AT&T to Provide H&R Block with Network Integration Services at New Corporate Headquarters

Kansas City, Missouri, April 3, 2007

AT&T Inc. (NYSE:T) announced today that AT&T has won contracts to provide network integration services and equipment for H&R Block's corporate headquarters in Kansas City, Mo. Recently, H&R Block consolidated six area locations into a new headquarters in the city's revitalized downtown, providing an environment to foster the company's culture of collaboration and innovation and to attract talented employees. The company is a leading provider of tax, financial, accounting and business consulting services and products.

Under the terms of the agreements, AT&T is integrating H&R Block's disparate communications networks onto a single Internet Protocol (IP)-based network, carrying voice, video and data. AT&T also designed and implemented — and now manages — H&R Block's state-of-the-art Voice over Internet Protocol (VoIP) system, which includes an IP-PBX that has 2,200 IP stations. H&R Block chose AT&T because it offers the ability not only to implement the solution but also to train employees and to provide five years of on-site maintenance.

As the prime consultant and integrator, AT&T assessed and segmented the voice requirements of H&R Block's five unique employee user groups. For example, an on-the-go executive with a personal digital assistant device and cell phone requires a solution that offers seamless mobility. In contrast, a solution for seasonal workers must be transferable in order to reduce the time and expense required to set up new users.

"This network integration solution and AT&T's management and maintenance of our VoIP system is a more cost effective networking solution for our business," said Denise Stout, Lead Infrastructure Engineer of H&R Block. "Additionally, AT&T's integrated networking solution gives us the scalability and flexibility we need in order to manage the intense demands on our systems that occur during tax time."

With plug-and-play functionality, H&R Block's new VoIP system simplifies the process of moving, adding or changing employees. This functionality also enables the company to scale up or down without having to engage a telecommunications vendor.

H&R Block's move into its new Kansas City headquarters at Main and E. 13th streets began in early July, and 1,600 employees and contractors completed the relocation in October.

In addition to its work with H&R Block at its new headquarters, AT&T provides a wide range of services, including a fully redundant SONET network and Dedicated Internet access for H&R Block in Kansas City, local voice service to approximately 4,200 H&R Block offices across the United States and Digital Subscriber Line (DSL) access to 900 locations.

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About H&R Block
H&R Block Inc. (NYSE: HRB) is a leading provider of tax, financial, and accounting and business consulting services and products. H&R Block is the world's largest tax services provider, having prepared more than 400 million tax returns since 1955. The company and its subsidiaries generated revenues of $3.6 billion and net income of $287 million from continuing operations in fiscal year 2006. The company currently operates in three principal business segments: Tax Services (income tax preparation and advice via in-office, online and software solutions); Business Services (accounting, tax and business consulting services for midsized companies); and Consumer Financial Services (investment and financial advisory services and banking services). Headquartered in Kansas City, Mo., H&R Block markets its continuing services and products under two leading brands — H&R Block and RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.

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. 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. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. 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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