AT&T Positioned in Leaders Quadrant in Analyst Firm’s Magic Quadrant Report for Web Hosting Services

Bedminster, New Jersey, August 30, 2006 - AT&T Inc. (NYSE: T) today announced that AT&T has been positioned by Gartner, Inc. in the leaders quadrant in the ’Magic Quadrant for North American Web Hosting 2006 report" Developed as a guide for mid-size and large companies the report examined over 12 providers of managed web hosting services that deliver IT services supporting enterprise network infrastructure and telecommunications.

Vendors were evaluated by Gartner analysts on their ability to execute and completeness of vision, including their current and future market direction, innovation and customer needs. According to Gartner, leaders are performing well today, have a clear vision of market direction, and are actively building competencies to sustain their market positions.

“We believe AT&T’s positioning in this Gartner Magic Quadrant report reflects our commitment and ability to serve our customers worldwide with the most advanced data center facilities, managed services offerings and support available today,” said Steve Caniano, vice president, AT&T. “To maintain our position in the leaders quadrant, we will continue to focus on enhancing our portfolio of offerings.”

To view the Gartner North American Web Hosting Magic Quadrant report, please visit http://www.att.com/awards/analysts/gartner.html.

AT&T provides a broad array of hosted infrastructure and managed services capabilities that support the IT operations of customers ranging from small and medium businesses up to the largest global corporations. Customer applications enabled by AT&T include corporate web sites, e-commerce, digital content delivery, multiplayer online gaming, collaborative intranets and extranets, data backup and recovery, enterprise resource planning (ERP) and more.

AT&T offers flexible hosting options for its business customers through its world-class data center facilities along with a robust certified library of hardware and software, and comprehensive monitoring and management services. Combined, these services allow AT&T to deploy and operate a customer’s complete IT environment up to and including performance management of the customer’s web services and enterprise applications. AT&T continues to enhance this portfolio with innovative capabilities such as Server Virtualization, Managed Utility Computing, and Server & Operating System Support.

Business customers benefit from access to a single source for Internet Data Center (IDC) facilities, IT infrastructure, network, consulting and IT management services. AT&T operates 30 IDCs globally, connected by one of the world’s most advanced and powerful global backbone networks.

Additionally, the AT&T integrated Global Enterprise Management System (iGEMS) provides sophisticated, end-to-end global management, enabling AT&T to monitor and manage the performance of customer networks and associated applications in a proactive, predictive and preventative manner. Enterprise customers also benefit from the industry’s most powerful online service portal, AT&T BusinessDirect®, which provides personalized, secure access to information about customer infrastructure and applications, and enables a range of sales and service functions.

For more information about AT&T hosting services, please visit www.att.com/hosting.

About the Magic Quadrant
The Magic Quadrant is copyrighted 25 August 2006 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

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.

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