AT&T Outlines 2006 Plans for Global Network Expansion to Serve Multinational Enterprise Customers

21 February 2006

Continued Global Network Investment Means Enhanced Capabilities for Multinational Companies

Bedminster, New Jersey, February 20, 2006, AT&T Inc. announced today details of its 2006 plans to expand its global network, providing enhanced connectivity in the United States and around the world in order to meet the growing demands of its multinational enterprise customers.

AT&T is extending services, reach and access into additional locations in Europe, the Middle East, Africa, Asia, Latin America and in the United States, as part of the new AT&T s previously announced $8 billion to $8.5 billion expected capital investment in 2006. This investment demonstrates the company s commitment to its global enterprise customer base — especially those with significant operations in the United States, who are demanding a globally consistent set of services with high levels of accuracy, cost-efficiency and automation wherever they do business. Through targeted investment AT&T can now provide reliable network access to 97 percent of the world economy*.

Highlights of the 2006 planned expansion include:

- Extended dedicated MPLS-based IP access capabilities, giving service nodes in 127 countries,

- Integration of more than 1000 Frame Relay/ATM nodes in the legacy SBC 13-state region into the AT&T backbone network,

- New network interconnections giving greater in-depth country coverage,

- Additional remote access points giving a total of more than 35,000 access points in 150 countries,

- Doubling DSL country coverage for business access, via alliance agreements with local carriers,

- Tripling Ethernet country connectivity,

Enhanced satellite, Wi-Fi and wireless access.

"Customers are demanding a globally consistent set of services with high levels of reliability, cost-efficiency and automation. Through targeted investments AT&T can now provide dependable network access to 97 percent of the world economy," said Forrest Miller, group president of AT&T Communications Corp., "AT&T has deployed the infrastructure and network interconnections to extend country coverage and reach the markets where our customers need us today. Through these new investments, we are committed to enhancing our portfolio so that we have the reach and technologies to serve our customers in the markets where they are growing or establishing their business."

AT&T s relentless commitment to serving the needs of multinational companies around the globe has been recognized by both customers and analysts alike.

AT&T has been placed in the Leaders Quadrant for all global regions in Gartner, Inc s network service provider studies.1 According to Gartner to qualify for inclusion in the magic quadrant, leaders are evaluated on many criteria. Among the most important are long-term strategy, customer focus, quality of service, pricing and the ability to innovate.

"As a company that operates in over 275 locations across 50 countries globally we obviously need a network partner that provides us with connectivity wherever we do business. AT&T s continued investment in its global MPLS-based IP network enables us to "flatten" our engineering, manufacturing and distribution operations around the world and provide a foundation to accommodate the continued growth of Whirlpool s business." said Rick Perrotta, Director Global Network Engineering & Services for Whirlpool Corporation. "This gives us a uniform network solution enabling converged capabilities and real-time collaboration and increased productivity. Ultimately, we are able to reach our market places quicker with new product innovations, increase connectivity with our trade partners and consumers, and support our drive for increased customer loyalty."

* An analysis of our 127 country list vs the CIA World Factbook (11/2005 edition) list of global economies shows AT&T has MPLS services reach to more than 97.44 percent of the global economy.

About the Magic Quadrant

1. Magic Quadrant for Global Network Service Providers, 2005 by D. Neil, J. Delcroix, J. Pultz, N. Rickard (12/15/05); Magic Quadrant for Network Service Providers, Asia/Pacific, 2005 by C. To, K. Desai (1/16/06); Magic Quadrant for Pan-European NSPs, 2005: Leaders and Visionaries by N. Rickard, J. Delcroix (6/30/05) are copyrighted by Gartner, Inc. and are reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About the New AT&T

AT&T Inc. is one of the world s largest telecommunications holding companies and is the largest in the United States Operating globally under the AT&T brand, AT&T companies are recognized as the leading worldwide providers of IP-based communications services to business and as leading U.S. providers of high-speed DSL Internet, local and long distance voice, and directory publishing and advertising services. AT&T Inc. holds a 60 percent ownership interest in Cingular Wireless, which is the No. 1 U.S. wireless services provider with more than 52 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.TheNewATT.com.

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.

Plans for 2006 in Detail

- Integrating the more than 1000 Frame Relay/ATM nodes in the legacy SBC 13-state region into the AT&T backbone network, thereby offering additional MPLS access capabilities by year-end 2006.

- Installing seven AT&T Global Network nodes in Cyprus, United Arab Emirates, Saudi Arabia, Pakistan, Malaysia,, India and Vietnam.

- Commissioning 16 additional network interconnections in Denmark, Finland, Norway, Sweden, Italy, Russia, Vietnam, India, Japan, Brazil, Honduras, Nicaragua, Panama, Guatemala, El Salvador and Dominican Republic giving greater in-depth country coverage.

- More than doubling DSL broadband capabilities via alliance agreements with local carriers, in Finland, Czech Republic, Estonia, Hungary, Portugal, Greece, Ireland, India, New Zealand, Argentina, Brazil, Guatemala, Honduras, Mexico, Canada, Taiwan and Singapore. Plans call for DSL broadband access in up to 27 countries by year-end 2006.

- Additional Ethernet connectivity in Canada, UK, France, Germany, Belgium, Ireland, Italy, Switzerland, Sweden, Denmark, Netherlands, Spain, Austria, India, Japan, Singapore, Hong Kong, Taiwan and Australia targeting up to 20 countries by year-end 2006.

- Additional satellite coverage in Afghanistan, Burkina-Faso, Chad, Republic of Congo, Democratic Republic of the Congo, Gabon, Guinea, Iraq, Ivory Coast, Kenya, Madagascar, Malawi, Mali, Nigeria, Uganda, Zimbabwe, Bangladesh, Nepal, Brunei and Sri Lanka which will provide access from a total of 20 countries worldwide.

- The new AT&T has the Wi-Fi capabilities of both legacy companies to deliver a greater Wi-Fi footprint in the United States and around the world. The first demonstration of this increased capability includes expanding Wi-Fi access to AT&T Remote Access customers from more than 6,000 McDonald s locations across the United States.

- Also in the Wi-Fi space, through an agreement with WeRoam, 5,500 additional locations in countries across Europe, the Middle East and Asia Pacific are now available to AT&T Remote Access customers, broadening the Wi-Fi footprint to a total of more than 24,000 locations in 52 countries for these customers.

Michael Coe

AT&T Inc.

Corporate Issues

mcoe@attnews.us

Source: webwire