AT&T Inc. announced the initial launch of AT&T U-verse to Houston residents. U-verse services are initially available in limited areas, and AT&T plans to expand availability on an ongoing basis. Houston is the second market where U-verse services are commercially available, following a June launch in San Antonio.

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 changes the way customers look at home entertainment. We've reinvented television and introduced a better experience that brings a new level of personalization, simplicity and satisfaction to the digital lifestyle," said Ed Cholerton, AT&T vice president and general manager for the Houston region. "We're excited that Houston consumers are among the first in the nation to enjoy our innovative U-verse services."

Beginning today, AT&T U-verse TV will offer Houston 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 provider. 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 VOD, 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^SM 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.

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 continually be updated over the coming weeks as AT&T expands availability in the market. Additionally, AT&T will soon begin direct marketing in the areas where the service is initially available.