AT&T Announces New Contract With Patelco Credit Union

Services Will Provide IP Networking Solution to California Credit Union

San Antonio, Texas, December 7, 2005

The new AT&T Inc. (NYSE: T) today announced a new contract to provide network services to San Francisco-based Patelco Credit Union, one of the largest credit unions in the country with 37 branches nationwide.

Under the terms of the three-year contract, AT&T companies will deliver Network-based Virtual Private Network (NVPN) services for secure, reliable MPLS-based IP network connections to the company's branch locations, ATM and service centers nationwide.

AT&T companies will also provide network management services and will serve as the primary provider of voice and data services for Patelco.

"We wanted to explore Voice over Internet Protocol (VoIP) but also needed to update our disaster-recovery system," said John Shields, CIO, Patelco Credit Union. "Through AT&T companies, we're confident we'll be able to achieve expanded capabilities with increased security at a cost-effective rate."

Together, these services will help Patelco improve quality of service through enhanced capabilities, such as an upgraded disaster- recovery system to decrease risk and increase security for the company's mission-critical data.

About Patelco Credit Union
San Francisco-based Patelco Credit Union is one of the largest and most successful credit unions in the country. An industry leader in convenience and innovation, Patelco delivers service through its 37 branches and nationwide network of ATMs and service centers. For more information, visit www.patelco.com.

About the New 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 more than 52 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.TheNewATT.com.