Four Other Senior Executives Have New Key Roles in Company

DALLAS, Aug. 13, 2002 – Allegiance Telecom, Inc. (Nasdaq: ALGX) a leading integrated communications provider, announced the hiring of six veteran telecommunications executives to take key roles in the rapidly growing company. Four other senior Allegiance executives were named to newly titled positions.

Lawrence E. Strickling joins Allegiance as senior vice president for industry development. Most recently, he served as executive vice president and general counsel at CoreExpress , a privately-held Internet startup, and as a director of NetworkPlus, a competitive local exchange carrier. Previously, Strickling was chief of the Common Carrier Bureau at the Federal Communications Commission from 1998-2000, after a ten-year legal and regulatory career with Ameritech.

Sanjeev Sethi is Allegiance Telecom’s new vice president of planning. Before coming to Allegiance, he has had wide range of planning experience at telecom companies, including work at MFS Communications Co. Previously, he worked as a marine engineer officer in the Mercantile Marine.

Mark A. Stachiw serves as vice president and general counsel for Allegiance Telecom Worldwide. He previously was of counsel at the Washington D.C. law firm of Paul Hastings Janofsky & Walker. Prior to that, he held a variety of positions at Verizon Wireless Messaging Services, most recently vice president and general counsel. Stachiw reports to Mark Tresnowski, general counsel for Allegiance Telecom, Inc.

Donovan Dillon, Allegiance Telecom’s new vice president of strategic marketing, was most recently co-founder of TeleFeatures, Inc. in Plano, Texas, and is a former vice president of wholesale marketing for SBC Industry Markets in Dallas and vice president of network products, Southern New England Telephone (SNET) Network Services, Meriden, Conn.

Doug Davis, Allegiance vice president of IP backbone operations, was most recently chief technology officer and president of the technology division of Digital Convergence, and is the former chief operating officer and chief technical officer of Internet America.

Ray Escalera, the new vice president of integrated marketing at Allegiance, recently served as vice president of product marketing at I-Link and has held a variety of positions at MAXCOM Telecommunications in Mexico City and SNET in New Haven, Conn.

"As Allegiance Telecom continues to grow and mature as a company, our operations will benefit from this seasoned crop of top-level executive talent," said Royce J. Holland, chairman and chief executive officer of Allegiance Telecom. "Our target of small- and medium-sized businesses is enthusiastically responding to the advantages brought by telecom competition, and these telecom veterans will help further leverage Allegiance’s market position on a national scale."

Allegiance also announced the promotions of four other senior officers. Tony Parella, formerly executive vice president, will assume the position of president, Telecom and Retail Services; Chris Malinowski, former senior vice president strategic sales, will assume the position of president, Broadband and Wholesale Services; and Mark Tresnowski has been named executive vice president and retains his role as general counsel of Allegiance Telecom, Inc. Chris MacFarland, former vice president of technology, becomes chief technical officer of Allegiance Telecom.

"Tony, Chris and Mark have demonstrated leadership and success over a broad range of areas at Allegiance and we are pleased to recognize their contributions and continued leadership with these new titles," said Holland. "Chris MacFarland has stepped up to a leadership role for Allegiance on all technology issues and we are pleased to formally recognize that with his new position."

Allegiance Telecom is a facilities-based integrated communications provider headquartered in Dallas, Texas. As the leader in competitive local service for medium and small businesses, Allegiance offers "One source for business telecom™" – a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. Allegiance serves 36 major metropolitan areas in the U.S. with its single source provider approach. Allegiance’s common stock is traded on the NASDAQ National Market under the symbol ALGX.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and the Company intends that such forward- looking statements be subject to the safe harbors created thereby. The words "believes," "expects," "estimates," "anticipates," “plans,” "will be" and "forecasts" and similar words or expressions identify forward-looking statements made by or on behalf of the Company. These forward-looking statements were derived using numerous assumptions and are subject to many uncertainties and factors that may cause the actual results of the Company to be materially different from those stated in such forward-looking statements. Examples of such uncertainties and factors include, but are not limited to, the Company's ability to timely and effectively provision new customers; the Company’s ability to retain existing customers; the Company’s ability to obtain additional financing should it be necessary to do so; the Company’s ability to develop and maintain efficient billing, customer service and information systems; and technological, regulatory or other developments in the industry and general economy that might adversely affect the Company. Additional factors are set forth in the Company's SEC reports, including but not limited to the Quarterly Report on Form 10-Q for the quarter ended June 30, 2002. The Company does not undertake any obligation to update or revise any forward-looking statement made by it or on its behalf, whether as a result of new information, future events or otherwise.