AT&T announces that deployment and sales of the innovative IP-based television service, AT&T U-verseSM TV, are accelerating, reflecting strong momentum in the company's overall video strategy. The company plans to launch AT&T U-verse in the Los Angeles area in the coming weeks. Additional launches are planned for later this year and next.

AT&T U-verse TV has grown rapidly since January, with approximately 18,000 U-verse television and Internet subscribers currently in service. AT&T's average installation rate has ramped to approximately 2,000 installations a week — five times greater than its average rate in January.

In the first three months of 2007, AT&T launched U-verse services in new markets, including Milwaukee, Kansas City, and Dallas-Fort Worth. Earlier this month, AT&T announced that U-verse services were available to more than 200,000 households in the Dallas-Fort Worth area, less than one month after introducing service in that market.

"Our video strategy is showing strong momentum as we add new subscribers at an increasing rate," said Ralph de la Vega, group president-Regional Wireline Operations, AT&T. "Consumers are clearly hungry for an alternative to the cable companies, and AT&T U-verse is a very attractive choice. We offer more High Definition channels than local cable companies in the markets we serve, the ability to record up to four programs at once, and the ability to set DVR recordings remotely using the AT&T Yahoo!® portal or, soon, a mobile device."

AT&T Satellite Services Offer Additional Entertainment Choices
Sales are gaining momentum across AT&T's video portfolio. Following a strong fourth- quarter 2006 in which AT&T added 111,000 bundled satellite television users, the company added a record number of users in the first quarter of 2007. Including U-verse and satellite customers, AT&T added more than 180,000 video users in the most recent quarter, which is more than the four largest reporting cable companies combined added for the full year in 2006.

AT&T offers satellite service across its 22-state local service area through relationships with satellite broadcast providers. Satellite customers in AT&T's traditional 13-state local service area include subscribers to AT&T HomezoneSM service. The innovative service integrates AT&T Yahoo! High Speed Internet and AT&T | DISH Network satellite services.

AT&T Promotes Three-Screen and HD Content
As part of AT&T's initiative to market video services to customers, the company offers innovative features to connect the three screens consumers value the most — the PC, the TV and the wireless device. For example, AT&T Homezone subscribers can program their DVR via the Internet and their wireless phones, and this capability soon will be extended to AT&T U-verse customers. AT&T also recently launched AT&T U-verse OnTheGo, a premium service that allows AT&T U-verse customers to view live television on a PC using any broadband Internet connection.

Adding to the value of AT&T's bundled video portfolio, the company is a leader in offering content in High Definition. AT&T U-verse TV offers subscribers access to more than 25 HD channels — more than cable providers offer in markets where AT&T U-verse is currently offered. AT&T also recently announced that qualifying new subscribers can enjoy access to HD TV programming free for one year. This offer is available for a limited time to new subscribers of AT&T satellite and U-verse offerings.