New AT&T Companies Expand Retail Presence in Time for the Holiday Shopping Season

   Consumers Have More Opportunities to Experience AT&T Products and
 Services Through New AT&T Retail Store, in-Store Trials with Cingular
          Wireless(R), CompUSA and Best Buy, and Mall Kiosks

   AT&T Inc. (NYSE: SBC) today announced two important retail
strategies designed to bring a hands-on experience of products and
services offered by the new AT&T family of companies to busy consumers
during this holiday season.
   The companies will open a variety of retail sites, including the
new AT&T Experience Store in Dallas' North Park Mall, that will enable
consumers to experience how "digital lifestyle" services from the new
AT&T companies can enhance those "must-have" tech gadgets on every
holiday shopper's list. The companies also have established a
marketing alliance with Warner Brothers to jointly promote AT&T
products and services with the studio's DVD release of the holiday
feature "The Polar Express."
   Beginning this month, the new AT&T Experience Store in Dallas'
North Park Mall and the kiosks in Dallas' Valley View and The Parks
and Columbus, Ohio's Tuttle and Polaris malls, will bring the living
room, game room, and home office to life with integrated
communications and entertainment services powered by the new AT&T
companies. The new AT&T Experience store and kiosks, combined with a
product and services retail trial in alliance with 19 Cingular
Wireless, CompUSA and Best Buy locations in Dallas, San Antonio and
Columbus, will create hands-on "digital experiences" offering
consumers the opportunity to test-drive products and services before
they purchase. AT&T companies will also be introducing "The Polar
Express"-themed, interactive mall kiosks in 17 additional cities
throughout the AT&T service territory as part of the "The Polar
Express" marketing promotion. These themed kiosks will be available in
most locations through December 31, 2005.
   Knowledgeable personnel will be available to guide consumers
through product trials and purchasing decisions. During the peak
holiday shopping season, consumers in key markets will have the
opportunity to:

   --  Check out the latest in online gaming, music and Wi-Fi
        lifestyle through SBC Yahoo! DSL

   --  Experiment with taking digital photos with a Web cam and
        e-mailing them to friends and family through SBC Yahoo! DSL
        connections

   --  View digital satellite TV shows on a Digital Video Recorder
        available through SBC | DISH Network

   "The AT&T Retail Shopping Experience is designed to help educate
consumers about AT&T communications and entertainment services in a
relevant and meaningful way," said Scott Helbing, chief marketing
officer, AT&T Consumer. "In today's marketplace, traditional mass
market advertising is not enough. Including innovative retail
experiences in our marketing mix, tied to promotions and advertising
campaigns, will enable consumers to envision the products and services
as part of their lifestyle, and ultimately help them make informed
decisions that meet their communications and entertainment needs."
   The fully-integrated "The Polar Express"-AT&T campaign will
feature TV, print, and online advertising along with extended
integrated components. The AT&T family of companies will launch a
microsite, at www.sbc.com/polarexpress, featuring a wide range of
exclusive content including the "Hot Chocolate" music video from the
movie, an opportunity to personalize a letter to Santa, holiday
e-cards, and the "The Polar Express" trailer. The site also boasts the
"Wish it and You can Win it" sweepstakes which invites visitors to
submit their ultimate holiday wish list for the chance to win a
$10,000 gift card from Visa. The integrated promotion builds on the
success of previous AT&T promotional efforts with the release of a
major motion picture this past summer, the sponsorships of major music
festivals such as Austin City Limits Music Festival and Lollapalooza,
and recent campaigns featuring Eric Clapton.
   "The Polar Express" captures the wonder and spirit of the holiday
season as it follows the adventure of one doubtful boy and his new
friends on an unbelievable train ride to the North Pole. Through their
journey, the children learn a number of lessons about themselves and
others, and ultimately learn about the power of belief. The DVD
releases on Tuesday, Nov. 22.
   "Warner Home Video is thrilled to have the AT&T family of
companies as a promotional partner on this 'new' classic holiday film,
'The Polar Express'," said Chris Baldwin, Director Promotion, Warner
Home Video. "We hope this is the first of many opportunities to join
efforts."
   "The Polar Express" promotions will direct attention to recently
announced offers of AT&T services, including a complete bundle of
local and long distance service, high-speed internet, and digital
satellite TV for less than $99. Taxes, other charges, and the FUSF
cost recovery fee, are extra. For details of charges, requirements and
restrictions, contact a new AT&T service representative or visit
www.TheNewATT.com.
   "'The Polar Express' is a fantastic story highlighting the power
of belief in possibilities, and building promotions around the DVD's
release enables us to highlight how the new AT&T companies deliver a
world of possibilities through our communications and entertainment
services," said Helbing. "We were first to embrace the value that
bundles offer consumers and we are committed to offering savings
across our portfolio, and that includes our premier services.
Consumers who evaluate the complete price of the bundle will recognize
the savings and be eligible for some great rewards for combining
services with AT&T companies."
   Throughout the holiday season, new and existing residential AT&T
Connections customers can earn at least one reward for every
qualifying AT&T service they add to their AT&T account. Customers who
bundle all their services and enroll online can easily earn multiple
rewards. Additional awards are available to customers who order
certain eligible premium services and who order certain qualifying
services online. For a full list of qualifying products and service
plans eligible for rewards, as well as details on terms and
restrictions, please visit www.sbc.com/polarexpress.

   About the New AT&T

   AT&T Inc. is one of the world's largest telecommunications holding
companies and is the largest in the United States. Operating globally
under the AT&T brand, AT&T companies are recognized as the leading
worldwide providers of IP-based communications services to business
and as leading U.S. providers of high-speed DSL Internet, local and
long distance voice, and directory publishing and advertising
services. AT&T Inc. holds a 60 percent ownership interest in Cingular
Wireless, which is the No. 1 U.S. wireless services provider with more
than 52 million wireless customers. Additional information about AT&T
Inc. and AT&T products and services is available at www.TheNewATT.com.

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