AT&T Establishes $600 Million in Network Services for the State of Tennessee

AT&T Delivers Communications Velocity and Enhanced Networking Capabilities across All State Agencies

Nashville, Tennessee, October 20, 2008

AT&T Inc. (NYSE:T) today announced a 10-year, $600 million contract with the State of Tennessee to deliver a robust unified network that will serve the diverse needs of Tennesseans. The contracted services will enhance capabilities for all government entities from the local level through all three branches of state government, including educational institutions from kindergarten through postgraduate.

The contract with AT&T delivers an extensive upgrade to the core of the state's Internet Protocol (IP)-based network, increasing capacity tenfold. This added capacity will enable more applications in more locations to run at the same time. The contract also includes significantly more bandwidth for Internet connectivity, enabling three times more traffic over the network.

The AT&T solution gives the State of Tennessee the infrastructure to meet today's network demands and to develop next-generation services across all government agencies, as future needs require even more advanced technology.

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About the State of Tennessee, Office for Information Resources
The State of Tennessee's Office for Information Resources (OIR) provides direction, planning, resources, execution and coordination in managing the information systems needs of the State of Tennessee.

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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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