AT&T Tops All Competitors in Leading Analyst Firm's U.S. Carrier Assessment

Company Deemed Most Capable of Meeting Customer Demand for More Flexible Business Services

Bedminster, New Jersey, January 16, 2007

AT&T Inc. (NYSE: T) today announced that it leads all competitors in the race to deliver high-end professional and communications services to large multinational companies, according to the findings of a leading industry analyst firm. AT&T topped a large field of telecommunications services providers — including Verizon Business, Orange Business Services, Qwest, British Telecom, NTT, Global Crossing and Sprint — in a study that analyzed the competitors' apparent capabilities vs. stated customer objectives.

Yankee Group identified and measured the leading carriers relative to their apparent capabilities to meet enterprises' demands for increasingly flexible services. The areas examined included business and services infrastructure, Service Level Agreement (SLA) strategies, network reach, ability to deliver consistent services on a global basis, service mix and migration alignment. According to Yankee Group's 2007 U.S. International Carrier Scorecard, AT&T ranked the highest overall because of its proven capability to deliver high-end professional and communications services to large multinational companies.

In Yankee Group's summary scorecard, AT&T was the only telecommunications services provider to receive the highest rating ("superior") in four categories: business and services infrastructure, SLA strategies, network reach and service mix.

Also according to Yankee Group's U.S. International Carrier Scorecard, the recent BellSouth merger has given AT&T the potential to fully integrate wireline and wireless services on its own infrastructure, further advancing its competitive position.

"AT&T ranks the highest in our overall scorecard, because it has put the capabilities together to deliver high-end professional and communications services to large multinational companies," noted H. Paris Burstyn, director of Communications and Converged Services, Enterprise Research, Yankee Group.

"Our position in this Yankee Group Carrier Scorecard represents a continuation of the industry's validation of our business strategy," said Mark Keiffer, chief marketing officer, Business Services, AT&T. "We continue to work very hard to deliver the most powerful business networks, applications and capabilities that drive real value for our global enterprise customers."

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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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