Fred Loya Insurance Selects AT&T to Deliver Advanced Network Services

El Paso, Texas, June 26, 2006

AT&T Inc. (NYSE:T) announced today that it has won a $5 million networking contract from Fred Loya Insurance, a leading provider of auto insurance in Texas. The three-year agreement renews and expands a long-standing relationship between the two companies.

Fred Loya Insurance has been in the midst of rapid growth for the past decade. The company has nearly 200 offices throughout Texas and New Mexico and revenues of approximately $200 million. The contract calls for AT&T to help facilitate and manage that growth through an easily scalable network-based Internet Protocol Virtual Private Network (IP VPN) solution.

The AT&T solution allows Fred Loya's staff to easily communicate with one another and with policyholders, agents and business partners using the most appropriate and effective mix of voice, data and video over an integrated communications infrastructure. By enabling "any to any" connectivity, the AT&T solution increases network reliability and security while decreasing network costs.

"Our efforts to drive efficiencies depend on having a fast, reliable network," said George Briones, director of information systems and information technology for Fred Loya Insurance. "AT&T's networking technology enables us to implement leading-edge initiatives to drive efficiencies, such as our paperless office with online forms and digital signatures."

The AT&T solution also incorporates Multiprotocol Label Switching (MPLS), which enables the prioritization of different types of network traffic, designed to make available the bandwidth that the Fred Loya Insurance's Voice over Internet Protocol (VoIP) services need for high performance.

AT&T also provides Fred Loya Insurance with high-performance Internet access as well as local and long distance service.

About Fred Loya Insurance
Based in El Paso, Texas, Fred Loya Insurance Agency, Inc., is a full service agency specializing in automobile insurance. Established in 1974, the company provides all forms of insurance to meet its customers' needs at competitive rates and with affordable payment plans. For more information, visit www.fredloya.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 more than 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.