AT&T U-verse TV to Include Warner Bros. Movies in Video-on-Demand Programming

San Antonio, Texas, October 26, 2006, AT&T Inc. (NYSE: T) and Warner Bros. Home Entertainment Group today announced a distribution agreement to deliver the studio’s current and catalog titles as part of the AT&T U-verseSM TV video-on-demand (VOD) programming lineup.

Under the agreement, AT&T U-verse TV will include Warner Bros.’ latest movie releases — such as “Superman Returns,” available by the end of 2006 — as well as classic and contemporary films from Warner Bros.’ extensive library.

“AT&T is dedicated to delivering a wide selection of high-quality video-on-demand content for our customers,” said Richard Wellerstein, vice president of VOD programming, AT&T Operations, Inc. “We’re thrilled to expand our growing video-on-demand library with the array of popular releases and feature films from Warner Bros.”

“Warner Bros. has always been focused on providing our content to consumers when and where they want to view it,” said Deanne Lewis, director, On-Demand Sales of Warner Bros. Home Entertainment Group. “We are pleased to join with AT&T to offer our award-winning movies as part of the U-verse on-demand library. AT&T U-verse TV not only allows us to continue to extend our reach but also provides consumers with more viewing options.”

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.

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

About Warner Bros Home Entertainment Group
The Warner Bros. Home Entertainment Group was founded in 2005 to bring together all of the Warner Bros. Entertainment businesses involved in the digital delivery of entertainment content to consumers, including home video, online, wireless, games and anti-piracy and emerging technologies operations. WBHEG is a strategic recognition of the ongoing changes in the way consumers view entertainment product and seeks to maximize current and next-generation distribution scenarios to make the Studio’s content available to audiences through as many channels, platforms and devices as possible.

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Wes Warnock

AT&T Inc.

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