AT&T Receives Market Leadership Award in North American Wholesale Sonet Services Market from Frost & Sullivan

San Antonio, Texas, May 24, 2006

AT&T, Inc. (NYSE:T) today announced it has received the Market Leadership Award for the North American Wholesale SONET services market from Frost & Sullivan, a global growth consulting company.

The Market Leadership Award is presented to the company that has demonstrated leadership through the implementation of market strategy and that has displayed excellence in all areas of the market leadership process. This leadership includes the identification of market challenges, drivers and restraints as well as strategy development and methods of addressing these market dynamics. Additionally, the award recipient has continually demonstrated solutions for monitoring market changes and for implementing superior market strategies.

AT&T is a global leader in the transport and termination of wholesale traffic. Frost & Sullivan is recognizing AT&T for its ability to identify key market growth areas, develop customized solutions for wholesale SONET growth customer segments and maintain continued investment in its network while planning for future bandwidth demand and service delivery.

"The new AT&T builds upon the strengths of AT&T Labs, its worldwide network that employs uniform design principles and a large portfolio of solutions," said Maria Zeppetella, senior analyst in the Telecommunications Services group at Frost & Sullivan. "AT&T has taken a strategic approach by identifying key customer segments and developing a rich set of product offerings uniquely suited to their needs. This strategy has allowed the company to move beyond simple transport provisioning to value-added services."

"This award validates the quality and breadth of our product portfolio to serve wholesale customers with increasingly complex network infrastructure needs," said Sherry Charles, vice president, AT&T Wholesale Segment Marketing, AT&T Enterprise Services, Inc. "We will continue to integrate and expand our offerings to help grow our customers' businesses on a global basis."

The wholesale SONET services market is currently enjoying a surge in demand, according to Frost & Sullivan. Total revenues for the wholesale SONET services market totaled $1.798 billion in 2005, and the firm forecasts that they are expected to reach $2.197 billion in 2012. SONET services remain highly preferred among wholesale customers as their maturity, reliability and security are important to end-user customers generally, and are highly valued by the financial and healthcare segments in particular. Continued preference for the reliability of SONET, growth in data traffic and backhaul needs in the growing wireless segment will be the top drivers behind wholesale SONET purchases during the next 1 — 4 years.

As a leading provider of wholesale services, AT&T provides complete end-to-end solutions for carriers, wireless operators, cable providers, systems integrators and Internet service providers. The company can help businesses grow by extending their footprint, strengthening their network infrastructure, making their internal business operations more efficient and complementing their existing offers with value-added application services. AT&T's wholesale services represent a comprehensive portfolio of IP, data and voice services, including VPNs, managed security services and managed contact center services.

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.awards.frost.com.

About 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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