AT&T Helps Source Interlink Consolidate Acquired Businesses

AT&T to Link Network Services for Leading Entertainment Products Distributor

Bonita Springs, Florida, October 25, 2007

AT&T Inc. (NYSE:T) has announced a $4.5 million contract with leading marketer and merchandiser of entertainment products, Source Interlink Companies, Inc. (NASDAQ:SORC). The contract is for a wide range of communications and network services that will extend to more than 90 domestic and international locations. The three-year deal will link network services and improve overall connectivity for Source Interlink and two acquired divisions, Alliance Entertainment, a global distributor of music, movies and game software, and the Primedia Enthusiasts Group, which publishes more than 70 magazines and 90 Web sites.

These new additions join previous Source Interlink acquisitions of companies in the wholesale magazine distribution industry, which all depended on a mix of various carriers and technologies for network services. In response to this string of acquisitions, Source Interlink is transitioning its legacy network services to AT&T's Internet Protocol (IP)-enabled Frame Relay network services, including Multiprotocol Label Switching (MPLS) capabilities. The AT&T MPLS solution will allow Source Interlink to seamlessly mesh different types of networking technologies, enable secure communication among locations using different communications protocols, and ease the integration of legacy network services.

"With locations ranging from tiny regional offices to major data centers, we needed a full suite of technologies that would scale in a cost effective fashion, both in terms of infrastructure and management services," said Linwood Ferguson, chief information officer, Source Interlink Companies, Inc. "We found AT&T to provide the deepest range of offerings to connect these diverse businesses together, especially when it came to smoothly integrating VPN-based solutions with MPLS. Of equal importance, AT&T had credible resources in place to provide for a fast, professionally managed implementation so our internal resources can focus on business integration instead of the network."

AT&T's contract with Source Interlink builds on a nearly 10-year relationship with Alliance Entertainment and includes AT&T's global Managed Internet Service (MIS) and AT&T Integration Solutions services, as well as voice services.

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About Source Interlink Companies, Inc.
Source Interlink Companies, Inc. (NASDAQ:SORC), a media and marketing services company, is one of the largest publishers of magazines and online content for enthusiast audiences and is also a leading distributor of home entertainment products, including DVDs, music CDs, magazines, games, books, and related items. With annual "run-rate" revenue in excess of $2.5 billion, Source Interlink serves approximately 110,000 retail store locations throughout North America. Supply chain relationships include consumer goods advertisers, subscribers, movie studios, record labels, magazine and newspaper publishers, confectionary companies and manufacturers of general merchandise. For more information, please visit the Company's Web site at www.sourceinterlink.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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