iPhone 3G Pricing Starting at $99 Begins Today

iPhone 3G S Preordering Available Online and at AT&T Stores Today

AT&T* today announced it will offer Apple iPhone 3G S, the fastest, most powerful iPhone yet, in its retail and online stores beginning June 19. In addition, the company today will begin selling iPhone 3G starting at $99 for new and qualifying subscribers. AT&T offers the nation’s fastest 3G network and the best worldwide coverage of any U.S. carrier.**

“iPhone 3G S is the fastest, most powerful iPhone yet, and we’re extremely proud to offer it to our customers on the nation’s fastest 3G network,” said Ralph de la Vega, president and CEO, AT&T Mobility and Consumer Markets. “We’re also pleased to offer these innovative phones and plans at incredible values, including free Wi-Fi access at nearly 20,000 hot spots.”

Based on independent market research, twice as many smartphone users have chosen AT&T over any other U.S. carrier. “I expect this great new iPhone 3G S and a $99 iPhone 3G on our mobile broadband network will spur even more smartphone customers to choose AT&T,” said de la Vega.

PRICING

AT&T will offer iPhone 3G S and iPhone 3G at a variety of attractive prices:

— iPhone 3G S will cost $199 (16GB) and $299 (32GB) for new and
qualifying customers.
— iPhone 3G will cost $99 (8GB) for new and qualifying customers.

— The 16 GB iPhone 3G will be available for $149 while supplies last.

Prices above require a 2-year service commitment and approved voice and data plan. Options are available to purchase these phones without a 2-year contract commitment.

PREORDERING

Customers may preorder iPhone 3G S beginning at approximately 5 p.m. ET today at AT&T’s more than 2,200 company-owned retail locations or later this evening at www.att.com/iphone. All preorders will be processed on a “first come, first served” basis beginning June 19. Customers who preorder online will have iPhone 3G S delivered directly to their home or office; customers who preorder in a store can pick theirs up at the same store on or after June 19. Stores will open early at 7 a.m. on June 19 exclusively for customers who have preordered.

CONSUMER PLANS

AT&T customers can choose from several monthly plans that start as low as $69.99 per month for voice and unlimited data (e-mail and Web browsing). All iPhone plans include nationwide long distance and roaming, Visual Voicemail, Rollover(R), and unlimited Mobile to Mobile calling.

AT&T FamilyTalk(R) offers extra value for families who share minutes. Plans start as low as $129.99 a month for two iPhone lines with bundled voice and unlimited data. Up to three additional iPhone lines can be added for $39.99 each.

BUSINESS PLANS

Small business customers may qualify for AT&T BusinessTalk(R), a shared minute plan specifically for small businesses. Companies can share up to 20,000 minutes per month between as many as 40 employees. In addition, business customers and employees of many businesses are eligible for discounted service rates. For more information, contact an AT&T business sales representative or visit www.att.com/iphoneforbusiness.

NETWORK

AT&T operates the nation’s fastest 3G network, delivering the power and benefits of mobile broadband to consumers and businesses. iPhone 3G S will be compatible with High Speed Packet Access (HSPA) 7.2 technology, which offers theoretical peak download speeds of up to 7.2 Mbps, though actual speeds will vary as these capabilities become available. AT&T plans to begin deploying HSPA 7.2 later this year, with completion expected in 2011.

In addition to the planned speed upgrade, AT&T is enhancing its mobile broadband coverage by nearly doubling the wireless spectrum dedicated to 3G in most metropolitan areas to deliver stronger in-building reception and more overall network capacity.

Today, AT&T offers 3G service in nearly 350 major metropolitan areas in the U.S., with more than 20 more planned for the end of this year. AT&T also leads in Wi-Fi, offering free broadband connectivity to iPhone customers in nearly 20,000 hot spots including Starbucks and Barnes & Noble, and nearly 80,000 hot spots around the world.

Additional news regarding iPhone 3G S will be posted in the AT&T Media Newsroom at www.att.com/iphone_news.

*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.

**Offering the most wireless phones that work in the most countries.