AT&T Support for Nonprofit Group Cell Phones for Soldiers

to Help Drive Used Cell Phone Donations in Hawaii and Nationwide

Funds from Recycling Used to Buy Phone Cards for the Troops

HONOLULU, July 3, 2007 — In honor of Independence Day — and U.S. military families who may be apart for the holiday this year — AT&T Inc. (NYSE: T) has announced that AT&T-owned store locations in Hawaii have begun serving as wireless phone recycling drop-off sites for a charity benefiting U.S. military families. Beginning today, all 1,800 AT&T-owned stores nationwide, including 16 in Hawaii, will accept donated phones for the Cell Phones for Soldiers charitable program.

AT&T has also donated more than 30,000 prepaid phone cards –- valued at more than $270,000 –- to Cell Phones for Soldiers to help connect more military families. AT&T is also providing the nonprofit organization with a new volume discount for purchasing additional phone cards.

Cell Phones for Soldiers (www.cellphonesforsoldiers.com) was established by two Norwell, Mass., teenagers to help buy prepaid phone cards to send to U.S. military members who are serving overseas. The teens, Brittany Bergquist, 16, and Robbie Bergquist, 15, created a nonprofit organization that collects and recycles used wireless phones. With proceeds from the recycling, the organization then purchases prepaid phone cards for military families.

Since the Bergquists founded the program in April 2004, they have raised more than $1 million and have sent more than 75,000 phone cards to troops overseas.

"As Independence Day approaches, many military families will celebrate together — but many others will not because of a call to duty," said Tammi Terrell, vice president and general manager for AT&T. "The launch of our national recycling program that supports Cell Phones for Soldiers gives us the chance to demonstrate our commitment to military families all across America. AT&T is proud to do what we can to help keep military families connected."

In addition to its support for Cell Phones for Soldiers, AT&T announced the donation of an additional 10,000 phone cards directly to troops in Iraq, Kuwait , Afghanistan and other overseas regions in the weeks surrounding Independence Day. The donation is part of an ongoing, parallel campaign to support military families with 50,000 free prepaid phone cards — valued at more than $450,000 — throughout 2007.

Since 2000, AT&T has donated nearly $8 million in free prepaid phone cards to military members and has provided nearly $6 million in grants that support military members and related nonprofit organizations. The company also has built 70 calling centers in Iraq, Kuwait and Afghanistan that help keep military members in touch with their families.

For more than 85 years, AT&T has remained dedicated to supporting active military personnel, their families and veterans through charitable contributions, sponsorships, the hiring of military veterans and maintaining policies that support reservists when called to duty.

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