AT&T Secures New Contract with the City of Fort Smith

Residents Benefit From Consolidated Data Networking Solution

Fort Smith, Arkansas, April 4, 2007

AT&T Inc. (NYSE:T) today announced that AT&T Global Services has signed a new contract to provide data networking services to the city of Fort Smith, Ark.

Under the terms of the five-year contract, AT&T Global Services will serve as the primary data services provider, delivering switched metro Ethernet service in and around Fort Smith. The AT&T Ethernet Service will centralize data communication and expand the city's bandwidth to support secure and flexible deployment of data across multiple locations, such as the city's administrative offices and government departments.

The converged network infrastructure will further enhance the city's existing communications system, such as online access to city services and the city's new Internet Protocol (IP)-based telephone system. With this solution, all municipal departments will have significantly improved network access, allowing phone calls and service requests to be routed more efficiently among municipal locations throughout the city. This will ultimately improve service to residents and reduce overall response times to citizen requests.

This scalable solution will also provide Fort Smith with the ability to deploy its voice, data, video and Internet through a consolidated network infrastructure. The centralized system will also enable future applications, such as allowing the Fort Smith fire departments, police departments and courts to quickly and securely transfer data between locations. This will ultimately benefit the residents of Fort Smith through improved response time.

For more information about AT&T solutions for the state and local government market, please visit www.att.com/stateandlocal.

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About the City of Fort Smith
Located on the Arkansas River at the Arkansas-Oklahoma border, Fort Smith is perched between mountain ranges and scenic national forests to the north and south. For more information, please visit www.fortsmithar.gov.

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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