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Allegiance Telecom, Inc.
1950 Stemmons Freeway, Suite 3206, Dallas, TX 75207 * (214) 853-7100

Allegiance Telecom, Inc. seeks to be a premier provider of telecommunications services to business, government and other institutional users in major metropolitan areas across the United States.

Primary Underwriting Group
ManagerTierPhone
Morgan Stanley Dean Witter Discover & Co.Lead Manager (212) 761-5900
Donaldson, Lufkin & Jenrette Securities Corp.Co-manager (212) 371-0641
Goldman, Sachs & Co.Co-manager (212) 902-5959
Salomon Smith BarneyCo-manager (212) 723-7300
UBS Securities Inc.Co-manager (212) 821-4510

Offering Information
NASNTL:ALGX Service: SIC 4832
Type of Shares:Common Shares Filing Date:5/22/98
U.S. Shares:10,000,000 Offer Date:6/30/98
Non-U.S. Shares:0 Filing Range:$16.00 - $18.00
Primary Shares:10,000,000 Offer Price:$15.00
Secondary Shares:0 Gross Spread:$1.05
Offering Amount: $170,000,000 Selling:$0.61
Expenses: - Reallowance:$0.10
Post-IPO Shares:52,300,000

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Kirkland & Ellis
Bank's Law Firm: Shearman & Sterling
Auditor: Arthur Andersen

Use of Proceeds
The proceeds from the proposed offering will be used to fund product development of networks, to fund potential acquisitions or the deployment of networks and operating costs in other cities.

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