ATSI Approved by NASD

NASD Clears Company for Trading on Bulletin Board

ATSI Communications, Inc. announced today that the NASD has approved ATSI for trading on the Bulletin Board. ATSI has been trading on the Pink Sheets since May 2003 and is now trading on the OTC Bulletin Board under the symbol ATSX.OB.

"We see this as an important step in the process of reshaping the company and creating value for our shareholders who have patiently stood by while we have undertaken our reorganization," said Arthur L. Smith, President and Chief Executive Officer. "This is yet another accomplishment towards the fulfillment of our strategic plan. The Bulletin Board listing will provide ATSI with greater exposure and access to an increased investor base."

The Company's stock may continue to trade on the Pink Sheets for some time simultaneously while it begins trading on the Bulletin Board. Until the transition to the Bulletin Board is complete, there may be fewer than expected market makers, and shareholders are encouraged to be patient as this is in process.

ATSI Communications, Inc. is an emerging international carrier serving the rapidly expanding niche markets in and between Latin America and the United States, primarily Mexico. ATSI believes that it has clear advantages over its competition through its unique concession license in Mexico, interconnection and service agreements, and strategic partnerships with established carriers and network operators in Latin America.

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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