SOURCE: ATSI Communications

December 12, 2007 11:00 ET

Wells Fargo Provides $3 Million Financing to ATSI Communications

SAN ANTONIO, TX--(Marketwire - December 12, 2007) - ATSI Communications, Inc. (OTCBB: ATSX) today announced that the Company has entered into a $3 million accounts receivable financing agreement with Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A. (NYSE: WFC). This transaction provides ATSI with a consistent source of flexible, low-cost financing that will enable it to significantly reduce its factoring expense and strengthen its capital structure while funding its growth initiatives in its global VoIP business.

Brad LeFevre, VP of Wells Fargo Business Credit, stated, "We are impressed with the Company's track record and financial performance and are pleased to have the opportunity to work with ATSI. We expect that our accounts receivable funding will facilitate the Company's continued growth and business expansion. We look forward to working with ATSI in meeting its future goals."

Antonio Estrada, ATSI's VP of Finance and Corporate Controller, added, "The financing with Wells Fargo will support the execution of our business plan for FY2008 and provide us with increased cash management flexibility. This is a great example of how we are securing new sources of capital while reducing costs. As we grow our customer base, accounts receivable financing will become an increasingly important source of low-cost funding for our business."

ATSI Communications, Inc. operates through its two wholly owned subsidiaries, Digerati Networks, Inc. and Telefamilia Communications, Inc. Digerati Networks, Inc. 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 NexTone powered VoIP network, ATSI believes it has clear advantages over its competition. Telefamilia Communications provides specialized retail communication services that includes VoIP services to the high-growth Hispanic market in the United States. 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.

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