AT&T Wins Networking Contract from McDonald's

AT&T Teams Up with Avaya to Bring McDonald's Cost Savings, Advanced Applications and Greater Productivity

Oak Brook, Illinois, May 15, 2007

AT&T Inc. (NYSE: T) and Avaya Inc. (NYSE: AV) today announced a multiyear initiative with McDonald's Corporation for an Internet Protocol (IP) telephony network covering several locations near the company's Chicago-area headquarters. Implementation of the telephony network began in 2005 and is slated for completion in 2007. The new network and advanced communications applications provide McDonald's with greater flexibility, expanded functionality, increased productivity and business continuity while reducing operational costs.

Working with Avaya, a global leader in business communications applications, systems and services, AT&T's new telephony services offer expanded capabilities at a lower cost than previous telephone services. The new services enable the company to link offices and integrate voice mail and live phone calls on an economical IP-based telephone system.

Under the terms of the agreement, AT&T will provide a fully managed high speed voice and data local area network linking three major McDonald's corporate offices in suburban Chicago. Coupled with Avaya's sophisticated telephony, mobility and contact center applications, the new network will provide McDonald's with secure high speed connectivity for corporate communications needs.

The AT&T/Avaya solution makes it easy for users to cost-effectively collaborate with colleagues, clients and suppliers and offers greater levels of security and reliability. The local area networking solution also supports business-continuity plans by providing quick restoration capabilities and greater resiliency.

"In our business, a reliable, secure network is absolutely critical," said Edward Wright, McDonald's telecommunications manager. "This solution addresses our immediate need to create a robust, reliable local networking infrastructure and provides the ability to integrate our remote corporate offices."

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About McDonald's
McDonald's is the leading foodservice retailer with more than 30,000 local restaurants serving quality food in more than 100 countries each day. Approximately 70 percent of McDonald's restaurants worldwide are owned and operated by independent, local men and women. Please visit our website at www.mcdonalds.com to learn more about the Company.

About Avaya
Avaya delivers Intelligent Communications solutions that help companies transform their businesses to achieve marketplace advantage. More than 1 million businesses worldwide, including more than 90 percent of the FORTUNE 500(r), use Avaya solutions for IP Telephony, Unified Communications, Contact Centers and Communications-Enabled Business Processes. Avaya Global Services provides comprehensive service and support for companies, small to large. For more information visit the Avaya Web site, www.avaya.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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