Non-GAAP Financial ReconciliationsFree Cash FlowDollars in millions Unaudited March 31 2009 Three Months EndedNet cash

Non-GAAP Financial ReconciliationsFree Cash FlowDollars in millions Unaudited March 31, 2009 Three Months EndedNet cash provided by operating activities $7,915Less: Construction and capital expenditures(3,358)Free Cash Flow$4,557Free cash flow is defined as cash from operations minus capital expenditures. Webelieve these metrics provide useful information to our investors because management regularly reviews free cash flow as an important indicator of how muchcash is generated by normal business operations, including capital expenditures,and makes decisions based on it. Management also views free cash flow as a measureof cash available to pay debt and return cash to shareowners. OIBDA DISCUSSION OIBDA is defined as operating income (loss) before depreciation andamortization. OIBDA margin is calculated as OIBDA divided by service revenues.OIBDA differs from Segment Operating Income (Loss), as calculated in accordancewith GAAP, in that it excludes depreciation and amortization. OIBDA does notgive effect to cash used for debt service requirements and thus does not reflectavailable funds for distributions, reinvestment or other discretionary uses.OIBDA is not presented as an alternative measure of operating results or cashflows from operations, as determined in accordance with generally acceptedaccounting principles.

Our calculation of OIBDA, as presented, may differ fromsimilarly titled measures reported by other companies. We believe these measures are relevant and useful information to our investorsas they are part of AT&T Mobility`s internal management reporting and planningprocesses and are important metrics that AT&T Mobility`s management uses toevaluate the operating performance of its regional operations. These measuresare used by management as a gauge of AT&T Mobility`s success in acquiring,retaining and servicing subscribers because we believe these measures reflectAT&T Mobility`s ability to generate and grow subscriber revenues while providinga high level of customer service in a cost-effective manner. Management alsouses these measures as a method of comparing AT&T Mobility`s performance withthat of many of its competitors. The financial and operating metrics whichaffect OIBDA include the key revenue and expense drivers for which AT&TMobility`s operating managers are responsible and upon which we evaluate theirperformance. OIBDA does not give effect to cash used for debt service requirements and thusdoes not reflect available funds for distributions, reinvestment or otherdiscretionary uses.

OIBDA excludes other, net, minority interest in earnings ofconsolidated entities and equity in net income (loss) of affiliates, as these donot reflect the operating results of AT&T Mobility`s subscriber base and itsnational footprint that AT&T Mobility utilizes to obtain and service itscustomers. Equity in net income (loss) of affiliates represents AT&T Mobility`sproportionate share of the net income (loss) of affiliates in which it exercisessignificant influence, but does not control. As AT&T Mobility does not controlthese entities, our management excludes these results when evaluating theperformance of our primary operations. OIBDA excludes interest expense and theprovision for income taxes. Excluding these items eliminates the expensesassociated with its capitalization and tax structures.

Finally, OIBDA excludesdepreciation and amortization, in order to eliminate the impact of capitalinvestments. We believe OIBDA as a percentage of service revenues to be a more relevantmeasure of AT&T Mobility`s operating margin than OIBDA as a percentage of totalrevenue. AT&T Mobility generally subsidizes a portion of its handset sales, allof which are recognized in the period in which AT&T Mobility sells the handset.This results in a disproportionate impact on its margin in that period.Management views this equipment subsidy as a cost to acquire or retain asubscriber, which is recovered through the ongoing service revenue that isgenerated by the subscriber. AT&T Mobility also uses service revenues tocalculate margin to facilitate comparison, both internally and externally withits competitors, as they calculate their margins using services revenue as well.There are material limitations to using these non-GAAP financial measures.