ATX Bolsters Washington and Baltimore Markets with Addition of Proven Industry Talent.

VIENNA, Va. -- ATX Communications, a leading provider of communications technologies, announced the recent hiring of industry veteran James McCarthy to the position of Regional Sales Director for the Company's Southern Region. McCarthy's career as a sales and operations executive in voice and data communications spans 17 years.

McCarthy, 41, brings a resume of sales excellence to ATX. Above all, he will be responsible for revenue generation and retention from three of ATX's nine sales districts: Washington, D.C. and Baltimore metropolitan areas (offices in Vienna, Va. and Towson, Md., respectively), as well as ATX's Newark, De. location serving the entire state of Delaware. In addition to building strong customer relationships - the key to ATX's success over its 20-year history - he will oversee all local recruiting and hiring, training, field marketing, and growth in ATX's agent channel alliances and production. McCarthy and ATX expect to add 10-15 local jobs before mid-2006.

"Bringing someone of Jim's caliber on board is just a great win for ATX," said Tim Allen, Executive Vice President of Sales and Marketing. "Anyone who knows or meets Jim immediately gets the sense that he's a true professional, and a natural leader. And that's exactly what we're looking for him to do in our Southern Region: provide veteran leadership and energy within a team and market that represent tremendous upside for us."

Before joining ATX, McCarthy was Regional Vice President of Mid-Atlantic Sales for US LEC, where he started in 2002. In just two years, he transformed underachieving offices in Baltimore and Washington, D.C. into the company's Numbers 1 and 3 producing markets out of 26 offices. Following that dramatic turnaround, he was promoted to head its Philadelphia and Pittsburgh teams, as well. From 1999 to 2002, as Vice President and General Manger, McCarthy was Net2000's top sales executive in both responsibility and performance. Overseeing sales, installations, customer service, and other key functional areas, he led the company's significant sales expansion, reaching $60 million in annual revenues. McCarthy was a member of each organization's elite President's Club, based on his exceptional sales results.

"I'm proud of my reputation for building offices into dynasties," said McCarthy. "After competing against ATX for years, I jumped at the chance to join them. It's hands-down the best sales and operations staff I've seen in this industry, and I know our collaboration will be remarkably successful."

"We expect big things from Jim, and he expects the same of himself and the people around him," said Allen. "His track record speaks for itself."

About ATX

Founded in 1985, ATX solves tough communications issues that affect virtually every company competing today. A super-regional provider of integrated traditional and "next gen" Internet and voice communications, managed security services, and other mission-critical technologies, ATX currently serves approximately 20,000 commercial customers throughout the Mid-Atlantic region. For more information, visit www.atx.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

In addition to the historical information presented, this release also includes certain forward-looking statements concerning the future development of the business. Such statements represent the Company's reasonable judgment on the future and are based on assumptions and factors that could cause actual results to differ materially. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in factors affecting such statements.