AT&T Enhances Hagemeyer's Network Services and Prepares National Distributor for VoIP Rollout

Charleston, South Carolina, March 27, 2007

AT&T Inc. (NYSE: T) announced today a three-year $3 million contract with Netherlands-based Hagemeyer for increased capacity in AT&T network services and implementation of Wide Area Network (WAN) services at the company's North American headquarters in Charleston, South Carolina. AT&T's service upgrades and expansion for Hagemeyer in North America will extend to 137 sites across the U.S. and include implementation of Internet Protocol (IP) Telephony at 41 locations.

AT&T is providing Hagemeyer with an extensive upgrade in Class of Service data transport speeds and capacity, laying the foundation for a planned Voice over IP (VoIP) rollout in the coming years. Hagemeyer's core business has long been the distribution of diverse manufactured products, including electrical materials, safety products and other maintenance, repair and operations (MRO) products, to electrical contractors in the construction and installation businesses, as well as to industrial users. In addition, the company offers a variety of value-added services, and these services require superior network capacity and coordination to ensure effective communication among associates, customers and supplier partners.

"In addition to being a one-source distributor of thousands of quality products, Hagemeyer is known for its successful integrated sourcing services, storeroom management, automatic restocking programs and online ordering," said Doug Lauer, Hagemeyer North America chief information officer. "The solution that AT&T offered allows us to significantly reduce operating costs and improve service levels by being able to effectively manage the varying degrees of network needs at each of our locations. Additionally, the MPLS solution allows us to fully take advantage of our network services by seamlessly introducing new applications such as VoIP. AT&T provides the capacity and the backbone that Hagemeyer's North American time-sensitive business model can depend on."

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About Hagemeyer North America
Hagemeyer North America, Inc. (www.hagemeyerna.com) is a distributor of products and services focusing on business-to-business markets in electrical materials, safety products, and industrial products and services throughout North America. Hagemeyer North America has annual revenues of $1.5 billion, employs approximately 4200 associates, and is a wholly owned subsidiary of Hagemeyer N.V. (www.hagemeyer.com). Headquartered in the Netherlands, Hagemeyer N.V. is a value-added global distributor of products and services focusing on business-to-business markets in electrical materials, safety products, and industrial products and services.

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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