SBC: Texas Policy Changes Bring $800 Million in New Technology for State Consumers; New Video Competition, DSL Expansion Follow

  Governor Perry, State & Local Officials Unveil New Technology Lab,
          Highlight New Broadband Era for the Lone Star State

   Citing a new state law that experts say will shape national
communications policy, SBC Texas today announced an $800 million
investment in video and high-speed Internet access technology for the
state. The investment will give consumers a new competitive choice
over cable television, and will equip every SBC central office in
Texas with DSL technology.
   "As a direct result of strong state leadership and policies that
encourage investment in advanced technology, Texas consumers will have
more choices, better products and a much-needed alternative in the TV
and entertainment market," said Jan Newton, president of SBC Texas.
"Project Lightspeed will deliver next-generation services and
competition to consumers, and Texas again leads the way."
   Company officials were joined by Texas Gov. Rick Perry, numerous
state and local officials, and executives from Alcatel at their Plano,
Texas, IPTV Demonstration Center, in announcing one of the largest
single private-sector technology deployments in the state's history.
   Perry took part in a tour of Project Lightspeed technology that
will help usher in a new broadband era for the Lone Star State. SBC
has a five-year agreement with Alcatel to provide equipment and video
system integration services for Project Lightspeed.
   "With legislation such as Senate Bill 5, Texas sends a strong
message that our state welcomes and encourages technology
development," said Gov. Perry. "When you open the door to innovation,
investment follows. Today's announcement from SBC is simply the latest
example that Texas is well positioned to remain an economic leader in
the years ahead."
   As part of this investment, SBC Texas plans to deploy
approximately 5,500 miles of fiber optic wire and related network
technology in the state as part of Project Lightspeed. Project
Lightspeed is the SBC initiative to deploy fiber-to-the-neighborhood
and fiber-to-the-premises technologies to deliver IP-based video,
voice, and high-speed Internet access services to approximately 18
million households across 13 states as part of its initial deployment.
   Earlier this month, the Public Utility Commission of Texas granted
SBC authority to offer its advanced video services to customers in the
greater San Antonio area. The company plans to conduct its initial
controlled market entry in San Antonio, putting Texas at the forefront
of this exciting next-generation video technology that will bring a
robust competitive alternative to cable companies.
   In addition to the investment for ongoing deployment of Project
Lightspeed in Texas, SBC unveiled an extensive broadband expansion
effort:

   --  DSL broadband service will be added to the remaining 72
        suburban and rural SBC Texas central offices that do not have
        the capability today, meaning that all of the company's 535
        central offices in Texas will be wired to provide the service
        to eligible customers.

   --  In addition, through the installation of "neighborhood
        gateways," which use fiber-optic technology to expand the
        reach of existing DSL service, SBC Texas is bringing DSL
        service to another 228 neighborhoods in dozens of communities
        throughout the state by the end of the year. These moves will
        put advanced broadband service within reach of the vast
        majority of cities and towns served by SBC Texas.

   "We will invest millions to bring DSL service to more Texas
communities than any other company," said Newton. "This means that the
vast majority of cities and towns we serve in this state will have
access to our advanced broadband services. That's a landmark Texas can
be proud of, and smart laws like Senate Bill 5 are the reason why."
   On Sept. 7, Gov. Perry signed into law Senate Bill 5, legislation
championed by Sen. Troy Fraser and Rep. Phil King. Passed
overwhelmingly by the legislature, this telecommunications reform act
encourages new entrants into the video market and stimulates
investment in advanced technologies.
   "I knew there would be investment announcements like this if our
state was ready to lead the way through bold communications policy,"
said Rep. Phil King. "Senate Bill 5 was the result. Consumers will no
doubt reap the benefits. But so will our state through additional
investment in technology that is sure to come."
   "I'm excited about the investment of these additional dollars into
the Texas economy," said Sen. Troy Fraser. "This proves what we knew
all along - Senate Bill 5 creates an environment that encourages
investment in new, cutting-edge technology in all aspects of the
communications industry. This investment will help give Texas
consumers more choices, innovative products and greater competition in
the marketplace."
   The Texas legislation has already drawn nationwide recognition.
The law is seen as benefiting consumers by creating a 21st Century
regulatory environment that encourages greater competition and
investment across the communications marketplace. Additional key
provisions of the law include:

   --  Streamlining regulation of communications services to promote
        competition, and deliver better products.

   --  Expansion of the Texas Universal Service Fund's Lifeline
        Program, which provides discounts on telecommunications
        services to less fortunate Texans.

   --  Continuation of discounts of certain high-speed services for
        schools, universities, public libraries and non-profit
        healthcare entities through January 1, 2012.

   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.