Strong Wireless Growth, Continued Cost Discipline, Solid Free Cash Flow Highlight AT&T's Second-Quarter Results

$0.54 diluted EPS compared with $0.63 for the year-earlier second quarter and $0.53 in the first quarter of 2009; incremental noncash pension/retiree benefit costs reduced second-quarter 2009 EPS by $0.05, consistent with first-quarter results
1.4 million net gain in total wireless subscribers to reach 79.6 million, up 6.7 million over the past year
1.2 million retail postpaid wireless net adds, the company’s best-ever second-quarter total — up 29.0 percent from results in the year-earlier quarter and up 31.8 percent versus the first quarter of 2009; record low postpaid subscriber churn at 1.09 percent
More than 2.4 million iPhone activations in the second quarter, reflecting a record-setting iPhone 3GS launch; including iPhone, more than 3.5 million increase in 3G integrated devices in service (handsets with QWERTY or virtual keyboards in addition to voice functionality)
37.2 percent increase in wireless data revenues to $3.4 billion, more than double the total for the second quarter two years earlier; growth driven by messaging, Internet access, access to applications and related services
Sixth consecutive quarter with a year-over-year increase in wireless postpaid subscriber ARPU (average monthly revenues per subscriber), up 2.3 percent to $60.21
Continued strong growth in AT&T U-verseSM TV subscribers, with a net increase of 248,000, to reach 1.6 million in service; more than three-fourths of AT&T U-verse TV subscribers have a triple- or quad-play option from AT&T (adding broadband, wireline voice and wireless)
17.0 percent growth in wireline IP data revenues driven by rapid expansion in AT&T U-verse services and growth in business products such as Virtual Private Networks (VPNs) and managed Internet services
Note: AT&T's second-quarter earnings conference call will be broadcast live via the Internet at 10 a.m. ET on Thursday, July 23, 2009, at www.att.com/investor.relations.