SOURCE: ATSI Communications, Inc.

July 20, 2005 11:45 ET

Hurricane Emily Not a Threat for ATSI in Rio Grande Valley

SAN ANTONIO, TX -- (MARKET WIRE) -- July 20, 2005 -- ATSI Communications, Inc. (OTC BB: ATSX) announced today that Hurricane Emily, which is expected to cause damage along the coast of South Texas and North East Mexico, should have no impact on the Company's VoIP network and operations in the Rio Grande Valley located along the U.S./Mexico border. ATSI's infrastructure is expected to withstand the effects of hurricane Emily and not suffer any interruption in services.

Arthur L. Smith, CEO of ATSI, stated, "We know that there is concern for the well being of those living and traveling in the area of the impending hurricane striking South Texas and northern Mexico. However, we are very confident that Emily will not have any negative impact on our operations or our infrastructure. We do not expect services to be interrupted, allowing our customer's contact with friends and relatives calling to assure their safety."

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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