GlobalSCAPE Acquires One of Internet's Most Popular FTP Software Programs

SAN ANTONIO, TEXAS, - GlobalSCAPE, Inc., a wholly owned subsidiary of American TeleSource International, Inc. ("ATSI") (OTCBB: AMTI), announced today its purchase of CuteFTP(tm), the world-renowned File Transfer Protocol ("FTP") software. Prior to ownership, GlobalSCAPE maintained an exclusive 25-year agreement for worldwide marketing and distribution rights.

GlobalSCAPE's CuteFTP(tm) software gives Internet users the ability to quickly upload, download, transfer and edit files on and between FTP servers around the world. It is a Windows-based software allowing users the capability of FTP without having to know the technical details of the protocol itself. CuteFTP(tm) is marketed and distributed electronically (on-line) over the Internet. The product is so easy that nearly 4 million Internet users have made it their FTP software of choice. Currently, CuteFTP averages more than 15,000 downloads of its software per day, many of which originate from leading shareware sites including Yahoo (Nasdaq: YHOO), Download.com, TUCOWS, Dave Central, Slaughter House, Winfiles.com, Strouds, Ntware, 32bit.com, Jumbo, ZDNET, BetaNews and Softseek.

Related Reading: FTP Alternatives

Sandra Poole-Christal, GlobalSCAPE's President, stated, "The acquisition eliminates costly royalty payments associated with prior distribution rights and will improve our already positive monthly earnings. We believe securing ownership of CuteFTP(tm), combined with our anticipated launch of a suite of complementary Internet products, will position GlobalSCAPE to capture its share of this explosive market. Our current user base represents roughly 2% of the estimated 200 million Internet users today, a market that is expected to reach approximately 900 million by the year 2003. Total industrywide on-line sales for 1998 were approximately $14 billion, with hardware, software and computer-related products representing the majority of purchases. According to a recent Forbes article, industrywide on-line sales are expected to reach as high as $115 billion by the year 2005."

Arthur L. Smith, ATSI's Chairman and CEO, stated, "Being a profitable, 100% owned asset of ATSI and given today's marketplace for Internet companies, we are excited about the added value GlobalSCAPE potentially brings to ATSI's stockholders."

CuteFTP(tm) has been featured in popular periodicals such as PC Magazine and Yahoo! Internet Life, and its impressive user base includes some of today's distinguished industry leaders: Microsoft (Nasdaq: MSFT), Compaq (NYSE: CPQ), Gateway (NYSE: GTW), MCIWorldCom (Nasdaq: WCOM), Intel (Nasdaq: INTC), Sony (NYSE: SNE), General Electric (NYSE: GE), Xerox (NYSE: XRX), IBM (NYSE: IBM), AT&T (NYSE: T), Wells Fargo (NYSE: WFC), Baxter (NYSE: BAX), Lockheed Martin (NYSE: LMT), Allied Signal (NYSE: ALD), and Eli Lilly (NYSE: LLY).

Founded in 1996, GlobalSCAPE is rapidly becoming a leader in electronic commerce of top Internet-based software. GlobalSCAPE uses the Web as an integral component of its development, marketing, distribution and customer relationship strategies.

For more information on GlobalSCAPE's CuteFTP(tm) product, especially its many awards and reviews, and to download a free version of the software, visit the CuteFTPTM web site at www.cuteftp.com.

American TeleSource International, Inc. is an emerging multinational carrier, rapidly becoming a niche leader within certain Latin American telecommunication markets. ATSI has established a solid presence in these markets through its ownership and operation of over 750 public payphones and 134 calling centers (casetas) in Mexico. The Company's borderless strategy includes the deployment of a "next generation" network for more efficient and cost effective service offerings of domestic and international voice and data transport. ATSI has clear advantages over the competition through its corporate framework consisting of unique licenses, interconnection and service agreements, network footprint, and extensive distribution channels.

Certain statements contained herein (for example, the statements that GlobalSCAPE expects to capture its fair share of the market, the expected growth in the Internet market and the added value GlobalSCAPE potentially brings to ATSI stockholders) are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based on the belief of the Company's management, as well as assumptions made beyond information currently available to GlobalSCAPE's management. Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to competition from products similar to those offered by GlobalSCAPE, and changes in products provided by third parties on which GlobalSCAPE's products are dependent such as changes to operating systems and product strategies by vendors of operating system.