AT&T to Distribute Move Networks Video Content

Company Reaffirms Progress, Plans for Digital Media Solutions Portfolio

Dallas, Texas, September 23, 2008

AT&T Inc. (NYSE:T) today announced that Move Networks, Inc., a leading provider of Internet television services, has certified AT&T's content distribution network to deliver Move-enabled video content to companies and their end-users. Move Networks technology allows media and entertainment companies to deliver live and on-demand high-definition programming to computers over the Internet in a true television-like experience.

Move Networks enables high-quality Internet television services that keep audiences watching longer with precise measurement of viewers' experiences, geography, and demographics for targeted advertising that lead to increased revenue opportunities for online businesses. Move Networks' media services provide a robust platform for Internet television, allowing easy integration with ad systems, analytics packages, commerce solutions, and other third-party services.

In June, AT&T introduced AT&T Digital Media SolutionsSM, a suite of content delivery and digital media solutions to help companies package, deliver and distribute video and rich multimedia Web content across their networks to the three screens that are core to AT&T's multimedia strategy — the computer, the television and mobile computing devices such as smart phones.

With the ability to deliver Move-enabled content, AT&T is adding a critical capability to respond to customers' need to cope with the exploding demand for rich graphics and video-intensive multimedia content that has been fueled by the wide adoption of high speed Internet services, sophisticated computing technologies and the need to deliver to multiple devices including digital signage, PCs and smart wireless devices.

"Today, approximately 40 percent of AT&T's total network backbone traffic is video," said Cathy Martine, AT&T Executive Vice President — Content Distribution. "A mere three years ago, video traffic on our network was negligible. Customers now have more choices in advanced devices and services, and expect more in terms of mobility, interactivity and access to content than ever before," Martine said.

"Our ability to seamlessly deliver high-quality video across wired and wireless networks, with the quality, security and professional services customers expect from AT&T, will continue to drive future enhancements to our Digital Media Solutions portfolio to meet our customers' demand and to take advantage of the booming growth in this segment," said Martine.

AT&T reaffirmed its plans to complete deployment of nearly $70 million in network infrastructure and development investment by year-end to support its digital media capabilities across the United States and Europe (European Union countries) and Japan, Hong Kong, China and Taiwan within Asia. The company is on track to have an almost six-fold increase in caching and live streaming capacity by year end. International caching and live streaming capacity has been increased three-fold since AT&T's announcement in June.

"The combination of AT&T's Digital Media Solutions portfolio and Move Networks services helps set new standards for media and entertainment companies who are committed to delivering a true television-like experience to their growing online audiences," said John Edwards, CEO of Move Networks. "We are excited to work with AT&T in reaching new markets and delivering flexible solutions for reliable, scalable, high-quality Internet television services to customers on a worldwide basis."

More information on today's announcement is available at www.business.att.com.

About Move Networks
Move Networks, Inc. is a leading provider of Internet television services that drive the growth and support of online audiences for leading broadcasters and publishers including ABC, the CW, Discovery, ESPN, and Fox. The Internet television technologies and services developed and managed by Move Networks enable leading brands to deliver live and on-demand programming to millions of people without the buffering, stalling, and low-quality viewing experiences common with competing technologies. Additional information about Move Networks is available at www.movenetworks.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.

© 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.

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