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Technology Stocks : Nortel Networks (NT)

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To: AMF who wrote (9252)1/16/2001 1:37:23 PM
From: Kenneth E. Phillipps   of 14638
 
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.


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