AT&T Announces New Contract with Homefield Financial Inc.

Nationwide Mortgage Lender Increases Security, Boosts Productivity with Hosted AT&T Solution

Irvine, California, August 29, 2006

AT&T Inc. (NYSE: T) today announced a new data hosting and networking contract with Homefield Financial, Inc., a nationwide mortgage lender with headquarters in Irvine, Calif.

Under the terms of the three-year contract, AT&T will provide AT&T's hosted Internet Data Center (IDC) integrated with a Multiprotocol Label Switching (MPLS) Virtual Private Network (VPN) solution to Homefield Financial, Inc. The IDC will house Homefield Financial's production systems providing a secure, redundant, stable environment to protect core business data. In addition, the MPLS VPN will enable all offices to share this data over a secure, scalable, and redundant network while allowing Homefield Financial employees to communicate seamlessly via IP telephony.

Furthermore, this solution aligns with AT&T's convergence strategy, enabling Homefield Financial's network infrastructure to deliver greater levels of efficiency and productivity with enhanced security.

"We needed a supplier that could provide an end-to-end solution while delivering high levels of uptime, quality of service, and security for our data on a converged nationwide network," says Gary McManus, IT operations manager for Homefield Financial, Inc. "We're confident that AT&T will provide us with a solid, scalable solution, which will enable us to rapidly and intelligently grow our business."

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About Homefield Financial, Inc.
Founded in 1998, Homefield Financial, Inc. offers U.S. consumers and mortgage brokers a wide variety of loan options while making the home-financing process fast and convenient. Homefield Financial has developed mortgage products for consumers of all credit grades desiring to finance a new home, refinance an existing home loan, make home improvements or consolidate debt. Homefield Financial was recently recognized by Inc. Magazine, for the second consecutive year, as one of the Inc. 500 fastest-growing private companies in the country.

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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