AT&T Wins $223 Million Telecommunications Contract from the County of Los Angeles

AT&T to Deliver Advanced Voice and Data Services to 1,000 Locations for More Sophisticated and Efficient Communications throughout the County of Los Angeles

Los Angeles, California, October 15, 2008

AT&T Inc. (NYSE:T) has announced that the County of Los Angeles has signed a five-year contract with AT&T for the company to provide telecommunications services throughout the county. The new contract, valued at $223 million, comprises all voice and data services and expands advanced network services, such as a managed Internet Protocol (IP) network and Managed Router Solutions (MRS), which will be deployed at up to 1,000 county locations.

AT&T's managed IP network and MRS will improve communications and boost efficiencies by allowing the County of Los Angeles to focus on applications while AT&T manages and maintains the network. With an agile AT&T network platform and one of the world's most advanced and powerful IP backbones, the County of Los Angeles is addressing its current needs to reduce cost and build a roadmap to transition to next-generation networks.

AT&T will continue to provide all voice and data services to the County of Los Angeles including Frame Relay and Asynchronous Transfer Mode data transport; remote access; Managed Internet Service; Virtual Private Network (VPN); all local and long distance voice, Web, video and teleconferencing services; and AT&T Voice DNASM.

AT&T Voice DNA, a network-based Voice over IP (VoIP) service, provides the benefits of a premises-based telephony service, while maintaining flexibility, control and reduced capital expenditures. The service will enable the County of Los Angeles to converge data and voice applications on the same reliable, secure and scalable network infrastructure. Additionally, the service will provide consistent Internet service and secure access to the county network and client records, whether employees are using terminal or remote access.

"The County of Los Angeles was seeking to converge voice and data networks and to gain a 24-hour managed services environment," said Tom Lang, program manager for the County of Los Angeles. "Converged IP services will give us increased management efficiency and greater functionality."

The County of Los Angeles has options to extend the contract with AT&T for up to 12 years.

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About County of Los Angeles
Los Angeles County remains one of the nation's largest counties with 4,084 square miles and has the largest population (10,331,939 as of January 2007) of any county in the nation. The current budget is $22.2 billion and 102,000 employees. Los Angeles County includes the offshore islands of San Clemente and Santa Catalina. There are 88 cities within the County, each with its own city government. All of the cities, in varying degrees, contract with the County and thirty-seven contract for nearly all of their municipal services. More than 65 percent of the County's area is unincorporated, with a population of more than 1 million. For more information on Los Angeles County, please visit http://www.lacounty.gov.

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 http://www.att.com.

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