AT&T Announces New Internet Data Centers in China, U.S.

Opens Second Center in Shanghai; Chicago Area is Home to Newest U.S. Center

Bedminster, New Jersey, December 11, 2006

AT&T Inc. (NYSE: T) today announced that it is opening two new Internet data centers in Shanghai, China, and in Oak Brook, Ill., which is located outside Chicago. The centers, the latest additions to AT&T's 1.8 million square-foot global Internet data center footprint, will help the company further accelerate its position in the hosting business worldwide.

The new Shanghai facility, located in the city's Zhangjiang Hi-Tech Park, is the second AT&T Internet data center in that city. AT&T's first Shanghai data center, also in Zhangjiang Hi-Tech Park, opened its doors to customers this summer. AT&T will operate the Shanghai facilities in alliance with local service providers and will coordinate service delivery with those providers. AT&T, however, will be customers' single point of contact for Enterprise Hosting Services being delivered in China.

Along with the Shanghai facilities, AT&T added more space earlier this year to its Internet data center in Hong Kong. Combined, the Shanghai and Hong Kong centers have nearly doubled AT&T's Web hosting footprint in the Asia/Pacific region since the beginning of 2006.

In the United States, the new Oak Brook facility complements AT&T's data center in nearby Lisle, Ill. to further expand the company's hosting presence in the Chicago area. The Oak Brook center's proximity to an AT&T central switching office means customers have convenient connectivity to the AT&T network backbone. In addition, the center maintains multiple active power and cooling distribution paths, redundant components and fault-tolerant design to provide 99.999 percent availability.

"Hyatt Hotels relies on AT&T's hosting services to deliver fast and efficient service to our customers on our award-winning Hyatt.com Web site," said Joan Lowell, vice president of Electronic Distribution for the Chicago-based Global Hyatt Corporation, a long-time AT&T hosting customer. "Hyatt.com is often the front door to our hotels for our customers, and we want that initial interaction to be a pleasing, high-quality experience. AT&T's hosting services helps ensure that our Web site is easy to use, responsive and customer-friendly with high-speed, high-bandwidth capabilities for peak performance and around-the-clock monitoring for unmatched security and reliability. That gives us peace of mind and enables us to focus on our core business," Lowell said.

The new facilities bring the total number of AT&T Internet data centers to 32, including 17 data centers within the U.S., six in Europe, and nine in the Asia/Pacific region.

The addition of the new data centers is the latest move by AT&T to participate in the booming global hosting business. In China, the total enterprise managed service market is expected to top $3.7 billion (U.S) in 2006, according to the research firm IDC1; while in the U.S., IDC forecasts the market in 2006 will reach $8.0 billion.2

The addition of the Oak Brook data center caps a year that saw AT&T grow its data center footprint in the U.S. with expansions of facilities in Lithia Springs, Georgia, and Mesa, Arizona. Both centers added 25 percent more space to handle increasing customer demand for hosting services, and AT&T plans more data center expansions elsewhere in the U.S. and around the world in 2007.

"We continue to invest in growing our business to support customers and to meet the red-hot demand of businesses large and small for hosting services," said Steve Caniano, vice president, AT&T. "The additions of our second facility in China and our new center near Chicago are further proof that businesses around the globe are turning to AT&T to help them manage their IT environment so they can focus on running their business."

In addition to expanding its global data center footprint, AT&T took significant steps in 2006 to grow its Enterprise Hosting Services business beginning with the launch in May of a Hosting Services practice focusing on online gaming. The practice has a dedicated team of AT&T Labs and operations engineers working with hosting sales specialists who are devoted specifically to its online gaming customers. The teams use the resources of AT&T's global data centers to provide infrastructure that enable online gaming companies to deliver their game content efficiently through AT&T's Global IP backbone.

Also in 2006, AT&T announced and completed the acquisition of applications service provider USinternetworking (USi). The acquisition of USi complements AT&T's existing managed services capabilities and paves the way for the company to drive more deeply into the applications management space with new offers for businesses of all sizes.

AT&T Internet data centers are designed to provide the highest reliability and security. Each rack or server cabinet, is provided with redundant circuits from several power distribution units backed up by batteries and diesel generators that ensures an uninterrupted operation. Chillers and water pumps maintain a consistent operating environment, and humidity levels and temperature thresholds are closely monitored by special sensors. In addition to security cameras and closed circuit video, other security features include the use of biometric scanners to control access in and around the center.

For more information on AT&T's Enterprise Hosting Services, visit www.att.com/hosting.

1 IDC , Chinese Managed Services Players: Does a Domestic Cash Cow Await? Doc. # AP1141S7N , October 2006
2 IDC, US Web-Hosting Forecast 2006 — 2010, Doc. # 201639, May 2006

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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 http://www.att.com.

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