AT&T Announces New Contract with Draka Cableteq USA

AT&T Delivers Data Center Migration, Network Upgrades for Wire/Cable Solutions Provider

San Antonio, Texas, August 15, 2006

AT&T Inc. (NYSE: T) announced today a new contract to provide data center migration, customer premises equipment (CPE), international IP network upgrades and data hosting services to Draka Cableteq USA, a custom wire and cable solutions provider across defense, transportation and industrial business sectors.

Under the terms of the two-year contract, AT&T will assist Draka Cableteq USA with the full transition of its headquarters and data center from Franklin, Mass., to Watertown, Mass. AT&T will deliver a range of professional services, including plans for full data center migration and network upgrades. These upgrades include expanded hosting and an international IP frame relay to asynchronous transfer mode (FR/ATM) network solution. The FR/ATM service connects various customer locations to provide transparent interworking and data exchange.

AT&T's ATM solutions offer a range of business advantages, including bandwidth efficiencies, reliable multiservice networking, scalability, flexibility and global network capabilities.

Included in the contract, in the form of CPE services, is a new 10-rack data equipment cage for complete on-site management and maintenance of Draka Cableteq USA's new network. This solution further aligns with AT&T's customer-focused convergence strategy, enabling Draka Cableteq USA to achieve greater levels of efficiency and productivity.

"With our move to AT&T's hosted data center solution we are able to refocus key resources on customer-focused business process improvements," said Gail J. Hanson, business technology director, Draka Cableteq USA.

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About Draka Cableteq USA
From the first "magneto" cable for automobiles in 1906 to today's LifelineTM 2-hour fire rated cables that protect critical circuits, Draka USA's innovative wire and cable solutions have made a difference throughout a wide range of markets including commercial, industrial, defense, utility, fire protection, transportation and reservoir management. Draka USA is an industry leader in providing unique wire and cable solutions for unique applications. The company offers a portfolio of over 25,000 wire and cable configurations, plus an endless number of highly engineered cables created to meet any specification. For more information, visit www.drakausa.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 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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