AT&T Government Solutions Wins Networx Universal Contract from General Services Administration

AT&T and Its Partners Ready to Serve Federal Agency Customers Through Networx Vehicle

Vienna, Virginia, March 29, 2007

AT&T Government Solutions, a business unit of AT&T, Inc. (NYSE: T), has been awarded a Networx Universal contract by the U.S. General Services Administration (GSA). The Networx Universal contract is an Indefinite Delivery — Indefinite Quantity (IDIQ) contract with a potential value of $20 billion over the next 10 years and allows AT&T to provide a full range of network and communications services to federal government agencies.

"AT&T is ready to do what we do best: help agency leaders meet critical mission objectives and better serve their customers by maximizing their communications capabilities," said Don Herring, senior vice president, AT&T Government Solutions. "AT&T will be a partner to all agencies that want to transition today, or when they're ready, to the converged IP world of the future, by helping them enhance their network infrastructure through Networx. The GSA's award of Networx to AT&T is a reflection of our commitment to exceed our customers' expectations and our past performance record of delivering integrated life-cycle solutions that meet each agency's unique requirements."

Under the terms of the Networx Universal contract, AT&T can compete for task orders for telecommunications and networking services. The AT&T Networx team brings together industry-leading networking and IT capabilities, which include Northrop Grumman Information Technology of McLean, Va.; EDS of Herndon, Va.; GTSI Corp. of Chantilly, Va.; SRA International, Inc., of Fairfax, Va.; Bechtel National of Frederick, Md; and Global Crossing of Florham Park, N.J.

"In terms of network reach, bandwidth capabilities, and experience in transition programs, AT&T has a proven and experienced Networx team," said Herring. "With AT&T's new integrated network architecture, agencies can access the world's most flexible, scalable, secure and fully integrated global IP and wireless network. AT&T is using this world-class network and our expertise to build solutions to overcome agencies' communications and IT challenges."

AT&T provides telecommunications services to multiple federal defense and civilian agencies under the FTS2001 Crossover contract. The company has signed IP network contracts with the U.S. Army, the Department of Defense, the Department of Homeland Security, Internal Revenue Service, the Department of Justice, the U.S. Postal Service, and the Department of Veterans Affairs. AT&T Government Solutions has more than 4,000 employees solely dedicated to serving the needs of the federal government, 85 percent of whom hold government-sponsored accesses and clearances, and 75 percent of whom are based in the D.C. area.

"Networx gives agencies a tremendous range of telecommunications solutions and services that are available at a low cost and will address everything from ensuring continuity of operations to securing data from cyber attacks," said Herring. "As a full-service provider, AT&T can help agencies address these challenges by delivering the best value through our broad portfolio of products and services, proven technologies and innovation from AT&T Labs and our Networx partners."

Networx consists of two contract vehicles to which AT&T has submitted bids: Networx Universal, which was awarded today, and Networx Enterprise, which is expected to be awarded in May. Networx will replace the expiring GSA Federal Technology Service 2001 (FTS2001) and FTS2001 Crossover contract vehicles. The IDIQ contract gives AT&T, its partners and others the right to compete for specific task orders within the scope of the Networx Universal contract.

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About AT&T Government Solutions
AT&T Government Solutions is a long-standing, trusted source of network-enabled solutions for the federal government, integrating unmatched network resources and professional services expertise with innovative technologies from AT&T Labs and industry-leading partners. With headquarters in Vienna, Va., AT&T Government Solutions is best known for network leadership in voice, data, video and managed services. AT&T Government Solutions is a proven solutions integrator, with professional services expertise in areas such as Education and Training, Enterprise Application Solutions, Enterprise Resource Planning and Management, Information Assurance, Knowledge Management, Modeling and Simulation, Network Transformation and Management, and Program Management.

About AT&T
AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates, 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, and voice services. As part of its three-screen integration strategy, AT&T is expanding video entertainment offerings to include next-generation television services such as AT&T U-verseSM TV. 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. 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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