AT&T Business Solutions Unit Enhanced its Enterprise Portfolio with New Services and Features during Third Quarter 2008

Quarterly Highlights Also Include Significant Sales Wins

Dallas, Texas.- New services and features for delivering on-demand applications, digital content and enterprise applications across a variety of mobile devices were third-quarter highlights for the AT&T Business Solutions (ABS) unit, AT&T Inc. (NYSE:T) announced today.

During the third quarter 2008, AT&T introduced AT&T Synaptic HostingSM service, the company’s next-generation utility computing service with managed networking, security and storage capabilities. The service is delivered via the AT&T Synaptic Hosting platform that is enabled in five “super” Internet data centers (IDCs) and act as regional gateways to the AT&T network cloud. AT&T Synaptic Hosting supports large-scale computing and applications on demand via virtualized servers and delivers services across AT&T’s IDC hosting infrastructure.

In September, AT&T introduced AT&T Mobile Enterprise Applications, a suite of hosted and managed mobile integration solutions and application consulting services designed for companies that want to extend their business-critical information to mobile employees. Supported by the Antenna Mobility Platform™ that was developed by Antenna Software, a leading provider of mobile enterprise technologies and solutions, AT&T Mobile Enterprise Applications enables AT&T to expand its delivery of mobile field service automation, sales force automation and information technology (IT) support applications.

Another third-quarter highlight involved AT&T’s Intelligent Content DistributionSM service being certified with Move Networks to deliver Move-enabled video content to companies and their end-users. This allows media and entertainment companies to use the AT&T network to deliver live and on-demand High Definition programming to computers over the Internet in a true television-like experience.

AT&T also recorded significant sales wins that included a five-year agreement with the Boeing Company for advanced network and wireless services with an estimated value at more than $400 million. Additionally, AT&T signed a five-year deal with the Smiths Group plc that will help Smiths leverage its global scale, delivering improved productivity and cost reductions across the group’s five business divisions. Smiths expects to achieve annual savings of at least $5 million on its IT and related communications costs. Also, AT&T and Marriott International introduced an industry-leading technology solution for hotels that transforms multiple communications networks into one converged network for voice and data transmission based on Internet technologies. The solution will improve the guest experience and employee performance, support both wired and wireless services throughout the hotel and speed the introduction of emerging technologies for communications and business applications. The first prototype hotel with a converged network is Marriott’s recently opened Renaissance Boston Waterfront Hotel.

“Throughout the third quarter, the AT&T Business Solutions team introduced several innovative services designed to help customers manage the complexity of their applications across their enterprises and provide them to employees anywhere, anytime,” said Ron Spears, chief executive officer, AT&T Business Solutions. “Our ability to seamlessly deliver high-quality managed application services across wired and wireless networks, with the quality, security and professional services customers expect from AT&T, will continue to drive future enhancements to our core portfolio.”

The AT&T Business Solutions unit provides networking services and solutions to companies and organizations globally. Its customers include every company listed in the Fortune 500, large, medium, and small businesses, telecommunications wholesalers, and U.S. governmental agencies.

During the third quarter 2008, AT&T made the following updates to its portfolio of services for business customers:

Enterprise Mobility

Device Protection & Control. To help businesses simplify mobile device management, AT&T introduced an over-the-air solution that allows them to configure, monitor and enhance the security of AT&T smartphones through a single, hosted Web console. Device Protection & Control makes it easy for telecom managers to install software, configure devices, receive diagnostic information and manage policy compliance. The solution is hosted by AT&T, so businesses don’t have to invest in, install and maintain new hardware to protect and manage their wireless devices.

Virtual Private Network (VPN) Enhancements

* Expanded VPN Reach. AT&T VPN service is now available to business customers in Thailand, Indonesia and Malaysia.
* Ethernet Access to VPN. Ethernet access to AT&T VPN and Enhanced VPN services is now available to business customers in Luxembourg, Portugal and Poland.
* Expanded IP DSL Access to VPNs. AT&T IP Digital Subscriber Line customers in Canada and the Asia Pacific region can now access their company’s VPN using the AT&T Network-Based IP VPN Remote Access Service and AT&T Virtual Private Tunneling Service. The expansion enables mobile workers for large and small companies to stay connected to their corporate networks regardless of their location around the world.

Data Portfolio

* 10 Gbps Speed for Ethernet Private Line WAN. AT&T has added a 10 Gbps interoffice channel bandwidth option to its Ethernet Private Line Service for wide area networks (WAN) and Ethernet customers connecting to local area networks at the Layer 1 (physical) level. Now customers have a choice of Ethernet connection speeds, ranging from 50 Mbps to 10 Gbps, in up to 100 cities across the U.S. The higher speed also will help Ethernet Private Line customers making point-to-point connections to realize higher performance with low latency and jitter, which is critical to server synchronization and other delay-sensitive network applications.
* AT&T Managed WAN Acceleration Service. AT&T Managed WAN Acceleration Service enhances connectivity and transport services for AT&T VPN, Enhanced VPN and Managed Router Service clients around the world. It improves network resources through more efficient use of bandwidth, resulting in easier integration with new technologies, improved applications performance and better economies of scale from converged wireless and wireline services. This enhancement complements AT&T’s existing asymmetrical application acceleration solutions that are centralized in an AT&T Internet data center.

Traditional Voice

AT&T Hosted Outbound Calling Service. AT&T has introduced a network-based outbound calling service that allows contact center customers to off-load or load balance the demand on their contact center employees through an Interactive Voice Response platform. This new service supports automated collection and automated fraud notification applications. The platform will call out to a programmed list of customer clients and provide a preset voice notification depending on the application being used and the client situation.

Hosting and Application Services

Web Hosting for Small Businesses. In addition to the Web site design services rolled out earlier this year, AT&T has added to its list of professional Web hosting services for small businesses to include support for site and database migrations, one-stop e-commerce site builds, database builds, expanded managed system administration and server administration and code execution monitoring and third-party code debugging and support. In addition, discount plans have been extended to customers who purchase new AT&T services such as AT&T High Speed Internet U-verseSM Enabled Business Edition and AT&T Tech Support 360SM. Discount plans were already available to AT&T access customers.

Customer Experience

AT&T Billing Solutions Enhancements. AT&T offered additional converged billing capabilities that are designed to simplify the billing process and improve accuracy by providing a single detailed invoice for certain AT&T products and services. Also, AT&T Enterprise Alternate Bill Media delivers solutions for customers wishing to simplify and maximize bill management.