AT&T Establishes Broadband Network Services for BI-LO

AT&T to Supply Broadband Network Services to Facilitate Advanced Features in BI-LO Stores Across the Southeast

Mauldin, South Carolina, June 20, 2007

AT&T Inc. (NYSE: T) has announced a three year, $2 million contract with BI-LO for broadband network services. The deal will provide BI-LO both backup services and DSL capabilities for BI-LO's 227 stores across the Southeast. The contract further includes AT&T Integration Solutions services and broadband aggregation, consolidating BI-LO's cable and DSL providers onto a single bill. The Integration Solutions service also ensures help desk functionality so that BI-LO will have 24-7 access to AT&T advisors who will help manage BI-LO's network services.

"Our business requires that we have a reliable backup capability to our Frame Relay services," said Carol de Witt, BI-LO vice president and chief information officer. "With AT&T, we have been able to invest in information system technology and revamp our back office, while further establishing DSL options for use in our stores. This is a dynamic solution for us that will benefit BI-LO as well as our many in-store vendors."

BI-LO requires widespread and reliable DSL capabilities for in-store vendors, from banks to photo developers to video rental units. These vendors were purchasing their own DSL access from outside providers, but now BI-LO is able to supply in-store vendors with DSL and manage its broadband capabilities across the company's 227 locations. The AT&T broadband network will further provide BI-LO with the capacity to facilitate new in-store applications, including customer service kiosks that promote products in different store departments.

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About BI-LO
BI-LO, headquartered in Mauldin, SC, operates 227 supermarkets in the Carolinas, Georgia and Tennessee and employs approximately 17,000 people. The company has a strong reputation for community involvement through philanthropy, supporting charitable organizations assisting children, hunger relief and education. For more information about BI-LO, log on to the website at www.BI-LO.com.

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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