ATSI Revenues Increase 225%

Record Quarterly Revenues Exceeds Previous Estimates

ATSI Communications, Inc. (OTC BB: ATSX) announced today that the company's revenues for the 3rd quarter ended April 30, 2005, reached $1,820,000 and exceeded previous estimates provided in an April 1, 2005, press release. April 2005 was yet another record month in revenues and VoIP volume for ATSI since completing the company's reincorporation. As a result, ATSI revenues increased 225% over the previous fiscal year's 3rd quarter ended April 30, 2004, and 20% over the immediately preceding quarter ended January 31, 2005.

ATSI President and CEO Arthur L. Smith stated, "Our sales and operations team continues to deliver and exceeded expectations by producing record monthly revenues of $703,000 in April. The trend is positive as we head down the final stretch of our current fiscal year. We will continue to control expenses as we improve our gross profit and work towards our objective of producing positive cash flow from operations, excluding non-cash items."

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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