AT&T and Yahoo! Extend and Expand Strategic Alliance on Wireless and PC Screens

Companies Capitalize on Search and Advertising Capabilities on
Wireless and PC Screens to Reflect New Market and Growth Opportunities
SAN ANTONIO & SUNNYVALE, Calif.--(Business Wire)--AT&T Inc. (NYSE:T), the nation's No. 1 wireless and broadband
provider, and Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet
company, today announced a new multi-year strategic alliance that
paves the way for an even richer and more innovative online experience
for consumers - whether at home or on the go.

The agreement creates significant new advertising-based revenue
opportunities for both companies from search and display capabilities
from either a mobile handset or a PC.

The new phase of the alliance includes the following features:

-- A new look and feel for the att.net portal, "powered by
Yahoo!," beginning in the second quarter, for new customers.
Later in the year, the att.net portal, which will run on the
My Yahoo! and Yahoo! Mail platforms, will be available to
existing AT&T Yahoo! customers as well as those AT&T Internet
customers in the former BellSouth service area and those with
the legacy AT&T WorldNet service.

-- Yahoo! provides search and display advertising for AT&T
consumers on mobile devices and the PC.

-- Once the new att.net portal launches later this year, any AT&T
customer - even those without AT&T Internet service - can
access the new Web portal and e-mail services at no additional
charge. For example, an AT&T wireless customer in Seattle
could establish an att.net e-mail address and access e-mail
via a mobile smart device or a PC.

-- Access to co-branded versions of Yahoo!'s mobile Web
properties and the Yahoo! Go application for AT&T's 14.2
million broadband customers.

-- AT&T's YELLOWPAGES.COM becomes the lead local search
experience on both the wireless and PC screens for AT&T
customers, bringing easy-to-use local search capabilities to
customers at home or on-the-go.

-- AT&T U-verse TV(SM) customers continue to have access to
Yahoo! content through the service's interactive AT&T U-bar
feature, where available.

"Our goal is to connect our customers to their worlds, wherever
they live and work," said Randall Stephenson, chairman and CEO, AT&T
Inc. "This new agreement with Yahoo! reinforces AT&T's leadership in
wireless and broadband and enables both companies to bring their
respective strengths to the table to benefit AT&T's customers. It also
reflects the benefits of establishing strong alliances in business
today."

"Since 2001, the AT&T Yahoo! alliance has been a benchmark in both
the telecommunications and Internet industries," said Jerry Yang,
co-founder and CEO, Yahoo! Inc. "The combination of Yahoo!'s
innovative mobile and PC applications and advertising solutions, with
AT&T's leadership in customer connectivity, mobility and robust
networks once again raises the bar for the entire industry and further
establishes Yahoo! as a starting point for consumers on the Internet."

The agreement calls for revenue sharing, but detailed financial
terms were not disclosed.

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 AT&T Inc. and
the products and services provided by AT&T subsidiaries and affiliates
is available at http://www.att.com.

About Yahoo!

Yahoo! Inc. is a leading global Internet brand and one of the most
trafficked Internet destinations worldwide.Yahoo! is focused on
powering its communities of users, advertisers, publishers, and
developers by creating indispensable experiences built on trust.
Yahoo! is headquartered in Sunnyvale, California. For more
information, visit pressroom.Yahoo!.com or the Company's blog, Yodel
Anecdotal.

(C) 2008 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. Yahoo!,
Yahoo! Go, and the Yahoo! logo are trademarks and/or registered
trademarks of Yahoo! Inc. All other names are trademarks and/or
registered trademarks of their respective owners.

Note: For more information, please review this announcement in the
AT&T newsroom at http://www.att.com/newsroom. This AT&T release and
other news announcements are available as part of an RSS feed at
www.att.com/rss. For more information about Yahoo!'s mobile services
visit mobile.yahoo.com/newsroom.

Yahoo!
Nicole Leverich, 408-306-7129
nicolewl@yahoo-inc.com
or
AT&T
Jessica Ring, 314-982-8698
jring@attnews.us

Copyright Business Wire 2008