AT&T Inc. Announces New Contract with the Liberty Company

California Insurance Broker Upgrades IP Services with AT&T DNA

Torrance, California, August 31, 2006

AT&T Inc. (NYSE: T) today announced a new voice and Internet Protocol (IP) services contract with The Liberty Company Insurance Brokers, an independent insurance agency with operations throughout the state of California and soon to be nationwide through its new Internet insurance portal, InsureNet.net. Under the terms of the three-year contract, AT&T will be the primary voice and IP services provider, delivering AT&T Voice Dynamic Network ApplicationsSM (DNA), Managed Internet Service (MIS) and MPLS Private Network Transport (PNT).

AT&T Voice DNA, a network-based Voice over IP (VoIP) service provides the benefits of a premises-based telephony service, while maintaining flexibility, control and reduced capital expenditures. The service will enable customers to converge data and voice applications on the same reliable, secure and scalable network infrastructure. Additionally, MIS and PNT will provide consistent Internet service and secure access to the company network and client records, whether employees are using terminal or remote access.

With five locations, the solution will support network traffic between multiple sites, as well as sustain a high volume of intracompany calls. The Liberty Company, by centralizing and distributing calls from its headquarter office over the new AT&T Voice DNA service, will streamline its current customer service process and be able to deliver improved customer satisfaction. The Liberty Company will also realize network mobility with the consolidation of multiple services under one solution.

"With office locations spread across the entire state of California and calls soon to be coming from all 50-states, we need a provider that is capable of delivering one solution that meets all of our needs," said Jerry Pickett, president of The Liberty Company. "We are confident that AT&T's solution will not only provide reliable connectivity for our multiple locations, but it will also enable us to consolidate services and reduce our costs."

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About The Liberty Company Insurance Brokers
The Liberty Company is an independent insurance broker handling the insurance needs of individuals, families, and businesses for 20-years throughout California. It will soon launch its nationwide Internet brand "InsureNet.net" as the premier online provider of Home and Auto insurance in all 50-states. For more information on the Liberty Company, visit www.LibertyCompany.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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