DALLAS, TEXAS, February 15, 2000 - Allegiance Telecom, Inc. (Nasdaq: ALGX), a competitive local exchange carrier (CLEC), today announced that it has closed its senior secured credit facilities with a syndicate of lenders led by Goldman Sachs Credit Partners L.P., Toronto Dominion (Texas) Inc., BankBoston, N.A. and Morgan Stanley Senior Funding, Inc. The credit facilities consist of a seven-year $350 million revolving credit facility and a two-year $150 million delayed draw term loan facility. The banks have committed $500 million under these facilities to provide purchase money financing for the acquisition, construction and improvement of telecommunications assets of the Allegiance operating subsidiaries.

Based in Dallas, Allegiance Telecom is a facilities-based CLEC that offers businesses a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. Allegiance is currently operational in 20 U.S. markets and is targeting 36 major metropolitan areas in the U.S. with its "one-stop shopping" approach. The Company's web address is: www.allegiancetele.com.