AT&T Announces Hosting Agreement with SAP America; Named a Preferred SAP® Hosting Provider

Three-Year Agreement Reinforces Company's Position as Leading Application Services Provider

SAN ANTONIO, Jan. 22, 2008 - AT&T Inc. (NYSE:T) today announced it is joining forces with SAP America Inc. in a three-year marketing agreement under which AT&T will serve as a primary SAP® hosting partner, providing independent hosting services for business customers headquartered in North America.

Effective today, SAP America's sales and marketing team will begin referring those companies whose annual revenues exceed $200 million to AT&T for hosting services. By combining AT&T's global Internet Protocol (IP) network and hosting and applications services capabilities with SAP's global expertise in enterprise software, businesses will receive simplified, full-service solutions that will allow them to deliver critical applications to their end users.

"SAP is pleased to welcome AT&T as a new strategic SAP hosting partner," said Greg Tomb, president and CEO, SAP North America. "AT&T's reputation for high-quality enterprise services complements SAP's commitment to deliver sustainable and costeffective solutions to our customers."

Today's announcement is the latest milestone in AT&T's overall efforts to provide worldclass applications-management services and support to companies. It builds upon the expertise gained when AT&T acquired application service provider USinternetworking (USi) in October 2006. In 2007, the global application-management services market totaled more than $25 billion, and it is expected to grow, according to IDC.¹

"SAP and AT&T will enable enterprise customers to virtualize their enterprise applications within a network so that they can be accessed anytime, anywhere their business needs them," said Ron Spears, group president, AT&T Global Business Services. "Applying the intelligence of today's networks to applications makes it possible for businesses to operate more successfully at a greater scale and velocity.

"We're delighted to be working with SAP — a world-class company in its own right in helping companies to achieve this goal," Spears said.

Today, AT&T serves its hosting and application services customers through its 38 Internet Data Centers located in North America, Europe, Asia and Australia. To support its business for SAP solutions, AT&T has created, within its Global Business Services (GBS) unit, an SAP services practice that includes experts in dedicated sales, technical and applications-specific management.

As a certified SAP hosting partner, AT&T will offer a full portfolio of hosting services for SAP applications, including infrastructure, implementation, operation and ongoing support. In addition, AT&T will also be a provider of development hosting site services for testing, monitoring, training and development.

For more information on AT&T's Enterprise Hosting Services, visit http://www.att.com/hosting.

Note: This AT&T release and other news announcements are available as part of an RSS feed at http://www.att.com/rss.

1.  Source: IDC, Worldwide and U.S. Application Management Services 2007-2011 Forecast, October 2007.

About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com.

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