AT&T U-verse Achieves First Billion-Dollar Revenue Quarter

Network Strategy, Aggressive Service Expansion and Better Apps and Bundles Drive Customer Response

Dallas, Texas, AT&T* reported the first ever billion-dollar revenue quarter for AT&T U-verse® services during the second quarter of 2010. AT&T U-verse revenue and rapid customer growth are driven by a network deployment that reaches customer homes quickly and efficiently and an all-Internet Protocol (IP) service that delivers a better customer experience.

AT&T had 209,000 U-verse TV subscriber net additions to drive the U-verse TV subscriber total to 2.5 million, up by more than 900,000 over the past year. More than 75 percent of U-verse TV customers choose a triple- or quad-play of integrated U-verse TV, Internet, home phone and/or wireless services. The average revenue per user (ARPU) for U-verse triple-play** customers was nearly $160 a month, up 13.8 percent year over year and 6.8 percent from the first quarter of 2010.

AT&T continues to expand U-verse availability in new and existing markets. The AT&T U-verse fiber network passed 25 million living units at quarter-end. AT&T has also started deploying pair bonding, a new technology that allows it to expand U-verse services to even more customers.

“We’ve hit this significant milestone because we continue to focus on bringing a better TV experience than cable to more and more customers,” said Brian Shay, senior vice president of AT&T U-verse, AT&T Mobility and Consumer Markets. “Our fiber network strategy is helping us reach more homes faster, and customers recognize that bundling all their services with us gives them numerous benefits such as a better value and better features.”

Using its advanced Internet Protocol platform, AT&T continued to make several service enhancements for U-verse TV customers during the second quarter:

* Introduced My Multiview, the exclusive app that lets you choose and watch four of your favorite channels at the same time on your U-verse TV screen. The app is currently rolling out on a market-by-market basis.
* Launched ESPN 3D, the first 3D channel on U-verse TV.
* Expanded the U-verse High Definition (HD) channel lineup to include more than 130 HD channels.
* Began enhancements to U-verse TV HD capabilities so eligible customers can now watch up to three live HD streams simultaneously.
* Added new functionality to the U-verse YP.COM TV app, which gives customers the ability to locate and place a call to a business from their U-verse TV screen through any wireless, U-verse Voice or home phone number.
* Launched several interactive sports applications, including the first Spanish-language TV app from U-verse TV.
* Extended the U-verse brand across more screens with U-verse Online, the newly rebranded and expanded AT&T Entertainment website that lets you watch streaming TV shows, movies and video clips on your PC.
* Introduced new quad-play bundle offers which give consumers even more savings for bundling a complete bundle of U-verse TV, High Speed Internet, U-verse Voice and wireless services — a bundle option not available from most cable providers.

AT&T U-verse TV is the only 100 percent Internet Protocol-based television (IPTV) service offered by a national service provider, making AT&T U-verse one of the most dynamic and feature-rich services available today. AT&T U-verse TV ranked “Highest in Customer Satisfaction in the South and West Regions Two Years in a Row,” according to the J.D. Power and Associates 2008 and 2009 Residential Television Service Provider Satisfaction StudiesSM. Customers who want additional information on U-verse TV — or to find out if it’s available in their area — can visit www.att.com/u-verse.

*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.

**U-verse triple-play includes U-verse TV, High Speed Internet, and Voice.

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 3G 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 |DIRECTVSM 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.

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AT&T U-verse services are provided by AT&T local telephone companies. Geographic and service restrictions apply to AT&T U-verse services. Call or go to www.att.com/u-verse to see if you qualify. Customizing options require AT&T U-verse High Speed Internet Service. HD Service: Access to HD service requires $10/mo and HD Premium Tier available for an additional $5/mo. HD channel availability varies by package selected. Multiview: Channels/content available for viewing in Multiview are based on TV package and additional programming purchased. A limited number of HD channels are not supported for display within My Multiview. AT&T U-Verse Voice: U-verse Voice, including 911 dialing, will not function during a power outage without battery backup power. May be incompatible with monitored home alarms and medical monitoring systems. Caller ID and Call Waiting might not work simultaneously with AT&T U-verse Voice.

AT&T U-verse received the highest numerical score among television service providers in the South and West in the proprietary J.D. Power and Associates 2008-2009 Residential Television Service Satisfaction StudiesSM. 2009 study based on 28,118 total responses from measuring providers in the South (13) and West (10) regions and measures consumer satisfaction with television service. Proprietary study results are based on experiences and perceptions of consumers surveyed in January, March and June, 2009. Your experiences may vary. Visit jdpower.com.