Kawasaki Microelectronics Chooses AT&T Global IP Network

Network Will Connect Development Centers in the U.S., Taiwan, and India with Japanese Locations

San Antonio, Texas, November 21, 2006

Tokyo, Japan — AT&T Inc. (NYSE: T) announced today that Kawasaki Microelectronics, Inc (K-micro) has chosen AT&T's global Internet Protocol (IP) network to connect the overseas locations of K-micro, a global leading manufacturer of application-specific integrated circuits (ASICs). Live operation began smoothly in September.

The recently implemented network connects design and development centers in Boston and San Jose, CA in the United States, Taipei in Taiwan and Bangalore in India. AT&T also implemented an international gateway to allow seamless connection between these development centers and the domestic network in Japan.

K-micro has concentrated on ASICs since the company's inception and has developed customized IC for such applications as information and communication devices, as well as image and office equipments. Over the past several years the company has grown into a leading ASIC manufacturer. Its products are used for liquid crystal displays (LCD), flat-panel televisions and many other digital home appliances, as well as network devices.

The recently implemented AT&T global IP network facilitates the exchange of data between design and development centers and manufacturing plants in Japan and around the world. It also supports videoconferencing with overseas locations.

K-micro has deployed a number of CAD systems at its Japanese and overseas locations for design and development. There has been an increased diversity and complexity of the technology needed for ASICs, particularly because of the wide diffusion of digital appliances in recent years.

In order to respond swiftly to customer requests, the company has established a system to ensure seamless design and development among its locations worldwide, requiring the exchange of a huge amount of data every day. AT&T has enabled K-micro to deploy a traffic priority control service so that ASIC design/development and video conferences do not interfere with each other.

AT&T's integrated Global Enterprise Management System (iGEMS) is used to manage the performance of the AT&T global IP network.

"Even though this was our first transaction with AT&T, their costs were low and their proposals, including project management and migration plans, were very carefully prepared," said Osamu Nozawa, senior manager of systems at K-micro. "As a result, there was no problem with switchover from the previous network. The newly-implemented network is of high quality and is operating without any trouble."

AT&T invested in its global network since 2001 and has access to Multiprotocol Label Switching (MPLS)-based IP services in 137 countries around the world. The company meets diverse customer requests through service level agreement (SLA)-based quality assurance, help desk services, CoS-based priority control providing true one-stop shopping.

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About Kawasaki Microelectronics
Established in July 2001, Kawasaki Microelectronics is a semiconductor manufacturer based in Chiba city, Japan that provides cutting-edge ASIC solutions. Its core technology and design support are used mainly for consumer products, PCs, office equipment, network devices, wireless-related devices, and storage products. Design centers are located in the Makuhari headquarters at Chiba city, Taipei, San Jose and Boston, and R&D bases are located in Sapporo and Bangalore. For details visit the company's Web site at http://www.k-micro.us/.

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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