AT&T Positioned by Analyst Firm in 2008 Leaders Quadrant for Web Hosting Services

San Antonio, Texas, April 14, 2008

AT&T Inc. (NYSE:T) today announced that AT&T's Hosting and Application Services have been positioned by Gartner Inc. in the Leaders Quadrant of its North American Web Hosting Magic Quadrant 2008.1

AT&T's position in the leaders quadrant comes on the heels of a Gartner "Magic Quadrant Report for U.S. Network Service Providers, 2008," which also placed AT&T in the Leaders Quadrant.

With 38 Internet data centers (IDCs) connected to its global Internet Protocol (IP) network, AT&T is the industry's largest network provider of hosting services.

In its North American Web Hosting Magic Quadrant Report, Gartner evaluates AT&T's vision and ability to execute in categories that analyzed in part current and future market direction, innovation and customer needs.

AT&T's leadership in hosting services is being driven by an ongoing strategy to extend its global network reach and capacity, globalize its portfolio of business services and embed the latest utility-computing and other managed hosting technologies so that companies can deliver real-time applications to their employees, customers, suppliers and partners. A portion of AT&T's recently announced $1 billion investment in its global network will be used to increase its data center hosting capacity by 180,000 square feet through mid-2009. Expansion targets in 2008 will include Singapore, Amsterdam, Boston and Dallas.

"We think AT&T's position in the Leaders Quadrant in this latest Gartner Web Hosting Magic Quadrant report reflects our commitment and ability to serve our customers worldwide with the most advanced managed services offerings, applications support and Internet data center facilities available today," said Steven Caniano, vice president, AT&T Hosting and Application Services. "To maintain our position in the Leaders Quadrant, we will continue to focus on serving our customers to meet their business needs and on enhancing our infrastructure and portfolio of offerings."

Earlier this year, AT&T reinforced its leadership position in the managed hosting space by striking an agreement with SAP America Inc. Under this contract, AT&T will serve as a primary SAP® hosting partner, providing independent hosting services for business customers with headquarters in North America. By combining AT&T's global IP network and hosting and applications services capabilities with SAP's global expertise in enterprise software, businesses will receive simplified full-service solutions that will allow them to deliver critical applications to their end-users.

To view the Gartner North American Web Hosting Magic Quadrant report, please visit http://www.corp.att.com/awards/analysts/gartner.html.

AT&T Hosting and Application Services provides a variety of hosted infrastructure, managed services and managed applications capabilities that support the IT operations of customers ranging from small and midsize businesses up to the largest global corporations. Customer applications enabled by AT&T include corporate Web sites, e-commerce, digital content delivery, multiplayer online gaming, collaborative intranets and extranets, data backup and recovery, enterprise resource planning (ERP) and more.

For more information about AT&T's hosting services, please visit www.att.com/hosting.

1Gartner "Magic Quadrant for North American Web Hosting, 2008" by L. Leong, T. Chamberlin, April 10.2008

The Magic Quadrant is copyrighted 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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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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