ATX Named as Finalist for Company of the Year.

Business Editors/Hi-Tech Writers

NEW YORK--(BUSINESS WIRE)--Oct. 14, 2002

ATX Communications, Inc. (OTCBB:COMM), a leading integrated communications provider, has been recognized as a finalist for the 2002 Enterprise Awards' Company of the Year.

The Awards program, presented by the Eastern Technology Council, in partnership with PricewaterhouseCoopers LLP, is considered the Delaware Valley's most prestigious competitive honors for technology-oriented companies.

"ATX's accomplishments over the past year have truly distinguished us as a strong and viable company in what has been a challenged sector," stated Thomas Gravina, ATX's President and Chief Executive Officer. "I'm proud to say that it's a well-deserved honor to be a finalist for this coveted award. I congratulate our dedicated and highly skilled employees on this achievement."

Now in its tenth year, the Enterprise Awards program salutes companies and individuals for their contributions to the region's technology community. Criteria and considerations for the Company of the Year honors include:

-- More than $50 million in annual revenues

-- Leadership and innovation in an industry/market

-- Commitment to the community

-- Revenue growth and profit margin

ATX's notable achievements in the past year include:

-- Increasing profitability by more than $145 million on an

annualized basis

-- Generating EBITDA gains for a total of six consecutive

quarters, as well as positive EBITDA in each of the past three

quarters (through June 2002)

-- Eliminating approximately $600 million of its debt and

preferred stock through a complex recapitalization, as well

as more than $100 million of other liabilities and future

obligations

-- Continuing to enhance its facilities-based network with new

switching centers in Philadelphia and Herndon, VA, and its

Presidential Command Center, which provides vision into ATX's

entire voice and data network

-- Partnering with HP (Hewlett Packard), Western Union

Corporation, Oracle Corporation, and The New Internet Computer 

Company (The NIC Company) in the Community Technology Network

Project (CTNP) to provide dial-up Internet access and e-mail

services to low-to-moderate income residents of U.S.

Department of Housing and Urban Development (HUD) Section 8

and Public Housing facilities

-- Ranking among the leaders in Internet, voice, e-business, and

related lists in a variety of business publications in

numerous markets

"This is indicative of our significant success throughout the entire region," said Jeff Coursen, Senior Vice President and Chief Operating Officer of ATX's Commercial Division. "We continue to deliver strong results while bringing smart solutions and superior service to many thousands of area businesses, and we're pleased to be recognized for it."

Joining ATX as finalists for Company of the Year are B. Braun and SunGard Availability Services. Winners will be selected by a panel of independent judges and announced at the Awards Gala on December 3, 2002 in Philadelphia, Pennsylvania.

About ATX

Founded in 1985, ATX is a facilities-based integrated communications provider offering local exchange carrier and inter-exchange carrier telephone, Internet, e-business, high-speed data, and wireless services to business and residential customers in targeted markets throughout the Mid-Atlantic and Midwest regions of the United States.

Crain's New York Business recently named ATX among the region's fastest growing companies. ATX currently serves approximately 400,000 business and residential customers. For more information on ATX, please visit www.atx.com.