AT&T Wins Voice and Networking Services Contract from AAR Corp.

Multiproduct Contract Minimizes Costs While Maximizing Flexibility for Aerospace Industry Service Provider

Chicago, Illinois, June 11, 2007

AT&T Inc. (NYSE:T) has announced a two-year voice and networking services contract with AAR CORP., a global product and value-added services provider for the aerospace and aviation industries. Under the terms of the contract, AT&T will provide AAR with a OneNet voice solution and will offer AT&T's full breadth of voice services under a single contract. AAR will be able to apply a wide variety of call management, routing and processing features to its global enterprise and will minimize costs while maximizing flexibility.

AAR, which is located in Wood Dale, Ill., serves airline and defense customers from more than 40 locations worldwide in four primary areas: aviation supply chain; maintenance, repair and overhaul; structures and systems; and aircraft sales and leasing.

AT&T will provide Multiprotocol Label Switching (MPLS)-enabled Private Network Transport (PNT) service to integrate the company's corporate headquarters with its locations around the world. As part of the network services upgrade, AT&T will work with equipment vendors to deliver new routers and hardware at more than 30 locations. These fully managed network integration services include the staging, deployment and installation of all hardware and network elements. The new MPLS-based wide area network (WAN) will increase the efficiency of data transmission and traffic among the company's global offices.

AT&T will further provide Internet security solutions to enhance AAR's commitment to its clients. AT&T's fully managed security services include AT&T's Network-Based Firewall service, which is a secure, cost-effective solution that manages and controls employee access to the Internet and prevents unauthorized access to the corporate network. AT&T Internet Protect, a security-alerting and notification service that offers advanced information regarding potential real-time attacks, will enhance AAR's robust network security against viruses, worms and other cyber threats.

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About AAR CORP.
AAR is a leading provider of products and value-added services to the worldwide aviation/aerospace industry. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve airline and defense customers through four operating segments: Aviation Supply Chain; Maintenance, Repair and Overhaul; Structures and Systems and Aircraft Sales and Leasing. More information can be found at www.aarcorp.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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