Axtel Announces Agreements with America Movil and Iusacell

Axtel, S.A.B. de C.V. (BMV:AXTELCPO) (OTC:AXTLF) (“AXTEL” or “the Company”), a Mexican fixed-line integrated telecommunications company, announced today that it has signed a transaction agreement with América Móvil, S.A.B. de C.V. (“AMX”) and its affiliate Radiomóvil Dipsa S.A. de C.V. (“Telcel”), in which both parties agreed to terminate various disputes related to interconnection services. As part of the agreement, AXTEL and Telcel executed interconnection agreements for the years 2005-2015, inclusive. At the same time, Axtel, Telcel and Teléfonos de México S.A.B. de C.V. (“Telmex”) agreed to relinquish several interconnection-related claims between the parties.

Under the agreement and after settlement of all amounts which had been in dispute or pending payment, either in favor or against it, AXTEL received a net payment of 950 million pesos. Concurrently, AXTEL entered into agreements for the commercialization or resale of telecommunication services and for the access and sharing of passive infrastructure with Telcel and Telmex, respectively. The agreement for the resale of telecommunication services makes AXTEL the first mobile virtual network operator (MVNO) using Telcel’s network.

In a separate transaction today, AXTEL and affiliates of Grupo Iusacell (“Iusacell”) entered into an agreement under which both parties terminated interconnection-related disputes between them for the period 2005-2010. Currently, AXTEL and Iusacell signed several commercial agreements related to telecommunications infrastructure for their mutual benefit.

About AXTEL

AXTEL is a Mexican telecommunications company with significant growth in the broadband segment, and one of the leading companies in information and communication technologies solutions in the corporate, financial and government sectors. The Company serves all market segments - corporate, financial, government, wholesale and residential with the most robust offering of integrated communications services in Mexico. Its world-class network consists of different access technologies like fiber optic, fixed wireless access, point to point and point to multipoint links, in order to offer solutions tailored to the needs of its customers.

AXTEL’s shares, represented by Ordinary Participation Certificates or CPOs, trade on the Mexican Stock Exchange under the symbol “AXTELCPO” since 2005.

Axtel, S.A.B. de C.V.Investor RelationsAdrian de los Santos, + 5281 8114 [e-mail]