"As we generate sound financial results, AT&T also has taken the lead to innovate and create great solutions for customers," Stephenson said. "Mobility, broadband connectivity and integrated services that encompass voice, data and video are driving a new world of communications. AT&T is all about deploying and enhancing premier networks and products to deliver this world to both business and consumers.

"The Apple iPhone 3G is a dramatic example of this transformation," Stephenson added. "In the days following our exclusive U.S. launch of this new device, powered by the nation's fastest 3G wireless network, customer response has been everything we had anticipated and more. This strengthens our wireless business, and it reinforces our positive view of the opportunities ahead for AT&T and the industry."

Reported Results

For the quarter ended June 30, 2008, AT&T's consolidated revenues totaled $30.9 billion, up 4.7 percent versus reported results in the year-earlier quarter and up 3.6 percent compared with second-quarter 2007 pro forma revenues, which exclude merger-related accounting impacts on directory revenues.

Compared with results for the year-earlier quarter, AT&T's reported operating expenses for the second quarter of 2008 were $24.3 billion, down from $24.5 billion; reported operating income was $6.6 billion, up from $4.9 billion; and AT&T's reported operating income margin was 21.3 percent, up from 16.8 percent.

AT&T's reported second-quarter 2008 net income totaled $3.8 billion, up from $2.9 billion in the year-earlier quarter, and reported earnings per diluted share totaled $0.63, up from $0.47 in the second quarter of 2007.

Adjusted Results

AT&T's adjusted results for the second quarter of 2008 exclude noncash merger-related amortization expenses. For the second quarter of 2007, adjusted results excluded merger integration costs, merger-related amortization expenses and a merger-related directory accounting effect.

Compared with results for the year-earlier quarter, AT&T's adjusted operating expenses for the second quarter of 2008 totaled $23.1 billion, versus $22.7 billion; adjusted operating income was $7.7 billion, up from $7.1 billion; and AT&T's adjusted operating income margin was 25.1 percent, up from 23.9 percent. This margin expansion reflects revenue growth along with benefits from merger synergies and other productivity initiatives.

AT&T's adjusted second-quarter 2008 net income totaled $4.5 billion, up from $4.3 billion in the year-earlier quarter, and adjusted earnings per diluted share totaled $0.76, up from $0.70 in the second quarter of 2007.

Cash From Operations, Share Repurchases

AT&T's cash from operating activities for the second quarter of 2008 totaled $8.5 billion, capital expenditures totaled $5.3 billion, and free cash flow (cash from operations minus capital expenditures) totaled $3.2 billion. Year to date through the first half of 2008, cash from operating activities totaled $13.5 billion, capital expenditures totaled $9.6 billion, and free cash flow totaled $3.9 billion.

As it invests in the future of its business, AT&T continues to return substantial value to shareowners through dividends and share repurchases. Dividends paid totaled $2.4 billion in the second quarter and $4.8 billion year to date. Shares repurchased totaled 52.6 million for $2.0 billion in the second quarter and 164.2 million for $6.1 billion through the first half of the year. AT&T ended the second quarter with 5.9 billion shares outstanding.

Wireless Operational Highlights

AT&T delivered strong wireless growth in the second quarter with solid subscriber gains, continued rapid growth in wireless data revenues and improved margins. Highlights include the following:

15.8 Percent Wireless Revenue Growth. Total wireless revenues increased 15.8 percent to $12.0 billion in the second quarter, and wireless service revenues, which exclude handset and accessory sales, grew 14.8 percent to $11.0 billion. Wireless revenue growth was driven by solid subscriber gains and a greater number of customers choosing more advanced smartphones and integrated devices, spurring increased usage of data services. Retail postpaid subscriber ARPU (average monthly revenues per subscriber) was up 3.5 percent versus the year-earlier second quarter.

Wireless Data Services Up 52.0 Percent. Wireless data revenues grew 52.0 percent versus the year-earlier quarter to $2.5 billion, reflecting continued strong adoption of services such as Internet and data access, e-mail and messaging. Wireless Internet access revenues more than doubled versus results for the year-earlier second quarter, while revenues from e-mail, messaging and data access all delivered greater than 50 percent growth. Text messaging volumes tripled versus totals for the year-earlier quarter, and multimedia message volumes increased more than 170 percent. At the end of the second quarter, approximately 18 percent of AT&T's postpaid wireless subscribers had an integrated device, up from 8 percent one year earlier. On average, these subscribers have ARPUs roughly double the company average. AT&T expects continued strong growth in wireless data services as more customers choose data plans and advanced wireless devices such as the new iPhone 3G, which was launched as an AT&T U.S. exclusive on July 11. In the first 12 days following launch, sales of the iPhone 3G were nearly double levels achieved in AT&T's 2007 iPhone launch.

Solid Wireless Subscriber Growth with Reduced Postpaid Churn. AT&T's second-quarter net gain in total wireless subscribers exceeded 1.3 million, down 123,000 versus results in the second quarter of 2007 and up 38,000 compared with the first quarter of this year. Retail postpaid net adds totaled 894,000, down 2.0 percent versus the year-earlier second quarter and up 26.8 percent from results in the first quarter of this year. This sequential postpaid improvement was achieved despite reduced iPhone sales ahead of the early July iPhone 3G launch. Retail postpaid churn moved down to 1.1 percent in the second quarter, the lowest level in the company's history.

Wireless Operating Income Growth. On a reported basis, AT&T's second-quarter wireless operating expenses totaled $9.0 billion, and operating income was $3.1 billion, up 91.0 percent from $1.6 billion in the second quarter of 2007. Adjusting for merger integration costs, wireless operating expenses totaled $8.4 billion, and operating income was $3.6 billion, up 38.9 percent from $2.6 billion in the second quarter of 2007.

Continued Strength in Wireless Margins. Strong revenue growth, network efficiencies and operational improvements continue to drive strong wireless margins. AT&T's reported wireless operating income margin in the second quarter was 25.5 percent, up from 15.4 percent in the year-earlier quarter, and its adjusted wireless operating income margin was 29.9 percent, up from 24.9 percent in the year-earlier quarter. AT&T's second-quarter wireless OIBDA service margin was 41.2 percent, up from an unadjusted 35.8 percent and an adjusted 37.5 percent in the year-earlier quarter. (OIBDA service margin is operating income before depreciation and amortization, divided by total service revenues.)

Wireline Operational Highlights

AT&T's second-quarter wireline results were highlighted by continued strong double-digit growth in business and consumer IP-based data revenues, a substantial turnaround in wholesale revenues and a further ramp in AT&T U-verse TV subscribers:

Major Turnaround in Wholesale. In the second quarter, AT&T further advanced the significant improvement in wholesale revenue trends it has achieved over the past year. Total wholesale revenues were $3.5 billion, down just 0.2 percent versus the year-earlier quarter. This represents a major step up from a year-over-year decline of 8.3 percent in the second quarter of 2007 and marks the company's second consecutive quarter of sequential revenue growth in this category. This reflects solid demand from wireless carriers, Internet service providers, content providers and other customers, offsetting expected declines in local voice. AT&T and IBM last fall announced an agreement that calls for AT&T to become the primary global network management services provider to IBM. As a result, AT&T expects to receive up to $5 billion of additional revenues over the five-year term of the agreement, initially in the wholesale customer category. These revenues are expected to ramp further in the second half of 2008 and in 2009.

Continued Strength in Enterprise. Over the past two years, AT&T has delivered a major turnaround in enterprise growth rates, and in the second quarter results were highlighted by an 18.4 percent increase in enterprise IP data revenues, including areas such as VPNs, managed Internet services and hosting. Total enterprise revenues in the second quarter were $4.7 billion, down 1.0 percent versus results for the year-earlier quarter, and enterprise service revenues, which exclude CPE sales, were down 0.1 percent. Enterprise fundamentals in terms of closed sales, a strong sales funnel and new service adoption remain solid. AT&T expects to deliver positive growth in total enterprise revenues for the full year 2008.

Regional Business Growth. AT&T's total regional business revenues increased 1.6 percent in the second quarter to $3.2 billion. Regional business data revenues grew 5.2 percent, led by robust growth in Ethernet services and 13.7 percent growth in IP data services, including double-digit gains in managed Internet, VPN and hosting services.

Further Ramp in AT&T U-verse TV Services. AT&T U-verse TV, the company's next-generation IP-based video service, continued its strong ramp during the second quarter, with a net subscriber gain of 170,000 to reach 549,000 in service. U-verse network deployment is on schedule, install times continue to decline and the attach rates for broadband service continue to be high. The company is on a trajectory to reach its target of more than 1 million AT&T U-verse TV subscribers by year-end 2008.

Growth in Consumer ARPU, with Strong Double-Digit Growth in Regional Consumer IP Data Revenues. Second-quarter regional consumer results reflect continued strong growth in revenues from broadband and AT&T U-verse services in large part offsetting traditional voice access line pressures. Regional consumer IP revenues, which combine revenues from broadband and AT&T U-verse services, grew 19.3 percent versus the year-earlier quarter, and revenues per consumer household served increased 4.2 percent. Total regional consumer revenues were $5.6 billion, down 2.1 percent versus the year-earlier quarter and down 0.7 percent sequentially. In addition to operational trends, these comparisons also reflect a change in AT&T's relationship with Yahoo!(R) Inc., which provides portal services to AT&T's more than 14 million wireline broadband subscribers. Under the new arrangement, AT&T no longer pays monthly portal fees and receives a reduced level of shared advertising revenues from Yahoo! Regional consumer revenue connections (retail voice, high speed Internet and video) totaled 48.4 million at the end of the quarter, versus 49.5 million at the end of the second quarter of 2007 and 49.3 million at the end of the first quarter of 2008. Total consumer broadband and TV connections over the past year increased by 2.2 million. At the end of the second quarter, AT&T had 14.7 million total broadband connections, up 1.4 million over the past year and up 46,000 in the second quarter of 2008.

Wireline Expense Reduction. AT&T's reported second-quarter wireline operating expenses totaled $14.5 billion, down 2.1 percent from results in the year-earlier quarter, and on an adjusted basis, wireline operating expenses were $14.1 billion, down 0.1 percent versus results for the second quarter of 2007.

Additional Background on Adjusted and Pro Forma Results

AT&T's adjusted earnings for the second quarter of 2008 exclude noncash, pretax amortization costs related to acquisitions totaling $1.2 billion, or $0.13 per diluted share. Adjusted results for the second quarter of 2007 excluded: (1) pretax cash merger-related integration costs totaling $324 million, or $0.03 per diluted share; (2) noncash, pretax merger-related costs totaling $1.7 billion, or $0.18 per diluted share; and (3) a merger-related directory accounting impact of $187 million, or $0.02 per diluted share.

Advertising & Publishing results for 2007 were affected by accounting adjustments following AT&T's late 2006 acquisition of BellSouth. In accordance with purchase accounting rules, deferred revenues and expenses for all BellSouth directories delivered prior to the close of the merger were eliminated from 2007 consolidated results. This elimination of amortizations reduced second-quarter 2007 consolidated revenues by $306 million and consolidated operating expenses by $119 million.

AT&T manages its print directory business using amortized results. As a result, 2007 amortized results are shown in the Advertising & Publishing segment on AT&T's Statement of Segment Income. In 2008, both consolidated and segment results reflect amortization accounting.

About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access and voice services. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. As part of its three-screen integration strategy, AT&T is expanding its TV entertainment offerings. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.

(C) 2008 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.

Note: This AT&T news release and other announcements are available as part of an RSS feed at www.att.com/rss.

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. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's Web site at www.att.com/investor.relations. Accompanying financial statements follow.

NOTE: OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from Segment Operating Income (loss), as calculated in accordance with generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.

NOTE: Free cash flow is defined as cash from operations minus capital expenditures. We believe these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views it as a measure of cash available to pay debt and return cash to shareowners.

----------------------------------------------------------------------
Financial Data

AT&T Inc.
----------------------------------------------------------------------
Consolidated Statements of Income
Dollars in millions except per share
 amounts
------------------------------------------- --------------------------
Unaudited            Three Months Ended          Six Months Ended
                  ------------------------- --------------------------
                  6/30/2008 6/30/2007 %Chg  6/30/2008 6/30/2007  %Chg
------------------------------------------- --------------------------
Operating Revenues
  Wireless service $10,894     $9,513 14.5%  $21,499    $18,583  15.7%
  Voice              9,519     10,378 -8.3%   19,212     20,833  -7.8%
  Data               6,054      5,746  5.4%   12,026     11,401   5.5%
  Directory          1,383      1,155 19.7%    2,781      2,177  27.7%
  Other              3,016      2,686 12.3%    6,092      5,453  11.7%
------------------------------------------- --------------------------
    Total
     Operating
     Revenues       30,866     29,478  4.7%   61,610     58,447   5.4%
------------------------------------------- --------------------------

Operating Expenses
  Cost of services
   and sales
   (exclusive of
   depreciation
   and
   amortization
   shown
   separately
   below)           11,900     11,658  2.1%   23,902     23,080   3.6%
  Selling, general
   and
   administrative    7,441      7,460 -0.3%   15,300     14,727   3.9%
  Depreciation and
   amortization      4,958      5,416 -8.5%    9,861     11,032 -10.6%
------------------------------------------- --------------------------
    Total
     Operating
     Expenses       24,299     24,534 -1.0%   49,063     48,839   0.5%
------------------------------------------- --------------------------
Operating Income     6,567      4,944 32.8%   12,547      9,608  30.6%
------------------------------------------- --------------------------
Interest Expense       854        879 -2.8%    1,719      1,752  -1.9%
Equity in Net
 Income of
 Affiliates            212        210  1.0%      455        383  18.8%
Other Income
 (Expense) - Net       (43)       127    -       (10)       631     -
------------------------------------------- --------------------------
Income Before
 Income Taxes        5,882      4,402 33.6%   11,273      8,870  27.1%
Income Taxes         2,110      1,498 40.9%    4,040      3,118  29.6%
------------------------------------------- --------------------------
Net Income          $3,772     $2,904 29.9%   $7,233     $5,752  25.7%
=========================================== ==========================


Basic Earnings Per
 Share               $0.64      $0.47 36.2%    $1.21      $0.93  30.1%
Weighted Average
 Common Shares
 Outstanding
 (000,000)           5,926      6,145 -3.6%    5,962      6,184  -3.6%

Diluted Earnings
 Per Share           $0.63      $0.47 34.0%    $1.21      $0.92  31.5%
Weighted Average
 Common Shares
 Outstanding with
 Dilution
 (000,000)           5,962      6,195 -3.8%    5,997      6,230  -3.7%

----------------------------------------------------------------------

----------------------------------------------------------------------
Financial Data

AT&T Inc.
----------------------------------------------------------------------
Statements of Segment Income
Dollars in millions
----------------------------------------------------------------------
Unaudited
                     Three Months Ended          Six Months Ended
                 -------------------------- --------------------------

Wireless         6/30/2008 6/30/2007  %Chg  6/30/2008 6/30/2007  %Chg
------------------------------------------- --------- ----------------
Segment Operating
 Revenues
  Service        $10,951    $9,540    14.8% $21,596   $18,632    15.9%
  Equipment        1,082       855    26.5%   2,262     1,760    28.5%
------------------------------------------- --------------------------
    Total Segment
     Operating
     Revenues     12,033    10,395    15.8%  23,858    20,392    17.0%
------------------------------------------- --------------------------

Segment Operating
 Expenses
  Cost of
   services and
   equipment
   sales           4,162     3,941     5.6%   8,272     7,611     8.7%
  Selling,
   general and
   administrative  3,361     3,040    10.6%   6,640     5,953    11.5%
  Depreciation
   and
   amortization    1,446     1,810   -20.1%   2,926     3,701   -20.9%
------------------------------------------- --------------------------
    Total Segment
     Operating
     Expenses      8,969     8,791     2.0%  17,838    17,265     3.3%
------------------------------------------- --------------------------
Segment Operating
 Income            3,064     1,604    91.0%   6,020     3,127    92.5%
Equity in Net
 Income of
 Affiliates            3        17   -82.4%       5        24   -79.2%
Minority Interest    (69)      (67)   -3.0%    (129)     (115)  -12.2%
------------------------------------------- --------------------------
Segment Income    $2,998    $1,554    92.9%  $5,896    $3,036    94.2%
=========================================== ==========================


Wireline
------------------------------------------- --------------------------
Segment Operating
 Revenues
  Voice           $9,757   $10,586    -7.8% $19,676   $21,263    -7.5%
  Data             6,287     5,980     5.1%  12,492    11,842     5.5%
  Other            1,564     1,427     9.6%   3,064     2,880     6.4%
------------------------------------------- --------------------------
    Total Segment
     Operating
     Revenues     17,608    17,993    -2.1%  35,232    35,985    -2.1%
------------------------------------------- --------------------------

Segment Operating
 Expenses
  Cost of sales    7,818     7,817       -   15,780    15,618     1.0%
  Selling,
   general and
   administrative  3,409     3,685    -7.5%   6,951     7,486    -7.1%
  Depreciation
   and
   amortization    3,269     3,301    -1.0%   6,439     6,742    -4.5%
------------------------------------------- --------------------------
    Total Segment
     Operating
     Expenses     14,496    14,803    -2.1%  29,170    29,846    -2.3%
------------------------------------------- --------------------------
Segment Income    $3,112    $3,190    -2.4%  $6,062    $6,139    -1.3%
=========================================== ==========================


Advertising &
 Publishing
------------------------------------------- --------------------------
Segment Operating
 Revenues         $1,407    $1,478    -4.8%  $2,824    $2,921    -3.3%
------------------------------------------- --------------------------

Segment Operating
 Expenses
  Cost of sales      439       364    20.6%     860       797     7.9%
  Selling,
   general and
   administrative    332       428   -22.4%     698       729    -4.3%
  Depreciation
   and
   amortization      203       263   -22.8%     415       505   -17.8%
------------------------------------------- --------------------------
    Total Segment
     Operating
     Expenses        974     1,055    -7.7%   1,973     2,031    -2.9%
------------------------------------------- --------------------------
Segment Income      $433      $423     2.4%    $851      $890    -4.4%
=========================================== ==========================


Other
------------------------------------------- --------------------------
Segment Operating
 Revenues           $512      $558    -8.2%  $1,056    $1,096    -3.6%
Segment Operating
 Expenses            554       643   -13.8%   1,442     1,155    24.8%
------------------------------------------- --------------------------
Segment Operating
 Loss                (42)      (85)   50.6%    (386)      (59)      -
Equity in Net
 Income of
 Affiliates          209       202     3.5%     450       374    20.3%
------------------------------------------- --------------------------
Segment Income      $167      $117    42.7%     $64      $315   -79.7%
=========================================== ==========================

----------------------------------------------------------------------
Financial Data

AT&T Inc.
----------------------------------------------------------------------
Consolidated Balance Sheets
Dollars in millions except per share amounts
----------------------------------------------------------------------
                                                    6/30/08  12/31/07
                                                   Unaudited
----------------------------------------------------------------------

Assets
Current Assets
 Cash and cash equivalents                           $1,631    $1,970
 Accounts receivable - net of allowances for
  uncollectibles of $1,303 and $1,364                15,971    16,185
 Prepaid expenses                                     1,671     1,524
 Deferred income taxes                                1,407     2,044
 Other current assets                                 2,545     2,963
----------------------------------------------------------------------
  Total current assets                               23,225    24,686
----------------------------------------------------------------------
Property, Plant and Equipment - Net                  97,368    95,890
----------------------------------------------------------------------
Goodwill                                             71,528    70,713
Licenses                                             46,771    37,985
Customer Lists and Relationships - Net               12,568    14,505
Other Intangible Assets - Net                         5,844     5,912
Investments in Equity Affiliates                      2,838     2,270
Postemployment Benefit                               17,898    17,291
Other Assets                                          6,468     6,392
----------------------------------------------------------------------
   Total Assets                                    $284,508  $275,644
======================================================================

Liabilities and Stockholders' Equity
Current Liabilities
 Debt maturing within one year                      $16,472    $6,860
 Accounts payable and accrued liabilities            18,927    21,399
 Advanced billing and customer deposits               3,573     3,571
 Accrued taxes                                        3,782     5,027
 Dividends payable                                    2,357     2,417
----------------------------------------------------------------------
  Total current liabilities                          45,111    39,274
----------------------------------------------------------------------
Long-Term Debt                                       63,675    57,255
----------------------------------------------------------------------
Deferred Credits and Other Noncurrent Liabilities
 Deferred income taxes                               25,136    24,939
 Postemployment benefit obligation                   24,832    24,011
 Other noncurrent liabilities                        13,817    14,798
----------------------------------------------------------------------
  Total deferred credits and other noncurrent
   liabilities                                       63,785    63,748
----------------------------------------------------------------------

Stockholders' Equity
 Common shares issued ($1 par value)                  6,495     6,495
 Capital in excess of par value                      91,647    91,638
 Retained earnings                                   35,719    33,297
 Treasury shares (at cost)                          (21,420)  (15,683)
 Accumulated other comprehensive loss                  (504)     (380)
----------------------------------------------------------------------
  Total stockholders' equity                        111,937   115,367
----------------------------------------------------------------------
   Total Liabilities and Stockholders' Equity      $284,508  $275,644
======================================================================

----------------------------------------------------------------------
Financial Data

AT&T Inc.
----------------------------------------------------------------------
Consolidated Statements of Cash Flows
Dollars in millions, increase (decrease) in cash and cash equivalents
----------------------------------------------------------------------
Unaudited                                            Six Months Ended
                                                     6/30/08   6/30/07
----------------------------------------------------------------------
Operating Activities
Net income                                          $  7,233  $ 5,752
Adjustments to reconcile net income to net cash
 provided by operating activities:
  Depreciation and amortization                        9,861   11,032
  Undistributed earnings from investments in equity
   affiliates                                           (415)    (344)
  Provision for uncollectible accounts                   860      738
  Deferred income tax expense (benefit)                1,384     (546)
  Net gain on sales of investments                       (27)     (64)
  Gain on license exchange                                 -     (409)
Changes in operating assets and liabilities:
   Accounts receivable                                  (776)      87
   Other current assets                                  274     (665)
   Accounts payable and accrued liabilities           (5,117)    (287)
   Stock-based compensation tax benefit                  (14)    (107)
Other - net                                              242     (108)
----------------------------------------------------------------------
Total adjustments                                      6,272    9,327
----------------------------------------------------------------------
Net Cash Provided by Operating Activities             13,505   15,079
----------------------------------------------------------------------

Investing Activities
Construction and capital expenditures
  Capital expenditures                                (9,320)  (7,460)
  Interest during construction                          (257)     (78)
Acquisitions, net of cash acquired                   (10,087)    (221)
Dispositions                                             623      520
Proceeds from sale of securities, net of investments     (73)     509
Other                                                     41       17
----------------------------------------------------------------------
Net Cash Used in Investing Activities                (19,073)  (6,713)
----------------------------------------------------------------------

Financing Activities
Net change in short-term borrowings with original
 maturities of three months or less                    6,590   (1,993)
Issuance of long-term debt                            10,924    5,924
Repayment of long-term debt                           (1,605)  (2,065)
Purchase of treasury shares                           (6,077)  (6,904)
Issuance of treasury shares                              310    1,252
Dividends paid                                        (4,802)  (4,414)
Stock-based compensation tax benefit                      14      107
Other                                                   (125)    (121)
----------------------------------------------------------------------
Net Cash Provided by (Used in) Financing Activities    5,229   (8,214)
----------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents    (339)     152
----------------------------------------------------------------------
Cash and cash equivalents beginning of year            1,970    2,418
----------------------------------------------------------------------
Cash and Cash Equivalents End of Period             $  1,631  $ 2,570
======================================================================

----------------------------------------------------------------------
Financial Data

AT&T Inc.
----------------------------------------------------------------------
Supplementary Operating and Financial Data
Dollars in millions except per share amounts
----------------------------------------------------------------------

Unaudited                                       Three Months Ended
                                            --------------------------
                                            6/30/2008 6/30/2007  %Chg
----------------------------------------------------------------------

Wireless
  Wireless Customers (000)
     Net Customer Additions (000)              1,333     1,456   -8.4%
     M&A Activity, Partitioned Customers and
      Other Adjs. (000)                          182         -      -
  Postpaid Customers (000)
     Net Postpaid Customer Additions (000)       894       912   -2.0%
     Postpaid Churn                              1.1%      1.2% -10 BP
  Licensed POPs (000,000)

In-Region Wireline(1)
  Total Consumer Revenue Connections
   (000)(8)
  ------------------------------------------
     Retail Consumer Primary Switched/VoIP
      connections(2)
     Retail Consumer Additional
      Switched/VoIP connections(2)
     Consumer Broadband Connections(3)
     Video Connections:(4)
       Satellite Connections
       U-verse Video Connections
             Total Consumer Revenue
              Connections (000)

             Net Consumer Revenue Connection
              Changes (000)                     (923)      248      -

  Switched Access Lines (000)(8)
  ------------------------------------------
       Retail Consumer - Primary
       Retail Consumer - Additional
       Retail Business
     Retail

     Wholesale(5)
     Coin(6)
             Total Switched Access Lines
              (000)

             Net Switched Access Line
              Changes (000)                   (1,555)   (1,351) -15.1%

  Total Broadband Connections (000)(3,8)
     Net Broadband Connection Changes
      (000)(3,8)                                  46       400  -88.5%
  Total Video Connections (000)(4)
     Net Video Connection Changes (000)(4)       173       200  -13.5%

AT&T Inc.
  Construction and capital expenditures
     Capital expenditures                     $5,142    $4,122   24.7%
     Interest during construction               $187       $43      -

  Dividends Declared per Share               $0.4000   $0.3550   12.7%
  End of Period Common Shares Outstanding
   (000,000)
  Debt Ratio(7)
  Total Employees


Unaudited                                        Six Months Ended
                                            --------------------------
                                            6/30/2008 6/30/2007  %Chg
------------------------------------------- --------------------------

Wireless
  Wireless Customers (000)                    72,882    63,673   14.5%
     Net Customer Additions (000)              2,628     2,647   -0.7%
     M&A Activity, Partitioned Customers
      and Other Adjs. (000)                      202        64      -
  Postpaid Customers (000)                    57,043    51,488   10.8%
     Net Postpaid Customer Additions (000)     1,599     1,592    0.4%
     Postpaid Churn                              1.2%      1.3% -10 BP
  Licensed POPs (000,000)                        304       299    1.7%

In-Region Wireline(1)
  Total Consumer Revenue Connections
   (000)(8)
  -----------------------------------------
     Retail Consumer Primary Switched/VoIP
      connections(2)                          29,349    32,124   -8.6%
     Retail Consumer Additional
      Switched/VoIP connections(2)             3,703     4,232  -12.5%
     Consumer Broadband Connections(3)        12,581    11,260   11.7%
     Video Connections:(4)
       Satellite Connections                   2,235     1,846   21.1%
       U-verse Video Connections                 549        51      -
                                            -------------------
             Total Consumer Revenue
              Connections (000)               48,417    49,513   -2.2%
                                            ===================

             Net Consumer Revenue
              Connection Changes (000)        (1,021)      652      -

  Switched Access Lines (000)(8)
  -----------------------------------------
       Retail Consumer - Primary              29,319    32,124   -8.7%
       Retail Consumer - Additional            3,701     4,232  -12.5%
       Retail Business                        22,428    23,144   -3.1%
                                            -------------------
     Retail                                   55,448    59,500   -6.8%

     Wholesale(5)                              3,248     4,283  -24.2%
     Coin(6)                                     164       295  -44.4%
                                            -------------------
             Total Switched Access Lines
              (000)                           58,860    64,078   -8.1%
                                            ===================

             Net Switched Access Line
              Changes (000)                   (2,722)   (2,391) -13.8%

  Total Broadband Connections (000)(3,8)      14,693    13,261   10.8%
     Net Broadband Connection Changes
      (000)(3,8)                                 537     1,091  -50.8%
  Total Video Connections (000)(4)             2,784     1,897   46.8%
     Net Video Connection Changes (000)(4)       437       387   12.9%

AT&T Inc.
  Construction and capital expenditures
     Capital expenditures                     $9,320    $7,460   24.9%
     Interest during construction               $257       $78      -

  Dividends Declared per Share               $0.8000   $0.7100   12.7%
  End of Period Common Shares Outstanding
   (000,000)                                   5,892     6,107   -3.5%
  Debt Ratio(7)                                 41.7%     35.6% 610 BP
  Total Employees                            307,550   301,840    1.9%



----------------------------------------------------------------------
(1) In-region wireline represents access lines served by AT&T's
 incumbent local exchange companies.
(2) Primarily switched access lines. Also includes VoIP.
(3) Broadband connections include DSL lines, U-verse high speed
 Internet access and satellite broadband.
(4) Video connections include sales under agency agreements with
 EchoStar and DirecTV customers and U-verse connections.
(5) Wholesale lines include 0.2 million lines purchased by AT&T Corp.
 at 06/30/08 and 0.6 million at 06/30/07.
(6) Coin includes both retail and wholesale access lines.
(7) Total long-term debt plus debt maturing within one year divided by
 total debt plus total stockholders' equity.
(8) Prior year amounts restated to conform to current period reporting
 methodology.

----------------------------------------------------------------------
Financial Data

AT&T Inc.
Non-GAAP Wireless Reconciliations
----------------------------------------------------------------------
Wireless Segment Adjusted OIBDA
Dollars in Millions
Unaudited
----------------------------------------------------------------------
Quarter Ended June 30, 2008                    Adjusting Items

                                                 Intangible
                                         GAAP    Amortization Adjusted
                                       -------- ----------------------
Service Revenues                       $10,951                $10,951
Equipment Revenues                       1,082                  1,082
-------------------------------------- -------- ------------- --------
Total Operating Revenues               $12,033           $-   $12,033
-------------------------------------- -------- ------------- --------

Operating Expenses
  Cost of Services and Equipment Sales   4,162            -     4,162
  Selling, General and Administrative    3,361            -     3,361
  Depreciation and Amortization          1,446         (529)      917
-------------------------------------- -------- ------------- --------
Total Operating Expenses                 8,969         (529)    8,440
-------------------------------------- -------- ------------- --------

Operating Income                         3,064                  3,593

Plus: Depreciation and Amortization      1,446                    917
OIBDA                                    4,510                  4,510
----------------------------------------------------------------------
OIBDA as a % of Service Revenue           41.2%                  41.2%
======================================================================

----------------------------------------------------------------------
Quarter Ended June 30, 2007              Adjusting Items

                                    Integration  Intangible
                             GAAP      Costs     Amortization Adjusted
                           -------- ----------------------------------
Service Revenues            $9,540                             $9,540
Equipment Revenues             855                                855
----------------------------------- ----------- ------------- --------
Total Operating Revenues   $10,395    $-          $-          $10,395
----------------------------------- ----------- ------------- --------

Operating Expenses
  Cost of Services and
   Equipment Sales           3,941   (48)          -            3,893
  Selling, General and
   Administrative            3,040  (115)          -            2,925
  Depreciation and
   Amortization              1,810   (83)       (737)             990
----------------------------------- ----------- ------------- --------
Total Operating Expenses     8,791  (246)       (737)           7,808
----------------------------------- ----------- ------------- --------

Operating Income             1,604                              2,587

Plus: Depreciation and
 Amortization                1,810                                990
OIBDA                        3,414                              3,577
----------------------------------------------------------------------
OIBDA as a % of Service
 Revenue                      35.8%                              37.5%
======================================================================

OIBDA is defined as operating income (loss) before depreciation and
 amortization. OIBDA differs from Segment operating Income (loss), as
 calculated in accordance with generally accepted accounting
 principles (GAAP), in that it excludes depreciation and amortization.
 OIBDA does not give effect to cash used for debt service requirements
 and thus does not reflect available funds for distributions,
 reinvestment or other discretionary uses. OIBDA is not presented as
 an alternative measure of operating results or cash flows from
 operations, as determined in accordance with GAAP. Our calculation of
 OIBDA, as presented, may differ from similarly titled measures
 reported by other companies.

----------------------------------------------------------------------
Financial Data

AT&T Inc.
Non-GAAP Consolidated Reconciliations
----------------------------------------------------------------------
Reconciliation of Free Cash Flow
----------------------------------------------------------------------
Dollars in Millions

Unaudited
----------------------------------------------------------------------
June 30, 2008                      Three Months Ended Six Months Ended
                                   -----------------------------------

Net cash provided by operating
 activities                                    $8,548          $13,505
Less: Construction and capital
 expenditures                                   5,329            9,577
----------------------------------------------------------------------
Free Cash Flow                                 $3,219           $3,928
----------------------------------------------------------------------

Free cash flow is defined as cash from operations minus capital
 expenditures. We believe these metrics provide useful information to
 our investors because management regularly reviews free cash flow as
 an important indicator of how much cash is generated by normal
 business operations, including capital expenditures, and makes
 decisions based on it. Management also views it as a measure of cash
 available to pay debt and return cash to shareowners.

----------------------------------------------------------------------
Financial Data

AT&T Inc.
Non-GAAP Consolidated Reconciliations
----------------------------------------------------------------------
Adjusted and Reported Wireline Operating Expenses
----------------------------------------------------------------------
Dollars in Millions

Unaudited
----------------------------------------------------------------------
                                       Three Months Ended
                                        6/30/08  6/30/07  YoY % Change
----------------------------------------------------------------------

Reported Wireline Operating Expenses     $14,496  $14,803        -2.1%
  Operating Adjustments
    Cash Integration Costs                     -      141            -
    Intangible Amortization                  432      578       -25.3%
----------------------------------------------------------------------
  Total Adjusting Items                      432      719       -39.9%
----------------------------------------------------------------------
Adjusted Wireline Operating Expenses     $14,064  $14,084        -0.1%
----------------------------------------------------------------------

Adjusted Wireline operating expenses differs from reported operating
 expenses in that it excludes the merger-related expenses shown above
 and provides additional comparability to prior periods.

SOURCE: AT&T Inc.

AT&T Inc.
Jamie Anderson, 210-352-6973
Mobile: 210-219-1580
janderso@attnews.us

Detailed financial data and other information are available in EchoStar's Form 10-Q for the quarterly period ended March 31, 2008, filed today with the Securities and Exchange Commission.

About EchoStar Corporation

EchoStar Corporation (Nasdaq:SATS) operates two primary businesses: equipment sales and digital broadcast operations and fixed satellite services. The equipment sales and digital broadcast operations business includes the Sling Media business, designs, develops and distributes set-top boxes and related products for direct-to-home satellite television service providers and includes a network of seven full-service digital broadcast centers and leased fiber optic capacity with points of presence in approximately 150 cities. The fixed satellite services business provides service on nine owned and leased in-orbit satellites and includes related FCC licenses. Visit www.echostar.com for more information.

EchoStar will host its First Quarter 2008 earnings conference call today at 1 p.m. ET. The dial-in number is (877) 500-5931.

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: EchoStar Holding Corporation

EchoStar Corporation
         Press:
         Kathie Gonzalez
           (720) 514-5351
           press@echostar.com
         Investor Relations:
         Jason Kiser
           (303) 723-2210
           Jason.Kiser@echostar.com

EchoStar DBS Corporation placed the Notes in a private transaction under Rule 144A and Regulation S under the Securities Act. The Notes have not been registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements. The forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including the risks and uncertainties discussed in DISH Network Corporation's Disclosure Regarding Forward-Looking Statements included in its recent filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its most recent quarterly report on Form 10-Q. The forward-looking statements speak only as of the date made, and DISH Network Corporation expressly disclaims any obligation to update these forward-looking statements.

About DISH Network Corporation

DISH Network Corporation (Nasdaq:DISH) serves more than 13.815 million satellite TV customers through its DISH Network, and is a leading U.S. provider of advanced digital television services. DISH Network's services include hundreds of video and audio channels, Interactive TV, HDTV, sports and international programming, together with professional installation and 24-hour customer service.

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: DISH Network Corporation

EchoStar 
          Investor Relations
          Jason Kiser
            303-723-2210
            jason.kiser@echostar.com 
          Media Relations
          Kathie Gonzalez
            720-514-5351
            press@echostar.com

EchoStar's ratings reflect Fitch's opinion that the effects of growing competition and a slowing economy will weigh on EchoStar's operating results during 2008 and 2009 likely leading to lower gross additions, sluggish ARPU growth rates, higher subscriber churn rates, and higher subscriber acquisition costs.

Key to EchoStar's continued EBITDA and free cash flow growth is its ability to control subscriber churn. EchoStar reported subscriber churn increased to 1.68% (monthly) for the quarter ended March 31, 2008 reflecting an increase of 22 basis points relative to the same period last year. and 26 basis points sequentially. In addition to increased competition, the higher churn level is also attributable to higher non pay disconnects due to economic factors, decreased customer satisfaction resulting from operational inefficiencies, expiration of promotional discounts and theft. In Fitch's opinion, some of these factors such as higher non pay disconnects and decreased customer satisfaction, appear to be longer term fixes and churn may remain elevated for an extended period of time. Fitch is concerned that EchoStar will have to significantly increase its customer retention spending to regain control over subscriber churn, which will have a negative effect on EchoStar's EBITDA and free cash flow generation.

DISH, through wholly - owned subsidiary Frontier Wireless, LLC won 168 E Block licenses totaling nearly $712 million. While DISH has yet to articulate its wireless strategy, Fitch believes that the capital costs and execution risk associated with adding a wireless product to DISH's overall service offering will elevate the near term business risk attributable to DISH's credit profile. In Fitch's opinion the acquisition of wireless spectrum can position DISH to eventually offer a variety of wireless solutions including mobile video and possibly video on demand. Both of these potential solutions will serve to differentiate DISH's service offering and will strengthen DISH's competitive position among other multichannel video distributors.

The Stable Rating Outlook reflects Fitch's belief that subscriber metrics will improve as the company's high definition (HD) offering matches competitive offerings, as well as the positive EBITDA and free cash flow prospects, expected over the near term, balanced by the very competitive operating environment. Outside of the existing share repurchase authorization; Fitch views the use of cash for shareholder-friendly actions as an erosion of financial flexibility that could result in pressure on the ratings or an outlook revision. Additionally, Fitch has concerns related to the uncertainty surrounding the company's wireless strategy and the potential cash requirements to launch a wireless service.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site. The issuer did not participate in the rating process other than through the medium of its public disclosure.

SOURCE: Fitch Ratings

Fitch Ratings, Chicago
David Peterson, +1-312-368-3177
Michael Weaver, +1-312-368-3156
Media Relations, New York
Brian Bertsch, +1-212-908-0549