National Leisure Group Extends Contract, Adds Next-Generation Services with AT&T

Woburn, Massachusetts, October 25, 2006

AT&T (NYSE: T) today announced that AT&T has won a multimillion dollar contract extending and expanding its relationship with National Leisure Group Inc. (NLG), one of the nation's leading leisure travel companies whose brands include Vacation Outlet and CruisesOnly. Under the new 36-month agreement, AT&T will continue to provide a host of managed networking services to NLG and deploy a new IP-based Multiprotocol Label Switching (MPLS) network to support the company's suite of telecom services. The terms of the contract were not disclosed.

The state-of-the-art Voice over Internet Protocol (VoIP) platform will allow for significant operational efficiencies, such as faster and more-accurate transfer of data among the company's many sites. These enhancements will solidify the company's position as an industry leader in customer service, creating an even more enjoyable experience for its customers.

NLG has been using AT&T networking for more than five years. With AT&T, NLG has been able to enhance its customer service while reducing call-related expenses through the use of increased bandwidth and other measures.

"Our business growth, along with the seasonal variability of call traffic inherent in our industry, makes NLG a very demanding telecom customer," said Helen Falcone, Director of Technical Services with NLG. "We have been very pleased with the solutions and support that we have received from AT&T over the past two years, and we are looking forward to the IP-enabled enhancements they will be building for us in the coming months. We are confident that the new services will make our renowned customer service experience even better."

The AT&T networking solution also provides NLG employees with secure high speed access to online proprietary databases and supports NLG's business-continuity plan.

AT&T will continue to provide services to NLG through AT&T OneNet Service, which simplifies the purchasing and network management process by consolidating them into a single contract and providing discounts across all services. Finally, through the secure AT&T BusinessDirect® portal, NLG has 24-hour, 7-day-a-week online access to tools that provide real-time reports on network performance and direct access to AT&T's ordering, billing and payment, status, inventory and trouble-management systems.

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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 58.7 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.att.com.

About NLG
To learn more about National Leisure Group, please visit their web site at www.nlg.com.

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