Pentagon Federal Credit Union Extends Contract and Upgrades Infrastructure with AT&T

Highly Scalable, Cost-Effective and Secure Solution Delivers Expanded Capabilities

Washington, District of Columbia, May 16, 2007

AT&T Inc. (NYSE: T) announced today that Pentagon Federal Credit Union, one of the nation's leading credit unions, has awarded AT&T a three-year multimillion dollar contract to upgrade its existing data infrastructure and extend its voice and data capabilities. Federally chartered in 1935, Pentagon Federal Credit Union serves members in the Air Force, Army, Coast Guard, Department of Homeland Security and Department of Defense, among others.

Under the terms of the contract, AT&T will manage Pentagon Federal Credit Union's WAN infrastructure equipment upgrade to facilitate seamless communication among 26 different domestic and international locations. The equipment upgrade will enable Pentagon Federal Credit Union to deploy new financial applications to meet the demands of an expanding membership base.

In addition, the upgraded infrastructure helps ensure the high availability of networking services and enables Pentagon Federal Credit Union employees to collaborate in real time as well as process member financial transactions more efficiently.

"We needed an infrastructure and additional services capable of supporting our evolving communication needs," said Paul O'Brien, vice president Technical Services, Pentagon Federal Credit Union. "AT&T presented us with a solution that is flexible, scalable and secure. We are confident this will help us meet and exceed the growing demands of our members worldwide."

AT&T will also continue to provide voice and data services to Pentagon Federal Credit Union through AT&T OneNet Service. OneNet simplifies the purchasing and network management process by consolidating voice and data services into a single contract and provides discounts across all services. The complete solution delivers greater functionality and flexibility than conventional voice and data services and enables Pentagon Federal Credit Union to migrate to an advanced networking architecture in the future.

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About Pentagon Federal Credit Union
Pentagon Federal Credit Union serves 700,000 members in the Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, and defense-related companies. Pentagon Federal Credit Union was federally chartered in 1935 and serves members worldwide. Pentagon Federal Credit Union is one of the strongest and safest financial institutions with $10 billion in assets and offers mortgages, credit cards, automobile loans, personal loans, checking, money market savings, and other accounts.

The majority of the members enjoy worldwide service by Internet and phone, seven days a week, 24 hours a day. Pentagon Federal Credit Union also has branch locations in the Washington, D.C. area, Colorado, Hawaii, Missouri, New Jersey, New York, North Carolina, and Texas, as well as overseas.

Pentagon Federal Credit Union is comprised of member-owners and is headed by a volunteer Board of Directors. Each director attends training and provides focus on areas of importance to the credit union. Board members meet monthly to discuss recommendations from management and implement changes to policy. Its current Board Chairman is James F. Quinn.

About AT&T
AT&T Inc. (NYSE: T) 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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