AT&T Lowers Price of AT&T CallVantage Service

Unlimited Local and Long Distance Digital Phone Service with Industry-Leading Features Now Available for Just $24.99 a Month

San Antonio, Texas, July 25, 2006

AT&T Inc. (NYSE:T), the nation's leading high speed DSL Internet service provider, today announced a lower monthly rate for its AT&T CallVantage® service, featuring unlimited local and long distance calls for new residential customers within the United States and to Canada. AT&T has renewed its marketing focus on Voice over IP, as part of a strategy to expand its portfolio of voice solutions and offer more bundling options to consumers — all to better compete in and outside its traditional local service area.

The new price for the service, which provides a reliable voice service over a high speed Internet connection with some of the most robust features on the market, is $24.99 a month, reduced from $29.99. The service includes popular calling features, such as caller ID and call waiting and voice mail service. In addition, the following powerful and advanced features are included:

  • Call Logs — Track incoming and outgoing calls and allows users to complete calls using the "click to dial" capability.
  • Do Not Disturb — Allows customers to receive calls only when they want them, sending calls directly to voice mail while allowing urgent calls to come in.
  • Locate Me — Calls, to the home phone, "find" customers by ringing up to five phones all at once or one right after the other.
  • Web-Based Voice Mail — Allows customers to hear their messages from any phone or PC and to forward the voice mail to anyone via e-mail.

Customers who order the unlimited local and long distance plan online at www.attcallvantage.com will receive one month of service free of charge. AT&T also offers an unlimited local plan for $19.99 a month, featuring long distance calling for 4 cents a minute, as well as a two-line solution for $49.99 a month. All plans offer low international calling rates without an additional monthly fee and include a telephone adapter.

"AT&T CallVantage is a great complement to our industry-leading portfolio of voice solutions and a very affordable alternative for consumers who want to use broadband to stay connected," said Rick Welday, chief marketing officer of AT&T Consumer. "It also helps us compete nationally and for younger tech-savvy consumers who are looking for innovative and flexible communications solutions."

AT&T CallVantage will be promoted through AT&T catalogs delivered to millions of homes, as part of the company's third- and fourth-quarter marketing push. AT&T CallVantage also has been featured in the company's branding campaign, which focuses on the company's heritage of innovation.

AT&T CallVantage is available on a stand-alone basis and can also be bundled with AT&T Yahoo!® High Speed Internet service. By visiting www.att.com, customers can order AT&T Yahoo! High Speed Internet and easily add AT&T CallVantage, for only $19.99 a month, once their Internet order is confirmed. This offer provides customers with an attractive option for a second line, for example, as a children's line.

AT&T CallVantage earned PC Magazine's Best of the Year award in 2005, and PC World recognized the service as the "most impressive" of the seven Internet phone services they tested, highlighting AT&T CallVantage's call quality. AT&T CallVantage service has also been recognized for the broad selection of premium features, which may carry a low additional fee, including:

  • Simple ReachSM Number — Allows users to select additional phone numbers with different area codes and to give them to the people with whom they speak most often. For example, a customer living in New York can provide a contact in New Mexico with a local number, saving the contact the cost of a long distance call.
  • Add Phone Users — AT&T CallVantage Plus — Allows users to provide each member of the household with a distinctive telephone number and the ability to individually manage their calling experience. This enables individuals the ability to configure Do Not Disturb and Locate Me to receive calls when they want then and where they want them and provides a discrete Call Log for each user, allowing everyone to retrieve their own voice mail.
  • Call Filtering — Enables users to filter calls based on the caller for up to 20 numbers. Calls can be sent directly to voice mail or blocked entirely.
  • Record and Send — Gives users the ability to broadcast a message to several different telephone numbers at the same time.
  • Personal Conferencing — Enables users to set up a meeting with up to nine callers.

To learn more about AT&T CallVantage service or to order the service, consumers can visit http://www.att.com/CallVantage.

Note: This AT&T release and other news announcements are available as part of an RSS feed at www.att.com/rss.

DISCLAIMER: High speed Internet charges not included. First month free offer applies only to online orders for Unlimited Local & Long Distance Plan at $24.99/mo. Does not apply to Unlimited Local Plan; AT&T CallVantage 2-Line Plan; or Unlimited Local & Long Distance Plan $19.99/mo. promotional offer, which is available only to customers who have and maintain AT&T Yahoo! High Speed Internet service. $29.99 activation fee applies. $9.95 non-refundable shipping and handling fee applies if Telephone Adapter is shipped to customer. $29.99 disconnect fee applies if Service is disconnected less than 1 year from the date order for service was placed and Telephone Adapter is not returned and received by AT&T within 16 business days of disconnection. International calls billed at additional per-minute rates; not included in free offers. Additional charges apply for Call Filtering ($1.99/mo.), Conference Calling ($.35/min. for up to 9 other callers), Simple Reach Number (up to 9 additional numbers in AT&T CallVantage footprint for $4.99/mo. per number), AT&T CallVantage Plus (up to 8 additional users, $7.49/mo. per number). Federal Universal Service Fund charge and other state and federal taxes and surcharges apply. Service will not function during high speed Internet and/or electrical power outages. Not compatible with security systems (fire or burglar) or medical monitoring equipment. For residential customers only. Credit card billing only. Not available in all areas. AT&T CallVantage 911 service differs in material respects from traditional 911 service. See www.att.com/callvantage for important information about 911 service. When dialing into service remotely, customer may incur additional access charges for non-local calls, hotel service charges or cellular mobile charges. Unlimited Local & Long Distance Plan: 1st month free offer expires 12/31/06. Unlimited Local Plan: If a non-local number is used for the Locate Me, 3-Way Calling, Call Forwarding, or Record & Send features, per-minute long distances charges apply. AT&T CallVantage 2-Line Plan: Unlimited local and long distance calls on 1st line; unlimited local and up to 500 minutes long distance calls on 2d line. Waiver of minute caps by AT&T at any time shall not restrict the right of AT&T to enforce such caps thereafter. International calling: Higher rates may apply for calls terminating on mobile phones or other wireless devices.

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 57.3 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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