AT&T Announces Voice and Data Services Contract with the State of Nevada

Voice and Data Solutions Support Advanced Applications to Help State Offices Improve Service to Residents

San Antonio, Texas, May 4, 2006

AT&T Inc. (NYSE: T) today announced a new voice and data services contract, making AT&T the premier transport communications provider to Nevada's State Department of Information Technology, spanning 16 of the 17 counties throughout the state.

Under the terms of the two-year contract, AT&T will expand its existing relationship with the State of Nevada by providing an Integrated Services Digital Network Primary Rate Interface (ISDN PRI), Centrex and voice and data hardware. These services will provide a statewide, cost-efficient, locally managed communications network. This contract will enable Nevada's State Department of Information Technology to coordinate and manage the deployment of services to all Executive Branch agencies through a single integrated network.

The enhanced services will support high-volume access and high speed data transfer across the public-switched network, accommodating voice, data, image and video over the same digital facilities. These services will also streamline internal office communications and help to efficiently manage incoming and outgoing calls to reduce overall cost.

The integration of improved voice and data services will enable Nevada's State government agencies to perform critical public safety functions, interconnect departments with related requirements and share applications between entities to better serve the public. Additionally, this solution, through its alignment with AT&T's convergence strategy, will make it possible for the state to reach unparalleled levels of efficiency and cost effectiveness.

"We were in search of a voice and data solution that would allow us to operate more efficiently, provide the needed technologies of the future, and enable entities to share applications." said Dave Richards, information systems manager, Telecommunications, Nevada State Department of Information Technology. "We're confident the solutions provided by AT&T will enable the state to meet its needs and ultimately deliver the best service to the residents of Nevada."

About the State of Nevada
The State of Nevada was established in 1861. With a population of almost two million, the state is comprised of 17 counties and encompasses over 110,000 square miles. Additional information about the State of Nevada is available at www.nv.gov.

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 55.8 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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