The SBC Transformation From local service provider to

The SBC Transformation From local service provider to premier communications and entertainment services provider

Cautionary Language Concerning Forward-Looking Statements Information set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in SBC’s filings with the Securities and Exchange Commission. SBC disclaims any obligation to update or revise statements contained in this presentation based on new information or otherwise.

Note In connection with the proposed transaction, SBC filed a registration statement, including a proxy statement of AT&T Corp., with the Securities and Exchange Commission (the “SEC”) on March 11, 2005 (File No. 333-123283). Investors are urged to read the registration and proxy statement (including all amendments and supplements to it) because it contains important information. Investors may obtain free copies of the registration and proxy statement, as well as other filings containing information about SBC and AT&T Corp., without charge, at the SEC’s Internet site (www.sec.gov). These documents may also be obtained for free from SBC’s Investor Relations Web site (www.sbc.com/investor relations) or by directing a request to SBC Communications Inc., Stockholder Services, 175 E. Houston, San Antonio, Texas 78205. Free copies of AT&T Corp.’s filings may be accessed and downloaded for free at the AT&T Investor Relations Web Site (www.att.com/ir/sec) or by directing a request to AT&T Corp., Investor Relations, One AT&T Way, Bedminster, New Jersey 07921. SBC, AT&T Corp. and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from AT&T shareholders in respect of the proposed transaction. Information regarding SBC’s directors and executive officers is available in SBC’s proxy statement for its 2005 annual meeting of stockholders, dated March 11, 2005, and information regarding AT&T Corp.’s directors and executive officers is available in the registration and proxy statement. Additional information regarding the interests of such potential participants is included in the registration and proxy statement and other relevant documents filed with the SEC.

Agenda on e tw o thre e Changing Market Conditions New technology/substitution More competitors The SBC Strategy Project Lightspeed Wireless/Wireline integration Enterprise/AT&T Merger Delivering Customer Benefits Consumer and small business Enterprise business

The World Is Changing from Separate services: Local, long distance, mobile, video, Internet from Separate platforms: Phone for voice, computer for Internet from Separate providers: Cable companies for video, phone companies for voice to Bundled services: All distance voice, voice/data/video packages to Multi-use devices: Blackberries; mobile phones with messaging, e-mail, video; computer for Internet phone and IM to Multi-product providers: Cable, mobile, and wireline companies offering voice/video/data

Wireline Phone No Longer Supports the Majority of Consumer Communications 2001 2003 7% 1% 9% 23% 2% 23% 47% 10% 59% 19% Wireline phone Wireless phone E-mail Instant messaging/chat SMS Source: Forrester

More Consumer Choices Every Platform Multiple Providers 1 platform 3% Broadband from satellite 1 additional source 29% 2 platforms 12% Broadband from satellite 2 additional sources 62% Broadband only from satellite 4% No broadband 5% 3 platforms 85% Voice 97% of the population has access to at least 2 voice platforms Source: Warren’s Cable Database; Empower Wireless; Company Web sites Broadban 91% of the population has d of broadband access to 2 forms service

More Competition Voice and Data Providers Cable Providers Wireless Providers VoIP Providers

The SBC Strategy “communications and entertainment provider our customers will ever want. ” We intend to be the only - Ed Whitacre, Chairman and CEO – Leading the IP transformation – Integrating the wireless/wireline experience – Becoming a major player in the enterprise business market

Leading the IP Transformation State-of-the-art network, foundation for next-generation voice, Internet and data services

Leading the IP Transformation Project Lightspeed: 4 billion investment 40,000 miles of fiber Initial deployment to 18 million homes 20 — 25 Mbps of bandwidth

Leading the IP Transformation From IP platform, integrated video, wireless, broadband and voice services

Leading the IP Transformation IPTV will enable high-definition programming, customizable channels, video-ondemand, digital video recording, instant channel-changing, multiple PIPs

Cingular Wireless is critical to our transformation and growth strategy, as customers look to new technologies for communications. Wireless/Wireline Integration

By integrating wireless and wireline services, customers have the ability to access seamless communications virtually anywhere, anytime, on any device. Wireless/Wireline Integration

With AT&T Wireless acquisition, Cingular Wireless has strongest spectrum position in the U.S. and presence in nation’s top 100 markets. Wireless/Wireline Integration

Spectrum enables companies to create powerful new services – in particular data services – for customers. Wireless/Wireline Integration

SBC FreedomLink Wi-Fi and highspeed EDGE technology for data available now. Cingular deploying even faster UMTS 3G technology this year. Wireless/Wireline Integration

Enterprise Business Market Through the merger with AT&T, SBC will evolve into a global data and enterprise provider.

Enterprise Business Market The merger brings together two companies with complementary strengths, product sets and customer bases.

Enterprise Business Market The combined company will set the standard for transitioning from legacy technologies to next-generation IP networks and services.

Transformation Benefits for Business Integrated IP Business Services

Transformation Benefits for Consumers A Digital Lifestyle

The SBC Transformation From local service provider to premier communications and entertainment services provider