Local Companies Are Key To National Provider of Web Hosting and Internet Connectivity

DALLAS, July 30, 2001 -- Allegiance Telecom is renaming CTSnet and CONNECT.net to Hosting.com. The San Diego-based Web hosting and Internet service provider companies were acquired by Dallas-based Allegiance earlier this year and in 2000, respectively. Allegiance Telecom announced the two companies would now be known as Hosting.com, operating in concert with other Allegiance Web hosting operations located throughout the country.

CTSnet is an Internet service provider (ISP) supplying Internet access, Web hosting and colocation services. Founded in 1993, the former wide-area networking division of Datel Systems, Inc. is a pioneer among Internet providers in Southern California. Since 1995, CONNECT.net has delivered high-speed Internet products and services to the San Diego metropolitan area. Allegiance Telecom purchased CONNECT.net in July, 2000.

Hosting.com, an Allegiance Telecom company, is a 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.

"Operating as a key part of the national Hosting.com organization further solidifies our position as the pre-eminent Web hosting and Internet connectivity provider in the San Diego area," said Morgan Davis, Hosting.com senior director of operations in San Diego. "The national resources and Internet infrastructure of Hosting.com provide even more fuel for our growth in the vibrant San Diego marketplace."

"The San Diego metropolitan area is one of the best markets in the country to offer our full-suite of Internet services," said Joe Bartlett, Hosting.com vice president of marketing. "We also have a great head-start in the San Diego market because these two companies already provide Web hosting and Internet connectivity services to a large number of area businesses and the city is now the home of one of Hosting.com’s 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 33 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, Philadelphia, Phoenix, Portland, Sacramento, St. Louis, San Antonio, San Diego, San Francisco, San Jose, Seattle, Tampa, Washington, D.C. and White Plains, N.Y. Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX. Hosting.com is on the Web at www.hosting.com.