AT&T Spreads $66 Million in Communications Capabilities across South Carolina

Columbus, South Carolina, February 27, 2008

AT&T Inc. (NYSE:T) today announced a five-year $66 million contract with the state of South Carolina to provide state agencies, local and county governments, school districts and libraries with advanced communications services.

AT&T is already the primary provider of communications services to South Carolina. The new AT&T contract will provide voice services to more than 3,000 locations.

AT&T currently provides the state with advanced data network services and dedicated Internet access, which allow state agencies, K - 12 schools and libraries in South Carolina to leverage advanced data applications and greater bandwidth utilization for critical public needs. The new AT&T voice solution will extend both 24/7 customer care and the support of a dedicated team of managers across South Carolina so that all statewide government locations will benefit from the new communications contract.

"Our voice and data network service needs continue to grow with the state," said Jim Bryant, chief information officer for the state of South Carolina. "AT&T has delivered a statewide solution to help us control costs and improve reliability so that our voice services really benefit government employees and citizens in South Carolina."

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About South Carolina Budget and Control Board
The South Carolina State Budget and Control Board plays a key role in the general management of state government. This institution is unique to South Carolina and provides a broad array of services to other parts of the public sector as well as administrative and regulatory functions. The Board is made up of the Governor, the Treasurer, the Comptroller General, the Chairman of the Senate Finance Committee, and the Chairman of the House Ways & Means Committee. Major functions of the Board are administered through the Office of the Executive Director and its consolidated divisions. An independent auditing function is administered through the Office of the State Auditor. Since its inception, the Board has undergone various organizational changes and at present is comprised of two components. For more detailed information about the Board and its history, visit http://www.bcb.sc.gov/BCB/BCB-index.phtm.

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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