Subsidiary is National Provider of Web Hosting and Internet Connectivity

Dallas, August 28, 2001 - Hosting.com, the Web hosting and Internet connectivity division of Allegiance Telecom (Nasdaq: ALGX), is officially renaming Jump.Net, the Austin-based Web hosting and Internet Service Provider it acquired earlier this year. Allegiance announced that the former Jump.Net will now conduct business as the Austin-based office of Hosting.com, operating in conjunction with other Allegiance Telecom Web hosting operations.

Jump.Net is an Internet service provider (ISP) offering Web hosting, colocation, and Internet connectivity services. Founded in 1997, Jump.Net is a recognized leader among Internet providers servicing the greater Austin area. Allegiance Telecom purchased Jump.Net in January, 2001.

Hosting.com is Allegiance Telecom’s national provider of Web hosting and Internet connectivity services targeted to small and medium-sized enterprises (SMEs). Services include dedicated and managed hosting, colocated hosting services, shared Web hosting, and a variety of Internet connectivity options. The company provides its services over its own backbone and Internet Data Center infrastructure.

“Now that we are officially part of the national Hosting.com organization, I look forward to further expanding our presence in the Austin area," said Kenneth Smith, Hosting.com vice president of operations in Austin. "With the deep resources and national Internet infrastructure of Hosting.com we can now offer Austin businesses even more advanced Internet services while continuing to provide them with the quality local service they have come to expect."

"The Austin metropolitan area is one of the leading markets in the country to offer business our full-suite of Internet services," said Joe Bartlett, Hosting.com vice president of marketing. "We are excited about growing the already substantial Hosting.com customer base in the area and also to add our Austin facility to our national footprint of state-of-the-art Internet Data Centers."

Since its founding in 1997, Allegiance Telecom has rapidly become one of the leading facilities-based integrated communications providers in the U.S. Allegiance provides its business customers with a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services and e-commerce offerings. Hosting.com is marketing its services nationally; Allegiance currently has 34 markets operational, including Atlanta, Austin, Baltimore, Boston, Chicago, Cleveland, Dallas, Denver, Detroit, Fort Lauderdale, Fort Worth, Houston, Long Island, Los Angeles, Miami, Minneapolis/St. Paul, New York, Northern New Jersey, Oakland, Orange County, Ontario/Riverside CA, Philadelphia, Phoenix, Portland, Sacramento, St. Louis, San Antonio, San Diego, San Francisco, San Jose, Seattle, Tampa, Washington, D.C. and White Plains NY. Two more markets will be added in 2001.

Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX.