AT&T Announces Multimillion-Dollar Contract with Alverno Information Services

Services Will Support Health Systems in Indiana and Illinois

San Antonio, Texas, January 11, 2006

AT&T Inc. (NYSE: T) today announced a new five-year contract with Alverno Information Services, a division of the Sisters of St. Francis Health Services, Inc. (SSFHS), located in Beech Grove, Ind.

SSFHS is a Catholic healthcare organization committed to medical education, community health and high-quality, cost-effective care. With more than 300 employees throughout Indiana and Illinois, Alverno Information Services houses and operates all of the core financial, clinical, and information management systems for SSFHS' 12 major hospital campuses and 95 remote sites.

Under the terms of the $19.5 million dollar contract, AT&T companies will provide a Synchronous Optical Network (SONET) solution to the company's data center in Beech Grove, Ind., as well as local and nationwide voice services to 15 of the company's major locations, including the corporate headquarters. The SONET will provide a secure and reliable network backbone to support Alverno Information Services' increased bandwidth and will support SSFHS' Picture Archival Communication System (PACS), which will allow SSFHS to utilize a secure database for medical images and will improve the efficiency of the company's imaging departments by allowing medical information to be stored, recalled, displayed, manipulated and printed digitally. In addition, AT&T companies will provide nationwide voice and video conferencing services to all SSFHS hospitals and major locations.

"We needed a network that could support our increased bandwidth for our new communications system," said Eric Sluder, director of telecommunications, Alverno Information Services. "AT&T companies will provide us with a highly reliable, redundant network solution that gives us not only the infrastructure we need to improve communications but also a network that can withstand our need for greater bandwidth."

"Our optical-networking services will provide increased efficiency in medical imaging archives, improving patient services for all Alverno Information Services locations," said Vicki Jones, president-Business Communications Services, AT&T Global Services, Inc. "We're excited to contribute to the continued growth and success of Alverno Information Services."

About Alverno Information Services

Alverno Information Services is a division of the Sisters of St. Francis Health Services, Inc. and is located in Beach Grove, Indiana with more than 300 employees. Alverno Information Services houses and operates all of the core financial, clinical and management systems of SSFHS. For more information, please visit www.alverno.org.

About the New AT&TAT&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.