AT&T to Bolster Environment Through eBill Campaign Supporting the National Arbor Day Foundation

San Antonio, Texas, July 12, 2006, AT&T Inc. (NYSE: T) announced today a renewed commitment to reducing paper waste and promoting conservation with a new campaign to donate 50 cents to The National Arbor Day Foundation for each new customer who signs up for AT&T online billing and stops receiving paper bills.

Through Dec. 31, 2006, AT&T will make the contribution on behalf of new and existing residential and small business (35 lines or fewer) customers who sign up for AT&T eBill and also opt to suppress traditional paper billing statements.

To further encourage customers to sign up for AT&T eBill service, customers have the chance to win several prizes through a sweepstakes promotion running the duration of the program. Items up for grabs include a grand-prize 2007 Toyota Prius; all-inclusive four-day, three-night trips for four people to luxurious Doubletree Resort locations in Santa Barbara, Calif.; Scottsdale, Ariz.; Kissimmee, Fla.; 12 iPod Shuffles; and tree and coffee prizes from The National Arbor Day Foundation.

AT&T will host a microsite for the campaign, available www.att.com/paperless, allowing visitors to view a sample AT&T eBill, “plant” a virtual tree in a growing online forest in celebration of their AT&T eBill activation, and find out more about prize giveaways.

The program builds on the success of AT&T’s similarly structured, award-winning 2005-2006 campaign, which resulted in a contribution of more than $500,000 to The National Arbor Day Foundation. Those funds were used to plant more than 520,000 trees, which will provide an environmental and economic benefit worth nearly $65 billion over the course of their lifetime. AT&T and The National Arbor Day Foundation received the 2006 Silver Cause Marketing Halo Award for Best Environmental/Wildlife Program for the initiative.

“We’re thrilled that AT&T is teaming up with us again as stewards of our goal to plant, nurture and celebrate healthy tree populations,” said John Rosenow, president of The National Arbor Day Foundation. “Our alliance has so far been a big win for the environment, and it’s exciting to be kicking off a new chapter.”

“As a result of customer participation in our AT&T eBill program, we have reduced the number of paper bills by more than 2 million each month, giving customers flexibility and choice in managing their accounts while reducing waste and lowering costs,” said David Becker, director of AT&T Billing Solutions. “It’s an all-around, ’makes sense’ mission. We’re confident that this renewed campaign with The National Arbor Day Foundation will continue that momentum.”

AT&T eBill service gives subscribers secure online access to current statements, payment options, and archived account histories — anytime, anywhere — for all services combined on their AT&T bill, including AT&T local and long distance, AT&T Yahoo!®

High Speed Internet, AT&T | DISH Network satellite TV and Cingular Wireless services. Enhanced features include the ability to view the name and contact information of people who were called, as well as the option to sort statements by numbers called, length of call, place, date or cost. In addition, the online payment feature allows customers to pay their bill using automatic debit or credit card — no more stamps or remembering to pay the bill on time. Annually, more than 36,000 trees are saved as a result of customers switching to AT&T online services.

Customers can register for AT&T eBill service online at www.att.com.

About The National Arbor Day Foundation
The National Arbor Day Foundation is a million-member, nonprofit educational organization dedicated to tree planting and environmental stewardship. For more information on the Foundation, visit www.arborday.org.

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About 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 55.8 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.att.com.

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Contact Information

Karen Oddy James

AT&T Inc.

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