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AT&T Implements New Approach to Early-Termination Fees

Provides More Flexibility for Wireless Customers

San Antonio, Texas, May 23, 2008

AT&T Inc. (NYSE:T) today announced that, this weekend, the company is implementing a new approach to early-termination fees (ETFs) that provides greater flexibility for wireless customers.

Beginning Sunday, May 25, the company's new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat ETF. Instead, that fee ($175) will be progressively lowered by $5 for each full month completed toward the term of the contract.

The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements before May 25.

The company continues to offer options for those customers who do not want term commitments or ETFs, including:

• Buy a phone at full price and go on a month-to-month service plan.
• Bring your own compatible GSM (Global System for Mobile Communications) device. With this option, you can buy a SIM (subscriber identity module), slip it into the back of the phone and select a month-to-month service plan.
• Choose one of AT&T's GoPhone^® prepaid wireless plans.

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. 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 www.att.com.

© 2008 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.

Note: This AT&T news release and other announcements are available as part of an RSS feed at www.att.com/rss.