AT&T Signs New Contract with Pacific Southwest Financial

Southern California-Based Regional Financial Institution Looks to AT&T to Consolidate Voice and Data Network

Woodland Hills, California, June 27, 2007

AT&T Inc. (NYSE: T) has announced a new managed Voice over Internet Protocol (VoIP) services contract to deliver AT&T IP Flexible Reach to Pacific Southwest Financial®, a regional financial institution based in Southern California. Under the terms of the three-year contract, AT&T will serve as the primary communications provider, delivering the AT&T IP Flexible Reach solution to the company's headquarters and its three locations throughout Southern California and Arizona.

AT&T IP Flexible Reach service is a Session Initiated Protocol (SIP) trunking solution that features unlimited local and on-net calling and competitive long distance plans. With fully configured gateway routers deployed on-site, the solution will support both inbound and outbound calling on a single converged data network for maximum cost-efficiency, reliability and performance.

Pacific Southwest Financial provides a full range of securities and investment services to independent financial advisors and their clients through an affiliation with Capital Analysts Incorporated (CAI), an independent broker/dealer and registered investment advisor. Because efficiency and privacy are so important to Pacific Southwest Financial, AT&T IP Flexible Reach will allow the company to streamline management of valuable network resources with reliability, scalability and security. Pacific Southwest Financial will experience any-to-any connectivity, dynamic bandwidth-sharing and voice-traffic prioritization for a customized network solution with the flexibility to expand when levels of higher bandwidth are required.

"We needed a unified voice and data communications network that could efficiently and securely support the transmission of essential business information," said Mary Meyer, vice president of administration for Pacific Southwest Financial. "We're confident that the IP Flexible Reach solution will empower us with a scalable and reliable network to help increase employee efficiency and enhance service to our customers."

With the unified network infrastructure, Pacific Southwest Financial will be able to combine voice and data traffic onto one simplified network to support the secure transfer of private customer data between its locations. With AT&T's 24/7 customer support, Pacific Southwest Financial knows that its operational and network management will be maintained.

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About Pacific Southwest Financial
Pacific Southwest Financial® is an independent financial services firm whose large professional service and support staff provides extensive resources for independent financial advisors and their clients. In addition, a number of national financial institutions, including stock brokerage firms, insurance companies, banks and mortgage companies also rely on PSF® to provide technical, consulting and support services. The strength of the Pacific Southwest Financial commitment to quality is supported by its affiliation exclusively with financial professionals who adhere to the highest ethical standards.

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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