AT&T and Yahoo! Issue Statement About Partnership

    As part of our ongoing business agreement, Yahoo! and AT&T are constantly discussing opportunities to expand our 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.”