AT&T Government Solutions Wins Second Networx Contract from General Services Administration

AT&T and Its Partners Ready to Serve Federal Agency Customers through Networx Enterprise

Vienna, Virginia, May 31, 2007

AT&T Government Solutions, a business unit of AT&T Inc. (NYSE: T), has been awarded a Networx Enterprise contract by the U.S. General Services Administration (GSA). Networx, an Indefinite Delivery/ Indefinite Quantity (ID/IQ) contract with a potential value of $20 billion over the next 10 years, consists of two contract vehicles: Enterprise and Universal.

Networx Enterprise allows AT&T to provide a core set of Internet Protocol (IP), optical and wireless services to specific geographic regions served by federal government agencies. Awarded to AT&T two months ago, Networx Universal enables AT&T to provide a full range of network and communications services to agencies.

"AT&T is ready to be the trusted partner to every agency that chooses to maximize their IP and wireless potential through Networx Enterprise," said Don Herring, senior vice president, AT&T Government Solutions. "We have a solid track record of past performance and the IP and wireless expertise to help agencies reap the benefits of next-generation communications through Networx Enterprise. With our experience and personalized approach to transition, AT&T will help each agency manage its transition at its own pace and turn existing challenges into potential opportunities."

Under the terms of the Networx Enterprise contract, AT&T can compete for task orders for wireless, optical and IP-based services. The AT&T Networx team brings together industry-leading networking and IT capabilities, which include Northrop Grumman Information Technology of McLean, Va.; EDS of Herndon, Va.; GTSI Corp. of Chantilly, Va.; SRA International, Inc., of Fairfax, Va.; Bechtel National of Frederick, Md.; and Global Crossing of Florham Park, N.J.

"Our Networx team will use the power of our industry-leading capabilities and significant experience to meet the needs of all federal agencies," said Herring. "By harnessing our world-class networking and IT and software engineering expertise, AT&T will help agencies focus on their mission instead of the network. With our cream-of-the-crop small, midsize and large Networx partners, we'll strive to serve our federal agency customers by taking an integrated approach to their challenges. AT&T looks forward to serving agencies that help the American people. We will support agency needs today, and we'll be there for them tomorrow."

AT&T brings to Networx the world's largest, most agile and secure Multiprotocol Label Switching (MPLS) IP network that provides services to 137 countries and has 32 Internet data centers across the globe. With a broad portfolio of wireless voice and data solutions for business customers, AT&T currently serves 95 percent of the Fortune 100 companies and counts more than 80 percent of the Fortune 500 and more than 1,800 federal, state and local government agencies as customers. AT&T is also the leader in international wireless services — giving customers the ability to make calls on six continents and in 190 countries — with wireless data-roaming in more than 120 countries for laptops, PDAs and other data services.

The Networx program requires OSS verification-testing before orders can be accepted. AT&T is conducting verification-testing of systems to support the mandatory and optional Networx Universal services under the award. AT&T has invested millions in enhancing its advanced federal government-specific OSS infrastructure and processes for Networx Universal and Enterprise and has received "Notice to Proceed (NTP)" from the GSA for Networx Universal.

Currently, AT&T provides telecommunications services to multiple federal defense and civilian agencies such as the Department of Defense, the Department of Homeland Security, Internal Revenue Service and Department of Veterans Affairs under the FTS2001 Crossover contract. AT&T Government Solutions has more than 4,000 employees solely dedicated to serving the needs of the federal government, 85 percent of them holding government-sponsored accesses and clearances and 75 percent based in the Washington, D.C., area.

Networx will replace the expiring GSA FTS2001 and FTS2001 Crossover contract vehicles. The ID/IQ contracts give AT&T, its partners and others the right to compete for specific task orders within the scope of Networx Universal and Networx Enterprise contracts.

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About AT&T Government Solutions
AT&T Government Solutions is a long-standing, trusted source of network-enabled solutions for the federal government, integrating unmatched network resources and IT and specialized software engineering services with innovative technologies from AT&T Labs and industry-leading partners. With headquarters in Vienna, Va., AT&T Government Solutions is best known for network leadership in voice, data, video and managed services. AT&T Government Solutions is a proven solutions integrator, with IT and software engineering expertise in areas such as Education and Training, Enterprise Application Solutions, Enterprise Resource Planning and Management, Information Assurance, Knowledge Management, Modeling and Simulation, Network Transformation and Management, and Program Management.

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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