AT&T Receives Government Vertical Market Penetration Leadership Award from Frost & Sullivan

AT&T Recognized for Providing Efficient, Secure and Reliable Communications Services for Government Agencies

San Antonio, Texas, November 1, 2007

AT&T Inc. (NYSE:T) today announced that Frost & Sullivan, a global growth-consulting company, has awarded AT&T the 2007 Government Vertical Market Penetration Leadership Award for Communication Service and Solutions.

The Government Vertical Market Penetration Leadership Award recognizes the company that has been most effective in bringing a wide range of scalable and technologically advanced communications solutions to federal, state and local government agencies.

Frost & Sullivan recognized AT&T's efforts in this sector after conducting an extensive survey of IT and Telecom professionals from U.S. government agencies. The survey highlighted AT&T's success in this market, specifically by providing "efficient, secure and reliable telecom solutions."

"After reviewing the data retrieved from the survey, it was evident that AT&T had made an incredible effort to produce innovative solutions to complex communications issues," said Roopa Shree, senior industry analyst of Frost & Sullivan. "Whether it is IP telephony solutions, next-generation high speed data networks — such as Metro Ethernet and GigE — or wireless solutions, AT&T caters to every need in the market."

AT&T provides many government agencies with advanced communications technologies that allow for faster Internet speeds, greater bandwidth and innovative data transmission through fiber-optic networks and the latest wireless solutions.

"The government sector has always been an important market for AT&T as we continue to provide safe, reliable and secure communications to enhance the safety and well-being of all of our clients," said John Regan Jr., vice president, AT&T Business Marketing. "We are honored that Frost & Sullivan has recognized our efforts to provide superior service and technology to local, state and federal government agencies."

Frost & Sullivan estimated 2006 state spending on IT and telecom at $48.8 billion, which will increase to around $52.8 billion by the end of the year. According to the Frost & Sullivan report, these increases in spending can be directly linked to the government's increasing need for safe, secure and timely distribution of communications.

"Significant progress has been made in upgrading the government's national wireless broadband network to the 3G platform, which allows AT&T to deliver on its goal of increasing productivity for every government worker through mobile desktops," said Shree.

AT&T solutions are focused on the key challenges and issues that affect federal, state and local governments every day, including ensuring reliability of data and communications for public safety, providing secure communications, helping build effective homeland security and e-government solutions and delivering the most effective wireless solutions.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis and extensive secondary research in order to identify best practices in the industry.

For more information about AT&T solutions for the government market, please visit www.corp.att.com/gov or www.corp.att.com/stateandlocal.

Note: This AT&T release and other news announcements are available as part of an RSS feed at www.att.com/rss.

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About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.awards.frost.com or www.ict.frost.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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