AT&T Helps Muzak Leverage Network Services to Speed Up Operations

AT&T Supplying the Global Business Music Provider With Voice and Network Services to Enhance Efficiencies at Call Center and in the Field

Fort Mill, South Carolina, July 8, 2008

AT&T Inc. (NYSE:T) today announced a three-year, $6.4 million contract with Muzak, a leading provider of music and other customer experience solutions since 1934. The contract will provide services to 40 Muzak locations across the U.S. and support Muzak's nationwide service network of more than 1,300 employees.

AT&T is installing AT&T IP Flexible Reach, which combines network-based data services with local and long distance voice capabilities for cost-effective overall communications. The solution from AT&T also includes an Avaya Internet Protocol Telephony (IPT) system, which will streamline the way Muzak handles customer calls and will give field representatives the ability to route calls to any Muzak site at any time.

By using an additional custom wireless data application from AT&T, Muzak's field service technicians will be able to complete their jobs on-site, reducing the cycle time to complete each job and further increasing customer service levels. Additionally, these services from AT&T will free up Muzak's call center so that service representatives can concentrate more on new-customer business and less on internal inquiries.

"Muzak's nationwide service network includes more than 1,300 team members across the United States, and we are constantly looking for new ways to enhance our ability to serve our clients quickly and efficiently. Our telephony solutions are an integral part of an overall communications strategy that assists our sales teams and technicians in delivering the positive and responsive experience our clients expect from Muzak," said Tim Pulliam, vice president, Information Technology, Muzak. "With our solution from AT&T, we have introduced new efficiencies into our system to streamline employee communications in order to provide even faster response times for our customers. AT&T's focus on our particular needs in the field has resulted in a solution that will readily benefit our clients."

This contract also extends Muzak's mobility services with AT&T, delivering BlackBerry® wireless service to more than 700 employees.

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About Muzak
As a leading provider of business music, Muzak creates experiences that reach more than 100 million people daily. Some of the biggest brands in business, from Ann Taylor to Aveda to McDonald's, work with Muzak to enhance their brand image in hundreds of thousands of client locations. Muzak creates a wide variety of core and custom music experiences for clients around the world. Muzak creates custom on-hold and in-store voice messages, and designs and installs professional sound systems, commercial television, drive-thru systems, digital signage, soundmasking systems and more through its national network of sales and service locations. For more information, visit www.muzak.com.

About Avaya
Avaya delivers Intelligent Communications solutions that help companies transform their businesses to achieve marketplace advantage. More than 1 million businesses worldwide, including more than 90 percent of the FORTUNE 500®, use Avaya solutions for IP Telephony, Unified Communications, Contact Centers and Communications Enabled Business Processes. Avaya Global Services provides comprehensive service and support for companies, small to large. For more information visit the Avaya Web site: http://www.avaya.com.

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.

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