AT&T Positioned as Leader in Enterprise Telecommunications Services by Leading Market Research Firm

Dallas, Texas, October 21, 2008

AT&T, Inc. (NYSE:T) today announced that the research firm IDC has positioned it as a leader in the first "IDC MarketScape: U. S. Enterprise Telecommunications 2008 Vendor Analysis."¹

The report examined the leading telecommunications service providers on a variety of criteria and concluded that "AT&T is in the Leaders category of IDC's MarketScape, demonstrating the highest rating among all vendors in the strategy category. The service provider has a clearly defined product strategy both in voice and data services as well as in emerging areas such as unified communications. Its emphasis on automation and leadership with iGEMS (integrated Global Enterprise Management SystemsSM) positions it well strategically in the area of customer support."

IDC highlighted AT&T's leadership in Global Enterprise Networking citing AT&T's meshed network technology in the U.S., Europe, India, across the Atlantic and in progress in the Pacific. IDC also noted that AT&T has completed the integration of its wireline and wireless account teams to better serve customers.

"Numerous characteristics place AT&T in a leading position in the IDC MarketScape," said Courtney Munroe, Group Vice President, Worldwide Telecommunications at IDC. "Among them are its breadth of services, its array of complementary offerings that deepen customer relationships, its investment in its online portal and back-end systems, and its extensive global network."

The IDC MarketScape is designed to provide an overview of the competitive fitness of major telecommunications service providers in U.S. wireline enterprise telecommunications. The study examines key vendors and assesses their overall positioning, analyzing not only their current capabilities but also their longer-term strategies and ability to improve their competitive position. The study creates a model using data provided to IDC from a vendor questionnaire, companies' public financial data, industry analyst events, interviews with company representatives, and other IDC research.

"We are very pleased to be positioned as a leader in the first IDC MarketScape for U.S. Enterprise Telecommunications Services, and to be recognized as having the highest rating in the strategy category," said William Archer, Chief Marketing Officer, AT&T Business Solutions. "Recognition like this confirms that our customers recognize the strength of the AT&T's Enterprise Networking portfolio."

¹IDC, "IDC Marketscape: US Enterprise Telecomunications 2008 Vendor Analysis," Doc # 214572, October 2008

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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