A clear focus on our opportunities, combined with strong execution, helped make 2007 a terrific year for our company. Wireless growth accelerated as we added more than 9 million subscribers. Our enterprise business executed a major turnaround, with enterprise service revenues returning to growth in the second half of the year. We grew our business with small and midsize firms, expanded our lead among U.S. broadband providers and began an aggressive ramp of our next-generation television service.

Meanwhile, we exceeded our expense control targets as we integrated formerly separate operations to improve performance. In fact, through mergers and other initiatives, we've saved more than $5 billion in operational costs over the past two years. That operating cost advantage serves us well in every market and economic condition.

All of these achievements drove outstanding financial results:

• Total revenues increased to nearly $119 billion.
• Adjusted earnings per share grew at a strong double-digit pace.
• Cash from operating activities topped $34 billion, a record for our company.
• Our total return for the year (stock price appreciation plus dividends paid) was 20.6 percent — nearly four times the return of the S&P 500.

In December 2007, AT&T's Board of Directors raised our quarterly dividend by 12.7 percent and approved a new repurchase of 400 million shares — both the largest in our company's history. These actions demonstrate our commitment to stockholders. And, in a time of some uncertainty and volatility in the global economy, they also demonstrate the strength of our operations and the confidence we have in the future of our business.