AT&T Announces New Approach to Early Termination Fees

More Flexibility for Wireless Customers

San Antonio, Texas, March 2008

AT&T (NYSE:T) today announced a new approach to early termination fees (ETFs) that provides greater flexibility for wireless customers.

Beginning on May 25, the company’s new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat early termination fee. Instead, that fee, which is $175, will be progressively lowered by $5 during each month, every month, for the term of the contract. (The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements prior to May 25.)

The company noted that it continues to offer options for those customers who do not want term commitments or ETFs, including:

* Buy a phone at full price and go on a month-to-month service plan.
* Bring your own compatible GSM device. With this option, you can buy a SIM (subscriber identity module), slip it into the back of the phone, and select a month-to-month service plan.
* Choose one of AT&T’s GoPhone prepaid wireless plans.

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