SOURCE: ATSI Communications, Inc.

July 12, 2005 08:00 ET

ATSI's Success Featured in NexTone's Customer Case Study

SAN ANTONIO, TX -- (MARKET WIRE) -- July 12, 2005 -- ATSI Communications, Inc. (OTC BB: ATSX) announced today that NexTone Communications is distributing its customer case study of ATSI to the media and select industry publications. NexTone's case study highlights the growth of ATSI's VoIP business unit and significant business benefits ATSI has achieved utilizing NexTone's Multiprotocol Signaling Switch ("MSW") and Multiprotocol Session Controller ("MSC"). The full text of the case study focusing on ATSI's deployment of its services to the Hispanic market and outlining the success ATSI has experienced as a result of using NexTone's products can be viewed at each of the companies' websites.

ATSI has experienced significant growth utilizing NexTone's technology. The following select announcements document the growth that occurred during ATSI's current fiscal year:

--  Record Revenues Result in 220% Increase - June 14, 2005
    
--  ATSI's Expanded NexTone System Continues to Contribute to Improved
    Performance - 777%  Increase in VoIP Traffic Since Deployment - April 18,
    2005
    
--  ATSI Revises Revenue Guidance Upward - Exceeds Previous Estimates with
    3rd Consecutive Month of Record Revenues - February 3, 2005
    
--  ATSI Revenues Up 435% - Positive Trend in VoIP Business Continues -
    January 12, 2005
    
--  ATSI Revenues Up 130% Quarter Over Quarter, 1022% Increase Over
    Previous Year's 1st Quarter - December 9, 2004
    
--  800% Surge in Monthly VoIP Call Volume Since Deploying NexTone
    System - November 4, 2004
    

"NexTone has been a great technological partner. We would not have achieved this level of success without our NexTone powered VoIP network," said Ruben Caraveo, VP of Sales and Operations at ATSI. Mr. Caraveo added, "We are pleased that our accomplishments can serve as a testimonial to the performance of NexTone's technology and are excited by the positive exposure this case study will give ATSI, as we expect it to assist us in generating new business opportunities. Our marketplace, in part, is driven by word of mouth, and an affirmation from a partner such as NexTone is invaluable."

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.

NexTone Communications develops carrier-grade products that deliver scalable control of real-time IP services, such as voice over IP (VoIP). NexTone solutions enable carriers, service providers, and enterprises to securely, simply, and cost-effectively interconnect networks for end-to-end control and management of IP traffic. NexTone's real-time IP technology has been installed by more than 200 service providers worldwide to dramatically reduce capital expenditures and deliver ongoing operational efficiencies, such as reduced interconnect "turn-up" time and simplified network operations. For its ability to anticipate the growing need for multiprotocol session control and its impressive market traction, NexTone was awarded the 2004 Frost and Sullivan Market Penetration Leadership Award. The company is headquartered in Gaithersburg, Maryland USA with domestic and International sales offices worldwide. For more information, visit www.nextone.com.

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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