reserved. 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.

Note: This AT&T news release and other announcements are available as part of an RSS feed at http://www.att.com/rss. For more information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom.

AT&T Inc.

CONTACT: Terri Denard of AT&T Inc., +1-205-714-0777, cell,+1-205-915-7493, terri.denard@att.com

Web site: http://www.att.com/

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