AT&T Delivers $140 Million in Network Services to Help Kentucky Schools Leverage Technology and Improve Education

Frankfort, Kentucky, March 5, 2008

AT&T Inc. (NYSE:T) today announced the completion of the Kentucky Education Network (KEN), a $140 million service recently added to AT&T's Kentucky Information Highway contract with the Commonwealth of Kentucky Education Cabinet. KEN will bring high-bandwidth broadband services and Internet access to 174 school districts located in 120 counties. The solution will also allow students and teachers to access information from post-secondary institutions in the state.

In addition to the local and long distance voice service currently provided by AT&T, this new solution will establish Virtual Private Network (VPN) services for state school operations across Kentucky. The flexible network infrastructure of AT&T's solution will enable the state of Kentucky to scale its network services according to the state's needs and leverage advanced performance and security features.

"In today's education environment, school applications are requiring technology and more bandwidth to give our teachers the tools they need to enhance each student's educational experience and to better prepare them for college and membership in a global workforce," said David Couch, commissioner of Education, Commonwealth of Kentucky Office of Education Technology. "AT&T's network services are helping us address the different learning and teaching styles of students and teachers by providing educational content in the forms of video, audio and text. This content can now be delivered much better and faster to each classroom throughout our K - 12 system."

Other major benefits provided through this network solution include analysis and improvement of student test scores online using Web-based diagnostic tools and the development of electronic individual learning plans for more than 300,000 students. These electronic plans can be accessed and reviewed at home by parents who are interested in their children's school activities.

With AT&T's services, Kentucky is also establishing a K - 12 "data warehouse" that is expected to become a one-stop shop for assessment data, curriculum guidance and instructional tools, which can be accessed nearly in real time by students, parents, teachers and administrators.

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About the Kentucky Education Network (KEN)
In direct support of Governor Beshear's Educational Vision, the Education Cabinet seeks to continue to build on the successes and lessons of the first 18 years of KERA, seven years of postsecondary reform and the research and technology improvements during that time by implementing a seamless education-centric network that equitably supports lifelong learning for all Kentuckians. Key features of KEN include equity in terms of cost, geographic availability, access, and support for all learning styles. KEN also supports the availability of audio and video-intense learning and research opportunities, scalable and adaptable network design that easily supports future growth, and 24 x 7 network availability and support. The goal of KEN is to develop a seamless education-centric network that will grow and scale to meet new, increasing, and unforeseen needs to support equitable life long learning for all Kentuckians. KEN further will help to break down the physical and political barriers between secondary and postsecondary education and share learning content and resources, both virtual and physical, throughout the education system.

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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