C3 Networks and Telscape International join to increase wholesale fiber optic capacity for cross-border communications

C3 Networks, a Texas-based telecommunications subsidiary of American Electric Power (NYSE: AEP), announced the signing of a letter of intent to form a strategic alliance with Telscape International, Inc. (Nasdaq: TSCP). Under the terms of agreement, Telscape will terminate traffic from its Mexico network in Hidalgo, Texas and interconnect with C3's network in the United States to increase wholesale fiber optic capacity for cross border communications. C3 Networks will act as an agent to Telscape, providing international capacity to C3's client base.

According to Peter Alexander, President of Telscape, the alliance will allow both companies to expand their network services for users who require broadband communications from the United States to Mexico.

Don Wilborne, President of C3 Networks added, "We will have the ability to reach more than one third of the population in Mexico and more than half of the wholesale capacity needed for voice, data, Internet and corporate private line services."

About Telscape International:

Telscape International, Inc. is a U.S.-based, integrated communications provider (ICP) that supplies voice, video, data and Internet services to the Hispanic community in the United States and in Latin America.

About C3 Networks:

Located in Austin, Texas, C3 Networks is a wholly owned subsidiary of American Electric Power. C3 Networks offers long haul services to carriers, Internet service providers (ISPs), applications service providers (ASPs), local exchange carriers (LECs), competitive access providers (CAPs) and other service providers in the south central and eastern United States with access to Mexico. For more information, visit www.c3net.com.