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BELLSOUTH AND ALLEGIANCE TELECOM ADVANCE LOCAL COMPETITION IN ATLANTA AND MIAMI

Electronic Bonding Streamlines Ordering Process

ATLANTA, August 22, 2000 - BellSouth Corp. (NYSE: BLS) and Allegiance Telecom, Inc. (Nasdaq: ALGX) today announced that they have completed the electronic bonding between their operations support systems (OSS), reducing the time required to process customer orders for local telephone service requests. The bonding between their systems makes it easier for Atlanta and Miami area businesses to switch from one local service provider to another. This accomplishment builds on Allegiance Telecom's previously successful electronic bonding of OSS with Verizon in New York and Massachusetts, SBC in Texas and Missouri, Pacific Bell in California and Ameritech in Illinois, Michigan and Ohio.

Electronic bonding enables computers at different phone companies to communicate with each other in real-time, providing for rapid sharing of customer information, service requests and other data.

"The lack of electronic bonding between facilities-based local carriers has been widely recognized as the principal bottleneck in realizing the competitive local service marketplace envisioned by the Telecommunications Act of 1996," said Royce Holland, chairman and chief executive officer of Allegiance Telecom. "Today's announcement with BellSouth is another major step toward reaching our goal of implementing electronic bonding with all incumbent local phone providers."

"This cooperation and efficiency is an excellent example of what can be accomplished when a CLEC and incumbent local provider cooperatively use their energies and resources," said Jere Drummond, BellSouth vice chairman. "This was a collaborative effort marked by teamwork and cooperation by both companies to foster competition in the local telephone market."

Currently, many competitive local exchange carriers have unique electronic systems that may not conform to industry standards. Allegiance Telecom, however, developed its electronic interfaces to conform with BellSouth systems. This will enable Allegiance to process orders quicker and at a lower cost to better serve their local customers.

Using these electronic interfaces, Allegiance is able to receive from BellSouth a "firm order confirmation" - acknowledgement that an order has been received - much more rapidly. This confirmation is typically sent within four hours, and on many occasions, it is sent almost instantaneously. In addition, this gives Allegiance a more accurate order - immediately - than if the order was taken manually.

Through June (when Allegiance Telecom began electronically bonding with BellSouth), more than 90 competitive local exchange carriers in Georgia are providing consumers and businesses with a choice in local telephone service. More than 130 CLECs are operational in Florida.

Allegiance Telecom is one of the first CLECs to bond electronically with BellSouth for both local service requests (LSRs) for unbundled loops and access service requests (ASRs) for special access requests such as high capacity T-1 lines. Allegiance is LSR bonded in five regional Bell operating company regions, encompassing 18 of Allegiance's current 24 markets, and is ASR bonded in 100 percent of its current markets.

Electronic bonding will significantly increase the volume of customers that can be switched to Allegiance service each month and help eliminate opportunities for service interruptions during the switching of a customer's service from one local provider to another.

Allegiance Telecom (http://www.allegiancetele.com/) is a facilities-based local exchange carrier headquartered in Dallas, Texas. Allegiance offers businesses a complete package of telecommunications services, including local, long distance, international calling, high-speed data transmission and Internet services. Allegiance is targeting 36 major metropolitan areas in the U.S. with its "one-stop shopping" approach. Allegiance's common stock is traded on the Nasdaq National Market under the symbol ALGX.

BellSouth is a $26 billion communications services company. It provides telecommunications services, Internet, data and e-commerce applications,wireless communications, cable and digital TV, and online and directory advertising to more than 40 million customers in 18 countries worldwide.

For more information on BellSouth, please visit their website at: http://www.bellsouth.com/ Also, BellSouth news releases dating back one year are available by fax at no charge by calling 1-800-758-5804, ext. 095650 or write: for Atlanta releases, 1155 Peachtree St., N.E.; Atlanta, Ga. 30309-3610 and for DC releases, 1133 21st St., N.W.; Suite 900; Washington, D.C. 20036. A list of BellSouth Media Relations Contacts is available at http://www.bellsouthcorp.com/headlines/mediacon.html

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