Increases Quarterly Dividend by 2.1%, 33rd Consecutive Annual Increase

• Consolidated revenues of $40.9 billion, up 4.6% with DIRECTV acquisition
• Operating income up 8.2%
• Net income attributable to AT&T up 11.2%
• Cash from operations of $11.0 billion
• Free cash flow of $5.2 billion
• Diluted EPS of $0.54 as reported and $0.74 as adjusted, compared to $0.50 and $0.74 in the year-ago quarter

-2.3 million wireless net adds driven by connected devices, Mexico and Cricket

-U.S. wireless postpaid churn of 1.05%, down 11 basis points year over year

-Strong U.S. wireless operating margin of 29.6%; best-ever U.S. wireless service EBITDA margin of 50.1%

-700,000 branded smartphones added to U.S. subscriber base

-323,000 U.S. DIRECTV net adds with TV subscriber base stable

-171,000 IP broadband net adds

-Full-year guidance on track to meet or exceed expectations

DALLAS, October 22, 2016 — AT&T Inc. (NYSE:T) today reported growing revenues and net income with solid margins and earnings for the third quarter. Detailed results, including financial tables, are included in the accompanying Investor Briefing and SEC Form 8-K. These materials and associated slide presentation of third-quarter results are available on the AT&T Investor Relations website.

AT&T also announced that its board of directors has approved a 2.1% increase in the company’s quarterly dividend. AT&T’s quarterly dividend will increase from $0.48 to $0.49 per share. The annual dividend will increase from $1.92 to $1.96 per share. The dividend will be payable on Feb. 1, 2017 to common stockholders of record on Jan. 10, 2017.

AT&T will host a webcast presentation on Monday, October 24, 2016, at 8:30 a.m. ET to discuss the Time Warner transaction and third-quarter results. Links to the webcast and accompanying documents will be available on the AT&T Investor Relations website. The third-quarter earnings conference call previously scheduled for Tuesday, October 25, 2016, at 4:30 p.m. ET is cancelled.