AT&T Wins $1.6 Million Contract from Shoe Carnival

High Speed Data Network Links More Than 266 Retail Locations Nationwide

Evansville, Indiana, August 28, 2006

AT&T Inc. (NYSE: T) today announced a three-year, $1.6 million contract with Shoe Carnival, Inc. (NASDAQ:SCVL) to provide a fully managed high speed wide area network. The solution will link Shoe Carnival's headquarters in Evansville, Ind. with more than 266 store locations nationwide.

The agreement extends and expands a long-term relationship between the two companies.

Shoe Carnival, a leading retailer of name brand and private label footwear, will use AT&T's comprehensive networking solution to facilitate point-of-sale credit checks and transactions, enhance customer service, reduce business costs and raise brand loyalty.

The AT&T networking solution provides Shoe Carnival with four central benefits: increased bandwidth, reliable connectivity that speeds customer service at the checkout counter, efficient communications between headquarters and the field and superior network security to ensure that customer data is protected.

"The speed of the new network will reduce credit card authorization times, provide better communications capabilities within the company both via e-mail and other work flow applications and enable us to locate and move products between our stores easier and more efficiently than was previously possible," said Terry Clements, vice president of Information Services for Shoe Carnival.

Through the secure AT&T BusinessDirect® portal, Shoe Carnival will gain around-the-clock access to real-time information about the performance of its network and a direct connection to electronic billing and ordering systems.

In addition, AT&T provides a portfolio of voice services for the company as well as hosting services at one of its 30 Internet Data Centers (IDC) around the world.

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About Shoe Carnival
Shoe Carnival is a chain of 266 footwear stores located in the Midwest, South and Southeast. Combining value pricing with an entertaining store format, Shoe Carnival is a leading retailer of name brand and private label footwear for the entire family. Headquartered in Evansville, IN, Shoe Carnival trades on the NASDAQ Stock Market under the symbol SCVL.

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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