ATX Extends Business-Class IP Telephony Services with ATX CoreFlex 360(degree)(SM); Easy, all-in-one managed solution combines access, features, and phones.

KING OF PRUSSIA, Pa. -- ATX Communications, a leading provider of integrated communications and managed security services, announced that its complete, end-to-end Hosted IP Telephony (IPT) solution, ATX CoreFlex 360(degree), is answering the needs of small and mid-size businesses seeking to leverage reliable, feature-rich Voice over Internet Protocol (VoIP) technology.

Already demonstrating operational success since its introduction earlier this summer, ATX CoreFlex 360(degree) represents the latest advance in the Company's steady drive to bring the benefits of emerging Internet-based services to the business community. CoreFlex 360(degree) is a unique, "all-in-one" solution that replaces customers' PBXs, integrated access circuits, LAN equipment, firewalls, spam and virus tools, and more. ATX's innovative product combines access (bandwidth and voice minutes), station equipment (phones, softphones, attendant consoles, etc.), and a multitude of features - all supported by best-in-class managed security applications. As a result, ATX CoreFlex 360(degree) delivers bandwidth efficiency, enhanced capabilities, and secure, high quality voice connectivity with simple, centralized administration.

Many organizations that had taken a "wait and see" approach to VoIP are now finding that the productivity improvements, ease of administration, and cost efficiency of this managed solution form a compelling value proposition for their businesses.

"'CoreFlex 360' is a complete solution - not only because it extends all the way to the desktop, but also in that it meets a comprehensive range of business needs," says Lou Sommi, Vice President of Product Management for ATX. "First, this revolutionary product solves business continuity issues with a carrier-grade, fully redundant solution backed by ATX's best-in-class VoIP monitoring and troubleshooting tools. Second, IT executives looking to retain control without the burden of managing the application enjoy a portal interface that lets them implement routine changes - setting up new users and modifying services, for example - with the click of a mouse. And third, for end users, 'CoreFlex 360' provides easy-to-use mobility and productivity features that can be controlled from any broadband connection."

As a fully managed service, ATX CoreFlex 360(degree) delivers ongoing upgrades and enhancements at no additional cost to the customer. In addition, a dedicated project manager performs one-on-one administrator training so customers understand CoreFlex 360(degree)'s full capabilities in order to achieve meaningful productivity gains.

"ATX's VoIP platform is not about the technology, it's about the customer," says Peter Eisengrein, ATX's Director of Engineering. "We designed a solution capable of maximizing bandwidth efficiency through the industry's most advanced compression standards. At the same time, the combination of our systems, architecture, and vision throughout the network ensures VoIP transmissions that meet business requirements for quality. Add to that the easy integration with our ATX FrontLine(SM) managed network security services and 'CoreFlex 360' is truly a new and better way for companies to manage the full scope of their voice and data communications."

This rollout marks the extension of ATX's VoIP product line, first introduced in late-2005 with ATX's basic CoreFlex(SM) offering - a SIP-based business trunk that has seen strong demand. More than half of the Company's VoIP customers today also utilize at least one of its FrontLine managed security services.

"Working with ATX as a managed service provider ensures that businesses realize productivity gains and true competitive advantage," adds Sommi. "Whereas most of our peers offer VoIP but haven't focused on identifying the VoIP applications that can deliver real business value, ATX is actively committed to helping small and mid-size businesses understand and implement IP Telephony in a way that gives them the tools and flexibility to achieve greater operational efficiency."

ATX is currently conducting demonstrations of CoreFlex 360(degree) for prospective customers at the Company's VoIP Demo Center in its King of Prussia, PA headquarters. Interested parties should call ATX at 800-220-2892.

About ATX

Integrating traditional and "next gen" Internet and voice communications, managed security services, and other mission-critical technologies, ATX Communications makes it easy for small and mid-size businesses to understand and implement technologies that address key business issues. Founded in 1985, ATX is relied upon by 18,000 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.