ATX Communications Enhances Data and Voice Network Infrastructure with Deployment of Telica PLUS Softswitch

Business Wire, August 17, 2004

KING OF PRUSSIA, Pa. -- Upgrade Enables Broader Service Offerings and Improved Operational Efficiencies

ATX Communications, a leading provider of integrated communications services, today announced the implementation of the Telica(R) PLUS(TM) 9000 Media Gateway IP softswitch platform, which will be used to enhance the Company's product portfolio and voice and data backbone. This new platform becomes the basis for delivering a converged voice and data network, thus enabling ATX to provide higher value services to its customers at reduced operating expense.

ATX's investment with Telica underscores the Company's continued commitment to expanding and enhancing its network infrastructure to best serve its growing base of enterprise customers. Employing softswitch technology allows ATX to deliver feature-rich services and applications through its network while enabling its customers to reduce their total cost of ownership when deploying current and future voice and data services.

"Compared to traditional central office switches, the Telica softswitch allows us to significantly reduce our capital and operating expenses, while improving the quality of service our customers experience," states Guy Fardone, senior vice president and general manager at ATX. "At the same time, it positions us on the leading edge to deliver services such at VoIP, Hosted IP Telephony and Unified Messaging, and other advanced application-based services."

The new softswitch platform will be installed throughout ATX's network and centrally managed at its Philadelphia Network Operations Center. It will be deployed in conjunction with ATX's new MPLS network and related platforms.

"ATX Communications is an example of how a softswitch can be deployed to enhance a vast network and offer new opportunities for a skilled telecom provider," says John St. Amand, president and CEO of Telica. "We look forward to a long relationship with ATX as they roll out new and innovative services to their broad customer base."

Regarded as one of the leading convergent switching solutions, the Telica PLUS 9000 is a carrier-class voice softswitch that offers an industry-leading 80,000-port density on a standalone basis. When deployed with the PLUS architecture, the PLUS 9000 enables carriers to build softswitches of up to 500,000 ports. Carriers utilizing the PLUS family can deploy both Class 4 tandems and Class 5 end offices, using TDM or IP in one highly scalable network.

About ATX Communications

A super-regional communications provider with the soul of a smaller company, ATX simplifies and safeguards voice and data networks. Since 1985, ATX has been an advocate for businesses - from local firms to Fortune 1000 enterprises and public institutions - helping customers gain operating efficiencies, cut total cost of ownership, and protect vital assets. Through its various subsidiaries, ATX's parent company currently serves 300,000 commercial and residential customers throughout the Mid-Atlantic and Midwest regions of the U.S. Visit ATX online at www.atx.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

In addition to the historical information presented, this release also includes certain forward-looking statements concerning the future development of the business. Such statements represent the Company's reasonable judgment on the future and are based on assumptions and factors that could cause actual results to differ materially. The Company assumes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in factors affecting such statements.