March 19, 1999
Santa Barbara, CA:

STAR Telecommunications, Inc. (Nasdaq: STRX) today announced the launch of ALLSTAR Telecom, a subsidiary focused on switched and dedicated local, long distance, toll free and calling card services to multinational corporations.

At a sales kick off meeting held in Dallas, Texas from March 19-21, 1999, STAR will formally launch its domestic sales force of 105 account executives.

ALLSTAR Telecom was commissioned to leverage STAR's commercial assets, which have been aggregated through a series of acquisitions and internal development. In the past year, STAR has announced the acquisition of several commercial telecommunications companies, including PT-1 Communications, United Digital Network and L.D. Services. Ken Hilden, Chief Operating Officer of the new division, commented, "We have been building the pieces for some time and are now becoming an active player in the commercial long distance business. Today's announcement marks the beginning of a new coordinated effort to realize all of the synergies that STAR has envisioned since its inception."

The new division already has sales offices in cities across the United States, including New York City, Washington D.C., Miami, Atlanta, Ft. Lauderdale, Dallas, Houston, Phoenix, Woodbridge, N.J., Flushing, N.Y., Seattle and Los Angeles. ALLSTAR Telecom is offering a full suite of products to corporations who have significant international telecommunications traffic volumes. STAR Telecom's high-quality network, aggressive pricing and personalized customer service are the cornerstones to providing commercial customers with quality services and customer support.

"This is a tremendous advancement for STAR, as we continue to establish the company as one of the premier full service telecommunications companies in the world," said Chris Edgecomb, Chairman and CEO of STAR. "With our established wholesale business and a large number of Fortune 1000 companies already using STAR's commercial services, ALLSTAR Telecom begins operations as one the leading service providers in the industry. It is our goal to work with corporations to develop telecommunications solutions that help them manage their business in today's competitive marketplace."