DALLAS, TEXAS, February 8, 2000 - Allegiance Telecom, Inc. (Nasdaq: ALGX), a competitive local exchange carrier, today announced that its board of directors has approved a three-for-two stock split. The additional shares will be issued in the form of a stock dividend on Feb. 28, 2000, for shareholders of record on Feb. 18, 2000.

"The board of directors' action creates an Allegiance share price that should be attractive to a broad range of investors," said Royce Holland, chairman and chief executive officer of Allegiance Telecom.

Based in Dallas, Texas, Allegiance Telecom is a facilities-based competitive local exchange carrier that offers businesses a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. The Company is targeting 36 major metropolitan areas in the U.S. with its "one-stop shopping" approach. Allegiance is currently operational in the following 20 markets: Atlanta, Baltimore, Boston, Chicago, Dallas, Denver, Detroit, Fort Worth, Houston, Long Island, Los Angeles, New York, Northern New Jersey, Oakland, Orange County, Philadelphia, San Diego, San Francisco, San Jose and Washington D.C. The Company's web address is: www.allegiancetele.com. Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX.