AT&T Kicks Off Sales of iPhone 3G

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Online Resources Available to Help Customers Prepare for Purchase

AT&T begins selling iPhone 3G today in its retail stores at 8a.m. local time across the United States, along with a variety ofattractive monthly plans that combine voice and unlimited data use.iPhone 3G uses the nations fastest 3G wireless network, whichreaches 300 major metropolitan areas.

Pricing and Eligibility
AT&T Inc. ( NYSE:T ) has announced that AT&T is making it easy for customers toprepare for their iPhone 3G purchase by posting "Get iReady" tipsand frequently asked questions at www.att.com/iphone . The site also includes a link for customers to check theirupgrade eligibility and other wireless account information.

iPhone 3G will be available for $199 for the 8GB model and $299 forthe 16GB model. These prices require two-year contracts and areavailable 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 ofpurchase, for an upgrade discount

Current customers who are not eligible for an upgrade discount canpurchase iPhone 3G for $399 for the 8GB model or $499 for the 16GBmodel. Both options require a new two-year service agreement.Current customers may also choose to wait until they becomeeligible for an upgrade discount. Eligibility is generallydetermined by amount of time remaining on a current contract andpayment history.

Current AT&T customers who are upgrading to iPhone 3G will payan $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 globeand the largest mobile-to-mobile calling community with unlimitedcalling to AT&Ts 71.4 million wireless customers. iPhone 3Gcustomers 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 Minutesfor $129.99 a month.
* AT&T Nation 1350: Includes 1350 Anytime Minutes and unlimitedNight & Weekend Minutes for $109.99 a month.
* AT&T Nation 900: Includes 900 Anytime Minutes and unlimitedNight & 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