SOURCE: ATSI Communications, Inc.

August 09, 2005 13:14 ET

ATSI Reports 600% Growth in VoIP Traffic During 4th Quarter

Increased Volume to Result in Record Revenues

SAN ANTONIO, TX -- (MARKET WIRE) -- August 9, 2005 -- ATSI Communications, Inc. (OTC BB: ATSX) announced today it has continued to experience growth in its core VoIP business. For the 4th quarter ended July 31, 2005, the Company's VoIP traffic increased by 600% when compared to the previous year's 4th quarter ended July 31, 2004. ATSI processed over 40 million VoIP minutes of use ("MOU") during the quarter that resulted in over 6 million calls through ATSI's network. As a result, the Company expects to report record revenues for the final quarter of FY2005 which would produce a 4th consecutive quarter of record revenues since its reincorporation. Financial results for the 4th quarter and FY2005 will be announced along with the Company's filing of its annual report on form 10KSB with the Securities and Exchange Commission. The Company expects a timely filing of its 10KSB to occur by the end of October 2005.

Arthur L. Smith, CEO, stated, "We ended the year strong and look forward to reporting our annual results for FY2005. We will also provide a recap to our shareholders of the significant progress we made during the year as well as communicate our goals and objectives for the coming year."

ATSI Communications, Inc. is an emerging global VoIP carrier serving rapidly expanding markets in Asia, Europe, the Middle East, and Latin America, with an emphasis on Mexico. ATSI believes that it has clear advantages over its competition through its strategic partnerships with established foreign carriers and network operators, interconnection and service agreements, and its unique concession license in Mexico.

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. More detailed information about ATSI Communications, Inc. is available in the Company's public filings with the Securities and Exchange Commission.

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