AT&T Announces Agreement with TerreStar to Offer Integrated Cellular/Satellite Solution

With One Device, Users Can Realize Expanded Voice and Data Coverage from AT&T in the United States and in Offshore Coastal Waters

Dallas, Texas, September 30, 2009

newsrelease

AT&T* has announced plans to work with TerreStar Networks to offer an integrated smartphone mobility solution that will combine primary cellular wireless connectivity with the ability to connect to a satellite network as a backup, using one phone number and one smartphone device.

The AT&T integrated solution will redefine the mobile satellite services experience by providing users with easy access to both cellular and satellite networks through a cutting-edge handset that is both smaller and more feature-rich than previous satellite devices. The TerreStar Genus™ dual-mode cellular/satellite smartphone gives users the option to access theTerreStar™ satellite network when AT&T’s cellular wireless network is unavailable. Qualified AT&T wireless users with a line of sight to the satellite will be able to access expanded voice and data coverage in the United States, Puerto Rico, and the U.S. Virgin Islands and in territorial waters.

When cellular networks are unavailable, TerreStar’s satellite will act as a cell site in the sky to provide coverage to help users stay connected. The solution announced today is well-suited for government, energy, utility, transportation and maritime users. It can provide a critical communications back-up capability, important to public safety agencies, first responders, emergency services and disaster recovery groups.

“AT&T continues to drive the emergence of new categories of devices and applications that are enhanced by wireless network connectivity,” said Joe Lueckenhoff, senior vice president, product management, wireline and mobility services, AT&T Business Solutions. “Today’s announcement is the latest addition to our enterprise mobility portfolio. It helps our enterprise and government customers consolidate communications platforms, reduce their telecom expenditures and have communications access on the go.”

The AT&T integrated cellular/satellite solution will combine the satellite network-related charges on the customer’s regular wireless bill. AT&T’s monthly invoice will include the customer’s cellular voice and data service charges, the satellite network access subscription feature charge and the satellite voice and data roaming charges.

The TerreStar Genus™ smartphone is a revolutionary device, combining GSM/GPRS/EDGE/UMTS/HSDPA terrestrial wireless capability with satellite voice and data capability in a standard smartphone size and form factor. The device runs on the Windows Mobile operating system to provide rich smartphone functionality and includes premium features such as a 2.6” touchscreen, WiFi, Bluetooth® and GPS.

AT&T and TerreStar will show the integrated cellular/satellite solution at the IACP (International Association of Chiefs of Police) annual conference from October 3 – 7, 2009 in Denver, Colorado, booth number 258.

Pricing and Availability
The AT&T integrated cellular/satellite solution is expected to be available for enterprise, government and small business customers and their corporate liable users in the first quarter of 2010. AT&T is working on a similar solution for consumers.

Customers will be required to subscribe to appropriate AT&T cellular wireless voice and data plans and a monthly satellite network access feature. Additional voice and data roaming charges will apply when using the satellite network.

For more information, visit, http://www.wireless.att.com/businesscenter/business-programs/government/solutions/integrated-cellular-satellite-solution.jsp.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

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. With a powerful array of network resources that includes the nation’s fastest 3G network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. AT&T offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verseSM and AT&T | DIRECTVSM brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T’s Yellow Pages and YELLOWPAGES.COM organizations are known for their leadership in directory publishing and advertising sales. In 2009, AT&T again ranked No. 1 in the telecommunications industry on FORTUNE® magazine’s list of the World’s Most Admired Companies. 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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