AT&T Wins $223 Million Telecommunications Contract from the County of Los Angeles

AT&T to Deliver Advanced Voice and Data Services to 1,000 Locations for More Sophisticated and Efficient Communications throughout the County of Los Angeles

Los Angeles, California, October 15, 2008

AT&T Inc. (NYSE:T) has announced that the County of Los Angeles has signed a five-year contract with AT&T for the company to provide telecommunications services throughout the county. The new contract, valued at $223 million, comprises all voice and data services and expands advanced network services, such as a managed Internet Protocol (IP) network and Managed Router Solutions (MRS), which will be deployed at up to 1,000 county locations.

AT&T's managed IP network and MRS will improve communications and boost efficiencies by allowing the County of Los Angeles to focus on applications while AT&T manages and maintains the network. With an agile AT&T network platform and one of the world's most advanced and powerful IP backbones, the County of Los Angeles is addressing its current needs to reduce cost and build a roadmap to transition to next-generation networks.

AT&T will continue to provide all voice and data services to the County of Los Angeles including Frame Relay and Asynchronous Transfer Mode data transport; remote access; Managed Internet Service; Virtual Private Network (VPN); all local and long distance voice, Web, video and teleconferencing services; and AT&T Voice DNASM.

AT&T Voice DNA, a network-based Voice over IP (VoIP) service, provides the benefits of a premises-based telephony service, while maintaining flexibility, control and reduced capital expenditures. The service will enable the County of Los Angeles to converge data and voice applications on the same reliable, secure and scalable network infrastructure. Additionally, the service will provide consistent Internet service and secure access to the county network and client records, whether employees are using terminal or remote access.

"The County of Los Angeles was seeking to converge voice and data networks and to gain a 24-hour managed services environment," said Tom Lang, program manager for the County of Los Angeles. "Converged IP services will give us increased management efficiency and greater functionality."

The County of Los Angeles has options to extend the contract with AT&T for up to 12 years.