DALLAS, April 27, 2001 - Allegiance Telecom, Inc. (Nasdaq: ALGX), a leading facilities-based integrated communications provider, applauded the Federal Communications Commission (FCC) for releasing an order regarding how much competitive local exchange carriers (CLECs) can tariff and charge long distance companies for interstate access charges. The Commission's order released today prescribes an initial rate of 2.5 cents per minute for interstate access charges and a transition period of three years for reduction of these charges to parity with incumbent local exchange carrier (ILEC) access charges.

The access charge order is one of three FCC actions that have been announced in the last week. The other orders relate to reciprocal compensation for the exchange of traffic between local exchange carriers and a Notice of Proposed Rulemaking (NPRM) to update intercarrier compensation rules.

"The FCC action provides rules of engagement for intercarrier compensation in a competitive environment," said Royce J. Holland, chairman and CEO of Allegiance Telecom. "The order defining interstate access charge rates and a transition period is especially timely since this issue has been the source of numerous time-consuming disputes and a large amount of uncertainty for the CLEC industry. I especially want to commend Chairman Powell, the other Commissioners and their staff, and the Common Carrier Bureau for their expeditious efforts in developing rules that will lead to a more competitive market environment," he said.

Holland also noted Commissioner Susan Ness' announcement that she will depart the Commission on June 1. "Commissioner Ness has been a true friend to the competitive community during her tenure at the FCC and I want to thank her for all that she has done to make local competition a reality," he said.

Based in Dallas, Allegiance Telecom is a facilities-based integrated communications provider (ICP) offering businesses a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. Allegiance is targeting a total of 36 major metropolitan areas with its "one- stop shopping" approach. Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX.