DALLAS, TX, March 30, 1998 -- Allegiance Telecom, Inc. announced today that Reed Hundt, former chairman of the Federal Communications Commission, has been elected to the Company's board of directors.

Hundt, who served as chairman of the Federal Communications Commission (FCC) from 1993 to 1997, is currently the chairman of The Forum on Communications and Society (FOCAS) at The Aspen Institute. FOCAS is a CEO-level body, convened by the Institute's Communications and Society Program, which annually addresses subjects relating to the societal impact of the communications and information sectors.

Under Hundt's leadership, the FCC wrote rules which fostered competition, as directed by Congress in the historic Telecommunications Act of 1996. The FCC also helped in the completion of the World Trade Organization Telecommunications Agreement which opened international markets to U.S. companies.

"I am convinced that Allegiance is on the cutting edge of the local market," said Reed Hundt. "I am proud to be a part of their future success."

"Reed Hundt has compiled an impressive record of achievement in both the public and private sectors," said Royce J. Holland, chairman and CEO of Allegiance Telecom. "As FCC chairman he worked vigorously to create a competitive environment in the telecommunications arena - an environment which helped give rise to companies like Allegiance. We believe he will be an excellent addition to our board."

Prior to his position as chairman of the FCC, Hundt was a partner in the Washington office of Latham & Watkins, a national and international law firm. His work included legal and regulatory issues in emerging technologies, such as cellular telephones, direct broadcast satellite and interactive television.

Hundt is a graduate of Yale College (1969) and Yale Law School (1974), where he was a member of the board of the Yale Law Journal. He clerked for the late Chief Judge Harrison L. Winter of the United States Court of Appeals for the Fourth Circuit.

Allegiance Telecom is a competitive local exchange carrier headquartered in Dallas, Texas. The Company offers businesses a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. Allegiance is targeting 24 major metropolitan areas in the U.S. with its "one-stop shopping" approach. Markets scheduled for initial service in 1998 include Atlanta, Chicago, Dallas, Los Angeles and New York. The Company's web address is: www.allegiancetele.com.