San Diego Tapped to Receive AT&T Homezone Integrated Television and Broadband Services

Service Delivers New Levels of Integration and Remote Access to Home Entertainment, Combines AT&T | DISH Network and AT&T Yahoo! High Speed Internet Services, Offers Internet-Based Video on Demand, Music on Demand, Digital Photo-Sharing

San Antonio - August 17, 2006 - AT&T Inc. (NYSE: T) announced today that San Diego is the next market to receive AT&T HomezoneSM, a groundbreaking new service that integrates AT&T Yahoo!® High Speed Internet, AT&T | DISH Network satellite television and AT&T Home Networking services via a single device. This follows launches in June of AT&T Homezone service in the state of Ohio and in San Antonio.

AT&T Homezone provides Internet-based video with satellite TV programming in a seamless in-home experience, giving consumers a powerful new way to extend the best of the Internet beyond the desktop to bring entertainment content to their TV screens and stereos. It features digital videorecording, movies on demand, photo- and music-sharing, storage for both, and whets the anytime/anywhere generation’s appetite with remote, Web-based access to the system.

New levels of entertainment integration and remote access to the system are key differentiators of the service. And, via Homezone, AT&T becomes the first major U.S. telecommunications provider to offer seamlessly integrated video content and TV entertainment to the “digital living room” through both broadband and traditional satellite networks. The company plans to roll out Homezone in additional markets in the AT&T service area where AT&T Yahoo! High Speed Internet access is available in the coming months.

AT&T Homezone is available to new AT&T | DISH Network residential customers who either already have or plan to order AT&T Yahoo! High Speed Internet and the 2Wire® home networking gateway. Customers can select from several broadband speeds and satellite TV packages, then purchase Homezone service for an additional $9.99 a month.

AT&T Homezone also complements AT&T U-verseSM services, the company’s premier video service based on IP technology, which recently became more widely available in San Antonio and will be available in additional markets by year-end. While AT&T U-verse services will be the company’s primary video offer in available markets, both offerings underscore the company’s strategy to expand its video services portfolio, which includes AT&T | DISH Network service.

“AT&T Homezone combines the entertainment that consumers want most, including TV programming, video on demand, and Internet content and services, in a way that goes well beyond anything our competitors offer today,” said Rick Welday, chief marketing officer, AT&T Consumer. “This new service underscores the company’s strategy to integrate the three screens that many consumers value most today: the TV, PC and cell phone.”

AT&T Homezone Features
In addition to accessing video content, AT&T Homezone customers will be able to access a range of Yahoo!-provided services: They will be able to view pictures from their AT&T Yahoo! Photos account; listen to AT&T Yahoo! LAUNCHcast radio (including their customized station); access movie show times and reviews from AT&T Yahoo! Movies; and, with AT&T Yahoo! Web Remote, they will be able to schedule and manage DVR recordings through a Web browser on their PCs.

The Homezone receiver at the heart of the service was developed for AT&T by 2Wire and already has been recognized as an Innovations 2005 Design and Engineering Showcase honoree in the Home Data Networking category by the Consumer Electronics Association. It integrates entertainment content wirelessly, sharing data with a 2Wire home networking gateway that communicates with the AT&T Yahoo! High Speed Internet connection. This in-home integration drives content for movies on demand — or music and photos from the PC and AT&T Yahoo! High Speed Internet portal — all to the TV.

Future enhancements to the Homezone product will include a High Definition version of the receiver, as well as great new music and video content from content providers Yahoo! and Akimbo. And customers will be able to eventually program their DVR and use other “remote access” features through their Cingular wireless phone.

Note: This AT&T release and other news announcements are available as part of an RSS feed at www.att.com/rss.

About AT&T Inc.
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 57.3 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.att.com

© 2006 AT&T Knowledge Ventures. All rights reserved. Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand.

About 2Wire
2Wire provides global telecom carriers with broadband services platforms that enable an integrated triple play of networked data, voice, and media services. 2Wire’s award-winning products and services include residential gateways, broadband multimedia set top boxes, remote management systems, and call center customer support. 2Wire’s customers include global DSL market leaders AT&T, TELMEX, BellSouth, BT, Embarq, SingTel, and others. 2Wire was founded in 1998 by Brian Hinman, a co-founder of PictureTel and Polycom. For more information, visit www.2Wire.com.

About EchoStar
EchoStar Communications Corporation (NASDAQ: DISH) serves more than 12.2 million satellite TV customers through its DISH Network™, the fastest growing U.S. provider of advanced digital television services in the last five years. DISH Network offers hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service. Visit EchoStar’s DISH Network at www.dishnetwork.com or call 1-800-333-DISH (3474).

© 2006 AT&T Knowledge Ventures. All rights reserved. Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand. 2Wire and HomePortal are registered trademarks of 2Wire, Inc. MediaPortal, Greenlight and HyperG are trademarks of 2Wire, Inc. Yahoo! logos are the trademarks of Yahoo! Inc. DISH Network, the DISH Network logo and other DISH Network product and service names are the trademarks or service marks of EchoStar Satellite L.L.C. Cingular is a registered trademark of Cingular Wireless LLC.

About AT&T Homezone
AT&T Homezone combines the best of AT&T | DISH Network Digital Satellite TV service with the Power of AT&T Yahoo! High Speed Internet (AT&T Yahoo! Photos, AT&T Yahoo! LAUNCHcast, AT&T Yahoo! Movie Showtimes, and Movies on Demand) to offer customers an entirely new connected entertainment experience. Monthly $9.99 AT&T Homezone Enablement Fee applies, and monthly $5.98 AT&T | DISH Network DVR service fee applies as part of AT&T | DISH Network Service. Customers must have, or purchase, a compatible AT&T Wireless Gateway. To subscribe to AT&T Homezone service, customer must be a new AT&T | DISH Network customer and a new or existing AT&T Yahoo! High Speed Internet customer and choose a combined bill for these services. Current AT&T | DISH Network customers cannot add AT&T Homezone service. AT&T Homezone receiver is leased from Echostar Satellite L.L.C. Limit of one AT&T Homezone receiver per account. Other restrictions, including credit restrictions and qualification, apply. Service not available in all areas. Offer subject to change. Acceptance of AT&T Homezone Terms of Service required. Additional fees apply for premium content. Taxes and fees extra.

AT&T Yahoo! High Speed Internet is provided by AT&T Internet Services with customized content, services, and applications from Yahoo! Inc. Yahoo!, the Yahoo! logos and other product and service names are the trademarks and/or registered trademarks of Yahoo! Inc.

AT&T DISH Network is a co-branded service provided by EchoStar Satellite L.L.C. DISH Network, the DISH Network logo and other product and service names are the trademarks and/or service marks of EchoStar Satellite L.L.C.

Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand.

For more information and detailed disclaimer information, please review this announcement in the AT&T newsroom at www.att.com/newsroom.

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