AT&T U-verse TV to Include Hallmark Channels

San Antonio, Texas, August 3, 2006, AT&T Inc. (NYSE: T) and Crown Media Holdings, Inc. (NASDAQ: CRWN) today announced a distribution agreement to deliver Hallmark Channel and Hallmark Movie Channel as part of the AT&T U-verseSM TV channel lineup.

“Hallmark Channels offer quality, family-friendly fare,” said Dan York, head of programming, AT&T Operations, Inc. “We are pleased to deliver this compelling content to AT&T U-verse customers.”

“We are excited to be a part of the AT&T U-verse experience,” said Paul FitzPatrick, EVP and chief operating officer of Crown Media Holdings, Inc. “We look forward to bringing our quality programming to more customers through AT&T U-verse services.”

AT&T U-verse TV is delivered by Project Lightspeed, the company’s initiative to expand the fiber-optics network deeper into neighborhoods to deliver U-verse TV, AT&T Yahoo!® High Speed Internet U-verse Enabled and, in the future, Voice over IP services. Through its subsidiaries, AT&T expects to reach nearly 19 million households by the end of 2008 as part of its initial deployment, using fiber-to-the-node (FTTN) and fiber-to-the-premises (FTTP) technologies.

Financial and other terms of the agreement were not disclosed.

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
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.

About Hallmark ChannelHallmark Channel is a 24-hour basic cable channel that provides a diverse slate of high-quality entertainment programming to a national audience of 74 million subscribers. The program service is distributed through more than 5,300 cable systems and communities as well as direct-to-home satellite services across the country. Crown Media also operates a second 24-hour linear channel, Hallmark Movie Channel. Through its subsidiary, Crown Media Distribution, LLC, Crown also distributes titles from its award-winning collection of movies, miniseries and films for exhibition in a variety of television media including broadcast, cable, Video-on-Demand and High Definition Television.

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

Contact Information

Wes Warnock

AT&T Inc.

Contact via E-mail