AT&T In Negotiations for Investment in Telecom Italia

AT&T In Negotiations for Investment in Telecom Italia

April 02, 2007

    SAN ANTONIO, April 12 /Xinhua-PRNewswire/ -- AT&T
Inc. (NYSE: T) today said it is in negotiations for a
potential indirect investment in Telecom Italia S.p.A. The
proposal is for AT&T to purchase a one-third stake in
Olimpia S.p.A., a holding company with approximately 18
percent of Telecom Italia's ordinary shares, subject to
satisfactory completion of AT&T's due diligence,
agreement on other terms of the transaction, and
satisfaction of other conditions.  As part of these
negotiations, America Movil, S.A.B. de C.V. (AMX) also is
considering an investment for one-third of the shares of
Olimpia. AT&T's investment is contingent on America
Movil's investment. 

    AT&T is in negotiations on the potential investment
to acquire the interest from Pirelli & C S.p.A., which
owns 80 percent of Olimpia.  Olimpia holds only Telecom
Italia assets.  

    The valuation of the stakes in Olimpia which are the
object of the possible sale would be based on a price per
Telecom Italia share equal to euro 2.82, minus the net debt
of Olimpia on the closing date of the transaction, subject
to the satisfaction of the terms of the proposal.

    As a global telecom leader in wireless, broadband and
IP networks with customers in 137 countries, AT&T is
continually reviewing opportunities that will help it serve
the company's growing global customer base.  AT&T
believes its potential investment in Olimpia would provide
Telecom Italia with a strategic partner with whom it can
share best practices and pursue joint interests.

    AT&T has proven itself to be a capable, committed
partner in its international investments, partnering with
local owners and managers, and working with governments to
bring the latest in telecommunications networks, products
and services to consumers and businesses. Examples of this
include AT&T's 17-year partnership with Telmex, whose
successful collaboration has helped deliver one of the most
modern telecommunications networks in North America, as well
as AT&T's investment in South Africa, which resulted in
a mutually beneficial relationship that helped consumers
and business customers alike.

    Telecom Italia is one of Europe's largest and best-run
communications service providers with a market
capitalization of about euro 40 billion ($53.4 billion). It
has 24 million landline, 57.9 million mobile and 8.6 million
broadband connections, including broadband interests in the
Netherlands, France and Germany, and wireless in Brazil.

    AT&T, which Forbes magazine recognized as
"Company of the Year" in 2006, is an industry
leader in convergence, integrating networks and
applications to deliver services to the "three
screens" that matter most to consumers: the TV,
personal computer and wireless device. AT&T plans to
invest about $18 billion in capital in 2007 to strengthen
its wireless, wireline and international networks.

    Note: This AT&T release and other news
announcements are available as part of an RSS feed at
http://www.att.com/rss .

    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-verse(SM) 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.

    AT&T and the AT&T logo are trademarks of
AT&T Knowledge Ventures. 


    For more information, please contact:  

    U.S. - Ashley Blaker for AT&T
     Tel:   [phone], 
     Email: [e-mail]

    Europe - Niall Hickey
     Tel:   [phone], 
     Email: [e-mail]

    Italy - Marco Palocci for AT&T
     Tel:   [phone], 
     Email: [e-mail]