AT&T’s support for the LULAC Empower Hispanic America with Technology Initiative is just one snapshot of our citizenship commitment. With the help of $2.5 million in grants from AT&T, LULAC has developed 55 community technology centers in low-income Hispanic communities.

Connecting With People, Everywhere They Live and Work AT&T’s Corporate Citizenship Commitment

AT&T Citizenship: Contents

3AT&T Citizenship

• Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

• Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Community

• Philanthropy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

• Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

• MilitaryandVeterans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

• Volunteerism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Diversity

• Diversity&Inclusion:Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11

• African-Americans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

• Asian-Americans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

• Hispanics/Latinos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

• LGBTCommunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18

• NativeAmericans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20

• PeoplewithDisabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

• Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23

• SupplierDiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

Environment

• Stewardship,EnergyConservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27

• WasteReduction,Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28

• ProductsandServices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29

Governance

• CodeofEthics,CodeofBusinessConduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

• EthicsandEEOLine,CorporateGovernanceGuidelines,ResponsibilitytoStockholders . . . . . . . . . . . . . . .31

AT&T Citizenship:Commitment

A quest to connect people — when, where and how they want. Apassiontodelivermeaningfulinnovation.And,everystepalongtheway,adevotiontoouremployeesandtoserveourcustomersandcommunities.

AtAT&T,wepromisealwaystoactresponsiblyonbehalfofourcustomers,stockholdersandemployees,andtoimprovethequalityoflifeinourcommunities.

Ourcorporateresponsibilitycommitmentencompasses:

Butwhy?Yes,it’stherightthingtodo—andthat’sparamount.And,yes,it’sgoodbusiness. AtAT&T,webelievethatgoodcitizenshipspursgrowth,createsstabilityandtriggersnewopportunitiestohelptheworldcommunicate.

It’scalledconnecting.It’swhatwe’vealwaysdonebest.

Governance...aswedemandhonestandethicalconductin allofouroperations

. . . and have pioneered someofthemostmeaningfulinnovationsinmodernhistoryandhaveimprovedtheway people live and work

Environment… where we work to championairpollutionreduction,environmentalresearch,wastereductionand energy conservation

… and keep the workplace safeandhealthybyintegratingsoundpracticesintoourbusinessdecisions

Diversity…withaworkforcethatismorethanone-thirdpeopleofcolorandnearlyhalfwomen

…andanenduringlegacy as a pioneer in supplierdiversity–including$5billion in spending in 2007

Community…whereourAT&TFoundationhasprovided$1.9billionincharitablesupportnationwide

. . . and nearly 365,000 employeesandretireesformpartofthelargestindustry-sponsoredvolunteergroupintheU.S.

Community: Philanthropy

ALookatOurGiving

>AT&TandtheAT&TFoundationhaveprovided

morethan$1.9billionincharitablesupportto

communitiesacrossthecountry.

>In2007,AT&Tcontributedmorethan$164million

throughcorporate-,employee-andAT&T

Foundation-givingprograms.

> ForbesmagazinerankedtheAT&TFoundation

No.11onits2006Top25MostGenerous

CorporateFoundationslist.

>TheAT&TFoundationisrankedamongthe

largestcorporatefoundationsbytheChronicle

of PhilanthropyandtheFoundationCenter.

StrengtheningNeighborhoods, EnliveningCommunities

>EducationistheprimaryfocusofAT&T

philanthropy.Morethan$45millionwasgiven

tosupporteducationinitiativesacrossthe

nationin2007,andAT&Tcontinuestoinvestin

programsthatenhanceandenablesuccessin

educationforstudentsofallages.

>Thecompany’scommunitydevelopment

initiativeshelpcommunity-basedorganizations

servetheneedsoftheirneighborhoodsthrough

expandededucationalopportunitiesand

increased technology access .

>AT&TiscollaboratingwithOneEconomy,Habitat

forHumanityaffiliatesandotherlow-income

housingproviderstodelivertechnology

packages and provide increased access to

educational,jobandworkforceresourcesto

50,000low-incomefamilies.

>ThroughtheAT&TExceleratorprogram,AT&Thas

givenmorethan$47.8millionincompetitive

grantstohelpmorethan2,500community-

basedorganizationsintegratetechnologyinto

theiroperationsandcommunityoutreach.

Advancing education. Strengthening communities. Improving lives. ThesearethegoalsofAT&TandtheAT&TFoundation,thecorporatephilanthropyorganizationofAT&TInc.Wefundprogramsthatcreatelearningopportunitiesandmeettheneedsofdiversecommunities acrossthecountry.

AT&T,OneEconomyandHoustonHabitatforHumanitypartneredtobringin-homeInternetaccessandtechnologytoolstomorethan30low-incomeHoustonfamiliesin2006.Here,AT&TTexasPresidentJimEppersonjoinstheefforttomakeaffordabletechnologyavailabletoasmanyhomesaspossibleand tomakeapositiveimpactontheHoustoncommunity.

Community:Education

SupportforEducation

>In2007,AT&TandtheAT&TFoundation

providedmorethan$45milliontosupport

educationinitiativesacrossthenation.

>Since1996,theAT&TFoundationhas

distributedmorethan$428milliontosupport

academicachievement,newclassroom

technology,after-schoolprograms,teacher-

trainingandmanyothereducationalendeavors.

>In2007,theAT&TFoundationlauncheda

$1.5millioncompetitivegrantprogramtohelp

nonprofitorganizationsintegratewireless

communicationstechnologyintoeducational

projects.Theprogramisdesignedtohelpthese

organizationsdelivereducationalcontentand

createinnovativelearningopportunitiesinthe

communitiestheyserve.

>TheNationalCouncilforCommunityand

EducationPartnershipsfortheGainingEarly

AwarenessandReadinessforUndergraduate

Programs(GEARUP)received$10millionfrom

2004to2006tohelplow-incomestudents

succeedacademicallyinmiddleandhigh

schoolandgoontopost-secondaryeducation.

>AT&Thasprovided$4.5milliontosupportdiverse

collegescholarshipprogramssince2000,

includingtheUnitedNegroCollegeFund,the

HispanicScholarshipFund,theThurgoodMarshall

ScholarshipFund,theAsianandPacificIslander

AmericanScholarshipFundandtheNational

ActionCouncilforMinoritiesinEngineering.

>Since2005,GeorgeWashingtonUniversityhas

received$882,000toestablishandsupport

theAT&TNativeAmericanScholarsProgram,

afirst-of-its-kindpoliticalleadership

developmentscholarshipprogramforNative

Americancollegestudentsattheuniversity’s

GraduateSchoolofPoliticalManagement.

Education – for students of all ages. That’stheprimaryfocusofphilanthropyatAT&T.Indeed,ourAT&TFoundationinvestsineducationalprogramsthatareenhancedbytechnologyandthatteachstudentsthenecessaryskillsinordertosucceedinanever-expandingglobaleconomy.

LauraSanford,presidentoftheAT&TFoundation,interactswithastudentattheBoys&GirlsClubofSanAntonio-CalderonBranch.Alongtimesupporteroftheorganization,AT&Tfundedanewcomputertechnologylabin2006fittedwitheducationalsoftwaretohelpchildrenwiththeirhomeworkassignments.

Community:Education

>Since2004,theUniversityofWisconsin

Foundationhasreceived$375,000tosupport

thePre-CollegeEnrichmentOpportunity

ProgramforLearningExcellence(PEOPLE)

program,whichprovidesacademicenrichment

tominorityanddisadvantagedyouthfrom

publichighschoolsthroughoutWisconsin .

SupplierDiversityEducationSupport

AT&Twasamongthefirstcorporationstosponsor

andpartnerwitheducationalinstitutionsinorder

toofferexpertgraduate-leveltrainingprograms

forminority-,women-anddisabled-veteran-

ownedbusinesses.

Diversityfirmsthatwanttoworkwithlarge

corporationsmustmasterbusinessbasicsbefore

becomingcorporatestrategicpartners.AT&T

investsinsuppliereducationtohelpdiversity

firmsimprovebusinessoperationsandtransform

theirbusinesseswhentheyarereadyforthenext

levelofgrowth.SeveralofAT&T’smoststrategic

diversitysuppliersaregraduatesandadvocates

oftheformaleducationalprogramsthatare

supportedbyAT&T.

>AT&Tsponsorsseveralentrepreneurprograms,

whichprovidein-depthbusinesstheoryand

applicationclassesfordiversity-owned

companies,atuniversitiesaroundthecountry,

includingUCLA,NorthwesternUniversity,

DartmouthCollegeandtheUniversityof

Wisconsin-Madison.

>In2006,AT&TwaspresentedwiththeInvestor

inEducationAwardbytheTuckSchoolof

BusinessatDartmouthCollegeforits

exceptionalcommitmenttosupplier

development.

>In2006,NorthwesternUniversity’sJ.L.Kellogg

GraduateSchoolofManagement,in

conjunctionwiththeNationalMinoritySupplier

DevelopmentCouncil(NMSDC),bestowedits

inauguralNMSDCAdvancedManagement

EducationProgramAlumniAwardonAT&Tfor

itsleadershipineducatingminoritybusinesses.

>Since2000,theAT&TFoundationhasgranted

morethan$623,000indiversitysupplier

educationalscholarshipsandprogramming.

TheAT&T/OneEconomygrantprogramhelpslow-incomefamiliesaccesseducationalandworkforceresourcesbyprovidingin-hometechnology.HabitatforHumanityhomeownerTomMartinezandhisfamilyhavebeenusingtheircomputerandInternetpackagesince2006.They werethefirstof35familiesinAustin,Texas,thathavebeenconnected .

SupportingMilitaryPersonnel

>Formorethan85years,AT&Thasremained

dedicatedtosupportingactivemilitary

personnel,theirfamiliesandveterans

throughcharitablecontributions,

sponsorships,thehiringofmilitary

veteransandmaintainingpoliciesthat

supportreservistswhencalledtoduty.

>Since2000,AT&Thasdonatednearly$8millioninfreeprepaidphonecardstomilitary

membersandhasprovidednearly$6million

ingrantsthatsupportmilitarymembersand

relatednonprofitorganizations.

> SinceJanuary2006,AT&Thasdonatedmore

than$4millionworthofprepaidphonecards

tohelpsupportU.S.militarymembersand

theirfamilies.Thesedonationsincludedirect

distributionstotroopsservinginIraq,Kuwait,

Afghanistan,SouthKorea,JapanandEurope.

>Thecompanyalsohasbuilt70callingcenters

inIraq,KuwaitandAfghanistanthathelp

keepmilitarymembersintouchwiththeir

families.

CellPhonesforSoldiers

> InJuly2007,AT&TannouncedeffortstosupportCellPhonesforSoldiers(CPFS),a

charitythatcollectsandrecyclesused

wirelessphones,thenusestheproceedsto

purchaseprepaidphonecardsformilitary

membersoverseas.

> AT&TandCPFShavesetagoalofraising $1.4millionworthofprepaidcardsinthe

firstyearoftheirrelationship.Thisgoalwill

enableeverymilitarymemberstationedin

Iraqtomakeafree20-minutephonecallhome.

> Tohelpthecharityreachthisgoal,AT&Thas: -Openedall1,800AT&T-ownedretailstore

locations,inmorethan1,100citiesacross

theU.S.,toserveascellphone-recycling

drop-offsitesforCPFS.

-Committedtodonatingmorethan$500,000

infreephonecardsandextendedavolume

discountforpurchasingcards.

-Extendedanationalcall-to-actionforcell

phone-recyclingduringtheholidaysand

launchedanewonlinetoolforholidaygiving

atwww.att.com/holidayconnect.

A salute from all of us at AT&T to the brave men and women of our armed forces — includingmorethan1,800AT&TemployeeswhohavebeencalledtoactivedutysinceSept.11,2001,and especiallytothe270whoarecurrentlyservinginthemilitary. AT&Thasalongandunbreakablecommitmenttothoseinuniform.

Community:MilitaryandVeterans

AT&TsupportsCellPhonesforSoldiersfoundersBrittanyandRobbieBergquist.Theteenagesister-brothertandemfromMassachusettsstartedtheprogramin2004afterhearinganewsreportaboutalocalsoldierwhoranupalargephonebillcallinghomefromIraq.

Community:MilitaryandVeterans

CommunityInvestment

> Since2000,AT&TandtheAT&TFoundationhave

providedmorethan$6millioningrantsand

contributionstoorganizationsthatserveactive

militarymembersandveterans,includingthe

USO,VFWandtheAmericanG.I.Forum.

> TheAT&TFoundationhasalsoprovided

significantsupportfornationalmemorialsand

monumentsthatcommemoratethemilitaryand

veterans,including$3milliontotheWorldWarII

Memorialand$1milliontothePentagon

Memorial.

StrivingtoBeanEmployerofChoice

>From2004to2007,G.I. Jobsmagazinehas

recognizedAT&TasoneoftheTop50Most

Military-FriendlyEmployers.

>AT&Tprovidesmultiplebenefitstoitsmilitary

employees,includingdifferentialpayforthose

whoreporttoactivedutyandbenefitsoptions

toemployeesandtheirfamilies.Inaddition,AT&T

guaranteeseitherthesameorasimilarposition

uponanemployee’sreturnfromservice.

>In2006,AT&Tofficiallyrecognizedanew

employeeresourcegroup,theAT&TVeterans.

Thisgroupcoordinatesfundraisingopportunities

andpartnershipswithorganizationsthatsupport

active-duty,reserveandretiredU.S.armed

servicespersonnelandtheirfamilies.Italso

organizescompany-sponsoredeventsinhonor

ofVeteransDayandMemorialDay.

>AT&Tpursuesrecruitingopportunitieswith

active-duty,reserveandretiredU.S.armed

servicespersonnelbyattendingjobfairsand

hostingpresentationsatmilitarytransitioncenters

orbases.

EconomicDevelopment

>AT&T’sDisabledVeteranBusinessEnterprise

(DVBE)Program,establishedin1993,helps

ensurethatdisabled-veteranbusinessenterprises

areincludedinthegroupofeligiblesuppliers

consideredforthecompany’scontracts.

>AT&ThasbeenrecognizedasoneoftheBest

CorporationsforVeteran-OwnedBusinesses

byVeterans Business Journalmagazine.

>In2007,AT&Tspent$49.3millionwithdisabled-

veteran-ownedbusinesses.

>In2005,theAssociationforServiceDisabled

Veterans(ASDV)awardedAT&TthePatriotPartner

AwardforitsleadershipinDVBEprograms

andforbeinganadvocateforincreasing

DVBEopportunities.In2006,AT&Twas

recognizedagainwiththeSustainedService

Awardforunwaveringsupportofdisabled-

veteran-ownedbusinessprograms.

InadditiontodonatingprepaidphonecardsforU.S.militarymembersstationed overseas, AT&Thasbuilt70callingcentersinIraq,KuwaitandAfghanistan.

Community:Volunteerism

More than 14.3 million hours of personal time have been devoted to community outreach activities.That’sinexcessof$257millionworthofvolunteertime—in2006alone.Yes,theAT&TPioneersareabusyandbig-heartedlot.Ateamofemployeeandretiredvolunteersnearly365,000strong,thePioneersprovidelife-enhancingsupportto thecommunitiesinwhichtheyliveandwork.

OurVolunteers

>TheAT&TPioneersformpartofthelargest

industry-sponsoredvolunteerorganizationin

thecountry,withnearly365,000AT&T

employeesandretireesservingtheir

communities.

>ThemainfocusoftheAT&TPioneersis

providingimmediatehelpwhenitisneeded,

alongwithcreatingeducationalandcommunity

programsthatimprovethequalityoflife.

>Withinthetelecomindustry,AT&Tistheonly

companythatstillprovidesadedicatedstaff

formanagingandadvancingthegoalsof

corporatevolunteerism.

AdvancingEducation

>FromNewYorktoCalifornia,AT&TPioneers

havejoinedforceswiththeOASISInstituteto

helpmatureadultslearnthetechnologyskills

thattheyneedtore-entertheworkforceor

tovolunteerintheircommunities.

>AT&TPioneershavedistributedthousands

ofdictionariestostudentsthrough

TheDictionaryProject,whichhelpsstudents

betterunderstandourcomplexworld.

>ThroughProject:Connect,whichisdesigned

toteachstudentshowthetechnologiesthat

theyusework,AT&TPioneersprovide

teacherswithonlinevideogamesthatenable

studentstohavefunwhilelearningabout

technologiessuchase-mail,compression,

fiberoptics,cable,satellite,cellularandVoIP.

>Since1960,theTalkingBookRepairprogram

hasbroughtthejoyoftheprintedwordto

thosewhocannotsee.Eachyear,AT&T

Pioneersrefurbishmorethan135,000special

cassette-andrecord-playingmachines.More

than2millionmachineshavebeen

refurbishedtodate.

TheAT&TPioneersdonatedmorethan5,000dictionaries to35schoolsinNorthernCaliforniainthefallof2007 aspartofTheDictionaryProject.PicturedisAT&TPioneerTonieJohnsonwithstudentsatPacificElementarySchool inSacramento.

Community:Volunteerism

>Eachyear,hundredsofchildrenvisitthe

CaliforniastateCapitolaspartofAT&T’sannual

KidsDaysattheCapitol.Thetwo-day,interactive,

hands-oneducationalprojectteachesfifth-

gradershowabillbecomesalawinCalifornia.In

2007,morethan600participatingstudentswere

involvedinthemocklegislation.

SupportingOurCommunities

>AT&TPioneersdonateanddeliverhundredsoffood

basketstoareafoodbanksforfamiliesinneed.

>Since1997,AT&TPioneershaveworkedwith

HabitatforHumanityInternationaltobuild

homesacrossthecountry.

>In2007,theAT&TFoundationprovided

$230,000ingrantsto46organizationsthrough

theAT&TCARESprogram.Throughtheprogram,

employeeresourcegroups,Pioneerchaptersand

otherqualifiedinternalorganizationswhohave

providedaspecifiednumberofvolunteerism

hourstothecommunityareallowedtonominate

anonprofitorganizationtoreceiveaone-time

$5,000grant.

>TheDallasCouncilPioneerscollectedmorethan

$40,000worthofsupplies,includingbabyand

children’sfoodandclothing,forthePlano

Children’sMedicalClinicin2007.

SupportforOurTroops

>AT&TandtheAT&TPioneershaveconnected

hundredsoftroopsservinginIraqwiththeir

familymembersandhaveallowedthemto

talk via a video online chat session .

>Since2003,theAT&TPioneershaveplaced

aspecialfocusonsupportingourtroops.

Pioneershavepackagedandsentoutmore

than5,000carepackagestotroopsinIraq.

>AT&TPioneershaveteamedupwithAT&T

LongDistancetoprovidefreecallingcards

andtoconnectcurrentmilitarypersonnel

andveteransinVAhospitalsandnursing

homeswiththeirfamilies.

>In2007,AT&TPioneersintheBayAreaand

Nevadaheldamotorcyclerallywith120bike

riderstoraisefundsforthelocalVAhospital.

Thefundsraisedprovidesupporttoveterans

returningfromIraq.

AT&TemployeesstandwithPCMCDirectorSusanShulerandCollinCountyCommissionerPhyllisColeinfrontofjustasmallportionoftherecord-breakingnumberofitemsdonatedbyAT&TtothePlanoChildren’sMedicalClinicduringafive-daycollectioneffort.

AT&TPioneerstookthecompany’scommitmenttoconnectingpeople, everywhere they live and work, to a new level when theyconductedaweddingfortwoU.S.soldiersin2006. FromSt.Louis,KatieFieldswedFredMatney,stationed inSouthKorea,whileajusticeofthepeaceofficiatedfromMontana—allviaspecialvideoconference.

Diversity and Inclusion:Overview

“For AT&T, diversity and inclusion will always be top priorities. Westrivetobeaninnovativecompanythatsuccessfullyleveragesdiversityandinclusiontodriveemployeeengagementanddeliver world-classproductsandservices.Inthemidstofcontinuouschange, werecognizethatoursuccessisdirectlyrelatedtounderstandingandleveragingthemanyfacetsofdiversity—inourworkplace,themarketplaceandourcommunities.”

—RandallStephenson ChairmanandChiefExecutiveOfficer

StrivingtoBeanEmployerofChoice

>AT&T’semployeeresourcegroupsareopen

toallemployeesandsupportthecompany’s

commitmenttodiversityandinclusion.The

company’s10resourcegroupsinclude:

•AsianPacificIslandersforProfessional

andCommunityAdvancement(APCA)

•AT&TVeterans

•African-AmericanTelecommunications

ProfessionalsofAT&T(Community

NETwork)

•FilipinoAmericanCommunications

EmployeesofAT&T(FACES)

•Hispanic/LatinoEmployeeAssociation

ofAT&T

•Inter-TribalCouncilofAT&T

Employees(ICAE)

•IndividualswithDisabilitiesEnabling

AdvocacyLink(IDEAL)

•Lesbian,Bisexual,Gayand

TransgenderedUnitedEmployeesat

AT&T(LEAGUE)

•OrganizationofAsianIndians

atAT&T(OASIS)

•WomenofAT&T

>Today,AT&T’s50-stateworkforceis44percent

femaleand39percentpeopleofcolor.

>DiversityIncrankedAT&TNo.3amongits2007

Top50CompaniesforDiversity.AT&Talsowas

rankedNo.3amongtheTop10Companiesfor

RecruitmentandRetention.

CommunityInvestment

>In2006,AT&TandtheAT&TFoundation

contributedmorethan$36millionand

supportednearly1,200organizations

andprogramsthatenrichandstrengthen

diversecommunitiesnationwide.

OutreachtoConsumers

>Inatypicalmonth,AT&Tcustomerservice

representativesinU.S.callcentersconverse

withcustomersinmorethan170languages,

fromSpanish,French,GermanandRussianto

Japanese,Vietnamese,ArmenianandPunjabi.

As an employer, a business partner and a service provider of choice for African-Americans,AT&Thaslongbeeningrainedinthiscommunity.Today,African-Americansmakeup21percentofthecompany’semployeebase.Butbeyondthenumbers,AT&Tislooking tomakeapositive,dailydifference—onavarietyoffronts.

StrivingtoBeanEmployerofChoice

>In2007,AT&TwasrankedNo.1amongthe

Top10CompaniesforAfrican-Americansby

DiversityInc.

>AT&Twasrecognizedin2007asoneofthe

Top50CompaniesforBlackMBAstoWork

ForbyBlack MBA Magazine.

> Family DigestratedAT&Tasoneofthe

BestCompaniesforAfrican-Americansin

2006 and 2007 .

>Alsoin2006,theNationalActionCouncilfor

MinoritiesinEngineering(NACME)recognized

AT&Tforitsworksupportingeducationandlocal

communitiesandmorethan30yearsof

commitmenttoNACME’sscholarshipprograms

and research activities .

>AT&T’sHBCUCampusChallengeisaunique

marketingcompetitioninvolvingstudentsfrom

HistoricallyBlackCollegesandUniversities.

Throughthechallenge,studentsareintroduced

tohands-on,real-worldmarketingendeavors

whileearningscholarshipsforthemselvesand

grantsfortheirinstitutions.

>CommunityNETwork,theAfrican-American

TelecommunicationsProfessionalsofAT&T,

supportsthecompany’scommitmentto

inclusionthroughitseffortsintheworkplace,

themarketplaceandthecommunity.

AT&Thasalongandstronglegacyofworkingwithcommunityorganizationsfocusedonempoweringdiversecultures.Here,staffmembersfromAT&T,thetitlesponsorforthethirdannualTexasDiversity&LeadershipConference,meetwithretiredGen.ColinPowell.

Diversity and Inclusion:African-Americans

CommunityInvestment

>In2006,theNationalUrbanLeaguereceived

a $1.6milliongranttocreateorexpand

16DigitalCareerAcademieslocatedatUrban

Leagueaffiliatesacrossthecountryandto

providehigh-techcareertraining.Thegrant

buildsona$1.07millionAT&TFoundationgrant

totheNationalUrbanLeaguein2004.

>Since2000,theAT&TFoundationhasprovided

nearly$4.5millioninsupporttodiverse

scholarshipprograms,includingtheUnited

NegroCollegeFund.

>AT&Thasastronghistorywithorganizations

focusedontheempowermentoftheAfrican-

Americancommunity.And,in2006,AT&T

contributednearly$14milliontosuch

organizationsastheNationalUrbanLeague,

NAACP,NationalBlackChamberofCommerce,

theNationalCoalitiononBlackCivic

Participation,theRainbowPushCoalition,

NationalCouncilofNegroWomen,Congressional

BlackCaucusFoundation,100BlackMen

ofAmerica,SouthernChristianLeadership

ConferenceandtheBlackLeadershipForum.

>TheAT&TFoundationprovideda$100,000grant

to100BlackMenofAmericain2006tosupport

trainingforumsandnationaloutreachforthe

organization’sMentoringthe100Way™program,

whichcertifiesvolunteerstoprovideleadership-

developmenttrainingforlow-incomeAfrican-

Americanyouth.

OutreachtoConsumers

>AT&Tsponsorsmanylocalmarketeventsinthe

African-Americancommunity,suchas:

•“HomeCourt,”inconjunctionwith

theNationalBasketballAssociation.

•“QuiltersofGee’sBendCollegeTour”

withtheGee’sBendQuiltersCollective.

•Washington,D.C.’s“BlackFamilyReunion.”

•SanAntonio’s“BeyondtheDream,”

inhonorofMartinLutherKingJr.

•LosAngeles’“BlackExpo.”

>AT&Tstrivestodevelopadvertisingand

marketingcampaignsthatrepresentthe

diversityofthelocalcommunitiesthat

itservesandthatauthenticallyportray

African-Americansinpositiveroles.

Nearly

$14million

contributedin2006toorganizationsfocused ontheempowerment oftheAfrican-Americancommunity.

BobReed,AT&Tvicepresident-DiversityandInclusion,givesawelcomemessageattheTexasDiversityandLeadershipConference.AT&Twasthetitlesponsorfortheevent,whichservedtofurtherastatewidedialogueonbothdiversityandinclusionintheworkplace and in the community.

Diversity and Inclusion:African-Americans

Diversity and Inclusion:Asian-Americans

More than 15,000 of our employees, or about 5 percent of our workforce, are of Asian heritage. Ourserviceareacovers 2.3millionAsian-Americanhouseholds.Andourcommunityimpact—especiallyintherealmoftechnology—makesasubstantialdifference.

StrivingtoBeanEmployerofChoice

>In2007,theAsian-AmericanJusticeCenter

recognizedAT&TwiththeBridgeBuilder

Awardforthecompany’sleadingdiversity

andinclusioninitiatives.

>APCA(AsianPacificIslandersforProfessional

andCommunityAdvancement),FACES

(Filipino-AmericanCommunications

EmployeesatAT&T),andOASIS(Organization

ofAsianIndiansatAT&T)supportthe

company’scommitmenttoinclusionthrough

theireffortsintheworkplace,the

marketplaceandthecommunity.

CommunityInvestment

>In2006,AT&Tprovidedmorethan$3.7million

tomorethan1,280communityorganizations

servingnumerousAsianandAsian-American

communities.Grantsandcorporate

contributionssupportedprojectsthatincluded

technology-centerupgrades,language-lab

facilitiesandafter-schoolprograms.

>AT&Tiscommittedtosupportingorganizations

thatstrengthenAsian-Americancommunities,

including:

•Asian-AmericanJusticeCenter

•AsianandPacificIslanderWellness

Center

•AsianBusinessAssociations

•AsianPacificAmericanInstitutefor

CongressionalStudies

•AsianPacificAmericanLegalCenter

•AsianWomeninBusiness

•Committeeof100

•EconomicBusinessDevelopment

•OrganizationofChineseAmericans

MembersoftheMidwestchapterofFACESinHoffmanEstates,Ill.,usedtheirlunchhourtofill56backpackswithpurchasedschoolsupplies.ThebackpacksweredonatedtotheAT&TPioneers’ToolsforLearningProject,whichhelpsensurethathundredsofelementaryschoolchildrenhavethesuppliestheyneedtostartofftheschool year right .

OutreachtoConsumers

>AT&T’s22-statefootprintcovers2.3million

Asian-AmericanhouseholdsintheUnited

Statesandreaches67percentoftheAsian

populationinAmerica.

>In2005,AT&Tlaunchedwww.att.com/world,

aWebsiteofferingself-servicecapabilitiesinthe

topfivemostcommonAsianlanguagesspoken

intheUnitedStates:Chinese,Vietnamese,Korean,

TagalogandJapanese.Thesitehasreceivedmore

than13millionhitssinceitslaunch.

>Thecompanyhascreatedmediaoutreach

campaignsinAsianlanguagestoannounce

strategiccorporatedevelopmentsaswell

asnewproductsandservices.

>AT&Tproductsandservicesincludeculturally

relevantofferssuchasAsian-language

programmingthroughthecompany’s

entertainmentstrategyandlongdistance

callingplanswithcompetitiveinternationalrates.

>Currently,AT&Tconductsbusinessinmorethan

170languagesinselectmarkets,andwe

marketproductsandservicestoAsian-

Americanconsumersthroughin-languageTV,

radio,printandonlineadvertisements,aswell

asdirect-responseTV,directmailandcatalogs.

AT&TemployeesandAPCAmembersDoreenLou,ErwinFurukawaandArleneLumposeforaphotoafterthe2006APCAAwardsBanquet.

ChineseLionDancersentertainattendeesoftheAPCAPerspectives2006conference.

Diversity and Inclusion:Asian-Americans

TheAPCASouthernCaliforniaDragonBoatTeamhasbeenparticipatingin500-meterDragonBoatracesforsevenyears.Traditionallyheldonthefifthdayofthefifthmoononthe lunarcalendar,dragonboatracingtransformsoldtraditionsintoanexcitingsportingandculturaleventandcommemoratesthelifeanddeathoftheancientpatriot-poetQuYuan, wholivedfrom340to278B.C.Adragonboatteamconsists of18paddlers,adrummerandasteersman.

Diversity and Inclusion:Hispanics/Latinos

Our service area includes the four states with the highest Hispanic population.Ourworkforceis12percentHispanic/Latino.Andweworktohaveadailyandmeaningfulimpactinthecommunity,bothculturallyandeconomically.

StrivingtoBeanEmployerofChoice

> Hispanic Businessmagazinehasrecognized

AT&Teveryyearsince1989asoneofthetop

corporationsforHispanics.

> Each year since 1998, LATINA Stylemagazinehas

namedAT&Tasoneofthe50BestCompanies

forLatinastoWorkforintheUnitedStates.

>TheHispanic/LatinoEmployeeAssociationof

AT&Tsupportsthecompany’scommitmentto

inclusionthroughitseffortsintheworkplace,the

marketplaceandthecommunity.

CommunityInvestment

>In2006,theLeagueofUnitedLatinAmerican

Citizens(LULAC)receiveda$1.5milliongrant

todevelop32newcommunitytechnology

centersinlow-incomeHispaniccommunities

andtoprovideongoingsupportfor23other

centersinitiallyfundedbya$1milliongrant

fromAT&Tin2004.

>AT&TisastrongsupporterofHispanic

cultureandheritageandhasprovidedgrants

toinstitutionssuchastheLatinoCultural

CenterandtheSmithsonian’sMuseoAlameda.

>TheHispanic/LatinoEmployeeAssociationof

AT&Tiscommittedtoservingthecommunity

throughinitiativessuchasTheHispanic/Latino

EmployeeAssociationofAT&THighTechDay,

ayearlyeventthatmotivatesHispanicstudents

topursuecareersintechnologyand

telecommunications.

>AT&Tiscommittedtosupportingorganizations

andprojectsthatstrengthentheHispanic

community.In2006,thecompanycontributed

morethan$14.3milliontoorganizations,

includingtheHispanicAssociationofColleges

andUniversities,HispanicLeadership

DevelopmentFoundation,HispanicAssociation

Difference-makingtrainingisongoingatthe55communitytechnologycentersfundedby$2.5millioningrantsfromAT&T toLULAC.

onCorporateResponsibility,Hispanic

ScholarshipFund,InternationalHispanic

CulturalInstitute,MexicanFineArtsCenter

MuseumandtheNationalLatinaBusiness

WomenAssociation.

OutreachtoConsumers

>AT&Toffersservicein22states,includingthe

stateswiththehighestHispanicpopulations:

California,Texas,FloridaandIllinois.

>AT&Ttakesaleadingconsumeradvocate

rolebydistributinginformationinSpanish

todevelopprogramsandinitiativesthathelp

customersunderstandandprotectthemselves

againstfraud,scamsanddeceptivemarketing

practices .

>TheSpanish-languageWebsite,www.espanol.att.

com,containsrelevantproductandcompany

information.Thesitehasreceivedmorethan

46millionhitssincelaunchingin2003.

>In2006,AT&Tconverted520retailstores

toabilingualconcept,andmoreare

plannedfor2007.Inselectmarkets,AT&Toffers

bilingualbillsandYellowPagesdirectoriesto

Spanish-speakingcustomers.

>Formorethan25years,AT&Tanditsbrands

haveofferedSpanish-languagecustomer

servicethroughitsnetworkof22callcenters.

>AT&Tproductsandservicesincludeculturally

relevantoffers,suchasSpanish-language

programmingthroughthecompany’sentertainment

strategy,ringtonesandcontentforcellphones,and

SpanishonlinecontentthroughAT&TYahoo!High

SpeedInternetandlongdistancecallingplanswith

competitiveinternationalrates.

>Thecompanyhascreatedmediaoutreach

campaignsinSpanishtoannouncestrategic

corporatedevelopments,newproductsand

servicesandcommunityinitiatives.

>AT&Ttranslatesallkeycorporateand

consumerannouncementsintoSpanishand

distributesthemtotheHispanicmedia.The

announcementscanalsobefoundunderthe

NewssectionoftheAT&TSpanishWebsite.

>AT&TdevelopsculturallyrelevantHispanic

advertisingandmarketingcampaignsinSpanish.

GiventhediverseU.S.Hispanicmarket,AT&Talso

createsadvertisementsthattargetHispanicsin

Englishinwaysthatarerelevantandrespectful

oftheHispanicculture.

Diversity and Inclusion:Hispanics/Latinos

In2007fiveAT&TemployeeswererecognizedamongtheHispanicAssociationonCorporateResponsibility’sinauguralgroupofYoungHispanicCorporateAchieversandparticipatedinaleadershipprograminWashington,D.C.

Diversity and Inclusion:LGBTCommunity

StrivingtoBeanEmployerofChoice

>Fortwoconsecutiveyears,AT&Thasbeen

includedamongtheHumanRights

Campaign’sBestPlacestoWorkbecause

ofitstreatmentofLGBTemployees.

>In2006,AT&TwasrankedNo.3among

DiversityInc’sTop10CompaniesforGLBT

Employees.

>LEAGUE—theLesbian,Bisexual,Gayand

TransgenderedUnitedEmployeesatAT&T—

supportsthecompany’scommitmentto

inclusionthrougheffortsintheworkplace,

themarketplaceandthecommunity.

>Inthecompany’sEqualEmployment

Opportunity(EEO)policy,AT&Tbars

employmentdiscriminationbasedonsexual

orientation or gender identity .

>AT&TwasoneofthefirstFortune500

companiestoadoptdomesticpartner

benefitsforitsLGBTemployees.Inmost

cases,AT&Toffersthesamehealthbenefits

tothesame-sexpartnerofanemployeethat

wouldbeprovidedtoanemployee’s

opposite-sexspouse.

CommunityInvestment

>Overthepastdecade,AT&Thascontributed

morethan$2milliontononprofit

organizationsdirectlyservingLGBT

communities.

>In2005,theSanDiegoLesbianGayBisexual

andTransgenderCommunityCenterreceived

a$10,000granttosupporttheLatino

Servicesproject,whichprovidedbilingual

computer-educationtrainingclassesatthe

organization’sCyberCenter.

At AT&T, we’re always striving to be inclusive and respectful to all communities.Webelievethatthat’swell-reflectedinoursupportandoutreachtotheLesbian,Gay,BisexualandTransgendercommunity. AsoneoftheeliteLGBTemployersofchoiceandwithmorethan$2million directedtononprofitsservingLGBTneeds,we’recommittedtobeingan all-encompassingadvocate.

TheLEAGUEchapterinAlabamahelditsthirdannualteddybeardrivetobenefittheChildren’sHospitalinBirmingham.InpartnershipwithAvonProducts,LEAGUEmembersraisedfundstopurchasemorethan100teddybearsand200stuffedanimalsforchildrenwhowerehospitalizedduringthe2007holidayseason.

Diversity and Inclusion:LGBTCommunity

>AT&TsponsoredtheEqualityCalifornia

Institute’sannualawardsandgalain2006

and 2007 .

>Alsoin2005,theLambdaLegalDefenseand

EducationFundreceiveda$75,000

contributiontosupportoutreachanda

communityeducationprogram.

>AT&TsupportsvariousnationalLGBT

organizations,suchastheHumanRights

Campaign,GayandLesbianAllianceAgainst

Defamation,ServicemembersLegalDefense

Network,GayandLesbianVictoryInstitute,

LambdaLegalandNationalCenterfor

LesbianRights.

>In2007,membersofLEAGUEspentmore

than61,000hoursvolunteeringintheirlocal

communitiesandfundraisingonbehalfof

externalorganizations.

>Since1997,theLEAGUEFoundationhas

awardedmorethan$105,000inscholarships

toself-identifiedLGBTstudents.

OutreachtoConsumers

>Inpastyears,AT&T’sMarketingandExternal

AffairsorganizationsandvariousLEAGUE

chaptershavereachedouttoLGBT

consumersviasponsorshipsofnumerous

prideeventsacrossthecountry.Sponsorships

rangedfrom$500tomorethan$50,000.

>ThroughcontentproviderAkimbo,AT&T

Homezonecustomershaveaccesstoalibrary

ofunique,nichevideo-on-demandcategories,

includingcontentspecifictotheLGBT

community.Inaddition,AT&TU-versecarries

contentfromLOGO.

LEAGUEmembersstaffedtheAT&Tboothatthe15thannualMagicCityAIDSWalkinBirminghaminOctober2007.ThePioneerClownTroupemadeballoonsforeventattendees.Pioneercookbooks,donatedbytheBirminghamSouthCahabaCouncilTelecomPioneers,weresoldtobenefitBirminghamAIDSOutreach.

IntheAT&TFanZoneatGeorgiaPrideinJune2007,LEAGUEmembersmarketedAT&Tservicesandnetworkedwithprospectivecustomers.EventattendeeswonprizessuchasMardiGrasbeads,AtlantaBravesVIPtickets,AT&TGoPhonesandotherAT&Tsouvenirs.

Diversity and Inclusion:NativeAmericans

StrivingtoBeanEmployerofChoice

>NativeAmericansandAmericanIndians

makeup1percentofthecompany’s

employeebase.

>ICAE,theInter-TribalCouncilofAT&T

Employees,supportsthecompany’s

commitmenttoinclusionthroughitsefforts

intheworkplace,themarketplaceandthe

community.

CommunityInvestment

>AT&Tiscommittedtosupporting

organizationsandprojectsthatstrengthen

diversecommunities.Overthepastdecade,

thecompanycommittedmorethan

$2.8milliontononprofitorganizations

servingNativeAmericancommunities.

>TheUniversityofOklahomaFoundationwill

receive$1.5million—from2006to2010—

tosupportascholarshipendowment

programdesignedtorecruitandretain

NativeAmericanstudentspursuing

technologyfieldsofstudy.

>TheGeorgeWashingtonUniversity’s

GraduateSchoolofPoliticalManagement

received$882,000ingrantsand

contributionstofundafirst-of-its-kind

political-leadership-developmentprogram

forNativeAmericancollegestudentsfrom

acrossthecountry.

>TheAmericanIndianCollegeFundreceived

a$15,000granttosupportascholarship

program,benefitingtribalcollegestudents

studyingmath,science,technologyand

business.

>In2007,membersofICAEparticipatedin

OperationMorningstar,aprogramthatseeks

toidentifyandprovideaidforpoverty-

strickenNativeAmericans.

>Since2000,ICAEhasawardedmorethan

$30,000inscholarshipstoNativeAmerican

students.

>ICAEisaproudsupporteroftheNational

MuseumoftheAmericanIndianandthe

WomenofNationsprogram.

OutreachtoConsumers

>ThroughtheLifelineprogram,AT&Toffers

discountedphoneserviceforqualified

individualslocatedonfederallyrecognized

triballands(inselectregions).TheLifeline

programincludesdiscountedbasic

residentialtelephoneservice,discounted

connectioncharges,freetoll-blocking

serviceandawaiveroffederalsubscriber-

line charges .

AT&T is respectful and inclusive of those with Native American lineage. Thispastdecade,AT&Thascontributednearly$3milliontononprofitgroupsservingNativeAmericans.AT&Thasalsosupportedastrongandgrowingscholarshipprogramandongoingeffortstohonorthisheritage.

Diversity and Inclusion:PeopleWithDisabilities

StrivingtoBeanEmployerofChoice

>U.S.DepartmentofLaborSecretaryElaine

ChaohonoredtheformerCingularWireless

withtheNewFreedomInitiativeAwardfor

itsinnovativeemploymentpracticesrelating

topeoplewithdisabilities.

> AT&Thasseveralemployeeresourcegroups

thatareopentoallemployeesandreflectthe

diversitywithinthecompany.IDEAL—

IndividualswithDisabilitiesEnablingAdvocacy

Link—supportsthecompany’scommitment

toinclusionthrougheffortsintheworkplace,

themarketplaceandthecommunity.

> AT&T’sholisticapproachtosupportits

workforcedrivesitsIntegratedDisabilityService

Center.Thecenterprovidesvariousservices

toAT&Ttohelpemployeesmaintaintheir

workcommitmentswhentheyarefacedwith

medicalconditionsordisabilitiesthatimpact

howtheyperformtheessentialfunctionsofthe

job.AT&T’sJobAccommodationprocessallows

employeeswithdisabilitiestorequest

arrangementsfortemporaryorpermanent

workrestrictionsandforreasonable

accommodationstoassisttheminthe

performanceoftheirjob.

CommunityInvestment

>Duringthepast10years,theAT&TFoundationhas

contributedmorethan$10.3millioningrantsto

disability-relatedorganizationsacrossthecountry.

>In2006,theCommunityTechnologyCenters’

Network(CTCNet)receiveda$1milliongrantto

providenewtechnologyresourcestopeople

withalltypesofdisabilities,includinglearning

disabilities.IncollaborationwiththeAlliance

forTechnologyAccess(ATA),CTCNetupgraded

technologyservicesandequipmenttobenefit

peoplewithdisabilitiesatcommunitytechnology

centers nationwide .

AT&T’s long heritage of working with people with disabilities helps us better understand and serve all of our customers, including those with disabilities.AT&Tstrivestobetheemployer,businesspartnerandserviceproviderofchoiceforpeoplewithdisabilitiesandtodevelopproductsandservicesthatprovideaccess toadvancedcommunicationstools.

MembersofIDEALjointogetherattheirannualconference toenhanceunderstandingandawarenessofthechallengesfacingindividualswithdisabilitiesintheworkplace.

>In2006and2007,theCenterforAccessible

Technologyreceivedatotalof$200,000in

AT&Tsupportforthedevelopmentofahuman

factorsusabilitylabandresearchforassistive

technologies .

>In2007,theAT&TFoundationprovideda

$50,000granttoSanAntonioLighthouse

fortheBlind,whichprovideseducational

programs,communitysupportservices,career

developmentandtrainingclassesforpeople

with low vision .

>Alsoin2007,AT&Tprovideda$50,000

contributiontotheNationalDisability

InstituteforitsRealEconomicImpactTour,

whichprovidesincomepreservationasset

developmentforpersonswithdisabilities.

OutreachtoConsumers

>TheAT&TAdvisoryPanelonAccessandAging

(AAPAA)iscomposedofprominentnational

leadersoforganizationsfocusedondisability

and/oraging.TheAAPAAmeetsquarterlywith

businessunitleadersacrossAT&Ttoprovide

counselonissuesrelatedtoproductsand

services,marketing,customerrelationsandthe

employmentofpeoplewithdisabilities.

>AT&Tisaproudsponsorofthe2008U.S.Olympic

andParalympicteamsandfeaturestwo-time

defendingParalympic100-metergoldmedalist

MarlonShirleyinAT&THomeTurf,aninteractive

streamingwebisodeseriesthatgivesfansbehind-

the-scenesaccesstothelivesofprofessional

athletes .

>AT&ThasdevelopedtwoWebsites,

www.att.com/accessandwww.wireless.att.com/

disabilityresources,thathelpcustomerswith

disabilitieseasilyobtaininformationon

accessibilitysolutionsforcommunicationstools.

InnovationinAction

>AT&TLabs’humanfactorsengineeringteam

teststheusabilityofmanyofthecompany’s

designssothatproductsandservicesare

accessibletoandusablebyallcustomers.

>AT&ToffersTTYRelayService,InternetRelay

ServiceandVideoRelay,whichcombine

technologywithadedicatedteamofemployees

whooffer24/7assistanceforpeoplewhoare

deaf,haveahearinglossorhaveaspeech

disabilitytohelpthemandpeoplewithout

hearingorspeechdisabilitiescommunicateinthe

home,theworkplaceandthecommunity.

>AT&TispartneringwithCodeFactorytooffer

twonewwirelesssoftwareproducts,Mobile

SpeakandMobileMagnifier,toincreaseusability

forcustomerswhoareblindorhavelowvision.

TheAT&TPioneers’ChallengerClubinHoustonvolunteeredatTheLighthousefortheBlindBeepingEasterEggHuntin2007.Pioneersdonatedcandyandhelpedhidebeepingeggsforchildrenwithlowvision,aswellasregulareggsfortheirsiblings.

Diversity and Inclusion:PeopleWithDisabilities

Diversity and Inclusion:Women

With women making up nearly half of AT&T’s workforce — including more than 40 percent of our managers — it’sclear thatwe’recommittedtorecruitingandhiringadiverseworkforce. Thatcommitmenttowomenhaslongextendedintothecommunity andtoourbusinesspartners.

StrivingtoBeanEmployerofChoice

> Today,AT&T’s50-stateworkforceis44percent

female.

> In2006,AT&T’stuitionreimbursementprogram

assistednearly3,000employees,58percent

ofwhomwerewomen.

> The2005CatalystCensusofWomenBoardof

DirectorsoftheFortune500rankedthe

companyfifthoutof64Fortune500companies

foritspercentageofwomenonthecompany’s

boardofdirectors.

> In2005,AT&Twasrankedinthetop10among

the FortuneGlobal200largestcompaniesforits

highpercentageoffemaleboardmembers.

> TheWomenofAT&Tsupportsthecompany’s

commitmenttoinclusionthroughitsefforts

intheworkplace,themarketplaceandthe

community.

CommunityInvestment

> AT&Thaslongsupportedwomen’sinitiatives

throughAT&TFoundationgiving.Since2000,

morethan$28millionhasbeengiven

toprojectsthatenhancegirls’education

opportunitiesinmathandscience,thatprovide

trainingforgirlstoacquiretechnologyskills

andthatsupportfemale-ownedbusinesses

throughtrainingandincubationinitiatives.

OnGoRedforWomenDay,theOklahomaCityChapteroftheWomenofAT&TworetheirfavoriteredclothesandjoinedthousandsofwomenacrossthecountrytohelptheAmericanHeartAssociationsupporteducationaboutheartdiseaseinwomen.

More than

40percent

ofourmanagers arewomen. Ourboardofdirectors is38percentfemale.

Diversity and Inclusion:Women

> AT&Tprovidedthesinglelargestcorporate

contributiontoanywomen’sorganization,

fundorprogramwithits$10milliongrant

in1998tohelpbuildTheWomen’sMuseum—

aSmithsonianInstitutionaffiliateinDallas.

> InMarch2006,theAT&TFoundationprovided

a$100,000granttotheInternationalMuseum

ofWomentosupportImaginingOurselves:

AGlobalGenerationofWomen.Theproject

includesaninteractive,onlineexhibitat

www.imow.org,andfeaturesstoriesandart

focusingontheexperiencesofyoung

women,aswellasaseriesofgatherings

inwhichparticipantsdiscussthecollection.> Since2000,AT&Thasalsocontributednearly

$1.5milliontosupporttheGirlScouts

oftheUSAandlocalchaptersthroughprograms

suchastheReadtoLeadandGirlScoutFamily

LiteracyProject,aswellastoestablish

anintegratedtechnologyplatformbetween

theheadquartersandlocalcouncils.

> InFebruary2007,a$350,000grantwas

awardedtotheAtlantaWomen’sFoundation

Inc.tosupportpubliceducation,advocacy

andleadership-developmentinitiativesfor

underservedwomenandgirlsofAtlanta.

AT&TemployeesinOklahomaCitygotbehindthewheeltohelpcontributetotheBMWUltimateDrivesupportingSusanG.KomenfortheCure.Uponcompletionofeverydrive,eachparticipantaddedherownnametothevehicle,whichisalivingmemorialinhonorofthosewhohavelosttheirbattleagainstbreastcancer.

InApril,WomenofAT&TmembersfromtheSanAntoniochapterheldtheirannualcharitygolftournament.Proceedsfromthetournamentbenefitlocalwomen’sandchildren’scharities.

Supplier Diversity

OurSpendingRecord

>In2007,AT&Tspent$5billionwithdiverse

suppliers,representing12.5percentofits

procurementbase.Inthepast10years,AT&T

spentmorethan$27billionwithdiverse

suppliers,anincreaseof288percent.

>AT&Thasanaggressivegoaltospend21.5

percentofitstotalprocurementbudgetwith

diversity-ownedenterprises.Specifically,the

company’sdiversitygoalsare:

• 15percentwithMinorityBusiness

Enterprises(MBE).

• 5percentwithWomenBusiness

Enterprises(WBE).

• 1.5percentwithDisabledVeteran

BusinessEnterprises(DVBE).

>In2006and2007,AT&TrankedNo.1

amongDiversityBusiness.com’sTop

OrganizationsforMulticulturalBusiness

Opportunities.Votingbusinessowners

haveincludedAT&Tinthislistforeight

consecutiveyears,everyyearsincethe

list’sinception,basedontheconsistency

andqualityofbusinessopportunities

grantedtominority-andwomen-

ownedcompanies.

>AT&TisamemberoftheBillionDollar

Roundtable,asupplierdiversitythinktank

ofcorporationsthatspendmorethan

$1billionannuallywithdiversecompanies.

Only12companiesqualifyatthislevel.

Continuing to build on our 40-year legacy as a pioneer in supplier diversity,AT&T’songoinginitiativeiscrucialtoourbusiness.Andit’sakeycomponentindeliveringthebestproductsandservices toourcustomers.Promoting,increasingandimprovingthequalityofparticipationofminority-,women-anddisabled-veteran-ownedbusinessenterprisesinoursupplychainiswhatthisvitalprogramisallabout. Weareproudtoberecognizedasanationalleaderindevelopingandimplementingsupplierdiversitybestpractices.

Supplier Diversity

MinorityBusinessEnterprises(MBE)

>In2007,AT&Tspent$3billionwithminority-

ownedfirms.

>AT&Tisrepresentedontheboardofdirectors

andisanactivememberoftheNational

MinoritySupplierDevelopmentCouncil.AT&T

hasbeenrecognizedbytheorganizationfor

itslongtimedistinguishedrecordof

supportingminoritybusinesses.

Women’sBusinessEnterprises(WBE)

>In2007,AT&Tspent$1.8billionwithwomen-

ownedbusinesses.

>AT&T’sformalizedWBEprogramhasbeenin

placeformorethantwodecades.

>AT&ThasbeennamedasoneofAmerica’s

TopCorporationsforWomen’sBusiness

EnterprisesbytheWomen’sBusiness

EnterpriseNationalCouncilfornine

consecutiveyearsforitseffortsinbreaking

downbarriersthatkeepwomen-owned

businessenterprisesfromgainingfairaccess

toprocurementopportunities.

DisabledVeteranBusinessEnterprises(DVBE)

>In2007,AT&Tspent$49.3millionwith

disabled-veteran-ownedbusinesses.

>AT&T’sDVBEprogram,establishedin1993,

helpsensurethatdisabled-veteranbusiness

enterprisesareincludedinthegroupof

eligiblesuppliersconsideredforthe

company’scontracts.

>In2005,AT&TreceivedthePatriotPartner

AwardfromtheAssociationforService

DisabledVeterans(ASDV)foritsleadershipin

DVBEprogramsandforbeinganadvocatefor

increasingDVBEopportunities.Thefollowing

year,AT&TwasrecognizedagainbytheASDV

withtheSustainedServiceAwardforthe

company’sunwaveringsupportofdisabled-

veteran-ownedbusinessprograms.

>In2007,Veterans Business Journalnamed

AT&TasoneoftheBestCorporationsfor

Veteran-OwnedBusinessesforbeinga

corporateleaderandadvocateforincreasing

DVBEopportunities.

Environment

Stewardship

>AT&Tincludesenvironment,healthandsafety

performancespecificationsinnetwork

equipmentdesignstandards.

>AT&Teducatesemployeesonenvironment,

healthandsafety(EH&S)issuesthroughthe

EH&Sintranetsite—ahotlineoperating

24/7—andcomplianceandawareness

jobaids,programs,practicesandtraining.

>TheAT&TExecutiveEnvironmentalCouncil

providesaregularforumforthecompany’s

seniormanagementtodiscussenvironmental

policies,reviewperformanceofenvironmental

managementsystemsandensureenvironmental

compliance.

>AT&Tsupportsemployees’effortstoimprove

environmentalandenergy-efficientbehaviorat

work,homeandintheircommunities.AT&T

recognizesemployeesandteamsthatmake

noteworthycontributionstotheenvironment

withtheChampionsoftheEnvironmentaward.

Energy Conservation

>AT&Tconductedcomprehensiveenergyaudits

initstop325energy-consumingbuildingsin

2006 and 2007 .

>AT&Thasestablishedapolicytopurchase

LowEmissionsVehicles(LEV)orPartial

ZeroEmissionsVehicles(PZEV)forthe

company’sfleet.

>AT&Thasinitiatedapilotprogramtotesthybrid

vehiclestoassesstheirservicecapabilitiesand

potentialenergy-consumptionbenefits.

>InMarch2007,AT&Tco-sponsoredthe

inauguralTelecommunicationsCarriers’Group

(TCG)EnergySummit.AT&T,afoundingmember

oftheTCG,invitedselectedmanufacturers

toshareinformationandideasondriving

energyefficiencyintotelecommunications

networkequipment.

At AT&T, we strive to be good stewards in the communities we serve. Caringfortheenvironmentandforpeople’shealthandsafetyisacriticalpartofcorporatecitizenship.Wearecommitted tosoundpoliciesandpracticesinthoseareasonbehalfofouremployeesandbusinesscontacts.

AT&Thasledthewayinenvironmentalresearchbymentoringstudentsinthefieldandbyprovidingthreefacultyfellowshipsannually.AT&TemployeesjoinedGeorgiaSouthernUniversitytopresentDr.WeiTuwitha$25,000grantandnamehimanAT&TFacultyFellowinIndustrialEcology.

Environment

>In2005,AT&Tbecamethefirst

telecommunicationscompanytojoin

theCaliforniaClimateActionRegistry

foroperationsinCalifornia.Thisregistry,

createdbyaCaliforniastatutein2001,helps

companiesandorganizationstrack,publicly

reportandreduceemissionsofthegasesthat

canleadtoglobalclimatechange.

WasteReduction

>AT&Trecyclesusedoilandantifreezefromitsfleet

ofservicevehiclesandbackuppowergenerators.

Thisreducesenergyusage,wasteandthe

generationofairemissionsassociatedwith

petroleumproductionandrefining.

>AT&Tactivelypromotesonlinepaperlessbilling

andprintingdouble-sidedphonebills.

>AT&Toffersanationalrecyclingprogram

tohelpitscustomersplayanimportantrole

inreducingwaste.ThroughtheAT&TReuse

&Recycleprogram,consumersareinvited

tobringunwantedwirelessphones,personal

digitalassistants(PDAs),accessoriesandbatteries

(regardlessofthemanufacturerorcarrier)

toAT&T-ownedretailstoresandparticipating

authorizeddealerstoresforrecycling.

>AT&Trefurbishedandrecyclednearly3.9million

phonesandrecycledmorethan911,000pounds

ofaccessoriesandbatteriesin2007.

>AT&TYellowPagesdirectoriesareproduced

toberecyclableandareprintedonpaper

containingatleast40percentpost-consumer

recycledcontent.Directorybooksarerecycled

intonewphonebooks,newsprint,cardboard

boxes,compost,insulationandother

householdproducts.

>AT&Tisidentifyingandremovingthousandsof

milesofoldcoppercablethat’snolongerin

use,sellingittorecyclersandusingsomeof

theproceedstopayfornetworkupgrades.

Research

>AT&Thasledthewayinresearchonindustrial

ecology—amultidisciplinarysciencethat

investigateshowtheeconomyandthe

environmentcancoexist.

>Forthepast13years,theAT&TFoundationhas

providedawardsof$25,000tothreeacademic

researchers .

>In2006,theJournal of Industrial Ecology

honoredAT&Tforthecompany’spivotalrolein

thejournal’sdevelopmentandforit’s

contributionstothefieldofindustrialecology.

Bypromotingalternate billingpracticessuchase-bill,AT&Treduceswasteandtheunproductiveuseofvaluableresources.TheAT&TBillingSolutionsTechnologyteam hassuppressedmorethan 123millionpagesof customerinvoicesover thepast18months.

Environment

ProductsandServices

AT&Toffersadiverseselectionofproductsand

servicesthatprovideitscustomerswithchoices

thatcanreducetheirenvironmentalandenergy

impactsassociatedwithactivitiessuchasmaterial-

handling, transportation alternatives and travel .

>E-billing,consolidatedbillingandonline

documentationprovideoptionstoreduce

unnecessarypaperconsumptionandother

wasteproductscommonlyassociatedwith

thecommunicationsmediasupplychain.

>Teleconferencing,videoconferencingand

Webconferencingprovidecustomers

withavarietyofchoicesthat“dematerialize”

theproductsandservicesthattheychoose.

Thesecommunicationstechnologiesalso

providebusinessesandcustomerswith

potential cost savings .

>ThroughacollaborationwithCisco,AT&Toffers

theTelePresenceMeetingsolution,anewtype

ofvideoconferencingservicethatcombinesrich

audio,HighDefinitionvideoandinteractive

elementstodeliveravirtualin-person

experience.Theservice,whichrunsontheAT&T

corporatenetwork,canbeusedbycustomersin

placeofunnecessarytravelandwhenmeetings

demandahighlevelofcollaboration.

>WebhostingprovidesreliablepowertoAT&T’s

Website-ownershipcustomers,thus

consolidating,centralizingorotherwise

customizingstrategictelecommunications

facilitiesthatwouldnormallybedesigned,built

andmanagedindividually.

>UseofAT&Tservices,includingentertainment

media(musicandvideodownloading),reduces

environmentalimpactscommonlyattributed

toCD/DVDpackaging,manufacturing,

transporting and disposal .

>AT&Tretailfacilitiesofferend-to-endlife-cycle

managementofselectcustomerequipment,

includingintegratedrecyclingofmobilephones,

accessories,batteriesandPDAs.

Nearly 3.9 million

phoneswererefurbishedandrecycled,andmorethan911,000poundsofaccessoriesandbatterieswere recycled in 2007 .

Governance

AT&TCodeofEthics

AT&T’sCodeofEthicsprovidesalldirectors,officers

andemployeeswithguidelinesonthecompany’s

valuesandexpectations.Theprinciplesand

proceduressetforthinthecodeareintendedto:

>Encouragehonestandethicalconduct,

includingfairdealingandtheethicalhandling

ofconflictsofinterest.

>Encouragefull,fair,accurateandtimely

disclosure.

>Encouragecompliancewithapplicablelawsand

governmentalrulesandregulations.

>Ensuretheprotectionofthecompany’s

legitimatebusinessinterests,including

corporateopportunities,assetsand

confidentialinformation.

>Deterwrongdoing.

CodeofBusinessConduct

AT&T’sCodeofBusinessConductprovidesbasic

guidelinesthathelpemployeesmakeresponsible

andethicaldecisions.Atleastonceayear,

employeesmustsignanacknowledgmentstating

that they have read the code and that they

understandit,bothinletterandinspirit.Violations

areconsideredaseriousmatterandmayresult

indisciplinaryaction,includingdismissal.

AsoutlinedintheCodeofBusinessConduct:

>Employeesareexpectedtocomplywith

allapplicablelaws,regulations,courtand

commissionrulingsgoverningourbusiness

ineverycountryinwhichweoperate.

>Employeesmusttreatourcustomers

withcourtesyandrespect,andtheymust

maintainandrespectcustomers’privacy,

asrequiredbylaw.

“AT&T is committed not only to adhering to laws and regulations that govern our business butalsotothehigheststandardsofethics,integrityandpersonalandcorporateresponsibility.Insodoing,wehavegainedandretainedthepublic’strustandconfidenceformorethanacentury.Wehavebecomeagloballeaderbykeepingourhouseinorder.”

—RandallStephenson

ChairmanandChiefExecutiveOfficer

We earn trust

byspeakingclearlyandhonestlyandbykeepingpromises.Weadheretothe highest ethical standards .

Governance

>Furthermore,theymustensurethatcompany

propertyisusedappropriatelyandonlyforthe

benefitofAT&T,itscustomersandstockholders.

>Employeesarerequiredtoadheretofederal

securitieslawsandtorefrainfrombuying

orsellingAT&Tstockandthestockofany

othercompanybasedoninformationthat

isnotyetdisclosedtothepublic.

EthicsandEEOLine

TheAT&TEthicsandEEOLineisahotlinethat

hasbeenspeciallydevelopedsothatevery

employeeknowsthatsuspectedviolations

oftheCodeofBusinessConductorother

companyrulesandpracticescanbereported

outsidethechainofcommand.Callerstothe

linearenotrequiredtoidentifythemselves.

CorporateGovernanceGuidelines

AT&T’sCorporateGovernanceGuidelineswere

developedbythecompany’sboardofdirectors

asacommonsetofexpectationsforhow

theboardanditscommitteesshouldperform

theirduties.Theseguidelinesprovideinstruction

ontopicssuchasthequalificationsforboard

membershipandthestandardsforassessing

thedirectors’independence.Theyalsoaddress

theholdingofregularexecutivesessions

ofnonmanagementdirectors,thestructure

andgovernanceofthecommitteesandthe

self-evaluationprocessfortheboardand

itscommittees.

ResponsibilitytoStockholders

>AT&Tgreatlyvaluesthetrustandconfidence

thatourstockholdersplaceinthecompany.

Inrecentyears,wehavetakenmanysteps

tobenefitourstockholdersandstrengthen

theirconfidenceinthewaywerunourbusiness.

>Wehavemadechangesinexecutive

compensationbyreplacingstockoptionsand

restrictedstockwithperformancesharesas

long-termcompensation—betteraligningthe

interestofourmanagerswiththoseofour

stockholders .

>Inuncontestedelections(wherethenumberof

candidatesisequaltoorlessthanthenumberof

boardpositions),wenowrequirethatdirectorsbe

electedbyamajorityvote,allowingstockholders

tovotefororagainsteachdirector.Thisputsusat

theforefrontofanissuethatmanystockholders

viewasakeycorporategovernancematter.

>OureffortsarereflectedinAT&T’sCorporate

GovernanceQuotientscoresfromRiskMetrics

Group.AsofourannualmeetinginApril2007,

ourGCOscorewasbetterthan82.2percent

oftheS&P500companiesandbetterthan

99.2percentofthecompaniesinthe

telecommunicationsindustry.

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AT&TInc.WhitacreTower175E.HoustonSt.P.O.Box2933SanAntonio,TX78299-2933att.com

InJune2007,RandallStephensontookthereinsoftheworld’slargestcommunicationscompanyaschairmanandCEO.