AT&T Supports Creation of San Antonio Boy Scouts Leadership Development Facility with $1 Million Grant

Center To Be Made Possible by $1 Million AT&T Grant to Fund Leadership Development Facility in South San Antonio

San Antonio, Texas, July 30, 2008

The AT&T Foundation, the corporate philanthropy organization of AT&T Inc. (NYSE:T), today announced a $1 million grant to the Boy Scouts of America — Alamo Area Council Inc. to support the creation of a Leadership Development Center in south San Antonio where Scoutreach programs will be conducted.

The Alamo Area Council of Boy Scouts is celebrating its 94th anniversary with the launch of an overall $11 million capital/endowment campaign called Campaign for Timeless Values. A $2.5 million component of the overall campaign is earmarked for the Scoutreach Leadership Development Center on the south side of San Antonio, offering youth leadership programs for all Scouts, beginning with youngsters in the Cub Scouts.

"We're happy to be a partner in this endeavor, knowing this will shape young lives for years to come," said Randall Stephenson, chairman, chief executive officer and president of AT&T. "We hope AT&T's contribution will be the tip of the iceberg and that many more companies and individuals will come forward to contribute and recognize the benefits of Scouting to ensure this Scoutreach center will forever be a pillar on the city's south side."

Future plans will expand the Scoutreach program to boys in grade 6 up to age 18. The center is located in an area where its greatest impact will be on two school districts, Harlandale and South San Antonio. The student population of the 25 elementary schools in those school districts is 96 percent Hispanic. The center will also be a focal point for the recruitment and training of local volunteers, mostly parents, to fill adult leadership positions to strengthen the quality of the program.

"We are extremely excited," said John Coyle, Scout executive of the Alamo Area Boy Scouts of America. "Our south side facility is unique in that Scouting programs will be held on-site. Scouting has a power to change lives, and we are anxious to help make a greater positive difference for youth and families on San Antonio's south side."

The Scoutreach program has a history of nearly 15 years of service to underprivileged neighborhoods with San Antonio. Its aim is to offer young people an opportunity to join Scouting, regardless of their circumstances or the neighborhood in which they live. It prepares youth to be leaders, to accept responsibility, and to care about principles and causes that help them develop into productive citizens. The AT&T grant is designed to be a lead gift that will support both the creation of the Scoutreach Leadership Development Center and its youth leadership programs.

"Men who were Scouts are more likely to graduate from high school and college, earn higher incomes — and most importantly — believe strongly in helping others before helping themselves," said Texas Governor and Eagle Scout Rick Perry.

"As an Eagle Scout, I know the value of scouting," said State Rep. Frank Corte Jr. "It's wonderful to see AT&T and the Boy Scouts of the Alamo area work together to support the creation of a facility that will benefit the lives of so many."

The grant is positioned as a challenge grant in which all AT&T Foundation grant installments will be contingent on the Council raising and applying $375,000 each year, in outside contributions to the remaining $1.5 million needed for the $2.5 million project.

"AT&T is a strong supporter of Boy Scouts of America — both the national organization and the many local organizations in the communities where our employees and customers live and work," said Stephenson, a national board member of Boy Scouts of America. "We're pleased to provide this contribution to support Scoutreach in San Antonio."

About Boy Scouts of America
Serving nearly 4.7 million young people between 7 and 20 years of age with more than 300 councils throughout the United States and its territories, the Boy Scouts of America is the nation's foremost youth program of character development and values-based leadership training. For more information on the Boy Scouts of America, please visit www.scouting.org. The Alamo Area Council enrolled 25, 6000 youth members at the end of 2007 throughout a 13-county service area. Scouting on San Antonio's south side benefited 13,300 youth, including 1,200 in Scouting's traditional programs, 3,300 participating in Scoutreach programs, and 8,800 coed students participating in Learning for Life programs.

About Philanthropy at AT&T
AT&T Inc. (NYSE:T) is committed to advancing education, strengthening communities and improving lives. Through its philanthropic initiatives and partnerships, AT&T supports projects that create learning opportunities; promote academic and economic achievement; and address community needs. In 2007, AT&T contributed more than $164 million through corporate-, employee- and AT&T Foundation-giving programs. AT&T and the AT&T Foundation, the corporate philanthropy organization of AT&T, combine more than $1.9 billion of historic charitable commitment to communities across the country.

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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