Strong Wireless Gains, Sound Operational Execution Highlight AT&T's Third Quarter

DALLAS, Texas — AT&T Inc. (NYSE:T) today reported third-quarter results that are highlighted by strong wireless gains and stable trends in business services, including continued double-digit IP data growth and a major turnaround in wholesale revenue growth.

Accelerated Ramp in AT&T U-verse TV Services

“¢ >10% penetration reached in established market areas in less than 12 months
“¢ 2nd HD stream migration completed in 3Q

AT&T further accelerated its ramp in U-verse TV growth with a net gain of 232,000 subscribers in the third quarter, up from 170,000 added in the second quarter of this year. At the end of the quarter, subscribers to the company’s next-generation, IP-based TV service totaled 781,000, on a trajectory to exceed its target of more than 1 million U-verse TV subscribers by year-end 2008. U-verse network deployment now passes 14 million living units. Rollout of Total Home DVR service is under way and expected to be completed by the end of the year. Attach rates for broadband service continue to be high, at more than 85 percent.

AT&T U-verse TV Subscribers (in thousands):

               3Q07  4Q07  1Q08  2Q08  3Q08
               ----  ----  ----  ----  ----
In Service      126   231   379   549   781
Net Additions    75   105   148   170   232

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