Item 8.01 Other Events.

Throughout this document, AT&T Inc., is referred to as "AT&T". On April 18, 2008, AT&T announced the next step in streamlining its operations - particularly in non-customer-facing areas - to operate more efficiently after bringing together several companies in recent years. This step reduces AT&T's workforce by approximately 1.5%, primarily among management employees. This initiative is part of the company's move from a collection of regional companies to one AT&T focused on customers. The vast majority of employees will not be impacted, and headcount overall is expected to remain stable in 2008 as the company hires additional employees to support growth areas. AT&T will reflect a charge of $374 million (pre-tax) in the first quarter of 2008 associated with these force reductions.

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