AT&T Announces New Labor Contracts with the Communications Workers of America and the International Brotherhood of Electrical Workers

Washington, District of Columbia, December 11, 2005, AT&T Inc. (NYSE: T) announced today that agreement has been reached with the Communications Workers of America and International Brotherhood of Electrical Workers on new three-year, four-month agreements covering 11,000 pre-merger AT&T employees. The contracts remain in effect through April 4, 2009.

“We’re pleased to have an agreement that rewards our valued employees with outstanding wages and benefits and still preserves our ability to control our cost structure,” said AT&T Chairman and CEO Edward E. Whitacre Jr. “We believe this agreement will help us fulfill our goal of becoming the only entertainment and communications company our customers will ever want.”

Following are highlights of the tentative agreements:

Wages: The agreements provide for four annual base wage increases at 11.2 percent, compounded, over the life of the contracts.

Pension: Pension benefits were increased by 6 percent in 2006 and by an additional 5 percent in 2008.

Healthcare: The agreements help the company control healthcare costs, but do not require monthly contributions. Employee co-pays and maximum out of pocket limits were increased for medical and prescription drug benefits for employee and retiree coverage. The retiree healthcare cap on company contributions, which was increased to $9,000 per retiree, provides that no retiree will contribute toward the point of service or traditional indemnity options during the term of the agreements.

Employment Security: An agreement was reached that prior to employees being laid off AT&T Inc. will offer employees a position within the Company.

Ratification will occur over the next several weeks. The effective date of the agreements is December 11, 2005, which is the expiration of the current agreements. More details will be available following ratification of the agreements by union membership.

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.

Contact Information

Larry Solomon

AT&T Inc.

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