AT&T to Provide Data Hosting Services For Microsoft Exchange Hosted Services

REDMOND, Wash., Aug. 2, 2006 - AT&T Inc. (NYSE: T) announced today a contract with Microsoft Corp., the worldwide leader in software, services and solutions. AT&T will provide co-location hosting and Internet connectivity for its newly launched Microsoft Exchange Hosted Services (EHS). The service offers fully managed messaging services that help organizations protect themselves from e-mail-borne malware, satisfies retention requirements for compliance, encrypts data to preserve confidentiality, and preserves access to e-mail during and after emergency situations. The deal creates a networking solution for the Microsoft EHS platform, which supports AT&T Secure E-Mail Gateway service, to maximize performance for enterprise customers.

The contract with AT&T provides Internet Data Center (IDC) space and Internet connectivity to support EHS services, including Hosted Filtering (policy, anti-spam, and antivirus message filtering), Hosted Archive, Hosted Continuity, and Hosted Encryption. Leveraging the long-standing relationship between the two companies, Microsoft looked to AT&T for an expeditious implementation.

"AT&T is a trusted global provider of IP-based communications services with a proven track record and Microsoft highly values this relationship," said Eron Kelly, director of Exchange Server Marketing at Microsoft Corp. "Our customers rely on Exchange Hosted Services to help protect their network from the growing number of viruses and spam, and we are thrilled to work with AT&T to meet this demand."

AT&T's Secure E-Mail Gateway Service, based on the Microsoft EHS platform, offers enterprise business customers a variety of benefits, including virus scanning, content filtering and spam filtering. These features enable enterprises to lower their total cost of ownership of enterprise message security while off-loading its scarce IT resources.

"With our industry-leading global IP network, AT&T has a unique opportunity to strengthen the Microsoft Exchange Hosted Services offering," said Chris Costello, director of hosting and utility computing at AT&T. "We've worked diligently to create an efficient and highly functional hosting portfolio, leveraging the assets and strengths of the new AT&T to meet the various needs of our clients."