[AT&T announces iPhone 3G pricing plans. Handset goes on sale July 11.]

Dallas, TX -- AT&T Inc. today announced iPhone 3G pricing for new and existing AT&T customers, several attractive voice and data plans, and tips on how to be "iReady" when iPhone 3G goes on sale at AT&T retail stores at 8 a.m. local time on Friday, July 11.

"We can't wait to offer iPhone 3G to our customers, and we want to make sure the buying process is as easy as possible," said Ralph de la Vega, president and CEO of AT&T's wireless unit. "Considering all the great new features of iPhone 3G, we think our pricing and monthly plans present a tremendous value for consumers and businesses alike."

Pricing and Eligibility

AT&T is making it easy for customers to prepare for their iPhone 3G purchase by posting "Get iReady" tips and frequently asked questions at www.att.com/iphone. The site also will include a link for customers to check their upgrade eligibility and other wireless account information.

iPhone 3G will be available for $199 for the 8GB model and $299 for the 16GB model. These prices require two-year contracts and are available to the following customers:

* Phone customers who purchased before July 11 * Customers activating a new line with AT&T * Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount

Existing AT&T customers who are not currently eligible for an upgrade discount can purchase iPhone 3G for $399 for the 8GB model or $499 for the 16GB model. Both options require a new two-year service agreement. In the future, AT&T will offer a no-contract-required option for $599 (8GB) or $699 (16GB).

Current customers may also choose to wait until they become eligible for an upgrade discount. Eligibility is generally determined by amount of time remaining on a current contract and payment history.

Current AT&T customers who are upgrading to iPhone 3G will pay an $18 upgrade fee and new AT&T customers will pay the standard $36 activation fee.

Voice, Data and Text Messaging Plans

AT&T brings iPhone 3G customers the best coverage on the globe and the largest mobile-to-mobile calling community with unlimited calling to AT&T's 71.4 million wireless customers. iPhone 3G customers can choose from four individual AT&T Nation plans, which bundle voice and unlimited data (e-mail and Web browsing).

* AT&T NationSM Unlimited: Includes unlimited Anytime Minutes for $129.99 a month.

* AT&T Nation 1350: Includes 1350 Anytime Minutes and unlimited Night & Weekend Minutes for $109.99 a month.

* AT&T Nation 900: Includes 900 Anytime Minutes and unlimited Night & Weekend Minutes for $89.99 a month.

* AT&T Nation 450: Includes 450 Anytime Minutes and 5,000 Night & Weekend Minutes for $69.99 a month.

All AT&T Nation and AT&T FamilyTalk® plans for iPhone 3G include nationwide long distance and roaming, Visual Voicemail, Rollover®, unlimited Mobile to Mobile calling, Call Forwarding, Call Waiting, Three-Way Calling and Caller ID.

AT&T will offer FamilyTalk plans, with bundled voice and unlimited data, starting as low as $129.99 a month for two iPhone 3G lines. Up to three additional iPhone lines can be added for $39.99 each.

Unlimited text messaging can be added for an additional $20 ($30 for FamilyTalk plans of up to five lines); $15 (1,500 messages), or $5 (200 messages).

iPhone for Business

Business customers interested in iPhone 3G should contact an AT&T business sales representative or review their account information online to determine their eligibility for upgrade pricing. Corporate e-mail and other business applications require the Enterprise Data Plan for iPhone, which is $45 a month and bundled with an eligible voice plan. Small business customers may qualify for AT&T BusinessTalk, the industry's only shared plan specifically for small businesses. Additional details on iPhone business offerings are available at www.att.com/iphoneforbusiness.

iPhone 2.0 Software

All iPhone customers will benefit from the iPhone 2.0 software, which will be pre-loaded on all iPhone 3Gs and available as a free download for current iPhone customers. The new software will include numerous enhancements, such as business-class e-mail access via Microsoft Exchange ActiveSync; the iPhone Software Development Kit (SDK), which allows a business to easily create applications customized to its needs; and the App Store, which offers a wide-range of applications — from games to business, education to entertainment and productivity to social networking. For example, AT&T has developed YELLOWPAGES.COM Mobile for iPhone, which takes local mobile search to a new level by allowing users to discover businesses and local events based on their popularity among other iPhone users, get directions and access business reviews.

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