AT&T Announces New Contract with American Alloy Steel

Service Upgrades Sustain Vital Communications, New Applications

Houston, Texas, November 15, 2006

AT&T Inc. (NYSE: T) today announced a new contract with American Alloy Steel, a leading distributor in the steel service industry with headquarters in Houston, Texas. Under the terms of the three-year contract, AT&T will be the primary provider of networking services, delivering AT&T Multiprotocol Label Switching (MPLS) Virtual Private Network (VPN) service and AT&T ISDN Primary Rate Interface (PRI).

AT&T MPLS VPN service, a fully managed network-based solution provisioned on the AT&T IP Network, will provide a flexible, adaptable architecture to meet American Alloy Steel's existing needs for a more efficient network. The solution will also provide the necessary bandwidth to more easily introduce future applications, such as Voice over Internet Protocol (VoIP). AT&T MPLS VPN service also enables unified real-time communications across locations regardless of geographic placement. Streamlined communications with its customers is a vital aspect of American Alloy Steel's business, and this solution will help improve customer communications for the company. Additionally, AT&T ISDN PRI, a complex voice and data service, will provide high-volume access to the public-switched telephone network, enabling American Alloy Steel to consolidate and transmit data traffic at high speeds to accommodate voice and data communications over the same digital facilities.

The American Alloy Steel solution, which aligns with AT&T's customer-focused convergence strategy, will connect the company headquarters with each of its remote facilities, resulting in increased efficiency and rapid response to customers. The service will deliver increased bandwidth and redundancy to American Alloy Steel's fully meshed MPLS network, providing long-term scalability and a network capable of suppo4rting future applications and advanced technologies.

"We were in search of a new provider, capable of upgrading our existing services and supporting the most vital aspects of our business, communications with our customers and between our various operating locations," said William Duffy, vice president of information systems, American Alloy Steel. "We are certain that the solution delivered by AT&T will not only provide the robust and reliable voice and data real-time communications vital to our business but also contain the flexibility to allow for the future introduction of advanced applications such as VoIP."

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About American Alloy Steel, Inc.
American Alloy Steel has been a leading distributor in the Steel Service Center Industry for over 34 years. As a supplier of Pressure Vessel and other quality steel plate and bar products, American Alloy Steel supplies many products which are not commonly stocked elsewhere. We daily assist Engineers, Contractors, Pressure Vessel Fabricators, and Equipment Manufacturers in the Petroleum, Petro-Chemical, Process Equipment, Mining, Offshore and Marine Construction, and Power Generation industries on a world-wide basis that require professional product knowledge, top-rated service and guaranteed quality assurance from their supplier on a 24 hours per day basis. For more information on American Alloy Steel, visit www.aasteel.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 58.7 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at http://www.att.com.

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