AT&T Board of Directors Approves 3.1 Percent Increase in Quarterly Dividend

21st Consecutive Year for Dividend Increase

San Antonio, Texas, December 9, 2005, The Board of Directors of AT&T Inc. (NYSE: T) today approved a 3.1 percent increase in the company’s quarterly dividend. AT&T directors increased the quarterly dividend rate from $0.3225 a share to $0.3325 a share, or $0.04 a share on an annual basis, from $1.29 to $1.33 a share.

The fourth-quarter 2005 dividend will be payable on Feb. 1, 2006, to common stockholders of record on Jan. 10, 2006. Today’s action marks the 21st consecutive year that the board has increased the company’s dividend.

“This increase reflects the board’s ongoing commitment to returning value directly to our stockholders,” said AT&T Inc. Chairman and Chief Executive Officer Edward E. Whitacre Jr. “The higher dividend — along with our recent share repurchases — also reflect the board’s confidence in our operating performance and our ability to generate strong cash flow while we invest in growth opportunities.”

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.

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.

Contact Information

Anne Vincent

AT&T Inc.

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