DALLAS, TEXAS, March 19, 1999 - Allegiance Telecom, Inc. (Nasdaq: ALGX), a competitive local exchange carrier (CLEC), today announced that Goldman Sachs Credit Partners L.P., TD Securities (USA) Inc. and Morgan Stanley Senior Funding, Inc. have entered into an agreement with the Company to arrange a seven-year senior secured revolving credit facility. They have received commitments for this facility aggregating in excess of $200.0 million from various lenders. This revolving facility would be available, subject to satisfaction of certain terms and conditions, to provide purchase money financing for the acquisition, construction and improvement of telecommunications assets of the Allegiance operating subsidiaries. The closing of this facility and the availability of credit under this facility remain subject to a number of conditions. The Company expects to close this facility in early April 1999.

Allegiance 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. The Company's web address is: www.allegiancetele.com.