AT&T Receives Frost & Sullivan 2006 Education Market Leadership Award

San Antonio, Texas, June 22, 2006

AT&T Inc. (NYSE: T) announced today that it has received the 2006 Education Vertical Market Penetration Leadership Award from Frost & Sullivan, a global growth consulting company.

The Education Vertical Market Penetration Leadership Award is presented to the company that has been most effective in bringing to the market a wide range of technologically advanced, flexible and scalable communications solutions for the education sector. Frost & Sullivan selected AT&T in recognition of its success in serving the growth areas in the education sector through a combination of strategic technology alliances and its ability to customize its service offerings to the specific needs of education sector end-users.

"The new AT&T has been extremely proactive in recognizing and addressing the communications needs of the education sector," said Frost & Sullivan Industry Manager Reggie Helton. "As the market gradually shifts toward next-generation networks that enable the convergence of a wide range of services and applications, many carriers are finding it increasingly difficult to address the growing market needs of niche markets like education. With their enhanced ability to customize their wide range of offerings including voice, data and video services, AT&T has been able to successfully build solutions that fit the demands of their education customers."

AT&T offers a wide range of communications solutions tailored to meet the unique needs of the education sector, including support for e-learning and distance learning curriculums, physical and network-based security, wireless and mobility solutions, coping with cost-reduction initiatives, disaster recovery, support for recruitment and development programs, network consulting and technical support, as well as voice and data services.

"The education sector has always been an important market for AT&T because of our commitment to enhancing the learning process for students," said John Regan Jr., vice president, AT&T Business Marketing. "We are honored that Frost & Sullivan has recognized our continual efforts to provide advanced solutions to schools and campuses across the country."

In announcing the award, Frost & Sullivan said that the combined IP-based (Internet Protocol) capabilities, assets and resources of the new AT&T are expected to spark innovations that neither of its pre-merger companies could have accomplished on its own. The global growth consulting firm noted that AT&T has delivered advanced communications technologies such as fiber-optic networks for faster Internet speeds and greater bandwidth, wireless Local Area Network (LAN) solutions to create Wi-Fi-enabled campuses and advanced voice network solutions to manage voice communications equipment, systems and services to a wide range of educational institutions. Examples cited by Frost & Sullivan were recent installations at Enid (Okla.) Public Schools, College of DuPage and the University of Arkansas.

"AT&T's commitment to the education market is evident in the major customer contracts they won in the first quarter of 2006," says Helton. "We expect this momentum to be sustained throughout this year as demand in this market for high-speed, large-bandwidth data services continues to grow."

Frost & Sullivan pegged industry revenues from U.S. education vertical communications services at $8.64 billion in 2005 and estimated this will reach $12.52 billion in 2012.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research in order to identify best practices in the industry.

For more information about AT&T's advanced communications solutions for the education market, visit www.att.com/edu. For case studies and news releases about educational institutions using AT&T products and solutions, visit http://www.sbc.com/gen/general?pid=7785.

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.

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

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 or www.ict.frost.com