American TeleSource Builds Next Generation VoIP Network Using Nortel Networks Passport Packet Voice Gateway Solution; Live VoIP Network Between Mexico and U.S.

Business Editors & High-Tech Writers

SAN ANTONIO--(BUSINESS WIRE)--Jan. 16, 2001

American TeleSource International Inc. (AMEX:AI) ("ATSI") today announced that it has installed Nortel Networks Passport 15000 Packet Voice Gateway solution in Mexico City and Dallas, Texas, delivering the ability to offer "next generation" voice, video and data over a single, carrier-grade network between the U.S. and Mexico.

The Mexico City installation makes ATSI the first company to implement a true "VoIP," or voice-over-Internet protocol, solution utilizing Nortel Networks advanced packet switching equipment in Mexico.

ATSI's packet switching capacity has been expanded by 75% and now incorporates a multi-service platform, enhancing the Company's ability to provide advanced ATM (Asynchronous Transfer Mode) services, frame relay services, IP services and voice services all on a single platform.

Arthur L. Smith, ATSI's Chairman and CEO, stated, "Nortel Networks Passport 'next generation' equipment enhances our recently secured Mexican Long Distance Concession and differentiates us from other concessionaires, by increasing capacity and bringing powerful features that integrate voice and data over our high-speed, state-of-the-art VoIP Network. This is a milestone event, which is also expected to support other revenue generating opportunities in the future over our backbone network, such as data services, at little or no additional cost. Our customers benefit through ATSI's delivery of superior quality and reliable services in the most lucrative telecom corridor in the world. We are responding to the recent increase in service demand from several key customers, and we have already begun to realize the benefits of this newly available capacity."

Smith added, "Nortel Networks continues to demonstrate their commitment by assisting our Company with the architecture and deployment of a unique network footprint, further entrenching ATSI within Mexico's $12 billion marketplace. This is the first major step in our effort to 'smart build' a network in an effort to produce better returns on invested capital going forward, and to more efficiently support the traffic patterns of our customers. By expanding our network out to the "edge" to capture traffic at the origination and termination points, ATSI will benefit from the recently reduced local interconnection rates in Mexico. By doing so, I believe that ATSI will better control its cost structure in Mexico and will continue to offer additional high quality, reliable services to new and existing customers."

American TeleSource International Inc. is an emerging international carrier serving the rapidly expanding niche markets in and between Latin America and the United States. The Company's borderless strategy includes the deployment of a "next generation" network for more efficient and cost effective service offerings of domestic and international voice and data. ATSI has clear advantages over the competition through its corporate framework consisting of unique licenses, interconnection and service agreements, network footprint, and extensive retail distribution. ATSI's Internet software subsidiary, GlobalSCAPE Inc. (www.globalscape.com) is a leader in the development, marketing, distribution and support of award winning Internet-based software in a broad array of categories including file management, multimedia utilities and Web site development tools.

This news release contains forward-looking statements. These statements describe management's beliefs and expectations about the future. We have identified forward-looking statements by using words such as "expect," "believe" and "should." Although we believe our expectations are reasonable, our operations involve a number of risks and uncertainties, and these statements may turn out not to be true. Risks that could cause these statements not to be true include loss of key customers, inability to obtain additional capital, inability to make payments to suppliers and lenders on time, dilution of our common stock, equipment failures leading to service interruptions, failure to achieve profitability, and other Risk Factors discussed in filings made by the Company with the SEC.