AT&T Expands Services to American Electric Power with $24.5 Million Network Services Contract

AT&T's Integrated Solutions Increase Cost-Effectiveness and Ease of Use for Leading Electric Provider

Columbus, Ohio, September 17, 2007

AT&T Inc. (NYSE:T) has announced that American Electric Power (NYSE:AEP), a leading electric generator and supplier in the United States, has awarded AT&T a three-and-a-half year $24.5 million contract. The contract continues AT&T's strong relationship with AEP as the local exchange carrier in most of AEP's operating territory. The agreement also includes AT&T Business Network (ABN) services and the addition of corporate long distance and wide area network (WAN) voice and data traffic and management capabilities.

AEP is a leading generator of electricity in the United States and owns more than 38,000 megawatts of generating capacity. AEP provides electricity to more than 5 million customers across an electricity transmission and distribution system that serves Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia and West Virginia.

With the efficiency of a single contract, ABN services are designed to accommodate growth in communications needs and allow effortless shifts in advanced technology that affects AEP and its industry.

"AT&T and AEP's relationship is a natural fit," said Philip Ross, vice president, AT&T Global Business Services — Central Region. “As AEP's local carrier in nine out of 11 states, AT&T is committed to providing the highest network reliability and service quality. We look forward to continued synergies from our collaboration, as AT&T develops more leading-edge solutions for large enterprises such as American Electric Power."

In addition to the ABN services, AT&T will continue to handle AEP's local wired services, including frame relay solutions, in nine of the 11 states in which AEP operates.

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About American Electric Power
American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation's largest generators of electricity, owning more than 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation's largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP's transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.

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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