AvTel Launches Internet Service Programs for Non-Profit and Affinity Organizations; ``Virtual ISP'' Program Allows Organizations to Generate New Revenue Stream.

SANTA BARBARA, Calif.--(BUSINESS WIRE)--Feb. 25, 1999--AvTel Communications (Nasdaq:AVCO), a global provider of integrated telecommunications, voice, data and Internet services, Thursday announced it has launched its "Affinity ISP" (Internet services provider) program offering bundled Internet and telecommunications services to select non-profit and private sector affinity groups.

The "Affinity ISP" program enables a participating organization to offer Internet access and a variety of traditional telecommunications services at competitive rates under its own brand name. AvTel will handle all customer support, technical service and customer billing.

"The Affinity ISP program allows an organization to offer valuable Internet and telecom services to their members without the burden of creating and managing those services," said Scott Hall, senior vice president of AvTel.

"In addition, we will provide a specialized Web Portal Site that members will automatically log onto when they access the Internet. The association can easily update members with breaking news, communicate their key messages on a consistent basis, and begin to explore e-commerce opportunities."

This exciting new program offers partner organizations substantial financial benefits. Affinity ISP groups will share in the revenue generated by their members' use of the Internet and other telecommunications services.

Members of the affinity groups will also receive discounted rates on domestic and international long distance calls, access to special-rate calling cards, and other communication services.

Other program benefits include:

-- Access to AvTel's award-winning Web designers -- 24-hour, seven-day customer service -- Hardware and connection support -- 15-minute turnaround time for content updates -- An easy-to-use, self-installing CD-ROM for instant online

registration and access

AvTel Communications Inc. is a provider of broadband network services integrating voice, data and video networking solutions for individuals and business customers. The company markets and sells a broad range of telecommunications and advanced network services through independent value-added resellers and internal direct sales professionals.

The company targets mid-size corporations, small-office home-office professionals and select residential market segments. The company is fully certified by the FCC and registered in all 48 contiguous states and Hawaii.

In addition, the company holds billing agreements with all the regional Bell Operating Companies, GTE and other independent telephone companies. For further information, visit the company's Web site at: www.avtel.com.

All statements in this news release other than statements of historical fact are forward-looking statements that involve substantial risks and uncertainties. Reference is made to the company's Annual Report on Form 10-K for the year ended Dec. 31, 1997, and to the company's other reports filed with the Securities and Exchange Commission for a discussion of such risks and uncertainties and other factors that may have material effect on the company's business.