AT&T (T) 8-K Cingular Wireless Reports Fourth-Quarter 2006 Results

EXHIBIT 99.2

AT&T Mobility LLC (formerly Cingular Wireless LLC) Income Statement —amounts in millions (unaudited)

	Quarter Ended							Year to Date
	12/31/2006		12/31/2005		% Change			12/31/2006		12/31/2005		% Change
Operating revenues:
Service revenues	$	8,795	$	7,779		13.1	%	$	33,756	$	30,638		10.2	%
Equipment sales		960		1,070		(10.3	%)		3,750		3,795		(1.2	%)
Total operating revenues		9,755		8,849		10.2	%		37,506		34,433		8.9	%
Operating expenses:
Cost of services		2,465		2,417		2.0	%		9,809		9,318		5.3	%
Cost of equipment sales		1,373		1,341		2.4	%		5,247		5,069		3.5	%
Selling, general and administrative		3,008		2,812		7.0	%		11,447		11,647		(1.7	%)
Depreciation and amortization		1,582		1,730		(8.6	%)		6,436		6,575		(2.1	%)
Total operating expenses		8,428		8,300		1.5	%		32,939		32,609		1.0	%
Operating income		1,327		549		141.7	%		4,567		1,824		150.4	%
Interest expense		285		292		(2.4	%)		1,186		1,260		(5.9	%)
Minority interest expense		39		7		457.1	%		166		102		62.7	%
Equity in net income of affiliates		—		1		(100.0	%)		—		5		(100.0	%)
Other, net		7		1		600.0	%		27		64		(57.8	%)
Income before income tax provision		1,010		252		300.8	%		3,242		531		510.5	%
Provision for income taxes		228		48		375.0	%		719		198		263.1	%
Net income	$	782	$	204		283.3	%	$	2,523	$	333		657.7	%

Selected Financial and Operating Data for AT&T Mobility LLC (formerly Cingular Wireless LLC)— amounts in millions, except customer data in 000s

	Quarter Ended									Year to Date
	12/31/2006			12/31/2005			% Change			12/31/2006			12/31/2005			% Change
(Amounts in millions, except customer data in 000s)
OIBDA1	$	2,909		$	2,279			27.6	%	$	11,003		$	8,399			31.0	%
OIBDA margin2		33.1	%		29.3	%	380 BP				32.6	%		27.4	%	520 BP
Total Cellular/PCS Customers3		60,962			54,144			12.6	%		60,962			54,144			12.6	%
Net Customer Additions — Cellular/PCS		2,357			1,820			29.5	%		6,892			5,006			37.7	%
M&A Activity, Partitioned Customers and/or Other Adjs.		(61	)		32			(290.6	%)		(74	)		6			(1333.3	%)
Churn — Cellular/PCS4		1.8	%		2.1	%	-30 BP				1.8	%		2.2	%	-40 BP
ARPU — Cellular/PCS5	$	49.29		$	48.86			0.9	%	$	49.10		$	49.65			(1.1	%)
Minutes Of Use Per Cellular/PCS Subscriber6		745			700			6.4	%		736			680			8.2	%
Licensed POPs — Cellular/PCS7		296			294			0.7	%		296			294			0.7	%
Penetration — Cellular/PCS8		21.6	%		18.9	%	270 BP				21.6	%		18.9	%	270 BP
Capital Expenditures	$	2,188		$	2,970			(26.3	%)	$	7,039		$	7,475			(5.8	%)

Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures —amounts in millions (unaudited)

	Quarter Ended									Year to Date
	12/31/2006			12/31/2005			% Change			12/31/2006			12/31/2005			% Change
Net income	$	782		$	204			283.3	%	$	2,523		$	333			657.7	%
Plus: Interest expense		285			292			(2.4	%)		1,186			1,260			(5.9	%)
Plus: Minority interest expense		39			7			457.1	%		166			102			62.7	%
Plus: Equity in net loss of affiliates		—			(1	)		(100.0	%)		—			(5	)		(100.0	%)
Plus: Other, net		(7	)		(1	)		600.0	%		(27	)		(64	)		(57.8	%)
Plus: Provision for income taxes		228			48			375.0	%		719			198			263.1	%
Operating income		1,327			549			141.7	%		4,567			1,824			150.4	%
Plus: Depreciation and amortization		1,582			1,730			(8.6	%)		6,436			6,575			(2.1	%)
OIBDA1	$	2,909		$	2,279			27.6	%	$	11,003		$	8,399			31.0	%

NM — Not Meaningful

Notes:

1	OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from operating income (loss), as calculated in accordance with GAAP, in that it excludes depreciation and amortization. It differs from net income, as calculated in accordance with GAAP, in that it excludes, as presented on our Consolidated Statement of Income: (1) depreciation and amortization, (2) interest expense, (3) minority interest expense, (4) equity in net loss of affiliates, (5) other, net, and (6) provision for income taxes. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
2	OIBDA margin is defined as OIBDA divided by service revenues.
3	Cellular/PCS customers include customers served through reseller agreements.
4	Cellular/PCS churn is calculated by dividing the aggregate number of cellular/PCS customers who cancel service during each month in a period by the total number of cellular/PCS customers. at the beginning of each month in that period.
5	ARPU is defined as cellular/PCS service revenues during the period divided by average cellular/PCS customers during the period.
6	Total Minutes of Use Per Cellular/PCS Subscriber (MOUs) excludes SMS activity but includes Local Minutes of Use and Outcollect Minutes of Use in the numerator.
7	Licensed POPs refers to the number of people residing in areas where we and our partners have licenses to provide cellular or PCS service, including areas where we have not yet commenced service.
8	Penetration calculation for 4Q06 is based on licensed “operational” POP’s of 282 million.

AT&T Mobility LLC (formerly Cingular Wireless LLC)
Reconciliation of Reported Results to Normalized Results
(amounts in millions)

Quarter Ended December 31, 2006			Normalized Items
			Integration			AWE Amortization
	GAAP		Costs(1)			Expense(2)			Normalized
Operating revenues:
Service revenues	$	8,795	$	—		$	—		$	8,795
Equipment sales		960		—			—			960
Total operating revenues		9,755		—			—			9,755
Operating expenses:
Cost of services		2,465		(79	)		—			2,386
Cost of equipment sales		1,373		—			—			1,373
Selling, general and administrative		3,008		(36	)		—			2,972
Depreciation and amortization		1,582		(109	)		(292	)		1,181
Total operating expenses		8,428		(224	)		(292	)		7,912
Operating income		1,327		224			292			1,843
Interest expense		285		—			—			285
Minority interest expense		39		—			—			39
Equity in net income (loss) of affiliates		—		—			—			-
Other income (expense), net		7		—			—			7
Income before income tax provision		1,010		224			292			1,526
Provision for income taxes		228		36			48			312
Net income	$	782	$	188		$	244		$	1,214

Year to Date - December 31, 2006			Normalized Items
			Integration			AWE Amortization
	GAAP		Costs(1)			Expense(2)			Normalized
Operating revenues:
Service revenues	$	33,756	$	—		$	—		$	33,756
Equipment sales		3,750		—			—			3,750
Total operating revenues		37,506		—			—			37,506
Operating expenses:
Cost of services		9,809		(229	)		—			9,580
Cost of equipment sales		5,247		—			—			5,247
Selling, general and administrative		11,447		(123	)		—			11,324
Depreciation and amortization		6,436		(408	)		(1,301	)		4,727
Total operating expenses		32,939		(760	)		(1,301	)		30,878
Operating income		4,567		760			1,301			6,628
Interest expense		1,186		—			—			1,186
Minority interest expense		166		—			—			166
Equity in net income (loss) of affiliates		—		—			—			-
Other income (expense), net		27		—			—			27
Income before income tax provision		3,242		760			1,301			5,303
Provision for income taxes		719		125			215			1,059
Net income	$	2,523	$	635		$	1,086		$	4,244

Notes to Normalized Financial Data

Our normalized earnings have been adjusted for the following:

(1)	Integration costs and related tax effect resulting from the Cingular acquisition of AT&T Wireless and AT&T, Inc. merger with BellSouth.
(2)	Amortization expense associated with intangible assets recorded for the AT&T Wireless acquisition and the related tax effect.

AT&T Mobility LLC (formerly Cingular Wireless LLC) Income Statement, NORMALIZED —amounts in millions (unaudited)

	Quarter Ended							Year to Date
	12/31/2006		12/31/2005		% Change			12/31/2006		12/31/2005		% Change
Operating revenues:
Service revenues	$	8,795	$	7,779		13.1	%	$	33,756	$	30,638		10.2	%
Equipment sales		960		1,070		(10.3	%)		3,750		3,795		(1.2	%)
Total operating revenues		9,755		8,849		10.2	%		37,506		34,433		8.9	%
Operating expenses:
Cost of services		2,386		2,326		2.6	%		9,580		9,026		6.1	%
Cost of equipment sales		1,373		1,341		2.4	%		5,247		5,069		3.5	%
Selling, general and administrative		2,972		2,773		7.2	%		11,324		11,364		(0.4	%)
Depreciation and amortization		1,181		1,133		4.2	%		4,727		4,445		6.3	%
Total operating expenses		7,912		7,573		4.5	%		30,878		29,904		3.3	%
Operating income		1,843		1,276		44.4	%		6,628		4,529		46.3	%
Interest expense		285		292		(2.4	%)		1,186		1,260		(5.9	%)
Minority interest expense		39		7		457.1	%		166		102		62.7	%
Equity in net income of affiliates		—		1		(100.0	%)		—		5		(100.0	%)
Other, net		7		1		600.0	%		27		64		(57.8	%)
Income before income tax provision		1,526		979		55.9	%		5,303		3,236		63.9	%
Provision for income taxes		312		168		85.7	%		1,059		643		64.7	%
Net income	$	1,214	$	811		49.7	%	$	4,244	$	2,593		63.7	%

Selected Financial and Operating Data for AT&T Mobility LLC (formerly Cingular Wireless LLC)— amounts in millions, except customer data in 000s

	Quarter Ended									Year to Date
	12/31/2006			12/31/2005			% Change			12/31/2006			12/31/2005			% Change
(Amounts in millions, except customer data in 000s)
OIBDA — normalized1	$	3,024		$	2,409			25.5	%	$	11,355		$	8,974			26.5	%
OIBDA margin — normalized2		34.4	%		31.0	%	340 BP				33.6	%		29.3	%	430 BP
Total Cellular/PCS Customers3**		60,962			54,144			12.6	%		60,962			54,144			12.6	%
Net Customer Additions — Cellular/PCS **		2,357			1,820			29.5	%		6,892			5,006			37.7	%
M&A Activity, Partitioned Customers and/or Other Adjs. **		(61	)		32			(290.6	%)		(74	)		6			(1333.3	%)
Churn — Cellular/PCS4 **		1.8	%		2.1	%	-30 BP				1.8	%		2.2	%	-40 BP
ARPU — Cellular/PCS5**	$	49.29		$	48.86			0.9	%	$	49.10		$	49.65			(1.1	%)
Minutes Of Use Per Cellular/PCS Subscriber6 **		745			700			6.4	%		736			680			8.2	%
Licensed POPs — Cellular/PCS 7**		296			294			0.7	%		296			294			0.7	%
Penetration — Cellular/PCS 8**		21.6	%		18.9	%	270 BP				21.6	%		18.9	%	270 BP
Capital Expenditures**	$	2,188		$	2,970			(26.3	%)	$	7,039		$	7,475			(5.8	%)

Reconciliations of Normalized Financial Measures to Normalized OIBDA and OIBDA Margin —amounts in millions (unaudited)

	Quarter Ended									Year To Date
	12/31/2006			12/31/2005			% Change			12/31/2006			12/31/2005			% Change
Net income	$	1,214		$	811			49.7	%	$	4,244		$	2,593			63.7	%
Plus: Interest expense		285			292			(2.4	%)		1,186			1,260			(5.9	%)
Plus: Minority interest expense		39			7			457.1	%		166			102			62.7	%
Plus: Equity in net loss of affiliates		—			(1	)		100.0	%		—			(5	)		100.0	%
Plus: Other, net		(7	)		(1	)		(600.0	%)		(27	)		(64	)		57.8	%
Plus: Provision for income taxes — normalized		312			168			85.7	%		1,059			643			64.7	%
Operating income — normalized		1,843			1,276			44.4	%		6,628			4,529			46.3	%
Plus: Depreciation and amortization — normalized		1,181			1,133			4.2	%		4,727			4,445			6.3	%
OIBDA — normalized1	$	3,024		$	2,409			25.5	%	$	11,355		$	8,974			26.5	%
OIBDA margin2		33.1	%		29.3	%	380 BP				32.6	%		27.4	%	520 BP
Plus: OIBDA margin, integration		1.3	%		1.7	%	-40 BP				1.0	%		1.9	%	-90 BP
OIBDA margin — normalized		34.4	%		31.0	%	340 BP				33.6	%		29.3	%	430 BP

NM — Not Meaningful

** Denotes metrics and calculations in this chart that are not impacted by the 1Q06 and YTD 2006 normalization of merger integration costs and AT&T Wireless intangibles amortization expenses.

Notes:

1	OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from operating income (loss), as calculated in accordance with GAAP, in that it excludes depreciation and amortization. It differs from net income , as calculated in accordance with GAAP, in that it excludes, as presented on our Consolidated Statement of Income: (1) depreciation and amortization, (2) interest expense, (3) minority interest expense, (4) equity in net loss of affiliates, (5) other, net, and (6) provision for income taxes. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
2	OIBDA margin is defined as OIBDA divided by service revenues.
3	Cellular/PCS customers include customers served through reseller agreements.
4	Cellular/PCS churn is calculated by dividing the aggregate number of cellular/PCS customers who cancel service during each month in a period by the total number of cellular/PCS customers. at the beginning of each month in that period.
5	ARPU is defined as cellular/PCS service revenues during the period divided by average cellular/PCS customers during the period.
6	Total Minutes of Use Per Cellular/PCS Subscriber (MOUs) excludes SMS activity but includes Local Minutes of Use and Outcollect Minutes of Use in the numerator.
7	Licensed POPs refers to the number of people residing in areas where we and our partners have licenses to provide cellular or PCS service, including areas where we have not yet commenced service.
8	Penetration calculation for 4Q06 is based on licensed “operational” POP’s of 282 million.

AT&T Mobility LLC (formerly Cingular Wireless LLC) Income Statement —amounts in millions (unaudited)

	Full Year
	2003			3/31/2004			6/30/2004			9/30/2004			12/31/2004			3/31/2005			6/30/2005		9/30/2005		12/31/2005		3/31/2006		6/30/2006		9/30/2006		12/31/2006
Operating revenues:
Service revenues	$	14,317		$	3,583		$	3,833		$	3,873		$	6,313		$	7,419		$	7,719	$	7,721	$	7,779	$	8,005	$	8,295	$	8,661	$	8,795
Equipment sales		1,260			384			354			419			806			810			890		1,025		1,070		975		923		892		960
Total operating revenues		15,577			3,967			4,187			4,292			7,119			8,229			8,609		8,746		8,849		8,980		9,218		9,553		9,755
Operating expenses:
Cost of services		3,775			955			983			1,107			1,692			2,144			2,293		2,464		2,417		2,320		2,497		2,527		2,465
Cost of equipment sales		2,031			537			505			585			1,247			1,295			1,230		1,203		1,341		1,327		1,349		1,198		1,373
Selling, general and administrative		5,428			1,372			1,463			1,567			2,947			3,001			2,953		2,881		2,812		2,846		2,757		2,836		3,008
Depreciation and amortization		2,089			553			565			573			1,386			1,675			1,629		1,541		1,730		1,680		1,598		1,576		1,582
Total operating expenses		13,323			3,417			3,516			3,832			7,272			8,115			8,105		8,089		8,300		8,173		8,201		8,137		8,428
Operating income (loss)		2,254			550			671			460			(153	)		114			504		657		549		807		1,017		1,416		1,327
Interest expense		856			198			199			200			303			338			326		304		292		297		298		306		285
Minority interest expense		101			27			41			20			(2	)		16			41		38		7		41		43		43		39
Equity in net income (loss) of affiliates		(333	)		(108	)		(95	)		(98	)		(114	)		2			1		1		1		—		—		—		—
Other, net		41			4			1			—			11			20			33		10		1		9		6		5		7
Income (loss) before income tax provision		1,005			221			337			142			(557	)		(218	)		171		326		252		478		682		1,072		1,010
Provision (benefit) for income taxes		28			6			(2	)		—			(62	)		22			24		104		48		124		142		225		228
Net income (loss)	$	977		$	215		$	339		$	142		$	(495	)	$	(240	)	$	147	$	222	$	204	$	354	$	540	$	847	$	782

Selected Financial and Operating Data for AT&T Mobility LLC (formerly Cingular Wireless LLC)— amounts in millions, except customer data in 000s

	2003			3/31/2004			6/30/2004			9/30/2004			12/31/2004			3/31/2005			6/30/2005			9/30/2005			12/31/2005			3/31/2006			6/30/2006			9/30/2006			12/31/2006
OIBDA1	$	4,343		$	1,103		$	1,236		$	1,033		$	1,233		$	1,789		$	2,133		$	2,198		$	2,279		$	2,487		$	2,615		$	2,992		$	2,909
OIBDA margin2		30.5	%		30.8	%		32.2	%		26.7	%		19.5	%		24.1	%		27.6	%		28.5	%		29.3	%		31.1	%		31.5	%		34.5	%		33.1	%
Integration, AT&T Wireless Intangibles Amortization,Hurricane Costs and BLS Merger Costs	$	—		$	—		$	—		$	43		$	643		$	596		$	649		$	733		$	727		$	593		$	499		$	453		$	516
OIBDA — normalized	$	4,343		$	1,103		$	1,236		$	1,076		$	1,478		$	1,894		$	2,228		$	2,443		$	2,409		$	2,551		$	2,701		$	3,079		$	3,024
OIBDA margin — normalized		30.5	%		30.8	%		32.2	%		27.8	%		23.4	%		25.5	%		28.9	%		31.6	%		31.0	%		31.9	%		32.6	%		35.6	%		34.4	%
Total Cellular/PCS Customers3		24,027			24,618			25,044			25,672			49,132			50,350			51,442			52,292			54,144			55,810			57,308			58,666			60,962
Net Customer Additions — Cellular/PCS		2,116			554			428			657			1,699			1,367			952			867			1,820			1,679			1,498			1,358			2,357
M&A Activity, Partitioned Customers and/or Other Adjs.		(14	)		37			(2	)		(29	)		21,761			(149	)		140			(17	)		32			(13	)		—			—			(61	)
Churn — Cellular/PCS4		2.7	%		2.7	%		2.7	%		2.8	%		2.6	%		2.2	%		2.2	%		2.3	%		2.1	%		1.9	%		1.7	%		1.8	%		1.8	%
ARPU — Cellular/PCS5	$	51.67		$	48.30		$	50.75		$	50.25		$	49.51		$	49.60		$	50.51		$	49.65		$	48.86		$	48.48		$	48.84		$	49.76		$	49.29
Minutes Of Use Per Cellular/PCS Subscriber6		446			527			568			598			617			628			692			698			700			698			741			755			745
Licensed POPs — Cellular/PCS7		236			240			243			243			291			293			294			294			294			296			296			296			296
Penetration — Cellular/PCS8		10.8	%		10.9	%		11.1	%		11.4	%		17.2	%		17.7	%		18.0	%		18.3	%		18.9	%		19.8	%		20.0	%		20.8	%		21.6	%
Total Cingular Interactive Customers		789			768			735			653		NA			NA			NA			NA			NA			NA			NA			NA			NA
Net Customer Additions — Cingular Interactive		(28	)		(21	)		(33	)		(82	)	NA			NA			NA			NA			NA			NA			NA			NA			NA
Capital Expenditures	$	2,734		$	334		$	783		$	634		$	1,698		$	971		$	2,188		$	1,346		$	2,970		$	1,441		$	1,582		$	1,828		$	2,188

Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures —amounts in millions (unaudited)

	2003			3/31/2004			6/30/2004			9/30/2004		12/31/2004			3/31/2005			6/30/2005			9/30/2005			12/31/2005			3/31/2006			6/30/2006			9/30/2006			12/31/2006
Net income (loss)	$	977		$	215		$	339		$	142	$	(495	)	$	(240	)	$	147		$	222		$	204		$	354		$	540		$	847		$	782
Plus: Interest expense		856			198			199			200		303			338			326			304			292			297			298			306			285
Plus: Minority interest expense		101			27			41			20		(2	)		16			41			38			7			41			43			43			39
Plus: Equity in net income (loss) of affiliates		333			108			95			98		114			(2	)		(1	)		(1	)		(1	)		—			—			—			—
Plus: Other, net		(41	)		(4	)		(1	)		—		(11	)		(20	)		(33	)		(10	)		(1	)		(9	)		(6	)		(5	)		(7	)
Plus: Provision (benefit) for income taxes		28			6			(2	)		—		(62	)		22			24			104			48			124			142			225			228
Operating income (loss)		2,254			550			671			460		(153	)		114			504			657			549			807			1,017			1,416			1,327
Plus: Depreciation and amortization		2,089			553			565			573		1,386			1,675			1,629			1,541			1,730			1,680			1,598			1,576			1,582
OIBDA1	$	4,343		$	1,103		$	1,236		$	1,033	$	1,233		$	1,789		$	2,133		$	2,198		$	2,279		$	2,487		$	2,615		$	2,992		$	2,909
Plus: Integration costs (excluding depreciation and amortization)		—			—			—			43		245			105			95			149			110			64			86			87			115
Plus: Hurricane costs (excluding depreciation and amortization)		—			—			—			—		—			—			—			96			20			—			—			—			—
OIBDA — normalized1	$	4,343		$	1,103		$	1,236		$	1,076	$	1,478		$	1,894		$	2,228		$	2,443		$	2,409		$	2,551		$	2,701		$	3,079		$	3,024
Service revenues		14,317			3,583			3,833			3,873		6,313			7,419			7,719			7,721			7,779			8,005			8,295			8,661			8,795
Less: Mobitex data revenues		220			58			59			54		36			18			20			18			17			14			11			7			7
Service revenues used to calculate ARPU	$	14,097		$	3,525		$	3,774		$	3,819	$	6,277		$	7,401		$	7,699		$	7,703		$	7,762		$	7,991		$	8,284		$	8,654		$	8,788

In 2003, to be consistent with industry practices, historical consolidated statements of income for all periods presented were reclassified to reflect billings to our customers for the Universal Service Fund (USF) and other regulatory fees as operating revenues and the costs related to payments into the associated regulatory funds as operating expenses. Similar reclassifications have also been made to 2003 and 2004 historical results for certain gross receipts taxes and other fees which are billed to our customers. Operating income and net income for all periods were unaffected.

Notes:

1	OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from operating income (loss), as calculated in accordance with GAAP, in that it excludes depreciation and amortization. It differs from net income (loss), as calculated in accordance with GAAP, in that it excludes, as presented on our Consolidated Statement of Income: (1) depreciation and amortization, (2) interest expense, (3) minority interest expense, (4) equity in net income (loss) of affiliates, (5) other, net, and (6) provision (benefit) for income taxes. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
2	OIBDA margin is defined as OIBDA divided by service revenues.
3	Cellular/PCS customers include customers served through reseller agreements.
4	Cellular/PCS churn is calculated by dividing the aggregate number of cellular/PCS customers who cancel service during each month in a period by the total number of cellular/PCS customers. at the beginning of each month in that period.
5	ARPU is defined as cellular/PCS service revenues during the period divided by average cellular/PCS customers during the period.
6	Prior to 1Q05, the numerator includes Local Minutes of Use.
7	Licensed POPs refers to the number of people residing in areas where we and our partners have licenses to provide cellular or PCS service, including areas where we have not yet commenced service. Licensed POPs have been restated in periods 4Q04 through 2Q05 due to a reconciliation of respective licenses.
8	Penetration calculation for 4Q06 is based on licensed “operational” POP’s of 282 million.

AT&T Mobility LLC (formerly Cingular Wireless LLC) Income Statement, Normalized —amounts in millions (unaudited)

	Normalized
	12/31/2004			3/31/2005		6/30/2005		9/30/2005		12/31/2005		3/31/2006		6/30/2006		9/30/2006		12/31/2006
Operating revenues:
Service revenues	$	6,313		$	7,419	$	7,719	$	7,721	$	7,779	$	8,005	$	8,295	$	8,661	$	8,795
Equipment sales		806			810		890		1,025		1,070		975		923		892		960
Total operating revenues		7,119			8,229		8,609		8,746		8,849		8,980		9,218		9,553		9,755
Operating expenses:
Cost of services		1,685			2,141		2,274		2,285		2,326		2,302		2,430		2,462		2,386
Cost of equipment sales		1,244			1,295		1,230		1,203		1,341		1,327		1,349		1,198		1,373
Selling, general and administrative		2,712			2,899		2,877		2,815		2,773		2,800		2,738		2,814		2,972
Depreciation and amortization		988			1,184		1,075		1,053		1,133		1,151		1,185		1,210		1,181
Total operating expenses		6,629			7,519		7,456		7,356		7,573		7,580		7,702		7,684		7,912
Operating income		490			710		1,153		1,390		1,276		1,400		1,516		1,869		1,843
Interest expense		303			338		326		304		292		297		298		306		285
Minority interest expense		(2	)		16		41		38		7		41		43		43		39
Equity in net income (loss) of affiliates		(114	)		2		1		1		1		—		—		—		—
Other, net		11			20		33		10		1		9		6		5		7
Income before income tax provision		86			378		820		1,059		979		1,071		1,181		1,525		1,526
Provision for income taxes		39			120		131		224		168		222		225		300		312
Net income	$	47		$	258	$	689	$	835	$	811	$	849	$	956	$	1,225	$	1,214

Selected Financial and Operating Data for AT&T Mobility LLC (formerly Cingular Wireless LLC)- amounts in millions, except customer data in 000s

	Normalized
	12/31/2004			3/31/2005			6/30/2005			9/30/2005			12/31/2005			3/31/2006			6/30/2006			9/30/2006			12/31/2006
OIBDA1(in millions)	$	1,478		$	1,894		$	2,228		$	2,443		$	2,409		$	2,551		$	2,701		$	3,079		$	3,024
OIBDA margin2		23.4	%		25.5	%		28.9	%		31.6	%		31.0	%		31.9	%		32.6	%		35.6	%		34.4	%
Total Cellular/PCS Customers3 (000’s)		49,132			50,350			51,442			52,292			54,144			55,810			57,308			58,666			60,962
Net Customer Additions — Cellular/PCS (000’s)		1,699			1,367			952			867			1,820			1,679			1,498			1,358			2,357
M&A Activity, Partitioned Customers and/or Other Adjs. (000’s)		21,761			(149	)		140			(17	)		32			(13	)		—			—			(61	)
Churn — Cellular/PCS4		2.6	%		2.2	%		2.2	%		2.3	%		2.1	%		1.9	%		1.7	%		1.8	%		1.8	%
ARPU — Cellular/PCS5	$	49.51		$	49.60		$	50.51		$	49.65		$	48.86		$	48.48		$	48.84		$	49.76		$	49.29

Reconciliations of Normalized Financial Measures to Normalized OIBDA and Service Revenues —amounts in millions (unaudited)

	Normalized
	12/31/2004			3/31/2005			6/30/2005			9/30/2005			12/31/2005			3/31/2006			6/30/2006			9/30/2006			12/31/2006
Net income	$	47		$	258		$	689		$	835		$	811		$	849		$	956		$	1,225		$	1,214
Plus: Interest expense		303			338			326			304			292			297			298			306			285
Plus: Minority interest expense		(2	)		16			41			38			7			41			43			43			39
Plus: Equity in net (income) loss of affiliates		114			(2	)		(1	)		(1	)		(1	)		—			—			—			—
Plus: Other, net		(11	)		(20	)		(33	)		(10	)		(1	)		(9	)		(6	)		(5	)		(7	)
Plus: Provision for income taxes		39			120			131			224			168			222			225			300			312
Operating income		490			710			1,153			1,390			1,276			1,400			1,516			1,869			1,843
Plus: Depreciation and amortization		988			1,184			1,075			1,053			1,133			1,151			1,185			1,210			1,181
OIBDA1	$	1,478		$	1,894		$	2,228		$	2,443		$	2,409		$	2,551		$	2,701		$	3,079		$	3,024
Service revenues		6,313			7,419			7,719			7,721			7,779			8,005			8,295			8,661			8,795
Less: Mobitex data revenues		36			18			20			18			17			14			11			7			7
Service revenues used to calculate ARPU	$	6,277		$	7,401		$	7,699		$	7,703		$	7,762		$	7,991		$	8,284		$	8,654		$	8,788

Notes:

1	OIBDA is defined as operating income before depreciation and amortization. OIBDA differs from operating income, as calculated in accordance with GAAP, in it excludes depreciation and amortization. It differs from net income, as calculated in accordance with GAAP, in that it excludes, as presented on our Consolidated Statement of Income: (1) depreciation and amortization, (2) interest expense, (3) minority interest expense, (4) equity in net income (loss) of affiliates, (5) other, net, and (6) provision for income taxes. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
2	OIBDA margin is defined as OIBDA divided by service revenues.
3	Cellular/PCS customers include customers served through reseller agreements.
4	Cellular/PCS customer churn is calculated by dividing the aggregate number of cellular/PCS customers who cancel service during each month in a period by the total number of cellular/PCS customers at the beginning of each month in that period.
5	ARPU is defined as cellular/PCS service revenues during the period divided by average cellular/PCS customers during the period.

AT&T Mobility LLC (formerly Cingular Wireless LLC) Income Statement, Prior Quarter Normalized Reconciliations —amounts in millions (unaudited)

	Three months ended 09/30/04									Three months ended 12/31/04									Three months ended 3/31/05								Three months ended 6/30/05							Three months ended 9/30/05
	GAAP			Normalized			Normalized			GAAP			Normalized			Normalized			GAAP			Normalized			Normalized		GAAP		Normalized			Normalized		GAAP		Normalized			Normalized
	Results			Expenses			Results			Results			Expenses			Results			Results			Expenses			Results		Results		Expenses			Results		Results		Expenses			Results
Operating revenues:
Service revenues	$	3,873		$	—		$	3,873		$	6,313		$	—		$	6,313		$	7,419		$	—		$	7,419	$	7,719	$	—		$	7,719	$	7,721	$	—		$	7,721
Equipment sales		419			—			419			806			—			806			810			—			810		890		—			890		1,025		—			1,025
Total operating revenues		4,292			—			4,292			7,119			—			7,119			8,229			—			8,229		8,609		—			8,609		8,746		—			8,746
Operating expenses:
Cost of services		1,107			(1	)		1,106			1,692			(7	)		1,685			2,144			(3	)		2,141		2,293		(19	)		2,274		2,464		(179	)		2,285
Cost of equipment sales		585			—			585			1,247			(3	)		1,244			1,295			—			1,295		1,230		—			1,230		1,203		—			1,203
Selling, general and administrative		1,567			(42	)		1,525			2,947			(235	)		2,712			3,001			(102	)		2,899		2,953		(76	)		2,877		2,881		(66	)		2,815
Depreciation and amortization		573			—			573			1,386			(398	)		988			1,675			(491	)		1,184		1,629		(554	)		1,075		1,541		(488	)		1,053
Total operating expenses		3,832			(43	)		3,789			7,272			(643	)		6,629			8,115			(596	)		7,519		8,105		(649	)		7,456		8,089		(733	)		7,356
Operating income		460			43			503			(153	)		643			490			114			596			710		504		649			1,153		657		733			1,390
Interest expense		200			—			200			303			—			303			338			—			338		326		—			326		304		—			304
Minority interest expense		20			—			20			(2	)		—			(2	)		16			—			16		41		—			41		38		—			38
Equity in net income (loss) of affiliates		(98	)		—			(98	)		(114	)		—			(114	)		2			—			2		1		—			1		1		—			1
Other , net		—			—			—			11			—			11			20			—			20		33		—			33		10		—			10
Income (loss) before income tax provision		142			43			185			(557	)		643			86			(218	)		596			378		171		649			820		326		733			1,059
Provision (benefit) for income taxes		—			—			—			(62	)		101			39			22			98			120		24		107			131		104		120			224
Net income (loss)	$	142		$	43		$	185		$	(495	)	$	542		$	47		$	(240	)	$	498		$	258	$	147	$	542		$	689	$	222	$	613		$	835

	Three months ended 12/31/05							Three months ended 3/31/06							Three months ended 6/30/06							Three months ended 9/30/06							Three months ended 12/31/06
	GAAP		Normalized			Normalized		GAAP		Normalized			Normalized		GAAP		Normalized			Normalized		GAAP		Normalized			Normalized		GAAP		Normalized			Normalized
	Results		Expenses			Results		Results		Expenses			Results		Results		Expenses			Results		Results		Expenses			Results		Results		Expenses			Results
Operating revenues:
Service revenues	$	7,779	$	—		$	7,779	$	8,005	$	—		$	8,005	$	8,295	$	—		$	8,295	$	8,661	$	—		$	8,661	$	8,795	$	—		$	8,795
Equipment sales		1,070		—			1,070		975		—			975		923		—			923		892		—			892		960		—			960
Total operating revenues		8,849		—			8,849		8,980		—			8,980		9,218		—			9,218		9,553		—			9,553		9,755		—			9,755
Operating expenses:
Cost of services		2,417		(91	)		2,326		2,320		(18	)		2,302		2,497		(67	)		2,430		2,527		(65	)		2,462		2,465		(79	)		2,386
Cost of equipment sales		1,341		—			1,341		1,327		—			1,327		1,349		—			1,349		1,198		—			1,198		1,373		—			1,373
Selling, general and administrative		2,812		(39	)		2,773		2,846		(46	)		2,800		2,757		(19	)		2,738		2,836		(22	)		2,814		3,008		(36	)		2,972
Depreciation and amortization		1,730		(597	)		1,133		1,680		(529	)		1,151		1,598		(413	)		1,185		1,576		(366	)		1,210		1,582		(401	)		1,181
Total operating expenses		8,300		(727	)		7,573		8,173		(593	)		7,580		8,201		(499	)		7,702		8,137		(453	)		7,684		8,428		(516	)		7,912
Operating income		549		727			1,276		807		593			1,400		1,017		499			1,516		1,416		453			1,869		1,327		516			1,843
Interest expense		292		—			292		297		—			297		298		—			298		306		—			306		285		—			285
Minority interest expense		7		—			7		41		—			41		43		—			43		43		—			43		39		—			39
Equity in net income (loss) of affiliates		1		—			1		—		—			—		—		—			—		—		—			—		—		—			-
Other , net		1		—			1		9		—			9		6		—			6		5		—			5		7		—			7
Income (loss) before income tax provision		252		727			979		478		593			1,071		682		499			1,181		1,072		453			1,525		1,010		516			1,526
Provision (benefit) for income taxes		48		120			168		124		98			222		142		83			225		225		75			300		228		84			312
Net income (loss)	$	204	$	607		$	811	$	354	$	495		$	849	$	540	$	416		$	956	$	847	$	378		$	1,225	$	782	$	432		$	1,214

	Nine months ended 09/30/04									Twelve months ended 12/31/04									Three months ended 3/31/05								Six months ended 6/30/05								Nine months ended 9/30/05
	GAAP			Normalized			Normalized			GAAP			Normalized			Normalized			GAAP			Normalized			Normalized		GAAP			Normalized			Normalized		GAAP		Normalized			Normalized
	Results			Expenses			Results			Results			Expenses			Results			Results			Expenses			Results		Results			Expenses			Results		Results		Expenses			Results
Operating revenues:
Service revenues	$	11,289		$	—		$	11,289		$	17,602		$	—		$	17,602		$	7,419		$	—		$	7,419	$	15,138		$	—		$	15,138	$	22,859	$	—		$	22,859
Equipment sales		1,157			—			1,157			1,963			—			1,963			810			—			810		1,700			—			1,700		2,725		—			2,725
Total operating revenues		12,446			—			12,446			19,565			—			19,565			8,229			—			8,229		16,838			—			16,838		25,584		—			25,584
Operating expenses:
Cost of services		3,045			(1	)		3,044			4,737			(8	)		4,729			2,144			(3	)		2,141		4,437			(22	)		4,415		6,901		(201	)		6,700
Cost of equipment sales		1,627			—			1,627			2,874			(3	)		2,871			1,295			—			1,295		2,525			—			2,525		3,728		—			3,728
Selling, general and administrative		4,402			(42	)		4,360			7,349			(277	)		7,072			3,001			(102	)		2,899		5,954			(178	)		5,776		8,835		(244	)		8,591
Depreciation and amortization		1,691			—			1,691			3,077			(398	)		2,679			1,675			(491	)		1,184		3,304			(1,045	)		2,259		4,845		(1,533	)		3,312
Total operating expenses		10,765			(43	)		10,722			18,037			(686	)		17,351			8,115			(596	)		7,519		16,220			(1,245	)		14,975		24,309		(1,978	)		22,331
Operating income		1,681			43			1,724			1,528			686			2,214			114			596			710		618			1,245			1,863		1,275		1,978			3,253
Interest expense		597			—			597			900			—			900			338			—			338		664			—			664		968		—			968
Minority interest expense		88			—			88			86			—			86			16			—			16		57			—			57		95		—			95
Equity in net income (loss) of affiliates		(301	)		—			(301	)		(415	)		—			(415	)		2			—			2		3			—			3		4		—			4
Other, net		5			—			5			16			—			16			20			—			20		53			—			53		63		—			63
Income (loss) before income tax provision		700			43			743			143			686			829			(218	)		596			378		(47	)		1,245			1,198		279		1,978			2,257
Provision (benefit) for income taxes		4			—			4			(58	)		101			43			22			98			120		46			205			251		150		325			475
Net income (loss)	$	696		$	43		$	739		$	201		$	585		$	786		$	(240	)	$	498		$	258	$	(93	)	$	1,040		$	947	$	129	$	1,653		$	1,782

	Twelve months ended 12/31/05							Three months ended 3/31/06							Six months ended 6/30/06							Nine months ended 9/30/06							Twelve months ended 12/31/06
	GAAP		Normalized			Normalized		GAAP		Normalized			Normalized		GAAP		Normalized			Normalized		GAAP		Normalized			Normalized		GAAP		Normalized			Normalized
	Results		Expenses			Results		Results		Expenses			Results		Results		Expenses			Results		Results		Expenses			Results		Results		Expenses			Results
Operating revenues:
Service revenues	$	30,638	$	—		$	30,638	$	8,005	$	—		$	8,005	$	16,300	$	—		$	16,300	$	24,961	$	—		$	24,961	$	33,756	$	—		$	33,756
Equipment sales		3,795		—			3,795		975		—			975		1,898		—			1,898		2,790		—			2,790		3,750		—			3,750
Total operating revenues		34,433		—			34,433		8,980		—			8,980		18,198		—			18,198		27,751		—			27,751		37,506		—			37,506
Operating expenses:
Cost of services		9,318		(292	)		9,026		2,320		(18	)		2,302		4,817		(85	)		4,732		7,344		(150	)		7,194		9,809		(229	)		9,580
Cost of equipment sales		5,069		—			5,069		1,327		—			1,327		2,676		—			2,676		3,874		—			3,874		5,247		—			5,247
Selling, general and administrative		11,647		(283	)		11,364		2,846		(46	)		2,800		5,603		(65	)		5,538		8,439		(87	)		8,352		11,447		(123	)		11,324
Depreciation and amortization		6,575		(2,130	)		4,445		1,680		(529	)		1,151		3,278		(942	)		2,336		4,854		(1,308	)		3,546		6,436		(1,709	)		4,727
Total operating expenses		32,609		(2,705	)		29,904		8,173		(593	)		7,580		16,374		(1,092	)		15,282		24,511		(1,545	)		22,966		32,939		(2,061	)		30,878
Operating income		1,824		2,705			4,529		807		593			1,400		1,824		1,092			2,916		3,240		1,545			4,785		4,567		2,061			6,628
Interest expense		1,260		—			1,260		297		—			297		595		—			595		901		—			901		1,186		—			1,186
Minority interest expense		102		—			102		41		—			41		84		—			84		127		—			127		166		—			166
Equity in net income (loss) of affiliates		5		—			5		—		—			—		—		—			—		—		—			—		—		—			-
Other, net		64		—			64		9		—			9		15		—			15		20		—			20		27		—			27
Income (loss) before income tax provision		531		2,705			3,236		478		593			1,071		1,160		1,092			2,252		2,232		1,545			3,777		3,242		2,061			5,303
Provision (benefit) for income taxes		198		445			643		124		98			222		266		181			447		491		256			747		719		340			1,059
Net income (loss)	$	333	$	2,260		$	2,593	$	354	$	495		$	849	$	894	$	911		$	1,805	$	1,741	$	1,289		$	3,030	$	2,523	$	1,721		$	4,244

     No integration costs were incurred prior to the third quarter of 2004.

     Quarterly amortization expense (in millions) associated with intangible assets recorded for the AT&T Wireless acquisition is as follows: $398 in 4Q04, $491 in 1Q05, $445 in 2Q05, $396 in 3Q05, $381 in 4Q05, $359 in 1Q06, $336 in 2Q06, $314 in 3Q06, $292 in 4Q06.

AT&T Mobility LLC (formerly Cingular Wireless LLC) Balance Sheet —amounts in millions (unaudited)

	12/31/2006		12/31/2005		Incr(Decr)			% + / -
	(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	512	$	472	$	40			8.5	%
Accounts receivable — net of allowance for doubtful accounts		4,087		3,622		465			12.8	%
Inventories		467		536		(69	)		(12.9	%)
Prepaid expenses and other current assets		1,922		1,419		503			35.4	%
Total current assets		6,988		6,049		939			15.5	%
Property, plant and equipment — net		19,687		21,745		(2,058	)		(9.5	%)
Intangible assets — net		69,510		50,773		18,737			36.9	%
Other assets		1,086		752		334			44.4	%
Total assets	$	97,271	$	79,319	$	17,952			22.6	%
Liabilities and members’ capital
Current liabilities:
Debt maturing within one year	$	3,095	$	2,036	$	1,059			52.0	%
Accounts payable and accrued liabilities		7,014		7,972		(958	)		(12.0	%)
Total current liabilities		10,109		10,008		101			1.0	%
Long-term debt to affiliates		6,717		6,717		—			0.0	%
Long-term debt to external parties		11,790		12,623		(833	)		(6.6	%)
Total long-term debt		18,507		19,340		(833	)		(4.3	%)
Other noncurrent liabilities		7,210		4,450		2,760			62.0	%
Minority interests in consolidated entities		601		543		58			10.7	%
Members’ capital		60,844		44,978		15,866			35.3	%
Total liabilities and members’ capital	$	97,271	$	79,319	$	17,952			22.6	%