<html><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space; ">This is definitely a standard subsidized phone deal ...<div><br></div><div><a href="http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25791">http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25791</a></div><div><br></div><div>"<span class="Apple-style-span" style="color: rgb(101, 101, 101); font-family: verdana; font-size: 10px; ">The new agreement between Apple and AT&T eliminates the revenue-sharing model under which AT&T shared a portion of monthly service revenue with Apple. Under the revised agreement, which is consistent with traditional equipment manufacturer-carrier arrangements, there is no revenue sharing and both iPhone 3G models will be offered at attractive prices to broaden the market potential and accelerate subscriber volumes."</span></div><div><font class="Apple-style-span" color="#656565" face="verdana" size="2"><span class="Apple-style-span" style="font-size: 10px;"><br></span></font></div><div>"<span class="Apple-style-span" style="color: rgb(101, 101, 101); font-family: verdana; font-size: 10px; ">In the near term, AT&T anticipates that the new agreement will likely result in some pressure on margins and earnings, reflecting the costs of subsidized device pricing, which, in turn, is expected to drive increased subscriber volumes."</span></div><div><font class="Apple-style-span" color="#656565" face="verdana" size="2"><span class="Apple-style-span" style="font-size: 10px;"><br></span></font><div><div><br></div><div><br></div></div></div></body></html>