SAN ANTONIO -- AT&T Inc. (NYSE:T) today announced a new, higher-speed tier for its AT&T Yahoo!(R) High Speed Internet service that meets consumers' growing demand for greater bandwidth, while delivering a market-leading price.

Beginning Monday, May 1, new residential customers who order AT&T Yahoo! High Speed Internet service online through www.att.com can purchase the Elite service -- offering downstream speeds between 3.0 Mpbs and 6.0 Mbps and upstream speeds of 384 Kbps up to 768 Kbps -- for only $27.99 a month (other monthly charges and a 12-month term commitment apply). Effective today, the new Elite service is available for $29.99 through AT&T sales channels, when it is ordered with a qualifying service bundle. Existing AT&T Yahoo! High Speed Internet customers can upgrade to the Elite service through the company's Web site and take advantage of the current pricing promotion beginning Monday.

"Consumers are craving greater bandwidth, and now with the AT&T Elite service, they no longer have to choose between a blazing-fast speed and a great price; they can get both," said Scott Helbing, chief marketing officer-AT&T Consumer. "Consumers will be hard-pressed to find this speed at a better price, for a full 12 months, from one of our leading competitors."

The new Elite-speed tier is ideal for Internet applications growing in popularity, including downloading movies, playing interactive online games and sending large files such as photos and video clips.

AT&T Yahoo! High Speed Internet customers can enjoy their broadband experience to-go with AT&T Wi-Fi service. For an additional $1.99 a month, customers can enjoy a consistent broadband experience at nearly 11,000 locations nationwide, including hotels, airports, convention centers, coffee shops, restaurants and business centers.

The offer for the Elite service also includes a $49.99 mail-in rebate, which can be applied toward a $79.99 AT&T Wireless Gateway. When customers order both the Elite service and the wireless gateway through an AT&T call center, they are eligible to have the home network set up in their home, at no charge and after the mail-in rebate, by a CompUSA(R) Techknowledgist(SM)or by a support crew from other participating retailers.

The in-home service provides personal assistance for customers interested in creating a home network; most customers easily self-install their AT&T Yahoo! High Speed Internet service or receive assistance from AT&T technicians. The in-home setup offer includes the networking of two computers, with file-sharing enabled between each; the networking of one peripheral device, such as a printer, scanner or fax; and upon request from the customer, the activation of AT&T Yahoo! Online Protection.

"We're offering the tools and services that help our customers enjoy the digital lifestyle," said Helbing.

The Elite service is available in the company's traditional incumbent local exchange area, in those areas where high speed Internet service is available. States included are Arkansas, Kansas, Missouri, Oklahoma, Texas, Illinois, Indiana, Michigan, Wisconsin, Ohio, California, Nevada and Connecticut.

AT&T Inc. (NYSE: T)