Merger Update

Bellsouth Corp
29 December 2006

December 29, 2006





                 Merger of BellSouth Corporation with AT&T Inc.

                           Completion and De-listing


BellSouth Corporation. ("BellSouth") and AT&T Inc. ("AT&T") are pleased to
announce that the merger between BellSouth and AT&T has completed.  As a result
of the merger, all of the stock of BellSouth with nominal value of US$1.00 (ISIN
Number US0798601029) has been cancelled and BellSouth is no longer a publicly
held corporation.


For the above reasons, BellSouth is expected to de-list from the London Stock
Exchange with effect from December 29, 2006.


If you have any questions, please contact Stacey Geer on [phone] or Luca
Gori at [e-mail] or on [phone].


                      This information is provided by RNS
            The company news service from the London Stock Exchange