AT&T U-VERSE TV TO INCLUDE ANIME NETWORK ON DEMAND

SAN ANTONIO, Sept. 27, 2006 — AT&T Inc. (NYSE: T) today announced a distribution agreement with Anime Network, which will deliver its on-demand programming as part of the AT&T U-verseSM TV channel lineup.

Under the agreement, AT&T U-verse TV customers will have access to Anime Network On Demand, which offers thousands of hours of the latest anime programming directly from Japan. AT&T U-verse TV and Anime Network On Demand will offer free, subscription and transactional video-on-demand (VOD) options.

“AT&T U-verse TV delivers a unique viewing experience that is centered around our customers and the content they are passionate about,” said Richard Wellerstein, vice president of VOD programming, AT&T Operations, Inc. “Anime Network will give AT&T U-verse customers the flexibility to watch their favorite anime shows any time they please through our robust on-demand library.”

“We’re proud to bring the art and entertainment of anime to the AT&T U-verse experience,” said Kevin McFeeley, vice president of affiliate sales and new media, Anime Network. “Our programming lineup resonates not only with devoted anime fans but also with other segments of today’s tech-savvy consumer audience, such as video gamers and action/adventure enthusiasts. We look forward to working with AT&T in reaching even more viewers as part of their exciting new service.”

AT&T U-verse TV is delivered by Project Lightspeed, the company’s initiative to expand the fiber-optics network deeper into neighborhoods to deliver U-verse TV, AT&T Yahoo!® High Speed Internet U-verse Enabled and, in the future, Voice over IP services. Through its subsidiaries, AT&T expects to reach nearly 19 million households by the end of 2008 as part of its initial deployment, using fiber-to-the-node (FTTN) and fiber-to-the-premises (FTTP) technologies.

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About AT&T

AT&T Inc. is one of the world's largest telecommunications holding companies and is the largest in the United States. Operating globally under the AT&T brand, AT&T companies are recognized as the leading worldwide providers of IP-based communications services to business and as leading U.S. providers of high speed DSL Internet, local and long distance voice, and directory publishing and advertising services. AT&T Inc. holds a 60 percent ownership interest in Cingular Wireless, which is the No. 1 U.S. wireless services provider with 57.3 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.att.com.

About Anime Network

Anime Network, a subsidiary of A.D. Vision Inc. (parent company to ADV Films and Newtype USA), is America’s #1 anime channel, reaching more than 40 million households with thousands of hours of exciting, eye-catching serialized programming. Launched in North America in late 2002, Anime Network is the nation’s top video-on-demand (VOD) offering, and is also available as a 24/7 linear channel in several U.S. markets. The network continues to broaden its national roster of multi-system operator (MSO) agreements, bringing the elusive 18–34, tech-savvy male demographic back to television and driving demand for additional digital services offered by MSOs. For more information, visit www.theanimenetwork.com.

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