AT&T Launches Rural Satellite Broadband Internet Service

New Broadband Option Available Today for Rural Customers in Traditional AT&T 13-State Residential Territory

San Antonio, Texas, May 24, 2006

AT&T Inc. (NYSE:T) today announced the availability of its new satellite-based broadband Internet access service, delivering a new service option to millions of rural homes and businesses where DSL and cable services are not offered today.

The new satellite-based broadband service, called "AT&T High Speed Internet Access, powered by WildBlue," is available today to customers in many rural and remote areas across the company's traditional 13-state local residential service area. The new offering furthers AT&T's goal to expand the reach of broadband Internet access, and the services it enables, to 100 percent of homes and businesses in its traditional local service territory.

"Broadband access to the Internet is no longer a luxury, it is a vital need for most households and businesses today," said Jim Callaway, senior executive vice president, AT&T Business Development. "Satellite technology provides a viable broadband option for areas that cannot be effectively served by DSL or cable, enabling AT&T to offer services in areas that have had few or no options previously. Our efforts to expand the reach of broadband will enable many of our rural customers to take full advantage of online business, educational, and communications tools for the very first time."

AT&T is already the nation's largest provider of DSL broadband, with 7.4 million DSL lines in service and DSL service options available to nearly four out of five customer locations within the company's 13-state traditional local service area. The new satellite service provides a new option for as many as 11.5 million additional homes and businesses within this region.

Rural satellite-based broadband subscribers will have three service packages to choose from, with prices ranging from $49.95 to $79.95 per month, and broadband speed options ranging up to 1.5 Mbps downstream and up to 256 Kbps upstream. AT&T satellite-based broadband customers will have direct access to the public Yahoo! portal, which will be set as customers' default Internet home page.

Service options will initially be available in most rural AT&T service areas in the following states: Arkansas, California, Connecticut, Kansas, Nevada, Oklahoma, and Texas. Services are available today in portions of the following states: Illinois, Indiana, Missouri, Michigan, Ohio, and Wisconsin. Additional availability in these states is expected later in 2006.

Customers can review additional information by visiting www.attwb.net and can confirm availability in their area by calling 1-866-798-4787.

The satellite-based broadband offering is delivered via an operating agreement with the satellite high-speed Internet provider WildBlue. The new satellite offering is part of an overall effort by AT&T to evaluate and develop new broadband technologies to serve its business and residential customers.

Earlier this month, AT&T announced expansion of its deployment of WiMAX and other fixed wireless technologies. These technologies show substantial potential for delivery of a range of networking services — such as Voice over IP, Internet access, and private business network access — over broadband wireless connections.

AT&T's new fixed wireless deployments, which will be launched this summer in Pahrump, Nevada, and Red Oak and Midlothian, Texas, will extend the AT&T Yahoo! broadband experience to residential and business customers in these communities, and will enable AT&T to further develop and refine WiMAX and other fixed wireless technologies as potential solutions for delivering services on a mass-market scale. The new communities will join AT&T's existing fixed wireless deployments in Alaska, Georgia and New Jersey.

In addition, AT&T in mid-April launched a limited service offering of wireless broadband Internet access in the North Texas communities of Frisco, McKinney, Prosper, Centennial, and Little Elm. Customers in these service areas have direct access to the public Yahoo! portal, which will be set as customers' default Internet home page.

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.

© 2006 AT&T Knowledge Ventures. All rights reserved. Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand.