Pacific Partners Management Services, Inc. Chooses AT&T for Enterprise Hosting Services

Leading Managed Healthcare Information Technology Company Expands and Extends Relationship with AT&T

Foster City, California, May 17, 2007

AT&T Inc. (NYSE: T) announced today that Pacific Partners Management Services, Inc. (PPMSI) has signed a new agreement with AT&T for a two-year contract. Under the terms of the agreement, AT&T will provide PPMSI with an enterprise-hosting solution that will enable the company to house its entire suite of hosted application services in a fully redundant, highly available AT&T Internet Data Center (IDC).

PPMSI is a leader in managed healthcare information technology that provides contracting, financial and administrative services to California medical groups and independent practice associations (IPAs). Its software division, Health Access Solutions, also develops and markets its Web-based software, Access Express, to medical groups, health systems and health plans around the country. Access Express links hospitals, physicians, medical personnel and payers with a secure Web platform that streamlines user communications and productivity. Healthcare providers gain instant access to patient healthcare information virtually anywhere there is an Internet connection.

As Access Express usage climbed to more than 13,000 health care providers managing 1.8 million patients, PPMSI decided to invest in an outside data center to house its customer-facing facilities. After five years of positive experience with AT&T products and customer support, PPMSI selected AT&T to create its new secured Internet data center.

PPMSI chief operating officer, Randall D. Frakes, says, "It's critical to our network of physicians, hospitals and payers that Access Express provide secure patient communications no matter what else happens."

Continues Frakes, "We have a zero percent failure threshold in our business, and we are confident that AT&T will continue to deliver cutting-edge technology and excellent customer support, allowing us to excel in our business."

As an Application Service Provider, PPMSI uses AT&T's Enterprise Hosting, Managed Network, Security and back-end connectivity to the IDC to allow full visibility and end-to-end management in the delivery of its services and software. Trusting AT&T as its Hosting and Security services provider allows PPMSI to focus on its core competency in the healthcare business.

The agreement renews and expands the existing five-year relationship between the two companies.

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About Pacific Partners Management Services, Inc./PPMSI & Health Access Solutions
PPMSI is a leader in managed healthcare information technology that provides contracting, financial, and administrative services to medical groups and IPAs with 150,000 health plan members. Health Access Solutions, the software marketing division of PPMSI, provides web-based Access Express managed care software to enhance clinical care, patient satisfaction and financial performance. It links hospitals, physicians, medical personnel and payers to improve communications and productivity, providing secure online messaging, patient eligibility, automated referral processing and many other services. Access Express is licensed to manage more than 1.8 million health plan members. For more information visit www.HealthAccessSolutions.com or www.ppmsi.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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