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TO AT&T STAKEHOLDERS:

At AT&T, we deliver services that put the world at our customers’ fingertips—services that are made possible by an intelligent network that is faster, more secure, more powerful and more capable than ever.

This network benefits people, communities and our environment in many ways. It speeds commerce, improves business productivity and broadens access to services and ideas. It supports innovative services like telepresence that reduce the need for business travel and help minimize impact on the environment. Smart grid solutions are improving the way we use energy. New mobile broadband health care applications are helping individuals connect with their providers—opening up possibilities for better and more cost- efficient care. And there are many more innovations to come, driven by AT&T Labs and an army of other innovators, both inside and outside our company.

At the same time, we recognize how important it is to strengthen our communities. Our $100 million AT&T Aspire initiative focuses on high school success and workforce readiness. We work continually to nurture and develop a diverse workforce and supplier base. We engage with our suppliers to bring more sustainable products to market. And in our operations, we continue to find ways to reduce resource consumption, such as energy efficiency efforts and our commitment to deploy approximately 15,000 alternative-fuel vehicles in our fleet. In these ways and more, we’re minimizing our impact on the environment while enabling our customers to do the same.

We understand that sustainability is a journey and there is much work ahead of us still. We’re pleased to share with you the progress we made in 2010. And I hope you’ll also see our commitment to continuing the progress in these areas for years ahead. For our company, sustainability is about managing our business responsibly, for the long haul—to ensure that we’re always there for all the people and communities who depend on us.

Sincerely,

Randall Stephenson Chairman, Chief Executive Officer and President

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