AT&T Extends and Expands Contract with K/P Corporation

New Network Design Will Support Growing Needs of K/P's Business

San Ramon, California, December 7, 2006

AT&T Inc. (NYSE: T) today announced that AT&T is extending its relationship with K/P Corporation, an industry-leading marketing technology provider, for the delivery of a comprehensive data and networking solution. AT&T announced a new two-year, $850,000-dollar contract for long distance, Internet Protocol (IP), high speed Internet, hosting and teleconferencing services. The solution offered by AT&T will improve K/P Corporation's network infrastructure to support future business growth as well as maintain a high level of network performance.

K/P Corporation is a leading provider of strategic marketing and branding solutions to Fortune 1000 companies. K/P Corporation helps its customers implement complex marketing and communications programs through direct marketing, business process consulting and printing services. Based in San Ramon, K/P Corporation has 10 locations throughout California, Washington, Oregon, Texas and Utah.

AT&T's services will provide interconnectivity throughout K/P Corporation's regional facility network while delivering a Web-interface solution for the organization's enterprise resource planning services (ERPs), K/P's single, unified system for organizational data and processes. AT&T Enterprise Hosting Services will also drive efficiency and performance for K/P Corporation's customer-facing applications out of one of AT&T's 30 Internet Data Centers.

"K/P's mission of delivering seamless marketing solutions to our customers in a cost-efficient and measurable manner will be greatly enhanced by AT&T's solution," said Steve Thornton, K/P Corporation's chief information officer. "We are confident that AT&T's suite of data and networking services will help us deliver greater efficiency and performance to our marketplace."

AT&T's data and networking solution will enhance the performance of several of K/P Corporation's key Web-based marketing solutions offerings.

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About K/P Corporation
K/P Corporation provides strategic marketing and branding solutions to Fortune 1000 companies. Offerings include direct marketing services and business process consulting, along with a wide range of fulfillment, mailing, and printing services that help customers implement complex marketing and communication programs. K/P leverages technology to enhance its services and streamline digital transactions. K/P's corporate headquarters is based in San Ramon, California. For more information about K/P Corporation, visit www.kpcorporation.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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