Sterling Commerce Delivers End-to-End Order-to-Shipment Supply Chain Solution with Nistevo Acquisition.

COLUMBUS, Ohio -- Company Completes Acquisition to Round Out Solution, Signs New Customer, and is Positioned in the Visionaries Quadrant in Leading Independent Analyst Firm's Magic Quadrant

Sterling Commerce, the multi-enterprise collaboration company and a subsidiary of AT&T Inc. (NYSE:T), announced today it has completed the acquisition of Nistevo, a leading provider of on-demand transportation management systems (TMS). The company also signed a new TMS customer, Insight Network Logistics, and received placement in the "Visionaries" quadrant of Gartner's Transportation Management Systems 2006 Magic Quadrant(1).

The addition of Nistevo enables Sterling Commerce to provide customers with a complete, state-of-the-art supply chain management system from a single vendor that improves visibility and control over the entire supply chain - from order to shipment. With a carrier community of more than 6,400, the Nistevo Transportation Management System is the leading on-demand network for transportation management. It enables shippers and carriers to view, plan, execute, settle and analyze their inbound and outbound transportation. The Nistevo Transportation Management System is now called Sterling Transportation Management, part of the Sterling Commerce supply chain application portfolio. The portfolio manages the dynamic and complex processes associated with warehousing, distributed order management, and supply chain visibility. The addition of the transportation management capabilities to the portfolio delivers an integrated end-to-end solution that will enable companies to have improved visibility and control over their entire supply chain, resulting in improved customer satisfaction and loyalty.

Sterling Commerce Signs New TMS Customer

Insight Network Logistics (INL) has selected Sterling Transportation Management as the transportation management foundation for its on-demand vehicle logistics application. The addition of Sterling Transportation Management will allow INL customers to manage vehicle logistics on a global scale.

"The automotive business has unique requirements; it's not your traditional warehouse environment that lends itself to traditional tools," said Roland Fortner, INL CEO and General Manager. "INL has built our business around providing visibility to the automotive distribution sector, and with the Sterling Transportation Management, we've added a new dimension to our service to provide customers with immediate improvement in their vehicle delivery process."

Sterling Commerce Receives Placement in Visionaries Quadrant

Sterling Commerce was positioned in the "Visionaries" quadrant of Gartner's Transportation Management Systems 2006 Magic Quadrant, released July 18, 2006. According to Gartner, "Visionaries have a clear vision of market direction and are focused on preparing for that, but they can still improve in terms of optimizing service delivery." Sterling Commerce also has had other placements in Gartner magic quadrants this year related to its other e-commerce and supply chain solutions(2).

"Through the integration of our supply chain solutions and Nistevo transportation management software, Sterling Commerce is now able to offer the industry's most robust, integrated order-to-shipment solution in the world," said Sam Starr, president and CEO of Sterling Commerce. "Being able to quickly integrate Nistevo into the Sterling Commerce family is based on our multi-enterprise collaboration strategy that delivers software that is business process-centric and built on a service-oriented architecture. This architecture also makes it easier for customers to optimize their business processes and collaborate with partners and customers regardless of the software they are using. We believe it is the strength of that strategy and our solutions that enabled us to secure placement in the Gartner visionaries quadrant."

(1) Gartner, Inc., "Magic Quadrant for Transportation Management
    Systems, 2006," by Jeff Woods, July 18, 2006.

(2) Gartner, Inc., "Magic Quadrant for B2B Gateway Providers, 1Q06,"
    by L. Frank Kenney, February 28, 2006; Gartner, Inc., "Magic
    Quadrant for Integration Service Providers, 1Q06," by Benoit J.
    Lheureux and Paolo Malinverno, January 19, 2006; and Gartner,
    Inc., "Magic Quadrant for Warehouse Management Systems, 2006," by
    Jeff Woods and Tim Payne, March 29, 2006.

About the Magic Quadrant

The Magic Quadrant is copyrighted July 2006 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

About Sterling Commerce

Sterling Commerce, a subsidiary of AT&T Inc. (NYSE:T), has more than 30 years of leadership and expertise in helping FORTUNE 500(R) customers thrive in a global economy by optimizing the performance of their business communities. With nearly 30,000 customers worldwide, the company is one of the world's largest providers of multi-enterprise collaboration solutions. Sterling Commerce has unparalleled experience in the retail, consumer packaged goods, manufacturing, financial services, healthcare and telecommunications industries. For detailed, up-to-date information about Sterling Commerce and its solutions, visit www.sterlingcommerce.com.