Millions of AT&T Customers to Get Free Wi-Fi Access at Nearly 20,000 U.S. Hotspots

Austin, Texas, November 6, 2008

AT&T Inc. (NYSE:T) announced today that it has agreed, through one of its subsidiaries, to acquire privately-held Wayport, Inc., a leading provider of managed Wi-Fi services in the United States, for approximately $275 million in cash. The deal adds Wayport's focused capabilities and enterprise customer portfolio with AT&T's leading Internet Protocol (IP) and 3G networks, and broad consumer and business customer bases, to deliver enhanced broadband connectivity at home, in the office, on the road, and virtually anywhere in between.

The acquisition expands the AT&T Wi-Fi^SM footprint to nearly 20,000 domestic hotspots, takes the company's global Wi-Fi presence to more than 80,000 locations^*, and creates thousands of new ways for customers worldwide to stay in touch. Millions of AT&T customers — plus millions of other consumers needing to connect on the go — will benefit from access to new hotspot locations served by Wayport. Wayport hotspots are in key locations, including select Wyndham, Marriott Vacation Club and Four Seasons hotels; HealthSouth and Sun Healthcare locations; plus McDonald's restaurants.

AT&T's global brand, marketing leadership and extensive enterprise sales force will complement Wayport's expertise in enabling and managing applications over an integrated network. Wayport will also extend AT&T's reach in the hospitality, health care, education and retail sectors.

"We're seeing exponential growth of Wi-Fi-enabled devices — such as smartphones — combined with a continued dependency on 24/7, anytime, anywhere Internet access across business and consumer market segments," said John Stankey, president and CEO, AT&T Operations. "Now is the right time for AT&T to affirm our commitment to Wi-Fi leadership. By acquiring Wayport, we're giving consumers more ways to stay in touch and building a more robust network management solution for businesses. We're bringing ready access to the nation's leading Wi-Fi, wireless and IP networks — on a global scale."

By Levi Shapiro

Jim Messer started Transverse last year in New York with a cadre of wireless industry veterans. This year, the company relocated to Austin. "We found everything we need in Austin--at happy-hour prices. My commute is 10 minutes and I get double the house I had in San Diego for half the price." The combination of technical talent, creative culture and low costs has made Austin the newest hotbed in the wireless industry.