AT&T Provides Voice over IP and Data Networking for Rapidly Growing Insurance Firm

Oak Ridge, Tennessee, March 26, 2007

AT&T Inc. (NYSE:T) announced today that Appalachian Underwriters Inc., a national wholesale brokerage for specialty lines of insurance, has awarded a comprehensive voice and data communications contract to AT&T.

The contract includes advanced Voice over IP and data solutions that link Appalachian Underwriter's Jackson Plaza headquarters building in Oak Ridge to the company's six additional locations in Tennessee, Georgia, South Carolina and New Jersey. The contract has a total value of approximately $1.4 million over 3 years.

"From planning to implementation, AT&T has provided one, reliable source for voice and data services, which helped to create a more efficient operating environment for our business," said Bob Brown, CIO of Appalachian Underwriters. "These services will provide Appalachian with a scalable, seamless solution that will significantly improve service to our customers."

The VoIP call center solution allows skill-set call routing, detailed call reporting, unified messaging and click-to-call functionality, creating greater efficiency for customer correspondence. The AT&T IP-based data network seamlessly connects Appalachian Underwriters' seven corporate locations, allowing both voice and data transmissions to function on one reliable network. Calls can be transferred and information shared as easily as if employees were in the same building. Employees also share a 10 Mbps dedicated Internet connection delivered over fiber that offers additional bandwidth options to meet Appalachian's business requirements.

"The AT&T solution effectively meets Appalachian Underwriters' needs of today, while positioning us for future growth," said Robert J. Arowood, President of Appalachian Underwriters. "We look forward to working with AT&T to continue to improve our communications capabilities."

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About Appalachian Underwriters
Appalachian Underwriters, Inc. is a full service MGA, providing independent agents a National wholesale outlet to multiple specialized markets for Workers' Compensation, Commercial Specialty, and Personal Lines of insurance. To learn more about Appalachian Underwriters, Inc. please visit www.appund.com.

About AT&T
AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates, the AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access, local and long distance voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment and consumer 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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