AT&T Government Solutions Announces $17.2 Million VPN Network Order with Department of Veterans Affairs

Vienna, Virginia, January 9, 2007

AT&T Government Solutions, a business unit of AT&T Inc. (NYSE: T), has announced a three-year $17.2 million order to assist with the development of a single backbone Multiprotocol Label Switching (MPLS) network for the Department of Veterans Affairs (VA).

AT&T's development of the single backbone MPLS network will supply additional bandwidth to the VA's current network and supports the VA's dual-carrier architecture with reliability, efficiency and value. The contract was awarded last year under the General Services Administration (GSA) Federal Technology Service (FTS) 2001 Long Distance Crossover program.

AT&T will enable the VA to add more bandwidth, redundancy and performance by migrating approximately 48 distribution and core layer sites to the AT&T MPLS Private Network Transport Service. The MPLS network is a state-of-the-art Virtual Private Network (VPN) that is the nation's first and highest bandwidth all-MPLS network (OC-768) and is based on a highly secure and scalable IP-based infrastructure.

"Today, more and more agencies have to expand their existing bandwidth requirements in order to meet their mission-critical objectives," said Don Herring, president of AT&T Government Solutions. "With our networking expertise and IT services capabilities, AT&T can help the VA meet these objectives by reaping the technology and operational benefits of the largest MPLS network in the country. Our secure, scalable Internet Protocol (IP) network can help VA offices and hospitals meet the important needs of veterans throughout the country."

As a leading worldwide provider of network-enabled solutions and IP-based communications services to the federal government, AT&T will provide networking services such as engineering and design, network monitoring, on-site installation and integration, program management and router services for the network migration.

"AT&T's IP VPN Service will provide the VA with numerous network access options, enhanced redundancy features, multiple classes of service and above all, simplicity," said Herring.

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AT&T Government Solutions is a long-standing, trusted source of network-enabled solutions for the federal government, integrating unmatched network resources and professional services expertise with innovative technologies from AT&T Labs and industry-leading partners. With headquarters in Vienna, Va., AT&T Government Solutions is best known for network leadership in voice, data, video and managed services, AT&T Government Solutions is a proven solutions integrator, with professional services expertise in areas such as business transformation, knowledge management, training, program management, systems engineering and security.

About AT&T
AT&T Inc. is a premier communications holding company in the United States and around the world, with operating subsidiaries providing services under the AT&T brand. AT&T is the recognized world leader in providing IP-based communications services to business and the U.S. leader in providing wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising services. As part of its "three screen" integration strategy, AT&T is expanding video entertainment offerings to include such next-generation television services as AT&T U-verseSM TV. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.

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