AT&T: Announces Integrated Portfolio of IP Communications Services

Janet Wyles
908-658-6037 (office)
732-331-6754 (mobile)
wyles@att.com

Gina Giamanco
908-658-6061 (office)
609-575-3049 (mobile)
ggiamanco@att.com

COMPANY TO OFFER NETWORK-BASED VoIP FOR BUSINESS

FOR RELEASE MONDAY, MAY 2, 2005

NetWorld+Interop Las Vegas – AT&T today unveiled AT&T Dynamic Network Applications(SM) (DNA), an integrated portfolio of Internet Protocol (IP) services that will support the next generation of business communications — from voice to conferencing, messaging and beyond.

The first service available in the portfolio will be AT&T Voice DNA(SM), a network-based voice over IP (VoIP) service that combines the cost and functionality benefits of a premises-based VoIP service, with the flexibility, control and reduced capital expenditures of network-based IP services. AT&T will begin rolling out this service to a limited number of customers in the coming months, and will continue to roll out service through the rest of the year.

The AT&T DNA portfolio leverages the company’s software-driven, global MPLS network and its IP VPN services, which help customers converge their data and voice applications on the same reliable, secure, high-performing and scalable network infrastructure. This networking foundation enhances the capabilities delivered by AT&T Voice DNA and enhances business productivity by making it easier for employees, suppliers and partners to collaborate.

“Today’s announcement is the latest example of AT&T’s commitment to deliver turnkey services over IP that provide consistent features, improved performance and superior service quality across an enterprise,” said Kathleen Flaherty, AT&T chief marketing officer. “AT&T Voice DNA is the first example of the types of turnkey services in our Dynamic Network Applications portfolio, which are being designed to give customers and their employees unprecedented control and flexibility over the business capabilities they value most.”

Future targeted services of the AT&T DNA portfolio include IP-conferencing and messaging services. The company also said the portfolio of services will be standards-based and capable of interoperating with service-oriented business applications from AT&T and third-party providers.

AT&T Voice DNA will let customers manage the advanced features of the service through the company’s industry-leading AT&T Business-Direct® customer support and network management portal. The web interface provides convenience and control for IT managers, as well as employees.

“Effective communication and collaboration are critical to the productivity increases that lead to business success,” said Mark Winther, Group Vice President Worldwide Communications, IDC. “AT&T’s new portfolio of IP services will provide the network-based solutions companies need to flexibly deploy advanced communications and collaboration technology that will enable them to compete more effectively and bring new products and services to market more swiftly.”

AT&T Voice DNA is a VoIP solution for enterprise branch offices and remote locations, as well as for smaller businesses. This service offers enhanced telephony features and “any distance” calling plans, and provides a full suite of management capabilities and end-user tools.

AT&T Voice DNA will provide all of the standard features of today’s business telephones in addition to advanced features, such as mid-call move, which gives customers the ability to move a call from one phone to another without disruption; personalized call handling; simultaneous ring; click-to-call, to dial calls with a single mouse click; locate-me; the ability to have multiple phones ring at once or sequentially for ultimate reachability; on-demand audio conferencing; and integration with Microsoft Outlook.

Businesses will have a choice of calling plans including:

· Any Distance: with unlimited on-net, local and long distance calling with included minutes, for customer sites in AT&T’s VoIP-enabled local footprint
· Local: with unlimited on-net and local calling with competitive long distance and international rates, for customer sites in AT&T’s VoIP-enabled local footprint
· LD-Only: with unlimited on-net and competitive long distance and international rates, for customer sites outside AT&T’s VoIP-enabled local footprint

AT&T Voice DNA will also support a variety of IP phones, including select models from Cisco and Polycom as well as a variety of IP PBXes, including select models from Cisco and Avaya. Additionally, the service will support a variety of softphones, which work on a laptop computer and will deliver users all the service capabilities from remote locations around the world.

For more information visit www.att.com/business.

About AT&T
For more than 125 years, AT&T (NYSE ‘T’) has been known for unparalleled quality and reliability in communications. Backed by the research and development capabilities of AT&T Labs, the company is a global leader in local, long distance, Internet and transaction-based voice and data services.

AT&T ‘Safe Harbor’
The foregoing contains ‘forward-looking statements’ which are based on management’s beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT&T’s control, that could cause actual results to differ materially from such statements. These risk factors include the impact of increasing competition, continued capacity oversupply, regulatory uncertainty and the effects of technological substitution, among other risks. For a more detailed description of the factors that could cause such a difference, please see AT&T’s 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of AT&T.

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