Celebrating 132 years serving Michigan.

Moving Forward.Giving Back.

Special Issue 2010

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A Letter from James A. Murray Focus on Michigan’s EconomyFocus on Michigan’s CommunitiesFocus on Michigan’s Environment

Michigan Bell Headquarters – Detroit, MI – 1920’s

A Proud History of Serving Michigan

Dear Fellow Michiganians,

I am proud to share with you this new publication called “Moving Forward, Giving Back,” which provides insight into AT&T’s commitment to Michigan and our country – our progress, our priorities, and our people. We live in a fast-paced society and have seen an explosion of technology which has changed the way we communicate and the way we live. AT&T is constantly working to enhance communication technologies and to improve our way of life by investing in our communities and our people across Michigan.

We are honored to be one of Michigan’s largest employers, but we are proudest to be the largest employer of full-time union labor nationwide, with more union-represented employees than the Big Three automakers combined. My colleagues work every day to improve the quality of life in our communities around the state.

So in addition to helping Michigan “move forward” by delivering cutting-edge products and services – such as broadband, wireless and advanced TV – AT&T and our employees are also “giving back” by serving the cities and towns throughout our state, by contributing time, expertise, and resources to countless causes and community organizations.

Thanks to a number of great leaders in the state legislature, Michigan has led the way to ensure the environment here is positive for investment, advancement and innovation. These efforts have led to the rollout of new products and services, drawing jobs here from overseas and the network investment which will support the products of the future.

At AT&T, our commitment to Michigan extends beyond communications technology. We are a leader in environmental initiatives to help promote energy efficiency and sustainable business practices. Our historic AT&T Aspire program will help develop the workforce and leaders of tomorrow and our employee volunteerism will continue to provide a helping hand to our families here and to those men and women in uniform protecting us overseas.

It is gratifying and humbling to celebrate over 132 years of serving communities across Michigan. AT&T Michigan and our nearly 12,000 employees are proud to be a part of the rich fabric of this great state and we look forward to building on what we’ve already achieved to keep Michigan moving forward together.

James A. Murray | President – AT&T Michigan

Letter from James A. Murray

Did you know?

Alexander Graham Bell invented the telephone, for which he received two patents; with two financial backers founded the company that became AT&T.

Investing in Michigan

We’re bullish on Michigan. That’s why each year we make significant investments in our Michigan communications networks, our people and local communities – all of which contribute to the state’s economy and quality of life.

Between 2007-2009, we invested nearly $1.9 billion in our Michigan networks to meet the growing demand of our wireline and wireless customers.

As part of AT&T Michigan’s wireless network investment plans for 2010, we will add more than 20 new cell sites and upgrade nearly 110 additional cell sites to 3G throughout the state – building on the 20 new cell sites added and 180 existing sites upgraded to 3G throughout Michigan in 2009.

AT&T continues to enhance its wireline network and provide AT&T U-verseSM TV and U-verse High-Speed Internet to more customers following passage of a new state law that encourages broadband investment and video competition in Michigan. AT&T U-verse launched in Michigan in 2007 and is now available to customers in more than 250 communities in the state.

We’re a company of engaged employees, reliable networks and cutting-edge services. We take pride in supporting Michigan community programs that create learning opportunities, improve quality of life and help meet the needs of our diverse state.

nearly $1.9 billion in our Michigan networks to

we will upgrade nearly 110 additional cell

AT&T is a leader in Internet Protocol Television (IPTV) deployment and

expects to reach approximately 30 million living units by the end of 2011.

1876

Focus on Michigan’s Economy

AT&T’s Annual Impact in Michigan

2008 Payroll2008 Taxes2008 Goods & Services2008 Contributions2008 Volunteer Hours

Total Michigan Impact

$839.4 Million $359.6 Million$103.9 Million

$9.5 Million$350,000

$1.31 Billion

“These investments in smart networks are enabling the innovation of today and

tomorrow that will enhance economic growth and stimulate jobs. We

commend the work of public officials and the leaders of our state who are

creating a positive economic environment that provides opportunities

for companies to continue to invest aggressively in Michigan.”

-James A. Murray, President - AT&T Michigan

On August 5, phone service began in Detroit.

Employment

AT&T employs more than 12,000 people living in the state of Michigan and our payroll represents more than $839.3 million.

AT&T Announces New Jobs for Customer Care Locations in Michigan

In 2009, AT&T Michigan leadership, along with local elected officials and community leaders,

celebrated the opening of a new AT&T Internet customer service center in Detroit that

will employ 350 to assist Midwest customers with broadband Internet services. Investment in

this new center and in new Detroit-based positions was part of the company’s initiative

involving the relocation of many customer service positions that had previously been

outsourced, many of them offshore. And, even more recently, the company announced adding

40 new jobs to its customer care location in Saginaw Township.

Nationally, AT&T has a larger union workforce than the U.S. steel, auto or airline industries. There are more than 12,000 employees in Michigan, about 60 percent of them are union-represented.

Being a diverse workforce that mirrors the diversity of our customers has always been

important to AT&T.

AT&T's 50-state workforce is 44 percent female and 39 percent people of color.

Women make up 41 percent of AT&T's managers, above the average of most Fortune

500 companies.

Thirty percent of AT&T's managers are people of color, compared with 12 percent people

of color in management nationwide.

Did you know? 1878

Focus on Michigan’s Economy

Diversity Inc. magazine ranked AT&T in 2010:

#3 among the Top 50 Companies for our commitment to diversity in the workplace and marketplace.

#2 among the Top 10 Companies for African Americans.

First telephone directory featuring classified business advertising on yellow pages issued in Detroit by the Michigan State Telephone Company.

Focus on Michigan’s Communities

Charitable Giving

Through philanthropic initiatives and partnerships, AT&T supports projects that promote academic and economic achievement and address community needs.

In 2008, AT&T and its employees contributed more than $9.5 million through corporate, employee and the AT&T Foundation giving programs to key initiatives in Michigan.

We believe there is no better way to have a lasting impact on a community than by supporting the education of its children.

In 2008, AT&T launched the four-year, $100 million AT&T Aspire national initiative to address high school success, college preparation and workforce readiness – the largest education initiative in company history.

AT&T Aspire provides grants to help students stay in school. Initiatives include a company-wide job shadowing program in conjunction with Junior Achievement, and funding for 100 community dropout prevention summits through America’s Promise.

As part of this commitment, AT&T awarded five Aspire grants in Michigan valued at $400,286 to Michigan educational organizations working to support high school retention

programs. And, to date, we have provided the opportunity for more than 1,200 students to job shadow Michigan employees in locations across the state.

In April, AT&T announced a $150,000 contribution to support Henry Ford Community College and the Michigan Alliance for High-Tech Skills Training – an industry-led job training program which supports efforts by Governor Granholm and other Michigan leaders to engage businesses in the education and retraining of displaced workers.

Working together, we can help students make the connection between

education and future life success.

Did you know? 1906

The AT&T Foundation is widely recognized as one of the most

generous corporate foundations and in 2009, Forbes magazine ranked AT&T as one of America’s Top 10

Most Generous Corporations.

Michigan Bell eight-story headquarters building was constructed in Detroit; In 1928, 12 new floors were added to house the growing dial exchanges for Detroit.

Focus on Michigan’s Communities

People Power

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At AT&T, employees and retirees strive to enhance

communities where we live and work to provide immediate

help when it’s needed and to support education and local

programs. In 2008, the AT&T Pioneers in Michigan

donated more than 18,000 hours of personal time to

community outreach activities – worth more than

$350,000. AT&T Pioneers is one of the largest industry-

sponsored volunteer organizations in the country, with

nearly 325,000 employee and retiree members nationally.

Nearly 70 Boy Scouts from across Michigan joined state legislators and AT&T

representatives in Lansing to celebrate the Boy Scouts 100th Anniversary with a Boy Scout

Day at the Capitol. A bi-partisan, bi-cameral committee of legislators who are Eagle Scouts

along with the 100th Anniversary Committee Chairman and AT&T Michigan President James

Murray planned the day’s events, which included: presenting the colors on the House and Senate

floors prior to daily legislative session and testifying on the

importance of scouting before House and Senate committees,

where legislators and current scout members were proud to share

the positive and significant influence scouting has had on

their lives.

On Veteran’s Day, AT&T Michigan honored those serving in the

U.S. military by hosting an event at the state capitol with state

legislators, local military veterans, AT&T Pioneers, the Boy Scouts of

America and ReCellular, Inc. to encourage consumers across the

state to recycle old wireless phones and support our troops at the

same time. AT&T honors members of the military and veterans

by recycling cell phones in all AT&T-owned stores nationwide, including in more than 60

Michigan stores. The company’s recycling program supports Cell Phones for Soldiers, a

non-profit organization that uses recycling proceeds to buy and send free, prepaid phone cards

to military members stationed away from home. Since July 2008, recycling has helped the charity

send more than 350,000 free phone cards to military members away

from home.

Did you know? 1917

The first telephone is installed on President Hoover's desk. Up to this time, the President talked from a booth outside his executive office.

Focus on Michigan’s Environment

Our Commitment to the Environment

Connecting for a sustainable future is our commitment. We believe that the investments we make in our people, the network, communities and the environment can bring prosperity, growth and opportunity to workers, families and businesses.

At AT&T, we’re working hard to reduce our environmental impact and helping customers to do the same. Some of our initiatives include:

Investing $565 million to deploy more than 15,000 alternative fuel vehicles over 10 years.

In 2008, AT&T reused and recycled 4.5 million phones and 1.3 million pounds of accessories and batteries, and we launched comprehensive office recycling efforts at 100 of our largest locations.

We encourage consumers to recycle their devices through our Cell Phones for Soldiers recycling program and through our website, att.com/recycle.

Slimmed down our phone accessory packaging, and worked with our manufacturers to develop new eco-friendly standards for wireless phones. These standards include requirements for smaller packaging, restriction of hazardous materials, easier recycling of phones at the end of their lives and more efficient chargers.

Joined the U.S. Department of Energy’s Save Energy Now LEADER initiative, which asks that companies pledge to reduce their energy intensity by 25 percent or more over a 10-year period. We also hired our first Director of Energy to drive comprehensive programs for reducing energy consumption and direct our energy-purchasing strategies.

Challenged our customers to sign up for paperless billing. With the help of the Arbor Day Foundation, AT&T will have a tree planted in honor of each customer who opts into paperless billing — up to one million trees in 2010. att.com/paperfree. Customers can choose to have a Jack pine tree planted in northern Michigan to help protect one of the world’s rarest birds – the Kirtland Warbler.

Did you know? 1929

AT&T made a bold statement on the exhibit floor of SUPERCOMM 2009, held in November, showcasing the company’s “Green Fleet Experience.” The AT&T exhibit featured AT&T’s wireless fleet management technology and five of our alternative-fuel vehicles, including our first all-electric vehicle, the Smith Newton; a Low- Emission Electric Power (LEEP) Aerial Truck with a quiet, battery-powered aerial lift; a compressed natural gas (CNG) van and two hybrid vehicles.

Introduced the AT&T ZERO Charger, the first mobile phone charger that does not waste power when left plugged in while a phone isn’t charging. This device helps our customers save the energy wasted by conventional chargers, which can draw five to 20 times more energy than is stored in the phone battery itself when left idle. It took first place in the “Green Solutions” category at the 2010 CTIA E-Tech Awards. www.att.com/zero

We’re connecting customers with innovative and sustainable products and services such as: AT&T Telepresence, which combines video, audio and interactive elements to offer an “in-person experience” vehicle-based fleet management products utilizing GPS, wireless and Web technologies to make mobile workforces more efficient and smart grid solutions to allow two-way communication between energy providers and customers.

Investing in cleaner, domestic, alternative-fuel vehicles in Michigan:

With 77,000 vehicles, AT&T operates one of the largest commercial fleets in the nation and is actively exploring alternative-fuel technologies and looking for cleaner, more efficient methods of powering our fleet.

In 2009, AT&T announced plans to invest up to $565 million as part of a long-term strategy to deploy more than 15,000 alternative-fuel vehicles over the next 10 years. This investment represents the largest initiative to CNG to date by a U.S. company and signals a demand for cleaner, domestic alternative fuels. The initiative includes an expected $350 million to purchase approximately 8,000 CNG vehicles over a five-year period.

The Ann Arbor-based Center for Automotive Research (CAR) estimates that nearly 1,000 jobs will be created or saved each year for five years, as a result. And the new vehicles will save more than 49 million gallons of gasoline and reduce carbon emissions by 211,000 metric tons over the 10-year deployment period – equivalent to removing the emissions from more than 38,600 cars a year.

In February 2010, AT&T reached a milestone of this plan with the roll-out of its 1,000th alternative-fuel vehicle.

In April 2010, AT&T Michigan State President James Murray, along with local officials and community leaders, announced the deployment of the company's first CNG vehicles in Michigan, as the company added 34 CNG vehicles to locations in Detroit and Ann Arbor.

Focus on Michigan’s Environment

Birmingham, Michigan becomes the second community in the country to be able to dial their own long-distance calls “nationwide.”

Did you know? 1953

Putting Broadband to Work for Michigan’s Environment

The percentage of people accessing the Internet through broadband continues to rise.

Broadband and wireless growth will help our state meet the demands of the population while protecting the environment and enhancing economic development opportunities.

Extending broadband services to more people will create jobs, lead to the development of new products and connect more Michiganians to educational and employment opportunities.

Stressing the important connection broadband has to economic vitality, the Michigan Public Service Commission and Connect Michigan recently unveiled an interactive map which makes it easier for consumers to search for availability of high-speed Internet service and released findings which show 95.41 percent of Michigan households have access to broadband services of at least 768 kbps downstream. Information can be found at www.connectmi.org.

With wireless, U-verse, DSL and satellite, AT&T delivers affordable broadband options to customers – urban and rural – across Michigan and our 22-state in-region wired footprint.

Economic impact from accelerating broadband availabilityin Michigan:

Total Economic Impact $4.64 billionJobs Created & Retained 76,200Direct Income Growth $3.1 billionAverage Annual Healthcare Costs Saved $22.4 millionAverage Annual Mileage Costs Saved $217.3 millionAverage Annual Hours Saved 127 millionValue of Hours Saved $1.25 billionAverage Annual lbs. of CO

2 Emissions Cut 110.0 million

Value of Carbon Offsets $594,343

Source: Connected Nation, “The Economic Impact of Stimulating Broadband Nationally,” Feb. 21, 2008.

AT&T owns and operates the nation’s largest Wi-Fi network and offers access to more than 125,000 Wi-Fi hotspots in 79 countries (through roaming agreements).

Focus on Michigan’s Environment

Our mission is to connect people with their world, everywhere they

live and work, and do it better than anyone else.

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