AT&T Announces New Contract with Visalia Unified School District

California School District Improving Capabilities With AT&T Network Solution

Visalia, California, January 7, 2008

AT&T Inc. (NYSE:T) today announced that AT&T has signed a new contract with Visalia Unified School District (USD), a school district in the San Joaquin Valley of California that serves close to 27,000 students in 34 schools. Under the terms of the five-year contract, AT&T will serve as the primary service provider for Visalia USD and will deliver AT&T OPT-E-MAN® service, a switched Ethernet service to connect the district's 24 elementary schools, newcomer language center, four middle schools, four comprehensive high schools and other related administrative and educational sites within the district.

With the AT&T OPT-E-MAN network solution, Visalia USD will experience an enhanced network bandwidth that will be as much as 33 times larger than the current network bandwidth for middle schools and high schools. This will enable Visalia USD to efficiently and reliably send voice, video and data applications among sites in the district.

"With the number of schools and administration buildings in the district, along with the number of students, we needed a provider with the resources to connect all of our sites on a unified network platform and enhance our educational capabilities," said Robert Groeber, assistant superintendent of administrative services for Visalia Unified School District. "The solution provided by AT&T will allow us to connect our schools at a cost-effective rate and help us provide our students, teachers and administration with the latest technologies in educational tools."

The new converged network, backed by AT&T's Internet Protocol (IP)-based network, will provide secure Internet access for students and will enable teachers to leverage technology to further enhance their curriculum. As a result, teachers will be able to expand the learning experience for students through distance-learning, viewings of off-campus lectures and virtual field trips that result in travel savings for the administration and convenience for students. These applications will also provide teachers with more time to focus on the individual needs of students and help families stay in touch with and involved in their child's education. Additionally, students will have the ability to access homework assignments and other learning materials from home.

The expanded network capacity and added redundancy will also enable the district to introduce advanced technologies in the future, such as video and Voice over Internet Protocol (VoIP), essentially providing the district with the ability to transmit data from anywhere at any time over a converged network.

For more information about AT&T solutions for the education market, including K-12 and higher education, please visit www.att.com/edu.

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About Visalia Unified School District
Established in 1885, VUSD is the oldest school district in Tulare County. Its services span 214 square miles with a population base of over 135,000. VUSD governs 24 elementary schools, a newcomer language center, four middle schools, four comprehensive high schools, a continuation high school, a charter alternative academy, a charter independent study school, a K-8 charter home school and a school that serves orthopedic handicapped students. Close to 27,000 students are served through the Visalia Unified School District. For more information, please visit www.visalia.k12.ca.us/.

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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