AT&T Sells Wireless Spectrum in Southeast to Clearwire Corporation

For AT&T, Agreement Fulfills Commitment of AT&T-BellSouth Merger

San Antonio, Texas, February 20, 2007

AT&T Inc. (NYSE:T) announced today an agreement to sell to Clearwire Corporation, a national provider of wireless broadband Internet access, all 2.5 GHz spectrum currently licensed to, or leased by, BellSouth, now the new AT&T. For AT&T, the deal follows through on a commitment of the AT&T-BellSouth merger.

The sale includes EBS (Education Broadband Service) spectrum, which is reserved for accredited educational institutions and non educational organizations. Groups holding EBS licenses may lease portions of their spectrum to commercial operators. The sale also includes BRS (Broadband Radio Service) spectrum, which is used for commercial delivery of high speed wireless broadband services.

The transaction is worth $300 million in cash. It is expected to close promptly, following government approvals.

Note: This AT&T release and other news announcements are available as part of an RSS feed at www.att.com/rss.

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 businesses and the U.S. leader in providing wireless, high speed Internet access, local and long distance voice, and directory publishing and advertising through its Yellow Pages and YELLOWPAGES.COM organizations. 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.

©2007 AT&T Knowledge Ventures. All rights reserved. AT&T is a registered trademark of AT&T Knowledge Ventures. Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand.