1. Voice over IP: What It Can Mean for You Penny Shaffer AT&T Global Services Vice President Americas Region February 11, 2004

2. Anywhere Anything VoIP…The Foundation for the Future Transforming the way we Communicate

3. The Adoption of VoIP is Accelerating Worldwide VoIP Growth ’00-’07 Arbitrage Convergence & Consolidation Emerging Applications The Eras of VoIP Enterprise’s Seeing Double Digit Growth Enterprise VoIPTotal VoIP 0% 20% 40% 60% 80% 100% 200120022003200420052006 19% 13% 9%7%4% 2% Source: Probe Research

4. Residential Home communications are optimized with powerful, family-friendly features that help manage the frantic pace of today’s lifestyles. Teleworker Accessed through a secure residential broadband connection, productivity increases with enhanced mobility VoIP Dissolves Traditional Market Boundaries Enterprise Seamlessly integrates legacy and IP- based equipment for a converged network Branch Office /Small Office Offices of any size enjoy the same feature functionality of large enterprises -- at a significant savings Key Drivers IP-Call Centers Evolving to an IP-based multi-media center equipped to deliver operational efficiencies and increased productivity ConvenienceControlCost

5. VOIP Represents a Great OpportunityVertical PC/IPAppliance End User IPApps App Provider/ ISPNetworkHardware The Entire IP Value Chain Will Benefit From VoIP Increased demand for cutting edge PCs /end-user devices Increased demand for broadband and Voice services (DSL/Cable) Increased demand for hardware devices Ability to offer alternate leading- edge service Richer collaboration capabilities Allows for tighter relationships with end- users

6.  VoIP is here to stay…it’s ready for prime time  The evolution will be driven by customer needs…it’s a process not an event  The impact will be huge…transforming the way we communicate  VoIP is a growth opportunity for us all Key Things to Remember

7. Thank You! Penny Shaffer AT&T Global Services Vice President Americas Region