SAN PEDRO GARZA GARCIA, Mexico, Oct. 24 /PRNewswire-FirstCall/ -- Axtel, S.A.B. de C.V. (BMV: AXTELCPO; OTC: AXTLY) ("AXTEL"), a Mexican fixed-line integrated telecommunications company, announced today the commencement of operations in Ciudad Victoria and Reynosa, Tamaulipas.

During the inaugural ceremony, Tomas Milmo Santos, AXTEL's Chief Executive Officer, addressed the invitees in Ciudad Victoria, and through a live transmission in Reynosa, in which he announced that AXTEL will invest approximately US$25 million in Ciudad Victoria and US$20 million in Reynosa over the next 5 years.

In the event in Ciudad Victoria, Mr. Alfredo Gonzalez, Secretary of Economic Development for the state of Tamaulipas, made the initial AXTEL call. In the city of Reynosa, Mr. Miguel Villarreal Ongay, the Reynosa's Mayor, made the inaugural AXTEL call.

With Ciudad Victoria and Reynosa, AXTEL now provides local and long distance telephony, broadband Internet, web hosting, data storage and security, VPNs and built-to-suit communications solutions, among others, in twenty-six cities in Mexico. AXTEL's initial network deployment covers 95% and 98% of the population in Ciudad Victoria and Reynosa, respectively.

"The commencement of operations in Ciudad Victoria and Reynosa demonstrates AXTEL's interest to further expand its presence in the state of Tamaulipas. From the Company's positive experience since the first quarter 2007 in Tampico, and neighboring Ciudad Madero and Altamira, we are confident that AXTEL's customer service orientation and innovative voice, data and Internet solutions will consolidate the Company's participation in this important northeastern state", stated Antonio de Nigris Sada, Director of AXTEL's Northern Region.

AXTEL, a listed company in Mexico's Stock Exchange since December 2005, operates a robust hybrid wireline and wireless network, including approximately 9,000 km of fiber optic, providing comprehensive telecommunication services in 26 cities with an estimated population of 47 million people.

About AXTEL

AXTEL is a Mexican telecommunications company that provides local and long distance telephony, broadband Internet, data and built-to-suit communications solutions in 26 cities and long distance telephone services to business and residential customers in over 200 cities. The twenty-six cities in which AXTEL currently provides local services are Mexico City, Monterrey, Guadalajara, Puebla, Leon, Toluca, Queretaro, San Luis Potosi, Aguascalientes, Saltillo, Ciudad Juarez, Tijuana, Torreón (Laguna Region), Veracruz, Chihuahua, Celaya, Irapuato, Tampico, Cuernavaca, Morelia, Merida, Xalapa, Hermosillo, San Juan del Rio, Ciudad Victoria and Reynosa.

Visit AXTEL's new Investor Relations Center on http://www.axtel.com.mx/

CONTACT: Investor Relations, Adrian de los Santos, +52 81 8114 1226,
IR@axtel.com.mx

Web site: http://www.axtel.com.mx/