AT&T Announces New Contract with Children's Hospital & Research Center Oakland

Oakland, California, October 30, 2007

AT&T Inc. (NYSE:T) today announced a new optical networking services contract with Children's Hospital & Research Center Oakland, the only independent children's hospital in Northern California. Under the terms of the three-year contract, AT&T will be the primary provider and will deliver AT&T OPT-E-MAN® service to the main campus and its four remote locations throughout the Bay Area.

AT&T OPT-E-MAN service is a highly scalable, switched, fiber-optic, point-to-multipoint Ethernet service that connects multiple local area networks (LANs) within a regional area. The service will connect the main campus for Children's Hospital & Research Center Oakland with its remote locations and support the sharing of high-bandwidth clinical applications, such as electronic medical records (EMR) and pictorial archival communications systems (PACS). The AT&T OPT-E-MAN service will also enable pediatric patients to receive remote evaluations from specialists at Children's Hospital & Research Center Oakland, which improves patient satisfaction and safety.

The new solution will support secure and consistent network access for doctors, nurses and clinicians, who need readily available access to medical records, as well as information and resources used in making lifesaving decisions. The converged network infrastructure allows Children's Hospital & Research Center Oakland to realize increased reliability and faster access to critical medical applications and patient data for improved patient care.

"With patients located throughout the Bay Area, we needed a provider capable of delivering state-of-the-art technology to support our advanced medical applications and connect our doctors with patients at multiple locations under one network," said Doug Myers, chief financial officer, Children's Hospital & Research Center Oakland. "We are confident that the solution provided by AT&T will help sustain secure and reliable access for our doctors, nurses and clinicians to access current applications, such as EMR and PACS, which will help us to better serve our patients."

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About Children's Hospital & Research Center Oakland
Children's Hospital & Research Center Oakland is Northern California's only freestanding and independent children's hospital. Children's is the leader in many pediatric specialties including neonatology, cardiology, neurosurgery and intensive care. The hospital is a designated Level 1 pediatric trauma center and has the largest pediatric critical care facility in the region. Children's Hospital has 190 licensed beds, 201 hospital-based physicians in 31 specialties, more than 2,611 employees and an operating budget of $312 million. Children's research arm, Children's Hospital Oakland Research Institute (CHORI), has approximately 300 staff members and an annual budget of more than $49 million. The National Institutes of Health is CHORI's primary funding source. The institute is a leader in translational blood diseases, developing new vaccines for infectious diseases and discovering new treatment protocols for previously fatal or debilitating conditions such as cancers, sickle cell disease and thalassemia, diabetes, asthma, HIV/AIDS, pediatric obesity, nutritional deficiencies, birth defects, hemophilia and cystic fibrosis. For more information about Children's Hospital & Research Center Oakland visit www.childrenshospitaloakland.org.

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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