AT&T Reports Fourth-Quarter and Full-Year Results

Total Home DVR rollout and second HD stream migration completed in 2H08

DALLAS, Texas — AT&T Inc. (NYSE:T) today reported fourth-quarter and full-year results highlighted by strong wireless subscriber gains and continued progress in key growth areas including wireless data services, IP-based services for businesses and AT&T U-verse TV. Growth in these areas more than offset expected economic pressures, primarily reflected in lower wireline voice revenues.

Wireline Operational Highlights

AT&T’s fourth-quarter wireline results included continued double-digit growth in IP data revenues, a further ramp in AT&T U-verse TV subscribers and a sustained turnaround in wholesale revenues.

Strengthened AT&T U-verse Ramp:

AT&T further accelerated its ramp in U-verse TV growth with a net gain of 264,000 subscribers in the fourth quarter, up from 232,000 added in the third quarter of 2008, to reach more than 1 million in service. This growth reflects the high quality of the AT&T U-verse video experience, a large array of High Definition channels and a host of attractive features, including Total Home DVR, which was launched across the company’s U-verse footprint in the second half of 2008. AT&T U-verse network deployment more than doubled during 2008 and now passes 17 million living units.

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

             4Q07   1Q08   2Q08   3Q08   4Q08
            -----  -----  -----  -----  -----
In service    231    379    549    781  1,045
Net adds      105    148    170    232    264

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