AT&T Announces New Contract with Sunbelt Transformer

Texas-Based Manufacturing Company Upgrades Network and Connectivity With Suite of AT&T Services

Temple, Texas, July 12, 2007

AT&T Inc. (NYSE:T) has announced a new networking services contract with Sunbelt Transformer Inc., a Temple-based manufacturer of power transformers with five nationwide locations. Under the terms of the three-year contract, AT&T will serve as Sunbelt Transformer's primary provider and deliver AT&T Managed Internet Service (MIS), Multiprotocol Label Switching (MPLS) Virtual Private Network (VPN), Advanced 800 Area Code Routing and AT&T Business Network (ABN) Service.

With AT&T VPN, Sunbelt Transformer will be able to streamline the management of valuable network resources with reliability, scalability and security. Sunbelt Transformers will be able to connect its headquarters with its satellite locations in California, Illinois, Pennsylvania and South Carolina under a highly secure and flexible converged voice and data network based on AT&T's Internet Protocol backbone. Additionally, AT&T MIS will ensure dedicated high speed Internet access for the company's employees at all five locations.

Sunbelt Transformer also uses AT&T Advanced 800 Area Code Routing services to ensure responsive and reliable customer service. Advanced 800 Area Code Routing automatically directs callers of the nationwide 800 number to the closest Sunbelt Transformer location during normal business hours. And with ABN, the company can bundle data, Internet, local and long distance voice services in a discounted package.

By integrating all services onto one converged network platform, the AT&T solution will make it possible for Sunbelt Transformer to reach superior levels of security and reliability, and that will enhance overall customer service and will conserve company resources. In addition, the solution will provide Sunbelt Transformer with increased bandwidth needed to support future IP applications, such as Voice over IP (VoIP).

"We needed a provider capable of leveraging leading-edge technology to streamline communication from our customers and off-site employees and between corporate locations," said Keith McBee, information technology director, Sunbelt Transformer. "We are confident that the solutions provided by AT&T will help us achieve maximum levels of efficiency so we can continue to provide superior service to our customers."

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About Sunbelt Transformer, Inc.
Sunbelt Transformer offers the fastest cycle-time on product delivery in the industry. Offering 24/7 emergency availability, Sunbelt Transformer is focused on establishing its position as the single source for all transformer-related needs. For more information on Sunbelt Transformer, Inc., visit www.sunbeltusa.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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