City of New York Awards AT&T Major Services and Networking Contract

Multi-Year Deal Worth Potentially $100 Million

New York, New York, August 7, 2006, AT&T (NYSE: T) announced today that the City of New York has awarded AT&T Inc. a major contract for telecommunications (local, long distance and networking) services for both the City’s routine and critical data applications. The multi-year agreement, initially valued at $25 million, will enable AT&T to secure up to $100 million in business from the city’s various agencies.

AT&T is one of only two carriers with which the City has negotiated a "master services contract" for the provision of such services, as a result of a competitive procurement process.

Under the contract, potentially one of the company’s largest since the merger of SBC and AT&T, the City of New York will have the option to use AT&T local and long distance voice services, as well as AT&T data services. Agencies of the city’s municipal government, as well as a substantial list of publicly funded cultural institutions (such as New York City’s public libraries) and public authorities (such as public transportation agencies and public hospitals) can use the contract either to purchase new services or replace those being provided by other carriers.

The AT&T services provided under the contract will constitute a citywide network enhanced with technology that offers increased redundancy, reliability and security of critical data. All city agencies and other New York City-based government institutions, including mission-critical emergency services, hospitals, cultural sites, and libraries will — if they choose to use such services — have access to the AT&T network.

"We are pleased to strengthen our relationship with the City of New York by offering voice and data services throughout the city" said Forrest Miller, group president, AT&T. "AT&T’s outstanding business continuity services will serve the agencies of New York well, and will enable the city to enhance the services provided to its residents and businesses.

"The vibrancy of the New York City government, including dozens of cultural institutions, schools, and parks, make this an assignment we are especially excited to tackle" added Miller.

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About AT&T
AT&T Inc. is one of the world’s largest telecommunications holding companies and is the largest in the United States. Operating globally under the AT&T brand, AT&T companies are recognized as the leading worldwide providers of IP-based communications services to business and as leading U.S. providers of high speed DSL Internet, local and long distance voice, and directory publishing and advertising services. AT&T Inc. holds a 60 percent ownership interest in Cingular Wireless, which is the No. 1 U.S. wireless services provider with 57.3 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.att.com.

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