AT&T Homezone Service Receives the Frost & Sullivan Product of the Year Award

San Antonio, Texas, January 23, 2007

AT&T Inc. (NYSE: T) today announced that Frost & Sullivan selected AT&T HomezoneSM service as the 2007 North American Consumer Communication Services Product of the Year.

The Frost & Sullivan Award for Product of the Year recognizes the company that has demonstrated excellence in new products and technologies within its industry.

In selecting AT&T for this award, Frost & Sullivan noted, "AT&T has incorporated a coherent product strategy to retain its competitive position in the consumer services space and to provide customers with an integrated home-entertainment experience."

"AT&T's Homezone services builds on the company's reputation as a reliable network provider and a consumer services innovator," said Jeff Weber, vice president, AT&T Product and Strategy. "This award from Frost & Sullivan recognizes the original thinking and careful planning that went into bringing this service to market and that our mission to connect with customers via the three screens they value most — the TV, the PC and the wireless phone — is working."

With AT&T Homezone services, the company became the first national telecommunications provider to offer seamlessly integrated video content and TV entertainment to the "digital living room," through both broadband and traditional satellite networks via a single set-top device.

AT&T Homezone integrates AT&T Yahoo!® High Speed Internet, AT&T | DISH Network satellite television and AT&T Home Networking services. It features digital videorecording, movies on demand, photo and music sharing, storage for both, and remote Web-based access to the system. It will soon also include remote access to the system through wireless devices. The service is available across most of the company's traditional broadband footprint.

"With its Homezone service, AT&T has demonstrated a commitment to delivering consistent growth in the future as it has in the past," said Piyush Arora, Frost & Sullivan analyst. "This service builds on AT&T's existing infrastructure and video delivery strategy to combine satellite TV programming with new levels of integration and on-demand content via broadband. It's a real homerun for consumers and AT&T."

AT&T Homezone
AT&T Homezone service also complements AT&T U-verseSM services, the company's video service based on Internet Protocol (IP) technology, which is available in limited markets today. While AT&T U-verse services will be the company's primary video offering in available markets, both offerings underscore the company's strategy to expand its video services portfolio, which includes AT&T | DISH Network service.

AT&T Homezone service is available to new AT&T | DISH Network residential customers who either already have or plan to order AT&T Yahoo! High Speed Internet and the 2Wire® home-networking gateway. Customers can select from several broadband speeds and satellite TV packages and then purchase Homezone service for an additional $9.99 a month. Future enhancements to the service will include a high-definition version of the receiver, as well as great new music and video content from content providers, like Yahoo!

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About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

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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