AT&T Announces 2.4 Percent Dividend Increase, Marks 26 Years of Dividend Increases

Dallas, Texas, December 18, 2009

newsrelease

AT&T Inc. (NYSE:T) today announced that its board of directors has approved a 2.4 percent increase in the company’s quarterly dividend. AT&T has increased its quarterly dividend for 26 consecutive years, a record unmatched among major telecom companies.

AT&T directors increased the dividend rate from $0.41 to $0.42 per share on a quarterly basis and from $1.64 to $1.68 per share on an annual basis.

“Our 26th consecutive annual dividend increase underscores the Board’s continued commitment to stockholders and confidence in our strong financial position,” said Randall Stephenson, AT&T chairman and chief executive officer.

The dividend will be payable Feb. 1, 2010, to common stockholders of record on Jan. 8, 2010.

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, the nation's fastest 3G network and the best wireless coverage worldwide, and the nation's leading 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 their three-screen integration strategy, AT&T operating companies are expanding their TV entertainment offerings. 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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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.