Sterling Commerce to Acquire Nistevo; On-Demand Transportation Management Leader Enables Sterling Commerce to Deliver Complete Order-to-Shipment Supply Chain Solution

COLUMBUS, Ohio--()--May 16, 2006--Sterling Commerce, the multi-enterprise collaboration company and a subsidiary of AT&T Inc. (NYSE:T), announced today it has agreed to acquire Nistevo, a leading provider of on-demand transportation management solutions. The transaction is subject to Nistevo shareholder approval.

The addition of Nistevo's Collaborative Logistics Network(SM) expands the Sterling Commerce supply chain application portfolio. The Nistevo Collaborative Logistics Network(SM) is an on-demand, Web-based network that enables shippers and carriers to improve the efficiency of their logistics and supply chain operations with low start-up costs when compared to traditional software solutions. To date, the Collaborative Logistics Network has been adopted by more than 60 shippers, spans a community of over 6,400 carriers, and manages approximately 65 million transactions annually.

"The opportunities for our customers are significant," said Sam Starr, president and CEO, Sterling Commerce. "Our combined solutions will not only provide customers with a way to cut costs in an industry estimated by analysts to be almost a trillion dollars in the US alone, but also improve customer satisfaction and loyalty through an integrated, end-to-end solution that improves visibility and control over their entire supply chain."

"We are seeing increased demand for end-to-end solutions delivered through innovative methods," said Kevin Lynch, president and CEO of Nistevo. "The expertise of Sterling Commerce in multi-enterprise collaboration and the power of its global presence will help increase the value of our solutions and bring them to a broader market."

Nistevo brings extensive on-demand expertise and technology to Sterling Commerce. On-demand solutions require fewer IT resources and provide faster return on technology investments. Nistevo on-demand solutions will complement several solutions Sterling Commerce already offers as part of the company's efforts to provide a wide range of deployment choices for its customers.

About Nistevo

Nistevo is the leading Collaborative Logistics Network for transportation management, an on-demand software service that enables manufacturers, retailers, distributors, logistics service providers and carriers to view, plan, execute, settle and report on their shipments. Using the Network, members are managing more than five million shipments annually, resulting in significant cost savings for freight moved. Nistevo's clients include Church & Dwight Co., The Dial Corporation, Tractor Supply, Ocean Spray, Smithfield Foods, Cargill, General Mills, HP Hood and Seneca Foods, among others. Privately-held and based in Eden Prairie, Minnesota, Nistevo has approximately 45 employees. For more information, visit www.nistevo.com.

About Sterling Commerce

Sterling Commerce, a subsidiary of AT&T Inc. (NYSE:T), has more than 30 years of leadership and expertise in helping FORTUNE 500(R) customers thrive in a global economy by optimizing the performance of their business communities. With nearly 30,000 customers worldwide, the company is one of the world's largest providers of multi-enterprise collaboration solutions. Sterling Commerce has unparalleled experience in the retail, consumer packaged goods, manufacturing, financial services, healthcare and telecommunications industries. For detailed, up-to-date information about Sterling Commerce and its solutions, visit www.sterlingcommerce.com.

Contacts

Sterling Commerce
Julie Redard, 978-513-6386
Julie_redard@stercomm.com
or
Fleishman Hillard
Dan Callahan, 314-982-0553
callahad@fleishman.com

Contacts

Sterling Commerce
Julie Redard, 978-513-6386
Julie_redard@stercomm.com
or
Fleishman Hillard
Dan Callahan, 314-982-0553
callahad@fleishman.com