Axtel, S.A.B. de C.V. (BMV: AXTELCPO; OTC: AXTLY) (“AXTEL” or the “Company”), a Mexican fixed-line integrated telecommunications company, announced today that, together with a group of its major shareholders, have signed definitive agreements with Alfa S.A.B. de C.V. (”ALFA”), Alestra S. de R.L. de C.V. (“ALESTRA”) and Onexa S.A. de C.V. (”ONEXA”), parent company of ALESTRA, to merge AXTEL and ONEXA (the “Transaction”).

As informed on October 1st, 2015, AXTEL will survive as an operating and publicly-traded holding company, including ALESTRA as a subsidiary, and is expected to issue new shares to ALFA representing approximately 51% of the combined entity ownership.

In addition to the signing of definitive agreements, the parties have successfully concluded confirmatory legal, financial and operating due diligences. Closing of the Transaction remains subject to the approvals of Mexico’s Comisión Nacional Bancaria y de Valores and shareholders of AXTEL. Subject to formal notification in the following weeks, AXTEL Extraordinary Shareholder’s Meeting to approve the Transaction is expected to occur on January 15, 2016.

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.

Forward-Looking Statements

This release contains 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.