SOURCE: ATSI Communications

October 14, 2008 09:30 ET

ATSI Communications Provides Update on Share Repurchase Program

SAN ANTONIO, TX--(Marketwire - October 14, 2008) - ATSI Communications (OTCBB: ATSX) today reported on recent events related to the Company's ongoing Share Repurchase Program.

On September 19, 2008, the Securities and Exchange Commission ("SEC") issued an Emergency Order taking temporary action to respond to recent market developments. The order by the SEC eased certain restrictions that enable ATSI to increase the number of shares repurchased during this period under its Share Repurchase Program. Specifically, the temporary order removed the volume and timing limitations regarding Share Repurchase Programs. The order was set to expire on October 2nd, but was extended to 11:59 P.M. ET on October 17, 2008.

Art Smith, President and CEO of ATSI Communications, remarked, "We are convinced that our shares are undervalued and have continued committing resources to the buyback of our shares. The mechanics of the SEC rules regarding Repurchase Programs is subject to limitations, so the easing by the SEC has aided our objective to reduce the number of shares outstanding and build long term shareholder value."

ATSI is scheduled to report its fiscal year ending July 31, 2008 by October 31, 2008. The Company has just completed a year of significant growth and anticipates continued progress in the fiscal 2009.

ATSI Communications, Inc. operates through its wholly owned subsidiary, Digerati Networks, Inc. Digerati Networks is a premier global VoIP carrier serving rapidly expanding markets in Asia, Europe, the Middle East, and Latin America, with an emphasis on Mexico. Through Digerati's partnerships with established foreign carriers and network operators, interconnection and service agreements, and a NextPoint powered VoIP network, ATSI believes it has clear advantages over its competition. ATSI also owns a minority interest of a subsidiary in Mexico, ATSI Comunicaciones, S.A. de C.V., which operates under a 30-year government issued telecommunications license.

The information in this news release includes certain forward-looking statements that are based upon management's expectations and assumptions about certain risks and uncertainties that can affect future events. Although management believes these assumptions and expectations to be reasonable on the date of this news release, these risks and uncertainties may cause actual events to differ material from managements those contained in this news release. The risks and uncertainties include, but are not limited to, continuing as a going concern, availability and cost of our present vendors and suppliers, and absence of any change in government regulations or other costs associated with data transmission over the Internet or termination of transmissions in foreign countries.

Contact Information