Alestra Announces Filing of New Registration Statement on Form F-4 and the Termination of the Current Offers.

Business Editors

SAN PEDRO GARZA GARCIA, Mexico--(BUSINESS WIRE)--June 20, 2003

Alestra, S. de R.L. de C.V., announced today that it electronically filed with the Securities and Exchange Commission via EDGAR a new Form F-4 Registration Statement, which relates to new proposed cash tender offers and exchange offers for its outstanding Senior Notes. Alestra also announced that its current offers for its Senior Notes were terminated and that it would be returning all Senior Notes tendered in its terminated offers.

The Registration Statement filed today sets forth new proposed offers whereby for each $1,000 principal amount of its outstanding Senior Notes due 2006 and 2009, Alestra will propose the following options subject to proration:

1) $1,060 principal amount of its unissued Senior Notes due June

30, 2010;

2) a cash payment of $550; or

3) a combination of both.

Consummation of the offers is conditional upon the receipt by Alestra of valid and unrevoked tenders prior to the offers expiration date of at least 90% of the aggregate outstanding principal amount of each series of existing notes outstanding. The interest rate of the new notes will be 8% if the participation in the offers is less than 95% and 9% if the participation in the offers is 95% or more. Holders who tender their Senior Notes in the offers will not receive any accrued and unpaid interest on those notes. In addition, the new terms include fixed principal amortization beginning on December 30, 2005.

If the offers are successful, the restructuring will be principally financed by a capital contribution from Alestra's equity holders in the amount of $100 million, which will be provided 51% by Onexa and 49% by AT&T, and an additional $8.5 million payment from AT&T.

The Registration Statement also contains solicitations for a U.S. prepackaged plan of reorganization. If the offers are not successful but certain required thresholds are met, Alestra may in its sole discretion pursue a U.S. prepackaged plan of reorganization, which will attempt to accomplish the restructuring with terms similar to those in the offers.

A Registration Statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective and Alestra has obtained the necessary authorizations from the Comision Nacional Bancaria y de Valores de Mexico. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in Mexico or in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of Mexico and any such State.

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.

Headquartered in San Pedro Garza Garcia, Mexico, 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.

You may read a copy of Alestra's registration statement and any other document Alestra files at the SEC's public reference room at 450 Fifth Street, N.W. Washington, D.C. 20549. These documents are also available at the public reference rooms at the SEC's regional offices in New York, New York and Chicago, Illinois. Please call the SEC at 1-800-SEC-0330 for further information on the public reference rooms. Our filings are also available to the public over the Internet at the SEC's website at http://www.sec.gov.