AT&T Stock Pitch

1. John Molson investment society Presented byVali Lazarescu

2. AT&T (T) Company Profile AT&T Inc. (AT&T) provides telecommunications services in the United States and the world. It offers services and products to consumers in the United States and services and products to businesses and other providers of telecommunications services worldwide.

3. AT&T (T) Company Profile Local and long distance phone service Wireless & Data communications Internet access and messaging IP-based and satellite television Security services Telecommunications equipment Directory advertising and publishing

4. Summary as of Dec 2010 As of December 2010, the company had 24.2 million consumer voice connections(down 11.5% from a year earlier) Had 14.3 million consumer broadband customers (up 4.4%) along with business voice connections. With the acquisition of BLS, T took full control of Cingular Wireless, now the second largest U.S. carrier with 95.5 million subscribers (up 12% from a year earlier). 68 million are post-paid customers including 1.6 million net new ones through acquisition expanded its wireline presence into the southeastern U.S.

5. March Madness In March 2011, AT&T announced plans to acquire T-Mobile USA assets (34 million subscribers) for approximately $39 billion, pending necessary approvals, equal to 7.1X 2010 EBITDA. T sees the deal as earnings dilutive in the first two years, but believes there are $3 billion in annual cost synergies plus room for revenue growth through higher Smartphone penetration.

6. US Wireless Communications Providers

7. Revenue Stream Wireless (Fastest growing revenue stream) Wireline Data(Expect continuous competitive pressure in 2011 forwards) Wireline Voice Advertising solutions/other

8. Revenue Pie Chart

9. Growth

10. U-verse

11. Operating Data

12. Growth in Revenue and Income

13. Fundamentals Market Cap = 166.11 B Revenue of 124,280 B Beta 0.65 Dividend Yield = 6.09% ROA = 7.23% ROE = 17.90% ROI = 8.34% P/E = 3.22

14. Target Estimate Price of 32$ (Increase of 13.87%) +Dividend of 6%. Looking at roughly 20% by November 2011. EPS growth to 3.40$