1. Rethinking Innovation Ralph de la Vega President and CEO— AT&T Mobility and Consumer Markets © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.

3. Israel Plano, TX Palo Alto, CA Cycle time improvement Million dollar investment Total active services/projects AT&T Foundry

5. Innovation from Anywhere

6. The Innovation Pipeline Manage Social Innovation Collect & Tag Ideas Refine Ideas via TIP Mini Business Case Analyze & Match Build Case Full Business Case Refine & Promote Venture Capital Social Stage: 3 months Angel Stage: 2 months VC Stage: 3-6 months

7. Rethinking Business

9. Source: Frost & Sullivan Feb. 2011 Online survey of 301 mobile and wireless purchase decision-makers. U.S.(n=200), and Canada (n=101). Mobile Enterprise Applications 58% Increase in user productivity 38% Faster overall sales process 34% Improved competitive advantage

10. Connected Devices

12. Wearable Devices

13. © 2011 AT&T Intellectual Property. All rights reserved. AT&T, the AT&T logo and all other AT&T marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies. Rethinking Innovation Ralph de la Vega President and CEO— AT&T Mobility and Consumer Markets