U.S. Army Awards AT&T Government Solutions $64.1 Million Professional Services Contract for Army Materiel Command’s Enterprise Integration Directorate

AT&T to Also Provide Continued Support for Single Stock Fund

Vienna, Virginia, October 31, 2006, AT&T Government Solutions, a business unit of AT&T Inc. (NYSE: T), has been awarded a $64.1 million five-year contract from the U.S. Department of the Army to support the Army Materiel Command’s Enterprise Integration (EI) Directorate.

Under the terms of the contract, AT&T will develop and field two new related projects for the Army — Funds Control and Exchange Pricing. Both of these systems will improve the Army’s finance processes. AT&T will also provide professional services such as business process re-engineering, software systems development, information assurance and consulting, related to logistics transformation and Army modernization.

“Supply chain transformation is an extremely important area of focus for military branches that are looking to reduce costs and increase efficiencies,” said Don Herring, president of AT&T Government Solutions. “The Single Stock Fund has helped the Army streamline logistics and financial processes, strengthen supply chain management and provide near-real-time inventory visibility to supply and resource managers nationwide. AT&T’s Funds Control and Exchange Pricing will help improve the Army’s financial controls in support of their combat operations.”

The EI Directorate contract supports overseas operations in Germany, Kuwait, Hawaii and South Korea. The Directorate is also responsible for the Single Stock Fund (SSF). The SSF, originally developed by AT&T Government Solutions, is a highly efficient software and hardware system used by the Army for management of their inventories and related financial accounting processes.

The SSF also provides focused warfighter support with near-real-time visibility of more than $10 billion in annual Army inventories to supply and resources managers nationwide.

The contract has a one-year base period with four option years.

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AT&T Government Solutions, headquartered in Vienna, Va., is a long-standing, trusted source of information technology solutions for the federal government, integrating unmatched network resources and professional services expertise with innovative technologies from AT&T Labs and industry-leading partners. Best known for network leadership in voice, data, video and managed services, AT&T Government Solutions is a proven solutions integrator, with professional services expertise in areas such as business transformation, knowledge management, training, program management, systems engineering and security.

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