Frederick's of Hollywood Awards AT&T New Network and Voice Contract

AT&T Services Will Create Custom Solution for the Company's 135 Locations

Los Angeles, California, September 13, 2007

AT&T Inc. (NYSE:T) has announced that Frederick's of Hollywood has awarded AT&T its networking and voice services business. The three-year contract will assist Frederick's in upgrading its network service to run applications that support the company's retail environment, as well as inventory management and financials.

Under terms of the agreement, AT&T will implement an Internet Protocol Virtual Private Network (IP VPN) service using Multiprotocol Label Switching (MPLS) technology to connect Frederick's 135 retail stores nationwide. The network services upgrade provides significant improvements in network speed and reliability.

"The AT&T team presented us with a solid, affordable solution that will help us streamline our business," said Jayson Jackson, Frederick's director of Information Technology Operations. "The reliability of the network and the depth of AT&T's product offers made AT&T an easy choice."

AT&T's IP technology provides for quicker and more reliable transmission of data, which will allow Frederick's to control inventory more efficiently and better serve its clients through quicker transaction-processing times. AT&T is also providing Frederick's with toll-free services to support Frederick's call center.

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About Frederick's of Hollywood
For over 65 years, Frederick's of Hollywood has been the pioneer in innovative, alluring lingerie. Every time a woman in America puts on a piece of black lingerie, a push-up bra or a thong, she has Frederick's to thank. With more than 135 boutique stores nationwide, world-famous catalog and online shop, Frederick's has been recognized as one of the world's most well known brands. Visit www.fredericks.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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