SBC AT&T Inc.

Governor Perry, State & Local Officials Unveil New Technology Lab, Highlight New Broadband Era for the Lone Star State Citing a new state law that experts say will shape national communications policy, SBC Texas today announced an $800 million investment in video and high-speed Internet access technology for the state. The investment will give consumers a new competitive choice over cable television, and will equip every SBC central office in Texas with DSL technology. "As a direct result of strong state leadership and policies that encourage investment in advanced technology, Texas consumers will have more choices, better products and a much-needed alternative in the TV and entertainment market," said Jan Newton, president of SBC Texas. "Project Lightspeed will deliver next-generation services and competition to consumers, and Texas again leads the way." Company officials were joined by Texas Gov. Rick Perry, numerous state and local officials, and executives from Alcatel at their Plano, Texas, IPTV Demonstration Center, in announcing one of the largest single private-sector technology deployments in the state's history. Perry took part in a tour of Project Lightspeed technology that will help usher in a new broadband era for the Lone Star State. SBC has a five-year agreement with Alcatel to provide equipment and video system integration services for Project Lightspeed. "With legislation such as Senate Bill 5, Texas sends a strong message that our state welcomes and encourages technology development," said Gov. Perry. "When you open the door to innovation, investment follows. Today's announcement from SBC is simply the latest example that Texas is well positioned to remain an economic leader in the years ahead." As part of this investment, SBC Texas plans to deploy approximately 5,500 miles of fiber optic wire and related network technology in the state as part of Project Lightspeed. Project Lightspeed is the SBC initiative to deploy fiber-to-the-neighborhood and fiber-to-the-premises technologies to deliver IP-based video, voice, and high-speed Internet access services to approximately 18 million households across 13 states as part of its initial deployment. Earlier this month, the Public Utility Commission of Texas granted SBC authority to offer its advanced video services to customers in the greater San Antonio area. The company plans to conduct its initial controlled market entry in San Antonio, putting Texas at the forefront of this exciting next-generation video technology that will bring a robust competitive alternative to cable companies. In addition to the investment for ongoing deployment of Project Lightspeed in Texas, SBC unveiled an extensive broadband expansion effort: -- DSL broadband service will be added to the remaining 72 suburban and rural SBC Texas central offices that do not have the capability today, meaning that all of the company's 535 central offices in Texas will be wired to provide the service to eligible customers. -- In addition, through the installation of "neighborhood gateways," which use fiber-optic technology to expand the reach of existing DSL service, SBC Texas is bringing DSL service to another 228 neighborhoods in dozens of communities throughout the state by the end of the year. These moves will put advanced broadband service within reach of the vast majority of cities and towns served by SBC Texas. "We will invest millions to bring DSL service to more Texas communities than any other company," said Newton. "This means that the vast majority of cities and towns we serve in this state will have access to our advanced broadband services. That's a landmark Texas can be proud of, and smart laws like Senate Bill 5 are the reason why." On Sept. 7, Gov. Perry signed into law Senate Bill 5, legislation championed by Sen. Troy Fraser and Rep. Phil King. Passed overwhelmingly by the legislature, this telecommunications reform act encourages new entrants into the video market and stimulates investment in advanced technologies. "I knew there would be investment announcements like this if our state was ready to lead the way through bold communications policy," said Rep. Phil King. "Senate Bill 5 was the result. Consumers will no doubt reap the benefits. But so will our state through additional investment in technology that is sure to come." "I'm excited about the investment of these additional dollars into the Texas economy," said Sen. Troy Fraser. "This proves what we knew all along - Senate Bill 5 creates an environment that encourages investment in new, cutting-edge technology in all aspects of the communications industry. This investment will help give Texas consumers more choices, innovative products and greater competition in the marketplace." The Texas legislation has already drawn nationwide recognition. The law is seen as benefiting consumers by creating a 21st Century regulatory environment that encourages greater competition and investment across the communications marketplace. Additional key provisions of the law include: -- Streamlining regulation of communications services to promote competition, and deliver better products. -- Expansion of the Texas Universal Service Fund's Lifeline Program, which provides discounts on telecommunications services to less fortunate Texans. -- Continuation of discounts of certain high-speed services for schools, universities, public libraries and non-profit healthcare entities through January 1, 2012. SBC Communications Inc. is a Fortune 50 company whose subsidiaries, operating under the SBC brand, provide a full range of voice, data, networking, e-business, directory publishing and advertising, and related services to businesses, consumers and other telecommunications providers. SBC holds a 60 percent ownership interest in Cingular Wireless, which serves more than 52 million wireless customers. SBC companies provide high-speed DSL Internet access lines to more American consumers than any other provider and are among the nation's leading providers of Internet services. SBC companies also offer satellite TV service. Additional information about SBC and SBC products and services is available at www.sbc.com. 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 SBC's filings with the Securities and Exchange Commission. SBC disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise.