AT&T Introduces 'Green Fleet' of More Than 100 Alternative-Fuel Vehicles

Vehicles Will Roll Out in Cities Across the Country

San Antonio, Texas, May 21, 2008

AT&T Inc. (NYSE:T) today announced plans to add 105 alternative-fuel vehicles to the corporate fleet of its operating companies. The vehicles, which will roll out in more than 30 cities across the U.S. beginning in June, will help the company reduce its impact on the environment and its dependence on imported oil.

After carefully evaluating several alternative-fuel technologies, AT&T will deploy three types of alternative-fuel vehicles. The vehicles will be embedded into AT&T's workforce as operational components of its fleet. AT&T will measure and track fuel efficiency, greenhouse gas emissions, operating costs, performance and driver satisfaction of each vehicle.

"Reducing our fleet's petroleum fuel consumption and operating costs is a top priority," said Jerome Webber, vice president of Fleet Operations, AT&T Services Inc. "Even the smallest improvement in fuel use, when applied across our corporate fleet, can make a significant impact for the environment and for our business. That's why we're committed to identifying smart ways to improve the efficiency of our fleet and to exploring advancement with alternative-fuel technologies."

The alternative-fuel vehicles consist of 25 Compressed Natural Gas (CNG) vans, 65 electric hybrid Original Equipment Manufacturer (OEM) vehicles — Ford Escapes and Toyota Priuses — and 15 electric hybrid conversion work trucks. The vehicles, which will be deployed in cities in California, Florida, Georgia, Illinois, Indiana, Michigan, Missouri, Ohio and Texas, join four Ford Escape hybrids that were deployed in California in late 2007. A Green Technology insignia will make the vehicles easy to identify on the road.

AT&T estimates that its use of these alternative-fueled and more fuel-efficient vehicles will reduce greenhouse gas emissions by 124 metric tons and conserve nearly 34,395 gallons of fuel annually.

The CNG vans are expected to reduce greenhouse gas emissions by nearly 30 percent compared with traditional gasoline vans. The electric hybrid OEM vehicles are expected to offer a 39 percent improvement in fuel economy and reduce greenhouse gas emissions by 29 percent. The electric hybrid conversion work trucks are expected to offer a 38 percent improvement in fuel economy compared with similar gasoline-powered vehicles and reduce greenhouse gas emissions by 28 percent.

"More and more fleets are recognizing that hybrid trucks can deliver significant reductions in greenhouse gas emissions and fuel costs," said Victoria Mills, project manager at Environmental Defense Fund. "AT&T's investment in these more efficient vehicles will benefit the environment and the bottom line."

Stephe Yborra, director of Market Analysis, Education and Communications for the nonprofit Clean Vehicle Education Foundation, said, "AT&T's use of CNG vans, powered solely by America's abundant natural gas, and hybrid vehicles that consume less gasoline, will help our nation improve air quality and reduce reliance on foreign oil."

The deployment of 105 alternative-fuel vehicles further strengthens AT&T's commitment to make its fleet more efficient. AT&T has implemented additional measures to increase fuel efficiency, decrease operating costs and reduce environmental impacts. These measures include the use of a Daily Best Fuel Price tool, which allows drivers to check the cheapest fuel stations within their assigned route, and the planned implementation of an idling-reduction policy.

Deploying alternative-fuel vehicles is one way that AT&T is working to minimize the environmental impact of its operations. AT&T works to enhance energy performance and minimize energy consumption in company buildings, IT systems and networks, and the company is evaluating alternative energy sources such as wind and solar power. The company conserves natural resources through waste reduction, recovery and recycling efforts, helping its customers do the same. AT&T also helps customers further manage their own environmental impact through intelligent use of AT&T products and services, like teleconferencing, video conferencing and other broadband applications.

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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. In 2008, AT&T again ranked No. 1 on Fortune magazine's World's Most Admired Telecommunications Company list and No. 1 on America's Most Admired Telecommunications Company list. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

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