ATSI's Expanded Nextone System Continues to Contribute to Improved Performance

777 Percent Increase in VoIP Traffic Since Deployment


SAN ANTONIO, April 18, 2005 (PRIMEZONE) -- ATSI Communications, Inc. (OTCBB:ATSX) announced today that the recently purchased expansion to its NexTone powered VoIP network is now fully operating as expected with increased capacity and traffic. The Company expanded the port capacity on its NexTone Multiprotocol Signaling Switch ("MSW") and Multiprotocol Session Controller ("MSC") by 50 percent and extended the term for support services provided by NexTone through February 2006. From June 2004 through March 2005, the Company's VoIP minutes of use ("MOU") has increased by 777 percent due to the implementation of the NexTone system. As evidenced by yet another record month of volume and revenue in March 2005, ATSI's expanded network will support continued growth in the Company's core VoIP business.

ATSI deployed the NexTone MSC in San Antonio, Texas. This solution lowers equipment costs, simplifies network operation and provides faster service turn-up. This capability enables ATSI to use its VoIP gateways more efficiently and realize CAPEX and OPEX cost savings. In traditional VoIP networks, interoperability issues require that carriers dedicate one or more gateway ports to each of its customers. NexTone's FlexPeer technology provides multi-vendor interoperability and enables carriers to share port resources with multiple customers. ATSI is also utilizing NexTone's Network Analysis and Reporting System ("NARS") which provides a comprehensive set of management tools to engineer and streamline traffic routing tables.

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's 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.

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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