[The 3G-enabled iPhone begins selling today in retail AT&T stores across the U.S.]

Dallas -- AT&T begins selling iPhone 3G today in its retail stores at 8 a.m. local time across the United States, along with a variety of attractive monthly plans that combine voice and unlimited data use. iPhone 3G uses the nation's fastest 3G wireless network, which reaches 300 major metropolitan areas.

Pricing and Eligibility

AT&T Inc. has announced that 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 includes 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:

-- iPhone 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

Current customers who are not 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. 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 Nation(SM) 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).

Additional Tips for Consumers

New AT&T customers who wish to port or retain their phone number from another wireless carrier should consider bringing a copy of a bill from their current service provider. Customers will be asked to provide account information as it appears on record with their current provider, including:

-- Account number -- Name of the account holder -- Account holder's SSN or Tax ID -- Billing address -- PIN or password (if applicable)

Customers who inherit an original iPhone from a friend or family member will need to request a SIM card from AT&T for the phone and activate the device using the in-home activation process through iTunes.

Customers should listen to voice mail messages on their current devices and write down any necessary information before purchasing iPhone 3G, because existing voice mail messages will be lost when upgrading to iPhone's Visual Voicemail feature.

AT&T will offer accessory bundle options specific to iPhone 3G in its retail stores.

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, available at www.apple.com/webapps, 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. Numerous enterprise applications are and will continue to be available on iPhone 3G, via the App Store, including Oracle's CRM, collaboration and e-mail applications.

iPhone for Business

Oracle and Kraft Foods Inc. are among the first business customers to deploy iPhone 3G. 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 3G is available to customers who are currently prepaid customers; however, there is no prepaid plan for iPhone 3G. Additionally, customers' accounts must be in good standing at the time of purchase.

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