AT&T Investing Nearly $1.25 Billion in Texas in 2007
Two-Year Investment Will Total Nearly $3 Billion, Focuses on Enhancing Wireless Network and Expanding Video Service

October 2, 2007

SAN ANTONIO, Oct. 2 /PRNewswire-FirstCall/ -- AT&T Inc. today announced a total planned investment of nearly $1.25 billion in the Texas network in 2007. This will bring AT&T's two-year investment in Texas to nearly $3 billion and further demonstrates AT&T's commitment to providing Texans with more choices and quality communications services.

The investment will support a wide variety of wireless, voice, data, video and broadband infrastructure and services, including:

• Wireless network enhancements, such as new cell sites and enhanced coverage and services.
• The expansion of AT&T's new AT&T U-verse(SM) TV and Internet services.
• The maintenance, upgrade and installation of fiber-optic lines, central offices and other network facilities to provide wired services.

Wireless

On the wireless front, AT&T announced the addition of 115 new and acquired cell sites in Texas this year. Additional network enhancements in 2007 include:

• Enhanced wireless network coverage to customers living and working in
• Austin, Boerne, Cedar Park, Cleveland, Corpus Christi, El Paso-Las Cruces, Houston, Kerrville, Taylor Lake Village, Marble Falls, McAllen, Missouri City, Paris, Refugio, San Angelo, San Antonio and The Woodlands.
• New cell sites to improve coverage along Interstate Highways (I-10, I-35 and I-45), U.S. Highways (59, 77, 87, 90, 183, 281 and 290), and state Highways (5, 6, 71 and 150).

AT&T has also delivered dramatic change in Texas through the introduction and deployment of third-generation (3G) wireless broadband service, which offers customers access to DSL-type speeds for their laptops, with the ability to access the Internet and work with e-mail from anywhere within the 3G network. Customers with 3G handsets have access to the latest entertainment, news and weather programming through Cellular Video and AT&T Music(1).

Last year, AT&T launched 3G service in Arlington, Austin, Beaumont, Carrollton, Dallas-Fort Worth, Garland, Grand Prairie, Houston, Irving, Mesquite, Pasadena, Plano, Richardson and San Antonio. Already this year, AT&T has deployed 3G service in Corpus Christi and McAllen. Later this year, 3G service will be expanded to include Brenham, Bryan-College Station, Fort Hood, Longview, Marshall, Tyler and Victoria.

Video

AT&T U-verse TV is the company's 100 percent Internet Protocol-based television (IPTV) service and one of the most advanced television offerings available anywhere. Since last year, AT&T has rolled out AT&T U-verse services in parts of the San Antonio, Houston and Dallas-Fort Worth areas. AT&T continues to expand the service in both new and existing areas.

Broadband

AT&T last year completed its project to provide DSL capability to all of its central offices in the state and to offer broadband to many more rural customers. The company also announced the expansion of its satellite Internet service for rural customers beyond the reach of its central offices.

"It is great to see a company live up to its promise to invest in Texas," said Phil Wilson, Texas secretary of state. "Our state leadership strives to create policies that encourage companies to invest here. When companies invest, everyone wins. Texas is primed for business and open for investment."

In 2005, the Texas Legislature updated telecommunications policies and set the stage for increased investment in the state.

"The leadership of Texas has ensured that this state remains open for business," said Jim Epperson, president of AT&T Texas. "As a Texas-based company, we could not be happier about ensuring that as many Texans as possible remain connected in every way. We are committed to delivering a high-tech network and service to all Texans."

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.

About AT&T

AT&T Inc. 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. 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.

(C) 2007 AT&T Knowledge Ventures. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Knowledge Ventures. For more information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom.

(1) Service offerings require compatible equipment and an applicable plan. Please visit http://www.att.com/wireless for more information on products and services.