ATSI Completes Acquisition of Telscape's Houston Teleport Assets.

Business Editors & High-Tech Writers

SAN ANTONIO--(BUSINESS WIRE)--Oct. 30, 2001

ATSI Communications Inc. (AMEX:AI) announced today the completion of its acquisition of Telscape's Houston-based Teleport assets, which includes their U.S.-based telecommunications equipment, multinational customer base and accounts receivable.

ATSI is in the process of integrating these new assets, which involves billing customers and re-deploying some of the equipment to its existing operations. The final purchase price was approximately $50,000 cash, plus associated professional fees that the Company will capitalize.

Arthur L. Smith, ATSI's Chairman and CEO, stated, "The culmination of this transaction has assisted us in achieving our objective of reducing capital expenditures, while securing a customer base and network facilities that are strategic to our existing operations. This transaction expands our presence in Central and South America and eliminates a competitor, setting the stage for revenue growth in the region. We will continue to explore opportunities to secure assets that are core to our strategy and that make financial sense."

ATSI Communications Inc. is an emerging international carrier serving the rapidly expanding niche markets in and between Latin America and the United States, primarily Mexico. The Company's borderless strategy includes the deployment of a "next generation" network for more efficient and cost effective service offerings of domestic and international voice, data and Internet. ATSI has clear advantages over the competition through its corporate framework consisting of unique licenses, interconnection and service agreements, network footprint, and extensive retail distribution. ATSI's Internet software subsidiary, GlobalSCAPE Inc. (www.globalscape.com), is recognized as a leader in the development, marketing and support of award-winning content and file management solutions and collaborative peer-to-peer technologies.