AT&T Wins $1.6 Billion Global Deal With Shell

Agreement Represents AT&T's Largest Contract Win to Date with Company
Headquartered outside the US

THE HAGUE, Netherlands, March 31 /PRNewswire-FirstCall/ -- AT&T Inc.
(NYSE: T) announced today that Royal Dutch Shell (Shell) has selected AT&T to
be its global provider of advanced communications services. The five year
agreement, estimated to be worth $1.6 billion, calls for AT&T to provide,
manage and maintain Shell's worldwide communications infrastructure while also
managing the company's global mobility needs. It is one of the largest
commercial contracts ever signed by AT&T, and it's the largest agreement
signed with a company that is headquartered in Europe. The agreement is one of
three outsourcing contracts signed by Shell with key suppliers for networking
and IT services.
This agreement with Shell follows a series of other large and strategic
wins AT&T has secured in the past year, including deals with Starbucks,
General Motors, the U.S. Department of the Treasury, and IBM. All of these
wins underscore AT&T's position as the leading global telecommunications
service provider within the industry. The agreements with GM and the
Department of the Treasury are each worth up to $1 billion; the IBM agreement
is worth up to $5 billion.
Once the contract with Shell has been implemented, AT&T will provide
managed network services to Shell and its subsidiary companies in more than
100 countries. AT&T will deliver wide area and local area networks, voice
services (including Internet-based telephony), managed security solutions and
mobility services. Shell will benefit from access to AT&T's advanced global
Internet Protocol (IP) network to deliver cost effective, consistent, secure
and highly reliable services.
AT&T will provide direct connectivity to 1500 Shell corporate and
operating unit locations underpinning a range of services critical to Shell's
operations. AT&T will also manage more than 600 separate third party contracts
with more than 300 vendors around the world. These contracts include
agreements for local connectivity provided by regional telephone companies,
contracts with individual service providers and various other maintenance and
operations deals.
Shell employees will have access to AT&T's industry-leading position in
the wireless space both within and outside the United States and AT&T will
manage the cellular services contracts provided by other mobile operators.
AT&T will also support remote data access to Shell's Virtual Private Network
(VPN) service for more than 50,000 traveling users and home-based workers.
AT&T offers the largest integrated GSM network in the U.S., covering 290
million people, and has the largest international coverage of any U.S.
wireless carrier. Customers can make calls on six continents and in more
than 200 countries -- with wireless data-roaming in more than 145 countries
for laptops, PDAs and other data services and third-generation (3G) service in
60 countries.
Shell chose AT&T after an extensive evaluation and procurement process.
AT&T was able to offer Shell a world-class portfolio of IP-based products and
services, a consistent global approach to its operations, and the significant
local support Shell needs around the world. In addition, AT&T, a world-class
networking provider, will be able to offer IT professionals who are expected
to transfer to AT&T as part of the agreement the opportunity to further
develop their skills and careers.
"This important agreement with AT&T reflects our determination to
accelerate Shell's essential IT capability, optimize our operations and ensure
we can provide best-in-class IT services to support our global business," said
Alan Matula, Executive Vice President & Chief Information Officer for Shell.
Shell will retain core skills within its own IT organization, while being
able to access AT&T's world-class expertise in networking. Plus Shell will
benefit from AT&T's significant economies of scale. Approximately 560 Shell
networking professionals located predominantly in the Netherlands, Malaysia,
the U.K. and the U.S. are expected to transfer to AT&T, joining the company's
worldwide workforce of 300,000. AT&T will create dedicated service units in
these key hubs to ensure that Shell receives continued support at these
locations.
"We are delighted that Shell has chosen AT&T as its leading global
networking solutions provider," said Ron Spears, AT&T president, Global
Business Services. "We are committed to connecting Shell's worldwide
employees, partners and suppliers, while delivering and managing the array of
managed network services needed for the company to accelerate its business
performance.
"Providing connectivity and applications to world-class companies like
Shell is AT&T's core mission," said Spears. "I have every confidence that
AT&T will exceed Shell's expectations for anytime, anywhere global
communications."
AT&T provides advanced communications services to every company on the
Fortune 1000 listing. Large global corporations and organizations are
entrusting AT&T to build IP-based networks that will serve as the
telecommunications and I.T. backbone for the achievement of their strategic
business goals. Through the agreements with companies and agencies like GM,
IBM, and the Department of the Treasury, AT&T has been able to demonstrate
that it has the scale and scope required to execute these complex arrangements
on a worldwide basis.
Additionally, the contracts reflect how AT&T is capitalizing on the
ongoing shift in network traffic from voice to data -- and more importantly to
IP-based data -- as customers migrate from legacy packet networks to
Multiprotocol Label Switching (MPLS)-based VPNs and managed applications. The
company offers its multinational customer base consistent, resilient,
standardized IP services around the world. These services include IP-based
VPNs, which use the latest MPLS technology, and are complemented by an
advanced portfolio of data-hosting services, applications and leading IP
security offerings.
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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.
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 Shell
Royal Dutch Shell plc is incorporated in England and Wales, has its
headquarters in The Hague and is listed on the London, Amsterdam, and New York
stock exchanges. Shell companies have operations in more than 130 countries
with businesses including oil and gas exploration and production; production
and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing,
marketing and shipping of oil products and chemicals and renewable energy
projects including wind and solar power. For further information, visit
www.shell.com.
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logo and all other AT&T marks contained herein are trademarks of AT&T
Intellectual Property and/or AT&T affiliated companies.
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SOURCE AT&T Inc.

Niall Hickey, +44 207 663 5076, cell, +44 771 577 1451, niall.hickey@att.com;
or Jeannie Hornung, +1-212-453-2412, cell, +1-646-460-9470,
jhornung@attnews.us, both of AT&T