Allegiance plans to provide Dallas businesses with a full package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. The company is targeting 20 major metropolitan areas in the U.S. with its "one-stop shopping" approach. Other markets scheduled for initial service in 1998 include New York, Atlanta, Chicago and Los Angeles.

"Allegiance is looking forward to having the opportunity to bring the benefits of competition to customers in the Southwestern Bell and GTE Southwest regions," said Tony Parella, vice president and general manager of Allegiance Telecom of Texas. "Texas telephone customers will soon have an expanded choice for their communications needs, similar to the choices customers can now make when selecting a long distance phone company."

NOTE TO EDITOR: Royce Holland, chairman and CEO of Allegiance, was one of the original founders of MFS Communications Company, the first major competitor to the Bell system. As president of MFS, Holland was an industry leader in developing the competitive provisions of the Telecommunications Act of 1996, which opened the local exchange market to competition throughout the U.S. Under Holland's leadership, MFS grew from a privately held start-up operation to one of the Nasdaq 100 Index companies with annual revenue of approximately $1 billion and a market value of approximately $13 billion.