AT&T, BellSouth Merge

SAN ANTONIO, Texas -- AT&T Inc. (NYSE:T) today closed its acquisition of BellSouth Corporation, creating a premier global communications company committed to driving convergence, continued innovation, and competition in the communications and entertainment market.

The transaction consolidates ownership and management of Cingular Wireless, the nation's leading provider of wireless voice and data services, and YELLOWPAGES.COM, a leading Internet Yellow Pages and local search site.

AT&T will immediately start to implement a carefully planned integration process to converge the AT&T, BellSouth, and Cingular wireless and wireline Internet Protocol (IP) networks, combine product portfolios and integrate customer care capabilities. The new company will be able to accelerate the introduction of innovative broadband services, such as IP-based services, while expanding the reach of broadband access in remote and rural locations in the traditional BellSouth region.

[Edward] Whitacre will continue to serve as chairman and CEO and as a member of the board of directors. Duane Ackerman will serve as chairman emeritus of BellSouth for the transition period following the merger.

Three members of the former BellSouth's board of directors have joined the AT&T board -- Reuben V. Anderson, James H. Blanchard and James P. Kelly.

Reporting to Whitacre will be: Jim Cicconi, senior executive vice president - external and legislative affairs; Jim Ellis, senior executive vice president and general counsel; Karen Jennings, senior executive vice president - advertising and corporate communications; Jim Kahan, senior executive vice president - corporate development; Rick Lindner, senior executive vice president and chief financial officer; Forrest Miller, group president - strategic initiatives and human resources; Randall Stephenson, chief operating officer; and Ray Wilkins, group president.

Reporting to Chief Operating Officer Randall Stephenson will be: Dick Anderson, group president - global business services, replacing Forrest Miller; Stan Sigman, president & CEO - wireless; John Stankey, senior executive vice president and chief technology officer; and Ralph de la Vega, group president - regional wireline operations.

AT&T's current regional wireline presidents will report to de la Vega, along with Rod Odom, who has been named president and CEO, AT&T Southeast. Previously, Odom was president - network services for BellSouth Corporation.

Additional executive appointments will be announced in the near future.

AT&T's corporate headquarters will remain in San Antonio. The new AT&T Southeast (formerly BellSouth Corporation) and Cingular will continue to be based in Atlanta.

AT&T today affirmed the financial guidance it provided when the acquisition of BellSouth was announced in March 2006, including information on expected synergies. Specifically, AT&T expects that synergies from the combined operations will ramp quickly to reach an annual run rate exceeding $2 billion in 2008 and increasing to $3 billion in 2010. Merging AT&T, BellSouth, and Cingular Wireless is expected to yield a net present value of $18 billion in synergies.

AT&T Inc. (NYSE: T)