AT&T and Verizon Agree to Wireless Asset Swap

SAN ANTONIO, Dec. 4 /PRNewswire-FirstCall/ -- AT&T Inc. (NYSE: T) has announced a definitive agreement with Verizon Wireless to conduct a swap of wireless assets.

Under the terms of the agreement, AT&T will acquire -- upon Verizon's acquisition of Rural Cellular Corporation -- some former Rural Cellular properties, including licenses, network assets and subscribers, in the Burlington, Vt. metropolitan service area and in rural service areas (RSAs) in New York (RSA-2), Vermont (RSA-1, RSA-2B1) and Washington (RSA-2, RSA-3). AT&T will also acquire a cellular license from Verizon in Kentucky RSA-6.

Also under terms of the agreement, Verizon will acquire from AT&T some former Dobson Communications Corporation properties, including licenses, network assets and subscribers, in Kentucky RSA-6 and RSA-8. Verizon will also acquire 10 MHz of PCS spectrum in a number of markets and receive an additional cash consideration from AT&T.

As required, AT&T has also agreed to sell the Cellular One brand to Trilogy Partners. In addition, to fulfill the remaining divestiture requirements, AT&T has entered into a separate agreement with MTPCS, LLC to sell the former Dobson property, including licenses, network assets and subscribers, in Texas RSA-10 and AT&T's share of the former Dobson partnership holding licenses, network assets and subscribers in portions of Oklahoma RSA-5. Together, these transactions satisfy AT&T's divestiture requirements related to its recent acquisition of Dobson.

The transaction with Verizon will extend AT&T's coverage and services in New York, Vermont, the state of Washington and Kentucky. Consumers in those markets will gain access to the nation's largest digital voice and data network. AT&T's fully integrated GSM network covers more than 290 million people in 13,000 U.S. cities and towns.

All transactions were signed on December 3, 2007, and are contingent upon regulatory approval and are expected to close by mid-2008.

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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

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(C) 2007 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. For more information, please review this announcement in the AT&T newsroom at http://www.att.com/newsroom.

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 AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's Web site at http://www.att.com/investor.relations. Accompanying financial statements follow. Previously released pro forma comparisons are available on AT&T's Investor Relations Web site at http://www.att.com/investor.relations.

SOURCE AT&T Inc.