AT&T Targets Close To $1 Billion Of Investment To Deploy Global Network-Based Cloud And Mobility Solutions For Businesses

Company to Focus on New-Generation Services Like Mobile Applications, 'as-a-Service' Cloud Based Solutions and Network Sourcing for Companies of All Sizes Across Multiple Industries

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Responding to demand for solutions that help businesses dramatically improve productivity and efficiency and reduce costs, AT&T* today said that it is accelerating plans to deploy global network-based cloud, mobility and network sourcing solutions to companies across a range of industries, internationally.

AT&T is planning investments totaling nearly $1 billion in 2011 to deploy next-generation services for businesses. (Note: the nearly $1 billion investment is part of AT&T's previously announced planned $19 billion capital budget for 2011). The new services are largely made possible by the unprecedented proliferation of high-speed wired and wireless networks, smart mobile computing devices and network-based applications.

The company intends to invest in key focus areas - like enterprise mobility applications and cloud/as-a-service enhancements - while also rolling out platforms, systems and e-capabilities to significantly automate, enhance and simplify business customers' experience and support. AT&T is targeting its investment to companies and institutions in industries such as manufacturing, retail, hospitality, healthcare and automotive.

"We continue to invest significantly in cloud-based, mobility and network sourcing solutions because customers are increasingly recognizing that transformative services like these increase productivity, improve operational effectiveness and lower costs," said John Stankey, president and CEO of AT&T Business Solutions.

"We are seeing strong growth in Europe and this investment will help underpin that. In 2010 we saw growth of around 8% - numbers which have been driven by the acquisition of new clients; demand from our existing customers for services that help their own business transformation; and also the sale of value-added services to our customers," said Andrew Edison, head of AT&T's operations in Europe, Middle East and Africa. "Telepresence sales for instance, increased three-fold in Europe in 2010, and we saw over 60% growth across value added services portfolio, including network acceleration, hosting, security and application management solutions. Today's investments evidence our commitment to continue strengthening the foundation of our network in this important region."

Revenues from these and other new-generation capabilities which represent AT&T's most advanced business solutions - including ethernet, virtual private networks, hosting, IP conferencing and application services - grew 18.8 percent in Q1 2011 versus the year-earlier quarter -- their strongest growth in more than two years. Looking at key individual solutions in the same period, international revenues for virtual private networks, hosting revenues, and network sourcing revenues achieved double digit percentage year-over-year quarterly growth outside of the U.S.

AT&T's 2011 investment priorities for business customers include:

- Advanced Mobility Solutions and Connected Devices: In 1Q 2011, AT&T added 1.6 million emerging devices, which included connected devices and embedded computing devices such as tablets, netbooks, and laptops. More than 12 million emerging devices are now connected to the AT&T network. AT&T has seen the use of mobile applications triple since 2009.

- Cloud Based and Emerging Services: AT&T has embedded cloud capabilities directly into its network so that the company can manage and deliver services and applications as part of a total solution to any device. These services offer customers tremendous flexibility and shared economics for their compute and storage needs - and are all protected by AT&T's industry-leading network-based security solutions.

- Global Enterprise Networking: AT&T has focused investment in business-focused networks, systems and applications to provide a globally consistent set of robust and highly-secure services for our 1700 target multinational customers. More than 70 percent of AT&T's frame relay customers have made the transition to IP-based solutions, which allow them to easily add managed services such as network security, cloud services and IP conferencing on top of their infrastructures.

AT&T's business customers include all of the Fortune 1000 companies, over 50% of the FTSE companies, more than 85% of the CAC 40 companies, over 80% of the DAX companies and over 60% of the Nikkei 225 companies.

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.
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