City of Riverside and AT&T Announce Citywide Wi-Fi Agreement

Wireless Broadband Network to Provide Free Internet Access Across Riverside's More Than 80 Square Miles

Riverside, California, October 18, 2006

The city of Riverside and AT&T Inc. (NYSE:T) today announced a precedent-setting agreement for an AT&T citywide Wi-Fi wireless broadband Internet access network which will, ultimately, cover the city's 80-plus square miles.

The agreement represents the largest planned AT&T deployment of citywide Wi-Fi service to date and will be the nation's largest Wi-Fi network that is designed for both public and municipal use.

The planned Wi-Fi network will add publicly accessible wireless broadband capabilities to the extensive, advanced AT&T communications network in Riverside. The new Wi-Fi network will enable residents, visitors, city employees and businesses to tap into the unsurpassed AT&T network from virtually all developed areas within the city. Users will be able to choose from a variety of connectivity options, including a free advertising-supported access choice or a higher-speed access service offered by AT&T.

"The Wi-Fi system will increase broadband Internet choices within the city and provide new dimensions of mobility for broadband users in Riverside," said Mayor Ronald O. Loveridge. "Once implemented, this system will put Riverside at the leading edge of technology-rich cities. This exciting project invests in our city's future and enhances our quality of life for all residents."

The Wi-Fi broadband network will benefit the city in a number of ways, from attracting and retaining businesses and promoting tourism to streamlining the city's services for residents. Additionally, the Wi-Fi network will provide a new mobile access option for all areas of the community.

"AT&T is fully committed to delivering new innovations to spread the benefits of broadband as widely as possible," said Eric Shepcaro, senior vice president-AT&T Business Development. "As operators of one of the nation's most extensive, powerful and secure Internet Protocol networks, AT&T is uniquely positioned to develop and deliver emerging technologies, like Wi-Fi, to enable users to more easily and conveniently communicate and conduct business.

"This new wireless broadband network will provide Riverside residents and visitors with an unprecedented level of broadband ubiquity. Anyone in the city will be able to tap into the Internet or other online applications from a wide range of locations throughout the city. We look forward to working with the city to design and implement this network in the coming months."

The agreement calls for AT&T to deploy equipment on city light poles and fixtures throughout the coverage area. AT&T will maintain and upgrade the network and all related equipment, as well as handle all customer service operations. Wi-Fi connections will feed into the same AT&T backbone network infrastructure that delivers a full range of broadband services, including DSL broadband and virtual private networks for businesses.

This wireless broadband extension of AT&T's network enables widespread broadband access with minimal direct investment and with no concerns related to ongoing system management or customer support.

Construction of the network is expected to begin shortly, and service options will be available online in early 2007.

Current AT&T Yahoo!® High Speed Internet customers will have their away-from-home or business experience enriched by the added mobility this Wi-Fi network will bring to Riverside. Special offers will allow these current broadband users monthly access to the citywide broadband Internet access network at a lower rate than others. All users will be able to access a free broadband option with speeds expected to range between 200 and 500 Kilobits per second (Kbps). A range of ad-free, paid subscription options, including day passes and monthly subscriptions will also be available with speeds of up to 1 Megabit per second (Mbps). Final details on the service packages and pricing will be announced at the launch of the service.

In addition, the city of Riverside will use a parallel AT&T Wi-Fi system supporting municipal and public-safety communications needs. After testing this system across a three- square-mile area, Riverside will have the option to use this parallel system or the citywide network to support municipal services. This parallel system will run over a separate frequency to enhance communications for city police, fire and public works employees.

Recently named one of "America's Most Livable Communities," Riverside is the largest city within one of the fastest-growing regions in the country. As the 12th largest city in California, Riverside has a diverse population of approximately 300,000. Strong elected, civic, and business leadership has enabled a vibrant economy, quality development, cultural amenities, and a progressive outlook that supports the community today and will continue to do so well into its promising future. The city is centrally located in the Inland Empire Region approximately 60 miles east of Los Angeles and 100 miles north of San Diego.

AT&T is an industry leader in delivery of broadband services today. The company is the No. 1 U.S. provider of high speed DSL Internet service, with more than 7.8 million customers. Furthermore, AT&T is one of the largest providers of Wi-Fi broadband, with hot spots spanning more than 34,000 venues in 80 countries across the globe. The company also offers satellite-based Internet services to U.S. customers in select rural and remote locations.

AT&T will build the Riverside Wi-Fi network in association with MetroFi, a company focused on the design, development and implementation of citywide Wi-Fi networks.

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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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