ATSI Shareholders Approve All Proposals at Annual Meeting; ATSI Provides Financial Results Guidance for Second Quarter.

Business Editors and Telecommunications Writers

SAN ANTONIO--(BUSINESS WIRE)--Feb. 27, 2001

American TeleSource International, Inc. ("ATSI") (AMEX:AI) announced today that all seven proposals submitted for approval by its shareholders were approved at its Annual Meeting of Stockholders held yesterday in San Antonio, Texas.

The seven proposals approved by the ATSI shareholders are as follows:

1.  The issuance of shares in the Genesis Merger. Although the
    shareholders approved the issuance of shares for the
    acquisition of Genesis, ATSI announced in a separate release
    yesterday that it had terminated its agreement to acquire
    Genesis.

2.  The issuance of shares upon conversion of preferred stock and
    exercise of warrants.

3.  The amendment to the Certificate of Incorporation of the Company
    to increase the number of authorized shares of common stock to
    200 million shares.

4.  The amendment to the Certificate of Incorporation of the Company
    to change its name to ATSI Communications, Inc.

5.  The election of Arthur L. Smith and John R. Fleming as Class C
    members of the Company's Board of Directors, with their terms
    expiring at the Annual Meeting of Stockholders held in 2004.

6.  The 2001 Incentive Stock Option Plan.

7.  The ratification of the selection of Arthur Andersen LLP as
    independent public accountants for the fiscal year ending
    July 31, 2001.

In addition, during its corporate presentation at the shareholders' meeting, ATSI gave guidance on its results for the quarter ended January 31, 2001, compared to the immediately preceding quarter ended October 31, 2000. H. Douglas Saathoff, ATSI's Chief Financial Officer, stated, "The Company's telco (non-GlobalSCAPE) revenues improved approximately 12%, the telco gross margin percentage doubled, SG&A related to its telco operations decreased 26%, and the Company's EBITDA loss related to its telco operations improved by approximately 50%. The Company expects to issue complete results for the second quarter ending January 31, 2001 by March 16, 2001.

American TeleSource International, Inc. is an emerging international carrier serving the rapidly expanding niche markets in and between Latin America and the United States. 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 a leader in the development, marketing, distribution and support of award winning Internet-based software in a broad array of categories including file management, multimedia utilities and Web site development tools.

This news release contains forward looking statements. These statements describe management's beliefs and expectations about the future. We have identified forward looking statements by using words such as "expect," "believe," and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties, and these statements may turn out not to be true. More detailed information about American TeleSource International, Inc. is available in the Company's public filings with the Security and Exchange Commission.