Axtel, S.A.B. de C.V. (BMV: AXTELCPO; OTC: AXTLY) (“Axtel” or the “Company”), a Mexican information and communications technology company, announced today that the merger between Alestra and Axtel has become effective, creating a new entity with combined capabilities to serve enterprises, government customers and households, with an ample portfolio of information and communication technologies (“ICT”).

With one of the most robust networks in Latin America, data centers with a capacity of approximately 6,500 m2, solutions for every market, and pro forma annual revenues of over 16 billion pesos, the new Axtel is positioned as one of the strongest competitors in the Mexican ICT market.

The Company announced that it will be focused on strengthening its competitive advantages leveraging from its combined capabilities and on consolidating the leadership position of its most profitable lines of business, such as ICT solutions for the government and enterprise segment, as well as triple-play offers to mass market customers.

Moreover, the Company stated that it has begun a post-merger process to integrate and optimize its network infrastructure, systems, commercial offers and organization, all of which is estimated to be completed within 18 months. This process is expected to capture up to one billion pesos in synergies annually. Additionally, the Company estimated Capex synergies of 20 million dollars and annual interest savings of 38 million dollars from the refinancing of Axtel’s debt.

The Company, in addition to revealing its new corporate brand, explained that it will offer services to the enterprise segment under the “Alestra” brand and to the residential and small businesses segment through its “Axtel” brand.

“We are very pleased to have successfully concluded the merger of our companies,” commented Álvaro Fernández Garza, Chief Executive Officer of Alfa S.A.B. de C.V. (“Alfa”) and Co-Chairman of Axtel’s Board of Directors. “I have no doubt that the talent of the people who make up this new organization, combined with its technological capabilities and enhanced infrastructure, are key elements for the success of the activities to be undertaken in the future.”

“With the merger, the new Axtel begins a new phase strengthened and with excellent growth prospects. The merger is a clear example of the opportunities promoted by the new regulatory environment. I am convinced that the combined capabilities of infrastructure, commercial offers and talent will be crucial in consolidating the new company as a major player in the market, creating value for shareholders, customers, employees and the market in general”, said Tomás Milmo Santos, Co-Chairman of the Board of Directors and member of Axtel’s Executive Committee.

“Today, we celebrate the birth of a new company in the Mexican Information and Communication Technology sector, with the conviction that we have the technology, the commercial offer and human capital required to generate more value for our shareholders and the market. I eagerly assume the responsibility of leading this great Company, and express my commitment to materialize the opportunities of the merger for the benefit of our stakeholders”, commented Rolando Zubirán Shetler, Chief Executive Officer of Axtel.

Likewise, the new Axtel presented its executive team:

Chief Executive Officer
Rolando Zubirán

Commercial Areas
Adrián Cuadros, Commercial IT Executive Director
Antonio De Nigris, Mass Market Executive Director
Arturo Vázquez, Government Segment Executive Director
Ricardo Hinojosa, Enterprise Segment Executive Director

Central Areas
Alejandro Irigoyen, Systems and Processes Executive Director
Andrés Cordovez, Infrastructure and Operations Executive Director
Bernardo García, Planning and Development Executive Director
Eloy Valerio, Human Resources Executive Director
Felipe Canales, Chief Financial Officer
Raúl Ortega, Legal and Regulatory Executive Director
Rogelio Ancira, Technology and Innovation Executive Director

The biographies of the executives can be found at the site: www.axtelcorp.mx/nuestra-empresa/equipo-directivo

About Axtel

Axtel is a Mexican Information and Communication Technology Company that serves the enterprise, government, and residential markets with a robust portfolio of offers through its brands Alestra (Enterprise and government services) and Axtel (residential and small businesses).

With a network infrastructure of over 39 thousand kilometers and more than 6 thousand square meters of data center, Axtel enables organizations to be more productive and bring people together to improve their quality of life.

As of February 15, 2016, Axtel is a subsidiary of Alfa, which owns 51% of its equity. The merger between Alestra and Axtel has created an entity with a greater capacity for value creation for all its stakeholders. Axtel joined the UN’s Global Compact in 2011, the largest social responsibility initiative in the world. It is part of the “IPC Sustentable” of the Mexican Stock Exchange since 2013, has received the recognition as a Socially Responsible Company from Cemefi since 2008 and has the certification of a Company of Environmental Quality granted by Profepa. Axtel shares, represented by Ordinary Participation Certificates, or CPOs, trade under the Mexican Stock Market under the symbol “AXTELCPO” since 2005.

Website: www.axtelcorp.mx

Enterprise and Government services website: www.alestra.mx

Mass Market services website: www.axtel.mx

Forward-Looking Statements

This release may contain certain forward-looking statements regarding the future events or the future financial performance of Axtel. These statements reflect management’s current views with respect to future events or financial performance, and are based on management's current assumptions and information currently available and are not guarantees of the Company’s future performance. The timing of certain events and actual results could differ materially from those projected or contemplated by the forward-looking statements due to a number of factors including, but not limited to those inherent to operating in a highly regulated industry, strong competition, commercial and financial execution, economic conditions, among others.