AT&T Toll-Free Services Receive Frost & Sullivan 2005 Product Differentiation Innovation Award

Analyst Firm Also Recognizes TDM-Voice Services for Market Leadership

Bedminster, New Jersey, January 4, 2006, AT&T Inc. (NYSE: T) today announced that Frost & Sullivan has selected AT&T as the recipient of its 2005 Product Differentiation Award in the toll-free services market. Recent reports issued by the global growth consulting firm also recognized AT&T for its market leadership position in TDM-based voice services and toll-free services.

As the recipient of the 2005 Product Differentiation Innovation Award in the toll-free services market, Frost & Sullivan noted that AT&T has the “most advanced and broad toll-free product portfolio that is backed by one of the most reliable networks in the industry.”

“AT&T has a long history of providing high-quality voice services,” said Regina Egea, vice president of AT&T Product Management. “We’re pleased that Frost & Sullivan recognizes our continued efforts to maintain that tradition.”

The 2005 Product Differentiation Innovation Award is presented to the company that has demonstrated the ability to develop and/or advance products with more innovative capabilities than competing vendors and products. According to Frost & Sullivan, to stay ahead of the competition, AT&T has continually upgraded the features and functionality of its toll-free product including improvements in provisioning time, capabilities and billing performance.

Additionally, in a recent voice market assessment, Frost & Sullivan research analyst Imran Khan noted that “AT&T not only covers the U.S. market but also has significant international capabilities allowing it to follow its customers in several foreign markets.”

“AT&T offers an excellent array of traditional wire line voice services to its enterprise customers,” Khan confirmed. “AT&T has continued to invest in network deployment and upgrading activities over the past decade. In fact, network redundancy is one of the AT&T strong competitive advantages over rivals.”

In its overall ratings assessment, Frost & Sullivan concluded that “AT&T fares ahead of its rivals, specifically with regard to network reach, network reliability and customer support.”

About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company’s industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

About the New 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 52 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.TheNewATT.com .

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Michael Coe

AT&T Inc.

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