AT&T U-verse Achieves First Billion-Dollar Revenue Quarter

Network Strategy, Aggressive Service Expansion and Better Apps and Bundles Drive Customer Response.

AT&T* reported the first ever billion-dollar revenue quarter for AT&T U-verse� services during the second quarter of 2010. AT&T U-verse revenue and rapid customer growth are driven by a network deployment that reaches customer homes quickly and efficiently and an all-Internet Protocol (IP) service that delivers a better customer experience.

AT&T had 209,000 U-verse TV subscriber net additions to drive the U-verse TV subscriber total to 2.5 million, up by more than 900,000 over the past year. More than 75 percent of U-verse TV customers choose a triple- or quad-play of integrated U-verse TV, Internet, home phone and/or wireless services. The average revenue per user (ARPU) for U-verse triple-play** customers was nearly $160 a month, up 13.8 percent year over year and 6.8 percent from the first quarter of 2010.

AT&T continues to expand U-verse availability in new and existing markets. The AT&T U-verse fiber network passed 25 million living units at quarter-end. AT&T has also started deploying pair bonding, a new technology that allows it to expand U-verse services to even more customers.

�We�ve hit this significant milestone because we continue to focus on bringing a better TV experience than cable to more and more customers,� said Brian Shay, senior vice president of AT&T U-verse, AT&T Mobility and Consumer Markets. �Our fiber network strategy is helping us reach more homes faster, and customers recognize that bundling all their services with us gives them numerous benefits such as a better value and better features.�

Using its advanced Internet Protocol platform, AT&T continued to make several service enhancements for U-verse TV customers during the second quarter:

* Introduced My Multiview, the exclusive app that lets you choose and watch four of your favorite channels at the same time on your U-verse TV screen. The app is currently rolling out on a market-by-market basis.
* Launched ESPN 3D, the first 3D channel on U-verse TV.
* Expanded the U-verse High Definition (HD) channel lineup to include more than 130 HD channels.
* Began enhancements to U-verse TV HD capabilities so eligible customers can now watch up to three live HD streams simultaneously.
* Added new functionality to the U-verse YP.COM TV app, which gives customers the ability to locate and place a call to a business from their U-verse TV screen through any wireless, U-verse Voice or home phone number.
* Launched several interactive sports applications, including the first Spanish-language TV app from U-verse TV.
* Extended the U-verse brand across more screens with U-verse Online, the newly rebranded and expanded AT&T Entertainment website that lets you watch streaming TV shows, movies and video clips on your PC.
* Introduced new quad-play bundle offers which give consumers even more savings for bundling a complete bundle of U-verse TV, High Speed Internet, U-verse Voice and wireless services � a bundle option not available from most cable providers.

AT&T U-verse TV is the only 100 percent Internet Protocol-based television (IPTV) service offered by a national service provider, making AT&T U-verse one of the most dynamic and feature-rich services available today. AT&T U-verse TV ranked �Highest in Customer Satisfaction in the South and West Regions Two Years in a Row,� according to the J.D. Power and Associates 2008 and 2009 Residential Television Service Provider Satisfaction StudiesSM. Customers who want additional information on U-verse TV � or to find out if it�s available in their area � can visit www.att.com/u-verse.