AT&T Announces New Contract with Smart Financial Credit Union

Texas Credit Union Calls on AT&T for Unified Network Platform

Houston, Texas, August 24, 2006

AT&T Inc. (NYSE: T) today announced a new contract with Smart Financial Credit Union (SFCU) to deliver managed virtual private network (VPN) services, connecting eight locations under a unified network platform. SFCU is a state-chartered credit union with eight locations in the Greater Houston area.

Under the terms of the three-year contract, AT&T will deliver numerous services, including a fully managed network infrastructure, network conferencing and managed Internet service.

The network will provide reliable transport with enhanced security for SFCU's critical data, such as financial records across a unified platform. The high-speed IP backbone infrastructure offers dedicated Internet access for highly available connectivity. Also, SFCU will be able to use any-to-any connectivity between remote and local employees and customers.

This solution, and its alignment with AT&T's customer-focused convergence strategy, not only provides increased network security and reliability but also allows SFCU to integrate future communications services and technologies.

"Unifying all of our locations under a single converged network will provide increased security for our member's financial records and remote access for employees and customers," said Mike Piwetz, CIO of Smart Financial Credit Union. "Additionally, the network platform provides redundancy to ensure against service outages and the flexibility to prepare for future growth, resulting in overall improved customer service."

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About Smart Financial Credit Union
Smart Financial Credit Union (SFCU) is a cooperative, owned and operated by its members. SFCU is a $300 million financial institution with eight locations in the Greater Houston area. SFCU is a state-chartered credit union, organized under strict regulatory laws that are monitored and enforced by the National Credit Union Administration, an agency of the U.S. Government. For more information, visit www.smartcu.org.

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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