American TeleSource International Inc. Executes Agreement With Mexico City Airport; ATSI Announces Exercise of 2.8 Million Warrants.

SAN ANTONIO--(BUSINESS WIRE)--March 17, 1998--American TeleSource International Inc. (OTCBB: AMTI) today announced that through its Mexican subsidiary American TeleSource International de Mexico, S.A. de C.V., the Company executed a sixteen year agreement with Grupo Hakim-Fumisa, the concessionaire for the international terminal of the Mexico City airport. The agreement allows ATSI to install and operate public pay telephones throughout the international terminal, which currently handles 55 flights and 5,450 passengers per hour. ATSI currently owns and operates over 1,200 public telephones throughout Mexico.

Arthur L. Smith, President, stated, "ATSI is the only telecommunications company, other than Telmex (Mexico's previous telephone monopoly), to be awarded such an agreement by Grupo Hakim-Fumisa. The ATSI management team is committed to increasing our presence in Latin America, and securing important pay telephone locations is one key to our expansion strategy. Airports are considered to be among the most desirable in the business, considering the potentially high call volume that pay telephones located within the terminals can generate. We believe this agreement further demonstrates our ability to compete in the Latin American markets."

ATSI also announced the exercise of approximately 2.8 million warrants issued in connection with previous financings. In November 1997, the Company exercised the call feature on the 2.8 million warrants. As of February 28, 1998, all such warrants had been exercised, resulting in cash proceeds of approximately $1.5 million and an approximate $500,000 reduction in indebtedness.

ATSI specializes in the delivery of high-quality telecommunications services to underserved Latin American markets and owns the San Antonio International Teleport. ATSI provides networks for voice, data, fax, and Internet, as well as call services for domestic and international long distance. ATSI's corporate headquarters are located in San Antonio, Texas, and its stock is traded over the counter on the NASD Bulletin Board under the symbol "AMTI."

Certain statements contained herein are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management. Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, the inability to obtain additional capital, loss of key personnel, unavailability of leased transmission facilities, damage, loss or malfunction of satellites, technological changes, service interruptions, equipment failures, customer attrition, competitive factors, general economic conditions, relationships with vendors, government supervision and regulation, changes in industry practices, and other factors discussed in filings made by the Company with the Securities and Exchange Commission.

CONTACT: American TeleSource International Inc.

Don L. Merrill, Jr., 210/558-6090

Internet: http://www.atsi.net