AT&T Inc. announced two new locations, the San Jose and San Francisco Bay Area, that can utilize the AT&T U-verse IPTV service.

In the Bay Area, U-verse TV services are initially available in limited areas across the San Francisco-Oakland-Fremont area, including parts of the cities of San Ramon and Danville. In the San Jose Area, U-verse will be available in limited areas across the San Jose-Sunnyvale-Santa Clara area, including parts of the cities of Cupertino and Saratoga. AT&T plans to expand to additional areas on an ongoing basis.

AT&T U-verse offers customers a combination of next-generation digital television — including more than 25 High Definition (HD) channels — and high speed Internet access. The award-winning AT&T U-verse TV includes cutting-edge features that are unmatched in the market, while the new U-verse enabled AT&T Yahoo! High Speed Internet builds on AT&T's position as the nation's leading provider of broadband DSL.

"AT&T U-verse gives Bay Area customers a better television option and will change the way they experience communications and entertainment," said Melba Muscarolas, AT&T vice president and general manager for the San Francisco Market Area. "It's fitting Bay Area residents — known around the world as early adopters of new technology — are among the first to receive our innovative U-verse services."

Beginning today, AT&T U-verse TV will offer Bay Area residents:

• A compelling variety of TV packages with more than 300 channels, including digital music, local, and premium movie and sports programming.
• HD technology that produces images more than twice as detailed as standard analog TV delivering rich, realistic video and multi-channel, movie theater quality sound. AT&T U-verse offers customers access to a growing lineup of more than 25 HD channels, more than the local cable providers. New HD customers can receive two months of free HD service ($10 per month thereafter).
• Web remote access to digital video recorder (DVR), which allows customers to schedule recordings using their AT&T Yahoo! Internet account. This feature is unique to AT&T among local providers.
• The ability to record up to four programs at once using a DVR receiver, another exclusive feature unmatched in the marketplace.
• Built-in picture-in-picture functionality that allows subscribers to "channel surf" on any television without leaving the program they're watching.
• Specially designed set top boxes, manufactured by Motorola, all of which are HD-capable and include universal remote controls that provide backlit buttons and one-touch access to video-on-demand, DVR, and other services.
• A premium Spanish-language package featuring novelas, movies, news, sports, children's programming, talk shows and more. New customers can receive the package at no charge for the first two months ($10 per month thereafter).
• A growing video-on-demand library with one-touch access to movies and events.
• Fast channel-changing, eliminating the delay experienced with other digital broadcast services.
• The ability to search for programs using title or actor's name.
• Three TV receivers — one with a DVR, which allows customers to pause, rewind, replay and record live TV — at no extra charge with most programming packages. (Customers may add more receivers for $5 each per month.)

AT&T plans to continue adding more channels and interactive applications in the future.

Customers can choose from five TV and three Internet packages to customize their entertainment experience. In addition to the popular U300 and U400 packages, AT&T also offers U-family, a market-leading family-friendly programming option. Current AT&T U-verse TV offers start as low as $44 per month, depending on the selected programming and Internet packages (other monthly charges apply).

Now through March 31, qualified new customers can join AT&T U-verse and receive free TV service, including HBO and Cinemax, for the first two months when they choose the U300 or U400 programming package (other monthly charges apply). Thereafter, customers will continue to receive recurring monthly discounts when they subscribe to a bundle of TV and Internet service. In addition, AT&T will offer new customers a 60-day money-back guarantee.

Three packages of AT&T Yahoo! High Speed Internet U-verse Enabled will be made available to AT&T U-verse customers:

• Elite: Downstream up to 6.0 Mbps, upstream up to 1.0 Mbps.
• Pro: Downstream up to 3.0 Mbps, upstream up to 1.0 Mbps.
• Express: Downstream up to 1.5 Mbps, upstream up to 1.0 Mbps.

All high speed Internet packages offered as part of AT&T U-verse include wireless home-networking at no charge, giving users the freedom to access online photos, streaming video, games and other information using a wireless-enabled laptop or other device. Subscribers also receive virtually unlimited e-mail storage and powerful anti-virus and anti-spam software.

The deployment of next-generation video services reflects AT&T's strategy to become customers' preferred communications and entertainment provider and to deliver a video solution through its traditional footprint that provides greater value, flexibility and simplicity than competitors' offerings. AT&T U-verse TV represents a critical new service in the company's video portfolio, which today includes AT&T | DISH Network and AT&T Homezone service, which integrates AT&T | DISH Network and AT&T Yahoo! High Speed Internet. AT&T U-verse TV also underscores the company's strategy to deliver integrated services to the three screens many consumers say are most valued today: the PC, the TV, and the wireless phone.

AT&T now expects to launch AT&T U-verse in eleven markets by the end of the year, with plans to launch in additional markets in early 2007.

Customers seeking additional information on AT&T U-verse — or to find out if it's available in their area — can visit uverse.att.com. The site will be regularly updated over the coming weeks as AT&T expands to additional areas. Additionally, AT&T will soon begin direct marketing in the areas where the service is initially available.