AT&T Local Services Awarded Contract With Follett Corporation for 205 Bookstores in 19 States

River Grove, Illinois, October 26, 2006

AT&T Inc. (NYSE: T) today announced a local services contract from Follett Corporation. Follett is the leading operator of U.S. college bookstores with more than 750 stores across the nation and businesses that reach approximately 60 countries. Specific terms of the contract were not disclosed.

AT&T will provide 205 of Follett's bookstores across 19 states with local services, simplifying billing and reducing telecommunications expenses by having a single point of contact for bookstores that have AT&T service.

"AT&T's local service footprint makes it possible to centralize management of local telephone service for nearly one-third of the bookstores we operate," said Roger Laframboise, director of Network Services. "That helps us run our business more efficiently."

By leveraging the secure AT&T BusinessDirect® portal, Follett also will have online access to tools that provide real-time reports on network performance and direct access to billing, ordering, status, inventory and trouble-management systems. Yankee Group recently named AT&T BusinessDirect as the best enterprise customer portal for the second consecutive year for providing customers with the strongest online support and services experience in the industry. (Source: Yankee Group, Business E-Portals Continue to Evolve to Meet Enterprise Customer Needs, April 2006.)

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About Follett Corporation
Follett Corporation is a $2.2 billion, privately held company that provides products, services and solutions to the educational marketplace. Its different businesses are organized under three business groups — the Follett Higher Education Group, the Follett Educational Distribution Group and Follett Technology Solutions and International Group. The Follett Higher Education Group is the largest operator of campus bookstores with more than 750 stores under management across the United States and Canada. It also operates efollett.com, the country's leading online campus bookstore. The Follett Educational Distribution Group is the nation's largest distributor of library books to elementary and high schools, America's largest wholesaler of used elementary and high school textbooks and a leading provider of children's and adult books and audio visual materials to public libraries. The Follett Technology Solutions Group is the leading provider of library automation solutions for K-12 schools. Follett Corporation was founded in 1873 and has its headquarters in River Grove, Illinois

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.

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