Alestra Announces Extension of its Exchange Offers, Cash Tender Offers, Consent Solicitation and Solicitation of Acceptances to a U.S. Prepackaged Plan of Reorganization.

Business Editors

MEXICO CITY--(BUSINESS WIRE)--Oct. 22, 2003

Alestra, S. de R.L. de C.V. ("Alestra") announces an extension of its pending cash tender offers, exchange offers and consent solicitation for all of its outstanding principal amount of its 12 1/8% Senior Notes due 2006 and 12 5/8% Senior Notes due 2009 (the "offers") and its solicitation of acceptances to a U.S. prepackaged plan of reorganization.

Alestra is extending the expiration date for the offers and the solicitation of acceptances to the U.S. prepackaged bankruptcy to 11:59 p.m. on November 4 , 2003, ten business days from, and including, the date of this press release, unless further extended by Alestra. If the offers are consummated, the new senior notes will be issued and all cash payments will be paid pursuant to the offers on the first business day following the expiration date, or as soon as practicable thereafter. Through and including November 4, 2003, we are granting withdrawal rights to holders of our existing senior notes who previously tendered their existing senior notes in the offers and to those holders of our existing senior notes who on or subsequent to the date of this prospectus supplement tender their existing senior notes in the offers. Holders of our existing senior notes already have the right to withdraw or modify their ballot for the U.S. prepackaged plan at any point prior to the commencement of the U.S. bankruptcy case. As of the date of this press release, approximately $235 million principal amount of our outstanding 12 1/8% Senior Notes due 2006 have been tendered in the offers and approximately $253 million principal amount of our outstanding 12 5/8% Senior Notes due 2009 have been tendered in the offers. These amounts in the aggregate represent approximately 85.6% of the existing senior notes.

Alestra is also in the process of distributing a prospectus supplement to its prospectus dated August 21, 2003, as supplemented by its prospectus supplements dated September 25, 2003 and October 10, 2003, that provides, among other things, an update regarding a legal action brought against it, its equity holders and the indenture trustee on September 22, 2003 in the United States District Court for the Southern District of New York by W.R.H. Global Securities Pooled Trust ("Huff"). The complaint sought damages and to enjoin Alestra from consummating its exchange offers and consent solicitations. On October 15, 16 and 17, 2003, a hearing was held before the United States District Court for the Southern District of New York (Wood, J.) on Huff's motion for an order preliminarily enjoining the offers. During that hearing Alestra agreed to make certain additional disclosures, which are set forth in a prospectus supplement dated October 22, 2003 and are acceptable to Huff on the points addressed. Because of this, the court denied the motion as moot, and the remaining relief sought by Huff was denied, including Huff's request for an injunction pending appeal.

Alestra filed a copy of its prospectus supplement dated October 22, 2003 and prospectus dated August 21, 2003, as supplemented, today with the SEC pursuant to Rule 424(b) of the Securities Act of 1933.

You may obtain copies of Alestra's prospectus, prospectus supplements and transmittal documents for the offers and the solicitations from the Information Agent: D.F. King & Co., Inc., 48 Wall Street, New York, New York, 10005. Banks and brokers call collect: [phone]. All others call toll free: [phone].

This announcement and the cash tender offers, exchange offers, and consent solicitations which are the subject hereof are not being made in any jurisdiction in which, or to any person to whom, it is unlawful to make such announcement and/or cash tender offers, exchange offers and consent solicitations under applicable securities laws. This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall any sale of these securities in Mexico or in any U.S. state or territory in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of Mexico and any such U.S. state or territory.

This announcement shall not under any circumstances create any implication that the information contained herein is correct as of any time subsequent to the date hereof, or that there has been no change in the information set forth herein or in the affairs of Alestra or any of its affiliates since the date hereof. No indications of interest in the offers are sought by this press release.

Alestra is a leading provider of competitive telecommunications services in Mexico that it markets under the AT&T brand name and carries on its own network. Alestra offers domestic and international long distance services, data and internet services and local services.

Any questions regarding the cash tender offers, exchange offers, the consent solicitations and the solicitation of acceptances to a U.S. prepackaged plan of reorganization may be addressed to Morgan Stanley as dealer manager for this transaction at the following number:

Simon Morgan 1-212-761-2219

Heather Hammond 1-212-761-1893

THE FOLLOWING LEGENDS ARE INCLUDED AT THE REQUEST OF THE COMISION NACIONAL BANCARIA Y DE VALORES OF MEXICO FOR THE BENEFIT OF MEXICAN INVESTORS:

THE INFORMATION CONTAINED IN THIS PRESS RELEASE IS THE EXCLUSIVE RESPONSIBILITY OF ALESTRA, S. DE R.L. DE C.V. AND DOES NOT REQUIRE THE AUTHORIZATION FROM THE COMISION NACIONAL BANCARIA Y DE VALORES.

THE REGISTRATION IN THE SECCION ESPECIAL OF THE REGISTRO NACIONAL DE VALORES KEPT BY THE COMISION NACIONAL BANCARIA Y DE VALORES, DOES NOT IMPLY A CERTIFICATION AS TO THE QUALITY OF THE SECURITIES OR THE SOLVENCY OF ALESTRA, S. DE R.L. DE C.V.

THE SECURITIES BEING OFFERED BY THE PROSPECTUS MENTIONED ABOVE, HAVE NOT BEEN REGISTERED IN THE SECCION DE VALORES OF THE REGISTRO NACIONAL DE VALORES, THUS MAY NOT BE PUBLICLY OFFERED OR EXCHANGED IN MEXICO. MEXICAN INVESTORS WHO ACQUIRE THESE SECURITIES OUTSIDE OF MEXICO, DO SO ON THEIR OWN RESPONSIBILITY