Managed Services Key to Supporting Huge Increase in Site Traffic and Popular Extranet Training Application

Dallas, TX., August 20, 2001 - Hosting.com, the Web hosting and Internet connectivity division of Allegiance Telecom, announced that Thule (say too-lee) U.S. sports and lifestyle car rack manufacturer has chosen Hosting.com's Managed Hosting Services to support the company's North American consumer Web site and its extensive dealer network extranet application. Hosting.com will provide the managed services to support Thule U.S.'s spare and replacement parts e-commerce application, online dealer locator service, and Rack-it Science training program extranet (www.rackitscience.com).

Hosting.com currently provides dedicated hosting service that supports Thule U.S.'s multi-server Web application. In a phased approach, Hosting.com will deploy the necessary managed firewall, load balancing, and data backup managed services to support the expansion of Thule U.S.'s Web applications.

"Hosting.com's dedicated hosting service provided the reliability and scalability we needed as our North American site experienced a more than two-fold increase in daily visitors this year," said Dan Woodhouse, Thule U.S. Web master. "We are pleased to now take advantage of Hosting.com's expertise in managed services as we enhance the performance and security of our customer and dealer Web applications."

The Thule U.S. Web site is an essential marketing vehicle for the company to showcase its variety of products and hundreds of rack options in a dynamic and interactive way. The Web site is also designed to provide customers much of the product information they will need to then purchase from a dealer including the likes of L.L. Bean or REI that can be found on the site's dealer locator network.

"Today, selecting a Web hosting service provider is really a joint technical and marketing decision," said Steve Doviak, Thule U.S. marketing manager. "The reliability and performance of our Web site and Rack-it Science extranet that provides dealers with rack installation information and training has a direct impact on how we are perceived by our customers and partners. As our Web site drives more business and our Rack-it Science training program grows, I trust that Hosting.com can deliver the level of hosting services we need to provide a compelling on-line experience."

Businesses are increasingly looking to Web hosting companies to provide the Internet infrastructure and associated services and support, so they can focus on their core business. Managed hosting services are a particular area that allows companies to realize this valuable benefit. An earlier report from the Yankee Group estimated businesses will spend more than $2.8 billion on Web hosting and managed services this year.

"More and more Hosting.com customers are in need of our expertise in managed services to support their click and mortar strategies," said Dave Fagan, Hosting.com Director of Product Management. "We are extremely pleased that Thule U.S. has chosen us to provide them with the reliable, high-performing, and secure managed hosting services they need. With Hosting.com taking care of the Internet infrastructure, Thule U.S. is now better able to focus on integrating its traditional way of doing business with its e-business initiatives."

Hosting.com Managed Hosting Services
Hosting.com managed hosting services include dedicated managed firewall, load balancing, and managed storage solutions as well as a suite of backup and recovery and reporting and monitoring services.

About Thule
THULE develops, manufactures and markets load carrier systems for car owners all over the world. Its range includes load carriers, roof boxes and accessories for transporting bikes, skis, snowboards, canoes, surfboards and more.

Production takes place in Sweden, with the main factory in Hillerstorp, as well as in England, Germany and the USA. Over the years the Thule brand has developed into an international market leader, with approx. 95 percent of the sales going to more than 40 countries outside Sweden.

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

Allegiance Telecom provides telecommunications services, including local calling, long distance, international calling and high-speed data services. 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, Ontario/Riverside CA, 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. The Company's Web address is: www.algx.com. Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX.

More information is available at www.hosting.com (1-888-463-8375) and www.thuleracks.com.