AT&T Signs New Contract with the State of Missouri

State Government Increases Operational Efficiencies With Converged Networking Solution

Jefferson City, Missouri, September 26, 2007

AT&T Inc. (NYSE:T) has announced a new contract with the state of Missouri to implement a Next-Generation-Network (NGN) solution at approximately 1,100 locations across the state. The five-year contract will allow AT&T to provide Virtual Private Network (VPN) services, call center support, managed data storage, private fiber-network management and video communications. The deal includes two one-year renewal options.

AT&T VPN services will allow Missouri to implement a Multiprotocol Label Switching (MPLS)-based network. This network gives the state the ability to connect agencies together on a single Internet Protocol (IP) platform via a wide variety of last-mile transport technologies, such as Point-to Point-Protocol, Multilink PPP, Ethernet and broadband DSL. Other features of the MPLS network include Class of Service (CoS), multicast and robust Service Level Agreements. More important, AT&T's VPN solution provides state government agencies any-to-any connectivity, business continuity and disaster recovery, important business objectives in today's world. By using a single, IP-based architecture, the state will be able to support voice, video and data within a secure converged solution. The state will also be able to provide the foundation for robust IP-based applications while making digital government more accessible to its citizens.

The state's decision to implement a managed solution ensures that it will be able to take advantage of the most up-to-date technology without incurring upgrade or increased-management costs. AT&T will continually monitor, upgrade and expand the NGN network as technology evolves. Additionally, AT&T BusinessDirect®, an award-winning Web portal, will provide integrated reporting, trouble management, billing, and provisioning interfaces, which will allow the state to save time and gain more control over service levels.

"Replacing our existing voice and data network with a converged network solution and applying IP-based applications will allow the state to operate more efficiently and improve the delivery of government services to the citizens of Missouri," said Dan Ross, chief information officer for Missouri. "AT&T provided the best overall network design and presented the greatest statewide presence. The solution will support several cost-saving strategies and form the basis of the state's disaster recovery and business continuity network plan, as well as sustain the future implementation of applications, such as Voice over IP."

The NGN network solution provided by AT&T combines the ability to achieve network convergence, increased bandwidth, security and business continuity into a single package. AT&T will ensure the best possible reliability and resiliency for the state's critical voice and data communications. Additionally, with this solution, the state may choose to expand its services with AT&T Voice DNASM, a network-hosted Voice over IP communications solution. AT&T Voice DNA delivers enhanced unified communications and collaboration to provide increased efficiencies and productivity.

For more information about AT&T solutions for the state and local government market, please visit www.att.com/stateandlocal.

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About the State of Missouri
The State of Missouri was established in 1821. With a population of almost six million, the state comprises 114 counties and encompasses over 66,500 square miles. For more information, visit www.missouri.gov.

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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