AT&T and DIRECTV Reach Agreement to Offer Satellite TV Service to AT&T Customers

DALLAS and EL SEGUNDO, Calif. — AT&T Inc. (NYSE: T) and DIRECTV, Inc. (Nasdaq: DTV) today announced a commercial agreement by which AT&T will market and sell DIRECTV’s service as a co-branded satellite television service after Jan. 31, 2009.

AT&T | DIRECTV will become part of the AT&T Advanced TV video portfolio, alongside AT&T U-verse^SM TV, after the expiration of AT&T’s current satellite agreement with DISH Network®, which it will fully honor. AT&T will offer, market and sell co-branded AT&T | DISH Network services through Jan. 31, 2009. After that date, existing AT&T | DISH Network customers will continue to receive the same, quality service they enjoy today.

New AT&T | DIRECTV customers will be able to enjoy DIRECTV programming packages, with the added benefit of a discount for bundling their wireless, home phone and broadband services with AT&T.

“Our focus is on providing customers with a better TV experience than cable,” said Jeff Weber, AT&T vice president-Video and Entertainment. “AT&T | DIRECTV complements our premier AT&T U-verse TV service and gives customers another great choice for state-of-the-art, 100 percent digital programming.”

“Our agreement with AT&T will provide endless opportunities to thrill consumers with an amazing suite of bundled entertainment and communications services at home and on the go,” said Paul Guyardo, DIRECTV chief sales and marketing officer. “The real winners of this agreement will be our joint customers who will enjoy a singular, high-quality experience throughout their entire life cycle.”

Other terms of the non-equity agreement were not disclosed.