SAN ANTONIO, TX--(Marketwire - August 16, 2007) - ATSI Communications, Inc. (ATSI) (OTCBB: ATSX) announced today that the Company has entered into an agreement with PCCW Global, the worldwide business unit of PCCW Limited, the leading telecom operator in Hong Kong. ATSI, through its wholly owned subsidiary, Digerati Networks, Inc., will interconnect to PCCW to provide international voice over Internet ("VoIP") transport services.

ATSI Sr. Vice President of Technology and Operations, Ruben Caraveo, stated, "As larger companies migrate their international voice traffic from traditional circuit switched networks to VoIP networks, global telecom operators are seeking reliable VoIP service providers with a proven track record." Mr. Caraveo added, "We are very pleased to have met the high standards of PCCW Global, and look forward to the opportunity to serve the needs of this leading global telecommunications operator."

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 direct 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 include 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.

Headquartered in Hong Kong, Herndon, Virginia in the US and London in the UK, and with teams in Europe, Asia and the Americas, PCCW Global offers an extensive range of international data and voice services, plus a full suite of value-added services. These include business-class Private Leased Line, ATM/frame relay and IP and hosted PBX solutions to carriers, service providers and enterprises over a global network covering more than 70 countries. PCCW Global is the worldwide business unit of PCCW Limited, one of Asia's leading players in Information & Communications Technologies (ICT).

To learn more about PCCW Global, go to www.pccwglobal.com.

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.

Contact Information: Contact: Jack Eversull The Eversull Group 972-378-7917 972-378-7981 (fax) E-mail: Web Site: www.atsi.net