AT&T Reports Fourth-Quarter and Full-Year Results

AT&T Reports Fourth-Quarter and Full-Year Results Highlighted by Robust Wireless Data Growth, Accelerated U-verse TV Ramp, Continued Double-Digit Growth in IP Data Services

Dallas, Texas, January 28, 2009

• Full-year reported EPS of .16, up from .94 for 2007; full-year adjusted EPS of .81, compared with .76 for 2007 * Fourth-quarter reported EPS of * Full-year reported EPS of $2.16, up from $1.94 for 2007; full-year adjusted EPS of $2.81, compared with $2.76 for 2007 * Fourth-quarter reported EPS of $0.41 versus $0.51 for the year-earlier quarter; adjusted fourth-quarter EPS of $0.64 versus $0.71 * Fourth-quarter EPS reflects the success of AT&T's iPhone 3G launch. Adjusted results exclude merger-related costs and a previously announced force reduction charge. In addition, both reported and adjusted fourth-quarter 2008 earnings include $0.07 of pressure from the company's iPhone 3G initiative, hurricane-related expenses and foreign exchange impacts * 2.1 million fourth-quarter net gain in wireless subscribers to reach 77.0 million in service, up 7.0 million over the past year * 4.3 million iPhone 3G devices activated in the second half of.41 versus * Full-year reported EPS of $2.16, up from $1.94 for 2007; full-year adjusted EPS of $2.81, compared with $2.76 for 2007 * Fourth-quarter reported EPS of $0.41 versus $0.51 for the year-earlier quarter; adjusted fourth-quarter EPS of $0.64 versus $0.71 * Fourth-quarter EPS reflects the success of AT&T's iPhone 3G launch. Adjusted results exclude merger-related costs and a previously announced force reduction charge. In addition, both reported and adjusted fourth-quarter 2008 earnings include $0.07 of pressure from the company's iPhone 3G initiative, hurricane-related expenses and foreign exchange impacts * 2.1 million fourth-quarter net gain in wireless subscribers to reach 77.0 million in service, up 7.0 million over the past year * 4.3 million iPhone 3G devices activated in the second half of.51 for the year-earlier quarter; adjusted fourth-quarter EPS of * Full-year reported EPS of $2.16, up from $1.94 for 2007; full-year adjusted EPS of $2.81, compared with $2.76 for 2007 * Fourth-quarter reported EPS of $0.41 versus $0.51 for the year-earlier quarter; adjusted fourth-quarter EPS of $0.64 versus $0.71 * Fourth-quarter EPS reflects the success of AT&T's iPhone 3G launch. Adjusted results exclude merger-related costs and a previously announced force reduction charge. In addition, both reported and adjusted fourth-quarter 2008 earnings include $0.07 of pressure from the company's iPhone 3G initiative, hurricane-related expenses and foreign exchange impacts * 2.1 million fourth-quarter net gain in wireless subscribers to reach 77.0 million in service, up 7.0 million over the past year * 4.3 million iPhone 3G devices activated in the second half of.64 versus * Full-year reported EPS of $2.16, up from $1.94 for 2007; full-year adjusted EPS of $2.81, compared with $2.76 for 2007 * Fourth-quarter reported EPS of $0.41 versus $0.51 for the year-earlier quarter; adjusted fourth-quarter EPS of $0.64 versus $0.71 * Fourth-quarter EPS reflects the success of AT&T's iPhone 3G launch. Adjusted results exclude merger-related costs and a previously announced force reduction charge. In addition, both reported and adjusted fourth-quarter 2008 earnings include $0.07 of pressure from the company's iPhone 3G initiative, hurricane-related expenses and foreign exchange impacts * 2.1 million fourth-quarter net gain in wireless subscribers to reach 77.0 million in service, up 7.0 million over the past year * 4.3 million iPhone 3G devices activated in the second half of.71 * Fourth-quarter EPS reflects the success of AT&T's iPhone 3G launch. Adjusted results exclude merger-related costs and a previously announced force reduction charge. In addition, both reported and adjusted fourth-quarter 2008 earnings include * Full-year reported EPS of $2.16, up from $1.94 for 2007; full-year adjusted EPS of $2.81, compared with $2.76 for 2007 * Fourth-quarter reported EPS of $0.41 versus $0.51 for the year-earlier quarter; adjusted fourth-quarter EPS of $0.64 versus $0.71 * Fourth-quarter EPS reflects the success of AT&T's iPhone 3G launch. Adjusted results exclude merger-related costs and a previously announced force reduction charge. In addition, both reported and adjusted fourth-quarter 2008 earnings include $0.07 of pressure from the company's iPhone 3G initiative, hurricane-related expenses and foreign exchange impacts * 2.1 million fourth-quarter net gain in wireless subscribers to reach 77.0 million in service, up 7.0 million over the past year * 4.3 million iPhone 3G devices activated in the second half of.07 of pressure from the company's iPhone 3G initiative, hurricane-related expenses and foreign exchange impacts * 2.1 million fourth-quarter net gain in wireless subscribers to reach 77.0 million in service, up 7.0 million over the past year * 4.3 million iPhone 3G devices activated in the second half of

2008, including 1.9 million in the fourth quarter. Approximately 40 percent of iPhone activations were for customers new to AT&T. iPhone 3G continues to deliver high-value subscribers with significantly higher ARPU (average monthly revenues per subscriber) and lower churn than AT&T's postpaid subscriber average * Wireless postpaid subscriber ARPU growth of 3.9 percent versus the year-earlier quarter to $59.59; postpaid data ARPU up 35.7 percent versus the fourth quarter of 2007 and up 10.9 percent sequentially * 51.2 percent growth in wireless data revenues - reflecting rapid adoption of wireless integrated devices and increased usage of wireless Internet access, messaging and related services; AT&T's wireless integrated devices in service more than doubled over the past year * Strong ramp in AT&T U-verseSM TV subscribers, with a fourth-quarter net increase of 264,000, the company's best quarterly gain to date, to reach more than 1 million in service; U-verse network deployment now reaches 17 million living units * 14.2 percent fourth-quarter growth in wireline IP data revenues driven by rapid expansion in AT&T U-verse services and growth in business products such as Virtual Private Networks (VPNs) and managed Internet services

Consolidated Statements of Income

Statements of Segment Income Consolidated Balance Sheets Consolidated Statements of Cash Flows Supplementary Operating and Financial Data Reconciliation of OIBDA Reconciliation of Free Cash Flow Wireline Non-GAAP Consolidated Reconciliations OIBDA and Free Cash Flow Discussions

Investor Briefing (531 kb PDF)

Slide Presentation

Financial and Operational Results