AT&T Deploys Next-Generation Fiber-to-the-Premises Network in Northern Nevada at Kiley Ranch; New Development to Equip ''Homes of the Future'' With Voice, AT&T U-verse TV and AT&T Yahoo! High Speed Internet Services.

SPARKS, Nev. -- The new AT&T (NYSE: T) today announced an agreement with Kiley Ranch to build a fiber-to-the-premises (FTTP) network. Kiley Ranch will be one of the first developments in northern Nevada to feature this next-generation AT&T technology.

Kiley Ranch is one of the first new-home developments that will benefit from AT&T's Project Lightspeed, a multibillion dollar deployment of fiber that will reach approximately 18 million households as part of the initial rollout. As a result, AT&T is making plans to deliver AT&T U-verse(SM)products and services to homeowners as they become available including:

--High-quality video experience, featuring more than 200 channels and set-top boxes, each with an internal DVR.

--Video-on-demand (VOD) library featuring hundreds of hours of a variety of programming.

--Picture-in-picture that allows subscribers to "channel surf" without leaving the program they're watching.

--Fast channel changing eliminating the delay experienced with other digital broadcast services whether you are surfing channels or recalling the last channel viewed.

In addition, the network will deliver the AT&T Yahoo! High Speed Internet U-verse Enabled service, offering subscribers a leading combination of broadband access, services and content that provides a unique high speed Internet access experience.

--AT&T's initial offering will include three tiers of high speed Internet access:

--Elite - up to 6.0 Mbps downstream, up to 1 Mbps upstream

--Pro - up to 3.0 Mbps downstream, up to 1 Mbps upstream

--Express - up to 1.5 Mbps downstream, up to 1 Mbps upstream

The Kiley Ranch agreement is part of the AT&T SmartMoves program, which helps builders and developers, as well as apartment-building owners, deliver communications and entertainment services to residents.

"More and more, single-family home builders and developers are working closely with service providers like AT&T to add value to their properties and gain a competitive advantage," said Loretta Walker, AT&T vice president and general manager-Northern California and Nevada market area. "New homeowners are drawn to developments that offer the latest in communications technologies, such as high speed Internet access, and nationwide, more than half upgrade both their communications and entertainment services when they move."

Development of Kiley Ranch, located in the Spanish Springs Valley in northern Sparks, began last year and will continue over an estimated 10-year time frame. The project consists of 808 acres and is a planned community containing a balance of commercial developments, office and business parks, multifamily and single-family residential neighborhoods, schools, parks and open space.

"Kiley Ranch will foster excellence in combining residential and business development and represents what we call a live-work environment that allows residents to work where they live and play," said Paul Curtis, CEO of Kiley Ranch Communities. "By teaming with AT&T SmartMoves, we can increase the value of our homes for potential buyers by offering state-of-the-art communications and entertainment solutions."

Project Lightspeed is the AT&T initiative to expand its fiber-optics network deeper into neighborhoods to deliver AT&T Yahoo! High Speed Internet U-verse Enabled and, eventually, Voice over IP and U-verse TV.

AT&T started a controlled market entry of U-verse services in San Antonio neighborhoods in December and is on track to expand AT&T U-verse offerings in mid-2006.

In addition to helping consumers, AT&T helps businesses take advantage of next-generation technologies. AT&T combines its unmatched IP backbone network and leadership position in the enterprise market with its dense local networks and extensive wireless capabilities. AT&T offers unsurpassed service for voice, data, Internet access, wireless communications and dedicated IP-based services through a robust, high-quality network in the United States and around the globe.

About the New AT&T

AT&T Inc. is one of the world's largest telecommunications holding companies and is the largest in the United States. Operating globally under the AT&T brand, AT&T companies are recognized as the leading worldwide providers of IP-based communications services to business and as leading U.S. providers of high-speed DSL Internet, local and long distance voice, and directory publishing and advertising services. AT&T Inc. holds a 60 percent ownership interest in Cingular Wireless, which is the No. 1 U.S. wireless services provider with more than 54 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.TheNewATT.com.

About Kiley Ranch

Kiley Ranch is a thoughtfully planned community and progressive "live/work" center designed to become an emerging regional commercial and employment business development. The project includes 808 acres and is located in the Spanish Springs Valley, in northern Sparks. Kiley Ranch will foster excellence in "smart-growth" development, and provide an efficient pedestrian oriented live/work community where people can live, work, shop, and play within a resource conservative, environmentally sensitive, healthy environment.

(C) 2006 AT&T Knowledge Ventures. All rights reserved. Subsidiaries and affiliates of AT&T Inc. provide products and services under the AT&T brand.

For more information and detailed disclaimer information, please review this announcement in the AT&T newsroom at www.sbc.com/newsroom.