AT&T Announces Multimillion Dollar Contract With the State of Indiana

Indianapolis, Indiana, October 10, 2006

AT&T Inc. (NYSE: ATT) today announced a new contract with the state of Indiana for a suite of voice, data and networking services worth approximately $22 million over four years.

Under the terms of the contract, AT&T will expand its existing relationship with the state of Indiana by delivering a Dedicated Synchronous Optical Network (SONET) ring, which is an optical-fiber network backbone; GigaMAN® service, which is a dedicated fiber-optic Ethernet service; Managed Internet Service (MIS); AT&T Frame Relay service; and AT&T Managed Care, which provides Lifecycle Management of the entire solution.

Together, these services will provide a statewide, cost-efficient, and managed communications network that encompasses the secure transport of voice, video and data. This contract will enable the state of Indiana to coordinate and manage the deployment of services to all state branch locations through a single, integrated network.

The unified network, which aligns with AT&T's convergence strategy, will also help improve state agency and employee communications. In addition, AT&T will support the management and maintenance of the services for improved customer service and cost control.

"We needed a single, cost-effective solution to support our voice- and data-networking needs and to help us operate more efficiently," said Gerry Weaver, chief technology officer, state of Indiana. "We're confident that AT&T is capable of delivering the right solution to meet all of our communications and networking needs here and across the state."

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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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