Here is the press release from AT&T

AT&T Inc. (NYSE: T), the nation's leading broadband, wireless and voice services company, and Yahoo! Inc. (Nasdaq: YHOO), a leading global Internet destination, today responded to speculation regarding their partnership.

As part of our ongoing business agreement, Yahoo! and AT&T are constantly discussing opportunities to expand our relationship and associated revenue streams. Current and future plans include:

-- Earlier this year, the companies introduced advertising on the front page of the co-branded portal;

-- Later this month, the companies are introducing advertising on their co-branded mail service;

-- AT&T and Yahoo! are discussing ways to expand the partnership in the mobile arena, now that AT&T has 100% ownership of Cingular (after its acquisition of BellSouth); and

-- Yahoo! services will be introduced into AT&T's IPTV experience later this year.

According to Randall L. Stephenson, AT&T Chief Operating Officer, "Great partnerships must continuously work together to adapt to changing market conditions and changing strategies. We consider our partnership with Yahoo! a great partnership and want to continue building on our complementary skills and expertise."

Terry Semel, Chairman and Chief Executive Officer of Yahoo! said: "Our landmark, strategic partnership set the standard and has given Yahoo! and AT&T the opportunity to create truly innovative offerings for consumers and advertisers. AT&T and Yahoo! have already made adjustments over the years to reflect competitive conditions and the relative benefits each party brings to the relationship. As we continue our conversations, we have a common goal to increase the economic benefits for both parties."