SBC/AT&T Merger - November 18, 2005

As a result of the merger between SBC Communications Inc. and AT&T Corp. AT&T stockholders of record on November 18, 2005 received 0.77942 shares of new AT&T Inc. for every share of old AT&T owned. Stockholders entitled to fractional shares of new AT&T Inc. common stock received a cash payment instead. The fractional shares of new AT&T Inc. were aggregated and sold, with the net proceeds paid as appropriate to those entitled to a fractional share.

Example

Please Enter:

Aggregate old AT&T cost basis  (in dollars) (required)

Number of old AT&T shares (required)

Post-SBC/AT&T Merger Results:

Number of new AT&T, Inc. shares

Aggregate old AT&T cost basis (in dollars)

New AT&T, Inc. cost basis per share (in dollars)

 

Example

On November 18, 2005, you owned 100 AT&T Corp. shares and had an aggregate tax basis of $1,500, or a per share cost basis of $15.00. After the merger with SBC was completed, you received 77.94 shares of new AT&T, Inc. Your per share cost basis in new AT&T, Inc. equals the aggregate cost basis of $1,500 divided by the total number of new AT&T, Inc. shares received - 77.94 - which is $19.25.

* The tax basis of a fractional share interest would be a proportional part of the basis of a whole share.

Consult Your Tax Advisor

The information on this web site does not constitute tax advice. It does not purport to be complete or to describe the consequences that may apply to particular categories of shareowners. For example, we assume that you purchased your AT&T shares on the "regular" market and not with rights to particular transactions (i.e. due bills), that you held your AT&T shares continuously from the record date of a particular transaction until the effective date thereof, and that you are a shareowner who did not trade your AT&T shares in a "when-issued" or "when-distributed" market. You should consult your own tax advisor regarding the calculation of your tax basis.

The information provided on this web site is historical content only. Such information was valid only for the date of its publication. AT&T Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are urged to see AT&T Inc. filings with the Securities and Exchange Commission for current information concerning the Company.