AT&T and Yahoo! Issue Statement About Partnership

March 13, 2007; 05:21 AM
AT&T Inc. (NYSE:T), the nation's leading broadband, wireless and voice services company, and Yahoo! Inc. (Nasdaq:YHOO), a leading global Internet destination, today responded to speculation regarding their partnership.

As part of an ongoing business agreement, Yahoo! and AT&T are constantly discussing opportunities to expand relationship and associated revenue streams. Current and future plans include:

• Earlier this year, the companies introduced advertising on the front page of the co-branded portal;
• Later this month, the companies are introducing advertising on their co-branded mail service;
• AT&T and Yahoo! are discussing ways to expand the partnership in the mobile arena, now that AT&T has 100% ownership of Cingular (after its acquisition of BellSouth); and
• Yahoo! services will be introduced into AT&T's IPTV experience later this year.

According to Randall L. Stephenson, AT&T Chief Operating Officer, "Great partnerships must continuously work together to adapt to changing market conditions and changing strategies. We consider our partnership with Yahoo! a great partnership and want to continue building on our complementary skills and expertise."

Terry Semel, Chairman and Chief Executive Officer of Yahoo! said: "Our landmark, strategic partnership set the standard and has given Yahoo! and AT&T the opportunity to create truly innovative offerings for consumers and advertisers. AT&T and Yahoo! have already made adjustments over the years to reflect competitive conditions and the relative benefits each party brings to the relationship. As we continue our conversations, we have a common goal to increase the economic benefits for both parties."

About AT&T
AT&T Inc. is a premier communications holding company. Its subsidiaries and affiliates, AT&T operating companies, are the providers of AT&T services in the United States and around the world. Among their offerings are the world's most advanced IP-based business communications services and the nation's leading wireless, high speed Internet access, and voice services. As part of its three-screen integration strategy, AT&T is expanding video entertainment offerings to include next-generation television services such as AT&T U-verseSM TV. In domestic markets, AT&T is known for the directory publishing and advertising sales leadership of its Yellow Pages and YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators in such fields as communications equipment. Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at www.att.com.

About Yahoo!
Yahoo! Inc. is a leading global Internet brand and one of the most trafficked Internet destinations worldwide. Yahoo!'s mission is to connect people to their passions, their communities, and the world's knowledge. Yahoo! is headquartered in Sunnyvale, California.