AT&T Builds New, IP-Based Network to Enhance Capabilities of Utica National Insurance Group

New Hartford, New York, August 23, 2006

AT&T Inc. (NYSE: T) today announced a contract that will allow long-standing customer Utica National Insurance Group to significantly upgrade its IP platform. This additional new contract extends over three years and will instantly double the bandwidth available to the insurance company's headquarters and virtually all of its regional offices and district claims offices. At the same time, it will provide the company with a new level of real-time network monitoring capabilities. Specific terms of the contract were not disclosed.

AT&T will carry Utica National's data on its MPLS-based network, connecting all of its corporate locations under a common IP-based architecture to allow national reach and virtually unlimited future growth.

Along with voice and data traffic, Utica National will use the AT&T network to carry bandwidth-intensive data-imaging files that are critical to its ability to provide efficient customer service.

"The pricing and the ultimate operational savings proposed for this upgrade look to be extraordinary," said Armand Seccurra, PC support manager for Utica National. "Over the long term we expect to investigate ways that we can take advantage of the fully meshed network that AT&T's MPLS Wide Area Network offers and ultimately take advantage of the class of service stratification that MPLS offers as well."

AT&T will also install much of the hardware that is necessary for this network enhancement and will provide end-to-end management of this equipment, allowing Utica National's staff to focus on other mission-critical tasks.

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About Utica National Insurance Group
The Utica National Insurance Group has its home office in New Hartford, NY and is among the top 100 property and casualty insurance organizations in the country. It began in 1914 with the founding of its principal company, the Utica Mutual Insurance Company.

Utica's products include a wide range of commercial property and casualty insurance coverages, as well as personal auto and homeowners insurance, marketed through more than 1,000 independent insurance agents. In addition to expertise in writing a number of specialty commercial classes, including programs for the graphic arts industries, educational institutions, religious institutions, wholesalers, and others, Utica also has one of the nation's leading programs of professional liability coverage for insurance agents and brokers. The company employs 1,340 people, writes about $ 670 million in annual property-casualty premium and has over $2 billion in assets.

Utica National has regional offices in Utica NY, Wakefield MA, Jericho NY, Columbus OH, Richmond VA, Atlanta GA and Richardson TX.

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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