Dallas, Texas — AT&T* today completed its divestiture of Sterling Commerce to IBM (NYSE:IBM). AT&T, which acquired Sterling Commerce in 2000, received approximately $1.4 billion in cash and expects to record a one-time pretax gain of approximately $800 million in the third quarter of 2010.

The divestiture is consistent with AT&T’s focus on developing and providing a full portfolio of networking-based solutions and services, including network- and cloud-based data storage and managed hosting, application and computing services, to its business customers. AT&T remains committed to its strategic alliance with IBM, AT&T’s largest customer, to provide a unified set of telecommunications and computing services to multinational corporations across the globe.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

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. With a powerful array of network resources that includes the nation’s fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T |DIRECTV brands. The company’s suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE® magazine.

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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.