AT&T to Provide Network Infrastructure and Managed Network Services for New California Statewide Rural Telehealth Initiative

With FCC Rural Healthcare Pilot Program Funding, University of California Takes Lead on Formation of California Telehealth Network

Davis, California, Washington, District of Columbia, April 13, 2010

newsrelease

AT&T* announced a new agreement with the University of California to advance the growing practice of telehealth. As part of a three-year, $27 million contract, AT&T will provide Managed Network Services in support of this vital telehealth initiative.

The University of California is involved in establishing the California Telehealth Network (CTN). The vision of CTN is to deliver new models of care utilizing technology to address the health needs of patients in rural and urban areas of California.

CTN is the result of a statewide coalition of healthcare, technology, government, and other stakeholders, that sought funding from the Federal Communications Commission‘s Rural Health Care Pilot Program. With the goal of significantly increasing access to acute, primary and preventive health care in rural America, the FCC will provide CTN with up to $22.1 million over three years. CTN is a participant in the FCC Rural Healthcare Pilot Program which is responsible for managing the FCC funded project for the California Telehealth Network. Additional funds for the CTN initiative have been provided by collaborators including the California Emerging Technology Fund.

The CTN is building a statewide network infrastructure that will connect smaller hospitals and clinics to larger hospitals, their specialists and experts. When complete, the network will include more than 860 sites throughout the state.

“The University of California is pleased to conclude an extensive bid process and to award the contract to AT&T. This award marks a milestone in the FCC grant process, and we are excited to move to implementation of broadband to support healthcare throughout California" said Dr. Cathryn Nation, Associate Vice President of University of California and Co-Director of the California Telehealth Network.

“AT&T is eager to work with the University of California on this exciting and groundbreaking telehealth initiative,” said Ken McNeely, President, AT&T California. “We have always been about connecting people, and in this case, we’re thrilled our IP-based network will be used to help connect patients in rural and remote parts of California with the healthcare they need.”

According to the American Telemedicine Association, today, there are hundreds of networks linking thousands of medical centers in all 50 states. By using cameras, high-resolution monitors and other data-gathering tools, world-class doctors are reaching patients in rural areas who would otherwise have to travel hundreds of miles to be seen by specialists with the same expertise.

*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 California Telehealth Network
The California Telehealth Network (CTN) is part of an effort by the Federal Communications Commission to improve the rural health-care infrastructure throughout California and the nation. The University of California Office of the President, together with the UC Davis Health System, is serving as the legally and financially responsible partner for the project. A large and diverse group of partners includes representatives from the Office of Governor Arnold Schwarzenegger; California Public Utilities Commission; California Business, Transportation and Housing Agency; and the California Health and Human Services Agency. In addition to the $22 million award from the FCC, nearly $10 million in funding has thus far been pledged to secure this award and support operations of the CTN. Contributors include the California Emerging Technology Fund, UnitedHealth, the California Teleconnect Fund, the National Coalition for Health Integration, and the California HealthCare Foundation. Participants in the project also include multiple regional and statewide associations representing health-care providers and existing telehealth networks.

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. A leader in mobile broadband, AT&T also 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 Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE®magazine.

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