AT&T Announces New Voice and Data Services Contract with Republic Airways Holdings

Indianapolis, Indiana, September 5, 2006

AT&T Inc. (NYSE: ATT) today announced a new voice and data services contract with Republic Airways Holdings Inc. (NASDAQ: RJET). Under the terms of the three-year contract, AT&T Indiana will deliver a Multiprotocol Label Switching (MPLS) private network transport (PNT) solution to Republic Airways' headquarters and 25 remote sites.

The premier solution will securely support the transfer of voice, video and data across a national network, which encompasses all Republic Airways' locations. The enhanced solution, which aligns with AT&T's convergence strategy, will also provide increased bandwidth and the flexibility to implement a Voice over Internet Protocol (VoIP) solution at all remote locations in the future.

The service will allow Republic Airways to use data packet prioritization to determine which data should be transported over the network. It also allows the customization of location destination, which will ensure that important information is delivered securely to the proper location.

Republic Airways will benefit from a redundant, four-digit dial plan at all of its locations, making employee communications more efficient and the transfer of calls between office sites possible. Republic Airways will be able to consolidate services and save on long distance communications, allowing for an overall cost-effective solution. Additionally, the solution will benefit Republic Airways customers, by providing timely processing of customer calls and requests.

"We needed a provider capable of delivering a national network to connect all of our locations and support efficient and cost-effective communications between them," said Aaron Workman, director of information technology, Republic Airways. "We are confident that the solution provided by AT&T will not only meet our current needs but also will allow for growth in the future."

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About Republic Airways Holdings
Republic Airways Holdings, based in Indianapolis, Indiana is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,000 flights daily to 89 cities in 35 states, Canada, Mexico and the Bahamas through airline services agreements with four major U.S. airlines. All flights are operated under a major airline partner brand, such as AmericanConnection, Delta Connection, United Express and US Airways Express. As of June 30, 2006, the airlines employed more than 3,300 aviation professionals and operated 166 regional jet aircraft including 71 E170 aircraft. Additional information about Republic Airways Holdings can be found at www.republicairways.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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