SAN ANTONIO--March 23, 2004--SBC Communications Inc. today announced a new hosted VPN (Virtual Private Network) service, designed to lower costs and increase flexibility and efficiency for business wide-area networks of all sizes.

SBC PremierSERV(SM) Network-Based VPN (NVPN) provides highly cost-effective and versatile network options that utilize the SBC IP backbone network for transporting data. The new SBC NVPN delivers the additional benefit of a hosted platform - service intelligence is delivered via the SBC network rather than equipment at the customer's location. The service eliminates the need for extensive up-front capital investments and continual equipment upgrades, and allows businesses to take advantage of SBC economies of scale.

The new SBC NVPN service uses MPLS (Multi-Protocol Label Switching) functionality to enable hosted VPN connections to work seamlessly with existing data network connections, such as optical services, Frame Relay, ATM or premises equipment-based VPNs. With traffic carried over the private SBC IP backbone network rather than the public Internet, customers can take advantage of the flexibility and cost-effectiveness of VPN connections, while also realizing the high levels of security and service reliability most often associated with traditional point-to-point network technologies.

This combination of flexibility, security and reliability makes SBC NVPN ideal for a wide range of new network builds, as well as for expanding capacity or adding branch offices to existing networks.

"The new SBC NVPN offering moves the management and complexity issues of VPN services away from the customer's location and to the SBC point of presence," said Chuck Rudnick, senior vice president, SBC Business Marketing. "Not only does this model tear down the walls of complexity and confusion that sometimes come with establishing a VPN into an enterprise, it also makes it more efficient for our experts to manage and maintain our customers' networks."

SBC companies offer straightforward turn-key solutions that incorporate all elements needed to support VPN networking, including Dedicated Internet connections, needed equipment, remote access software, and service management and monitoring options. With a full range of IP-based voice and data services, backed by full-service management capabilities and years of expertise in delivering IP connectivity, the company is positioned to help businesses with every step in the process of adopting IP-powered communications capabilities.

"In the coming years, businesses will continue to move to IP-based platforms to take advantage of applications and cost efficiencies," said David Natho, assistant vice president - Data and E-Services, SBC Business Marketing. "Over the course of time, we believe that many businesses will use a single IP-based network connection to support a full range of voice and data services. For most companies, that change won't happen overnight, however, which is why we're taking a hybrid approach, delivering the flexibility to allow businesses to take steps toward IP without abandoning existing investments in other networking technologies."

SBC NVPN provides an ideal converged platform for a full range of business communication applications - from common data services like e-mail and file transfers to advanced applications like Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), videoconferencing and Voice over IP (VoIP).

The service supports remote access software and connectivity options to enable workers to access the business network from home or while traveling. In addition, SBC experts can help with every aspect of service design, delivery and ongoing management, including network monitoring.

The new offering augments the existing portfolio of SBC data and voice networking services to provide a comprehensive range of options for businesses of all sizes. The extensive SBC IP portfolio includes a full range of VoIP service options, including SBC PremierSERV Hosted IP Communications Service (HIPCS)(1), which allows the convergence of voice and data networks through a hosted platform. HIPCS provides dedicated internet access, traditional voice services and customized productivity features, such as a single inbox for voice and e-mail messages and "find me, follow me" call routing options, delivered through a Web browser-based interface. SBC companies also offer customer premises-based VoIP services and options for businesses looking to add some of the features of VoIP to existing networks.

SBC Communications Inc. (www.sbc.com) is a diversified communications company, owning several of the world's leading data, voice and Internet services providers. Through world-class networks, SBC companies provide a full range of voice, data, networking and e-business services, as well as directory advertising and publishing. A Fortune 30 company, SBC Communications Inc. owns America's leading provider of high-speed DSL Internet Access services and one of the nation's leading Internet Service Providers. SBC companies currently serve 55 million access lines nationwide. In addition, SBC companies own 60 percent of America's second-largest wireless company, Cingular Wireless, which serves more than 24 million wireless customers. Internationally, SBC companies have telecommunications investments in 26 countries.

(1) SBC PremierSERV HIPCS is provided by SBC IP Communications Inc.

Contacts

SBC Communications Inc., San Antonio
Jason Hillery, 314-982-9160
jhillery@sbcnews.us