LONDON, September 18 /PRNewswire/ --

- UK-based Global Business Expects US$25 Million Savings Over Five Years 
on Communications Costs as Part of on-going Business Transformation Programme

AT&T Inc. (NYSE:T) and Smiths Group plc (LSE: SMIN) today announced that
the global technology business Smiths Group, has selected AT&T as its
world-wide communications provider. The five year agreement reflects Smiths'
ongoing business transformation programme and will help Smiths to leverage
its global scale, delivering improved productivity and cost reductions across
the group's five business divisions. The company expects to achieve annual
savings of at least of at least US$5 million on its IT and related
communications costs.

AT&T will provide connectivity to approximately 400 Smiths
locations in 50 countries as well as support advanced communications services
and applications to 22,000 Smiths employees worldwide. Services from AT&T
will include mobility, managed security, hosting, video conferencing,
consulting, voice services and remote access for traveling users.

Information technology (IT) and advanced communications
services play a critical role in the ongoing business transformation for
Smiths Group which is headquartered in Britain.

As a result of this relationship, Smiths is moving to a
consistent and global IT policy, enabling the Group to improve efficiency,
leverage economies of scale, avoid duplication and improve purchasing and
supplier management. AT&T is a key enabler for this new strategy, by being
able to provide Smiths with one consistent global platform and network
architecture, a standard portfolio of products and services and centralised
global account management. The company expects to benefit from higher
bandwidth and the elimination of single points of failure. A standardized and
holistic approach to network management will simplify administration and
improve service support.

Brian Jones, group CIO for Smiths Group welcomed today's
announcement. "Creating a seamless, agile and fit-for-purpose technology
platform is critical to the on-going transformation of Smiths. AT&T brings to
us the ability to accelerate the changes we need on a global basis and is
providing the solid foundation to underpin the optimisation of our internal
infrastructure. We expect to be able to better serve our customers and
deliver increased value to shareholders through this relationship."

Ron Spears, group president, AT&T Global Business Services,
said, "This agreement is another example of how AT&T is helping the worlds
leading enterprises harness leading edge communications technology to bring
business velocity to their operations everywhere they operate around the
world."

All Smiths business units and operations will have access to
AT&T global IP infrastructure as well as the company's world leading business
productivity tools and applications. The company is already seeing immediate
benefits from the agreement with AT&T.

- Smiths is leveraging AT&T's leadership in mobility services
    with the deployment of a pilot programme for corporate BlackBerry(R) 
    users
    - 2,000 Smiths employees have been licensed to access to AT&T
    Connect, AT&T's leading unified communications platform, allowing real
    time collaboration, audio, video and IP based conferencing from
    individual desktops.



Migrating Smiths Group on to the AT&T network is now underway
and is expected to be completed by January 2009.

Find More Information Online:

Web Site Links:

    AT&T Web Site (http://www.att.com)
    AT&T Enterprise Services (http://www.att.com/gen/general?pid=7490)
    AT&T Internet Data Center Virtual Tour 
    (http://www.att.com/gen/press-room?pid=6158&cat=29&u=128)
 
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    application hosting services (http://www.technorati.com/tag/application+hosting+services),



About AT&T

AT&T Inc. (NYSE:T) is a premier communications holding company. Its
subsidiaries and affiliates, AT&T operating companies, are the providers of
AT&T services in the United States and around the world. Among their
offerings are the world's most advanced IP-based business communications
services and the nation's leading wireless, high speed Internet access and
voice services. In domestic markets, AT&T is known for the directory
publishing and advertising sales leadership of its Yellow Pages and
YELLOWPAGES.COM organizations, and the AT&T brand is licensed to innovators
in such fields as communications equipment. As part of its three-screen
integration strategy, AT&T is expanding its TV entertainment offerings. In
2008, AT&T again ranked No. 1 on Fortune magazine's World's Most Admired
Telecommunications Company list and No. 1 on America's Most Admired
Telecommunications Company list. Additional information about AT&T Inc. and
the products and services provided by AT&T subsidiaries and affiliates is
available at http://www.att.com.

Smiths Group

Smiths is a global technology company listed on the London Stock 
Exchange. A world leader in the practical application of advanced 
technologies, Smiths Group delivers products and services for the threat & 
contraband detection, medical devices, energy and communications markets 
worldwide. Smiths products and services make the world safer, healthier and 
more productive. Smiths Group employs more than 20,000 people in over 50 
countries. For more information visit http://www.smiths.com

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