SAN ANTONIO and ENGLEWOOD, Colo. -- AT&T Inc. (NYSE:T) and Starz Entertainment Group LLC (SEG), a wholly-owned subsidiary of Liberty Media Corporation (NYSE: L, LMCb), today announced an agreement to offer SEG's Vongo Internet movie-delivery service to AT&T High Speed Internet customers. Vongo, unveiled earlier this year, delivers movies and other video content over the Internet for playback on Windows-based PCs, laptops and select portable media devices as well as on a TV.

The agreement -- the first distribution deal for Vongo with a broadband provider -- will feature a co-branded AT&T and Vongo Web site, www.att.vongo.com, with a special 14-day free trial offer to AT&T High Speed Internet subscribers. The companies will also market the Vongo service on the AT &T Worldnet portal at www.att.net.

"Vongo's compelling content increases the value proposition for AT&T High Speed Internet customers," said Scott Helbing, chief marketing officer-AT&T Consumer. "With Vongo, we're positioned to deliver quality content, as we build a digital lifestyle platform for our customers."

The agreement focuses on maximizing AT&T's industry-leading high speed DSL customer base and offering a differentiated service that consumers are increasingly demanding.

Vongo subscribers have unlimited access to more than 1,500 movie and video selections as well as a live, streaming Starz TV channel for a monthly cost of $9.99. Members may download movies and video selections onto three eligible devices of their choice for each account, allowing for multiple-viewing options and family enjoyment. Additionally, select popular pay-per-view titles are available for $3.99 a movie. Launched as a beta in January 2006, Vongo is currently available as a free download for broadband subscribers in the United States at www.vongo.com.

"We are delighted to work with AT&T as the first broadband distribution partner for Vongo," said Bob Greene, senior vice president of advanced services for SEG. "This relationship is a major step toward realizing our goal of building a complete ecosystem for digital-movie enjoyment so that consumers can access their favorite content whenever and wherever they want."

AT&T Inc. (NYSE: T)