SBC CIO Confirms Project Lightspeed Timing, Milestones at Analyst Conference; Successful Technical Field Trial of IP-based Video

Providing an update on Project Lightspeed, SBC
Communications Inc. (NYSE: SBC) announced the SBC companies have
recently concluded a technical field trial of IP-based services, which
successfully demonstrated that the technology works in a real-world
environment.
   During the two-month trial, which concluded last month, SBC
companies successfully delivered Internet Protocol (IP)-based TV
programming, video-on-demand (VOD), high-speed Internet access and
other features to employee households in San Antonio. This was the
second of two employee field trials.
   "The conclusion of our field trials and successful delivery of
these new IP-based entertainment services was a significant program
milestone," said Andy Geisse, chief information officer, SBC Services,
Inc. "IP is the next big thing. We're going to change the face of
television with an IP-based platform that enables integration,
personalization and a high-quality entertainment experience."
   Addressing a group of industry analysts hosted by IBM in New York
today, Geisse confirmed that the next phase of Project Lightspeed - a
controlled market entry - is set to begin around the end of 2005/early
2006 in neighborhoods in San Antonio, Texas with a limited number of
subscribers. SBC companies expect to scale the offerings beginning in
mid-2006 - adding features and functionality and entering more markets
across the companies' 13-state operating region.
   The technical field trial tested IPTV and high-speed Internet
access at approximately 40 SBC employee homes. The trial evaluated the
installation process, platform capability, and network equipment and
customer-premise equipment performance.
   Using VDSL in conjunction with gigabit Ethernet technology,
bandwidth of 20-25 megabits per second bandwidth was achieved,
sufficient to provide four streams of high-quality video (including
one high-definition stream) per line, high-speed Internet access and,
in the future, consumer VoIP service.
   "We've taken our plans to deploy this new, IP-based technology
from concept to reality in one year," said Geisse. "While there is
still work to be done, I'm encouraged by our fast progress and
confident in our ability to scale this market-changing entertainment
technology."
   The SBC companies are evaluating the results of the field trial
and evolving its offering, systems and equipment. Ongoing lab testing
will be conducted in part at a systems integration lab jointly created
with Alcatel and housed at an Alcatel facility in Plano, Texas. The
lab tests the end-to-end functionality of the IP-based platform. SBC
companies will use a similar approach to prepare for the scaled
launch.

   About Project Lightspeed

   Project Lightspeed is the SBC initiative to expand its
fiber-optics network deeper into neighborhoods to deliver SBC
U-verse(SM) TV, voice and high-speed Internet access services. SBC
companies expect to reach approximately 18 million households by the
first half of 2008 as part of initial deployment, using
fiber-to-the-node (FTTN) and fiber-to-the-premises technologies. Using
FTTN, the companies plan to bring fiber to within 3,000 feet on
average of customers' homes.
   Instead of using a traditional broadcast video system, in which
all content is continuously sent to every customer's home, SBC
companies will use a switched IP-video distribution system. In the
switched IP-video network, only the content the customer requests is
provided to the customer, freeing up bandwidth to be used for other
applications and more content.
   SBC is using the Microsoft(R) TV Internet Protocol Television
(IPTV) Edition software platform and working with Alcatel to provide
access, routing, and aggregation infrastructure equipment and video
system integration services.
   SBC companies are working with Scientific-Atlanta to provide IP
video network equipment that would enable SBC to acquire, process,
encode, and distribute digital media content to subscribers.
   The company is working with Amdocs for billing, customer
relationship management (CRM), ordering and payment mediation
products, and Amdocs consulting and systems integration services.
   SBC companies will use next-generation Internet Protocol TV (IPTV)
set-top boxes from Scientific-Atlanta and Motorola for the scaled
launch.
   IBM servers will be used in SBC IP video offices. These servers -
including acquisition, distribution, notification, video-on-demand and
other servers - will encrypt video, add digital rights management,
allow for fast channel change and other features that will allow
delivery of a high-quality, IP-based video service to customers.
Additionally, SBC companies are working with IBM to develop a service
delivery platform (SDP) that will be used to collect and aggregate
transactions from the billing, customer relationship management (CRM),
ordering and billing systems. SBC plans to use Leapstone software,
which provides subscription and content management capabilities,
channel mapping information, and product package information within
the SDP.

   About SBC

   SBC Communications Inc. is a Fortune 50 company whose
subsidiaries, operating under the SBC brand, provide a full range of
voice, data, networking, e-business, directory publishing and
advertising, and related services to businesses, consumers and other
telecommunications providers. SBC holds a 60 percent ownership
interest in Cingular Wireless, which serves more than 52 million
wireless customers. SBC companies provide high-speed DSL Internet
access lines to more American consumers than any other provider and
are among the nation's leading providers of Internet services. SBC
companies also offer satellite TV service. Additional information
about SBC and SBC products and services is available at www.sbc.com.

   Cautionary Language Concerning Forward-Looking Statements

   Information set forth in this news release contains financial
estimates and other forward-looking statements that are subject to
risks and uncertainties, and actual results may differ materially. A
discussion of factors that may affect future results is contained in
SBC's filings with the Securities and Exchange Commission. SBC
disclaims any obligation to update or revise statements contained in
this news release based on new information or otherwise.
   SBC is a registered trademark of SBC Knowledge Ventures, L.P. (C)
2005 SBC Knowledge Ventures, L.P. All rights reserved.