COURT GRANTS STAR UNTIL OCTOBER 12, 2001 TO
                          FILE A PLAN OF REORGANIZATION

SANTA BARBARA, Calif.--August 13, 2001-- STAR Telecommunications, Inc.
announced today that on August 6, 2001, the United States Bankruptcy Court for
the District of Delaware approved an order extending STAR Telecommunications,
Inc.'s exclusive period in which to file a plan of reorganization to October 12,
2001. From October 12, 2001 through November 12, 2001, a co-exclusivity period
will exist, during which time both STAR and the Creditors' Committee will have
the right to file. Either STAR and/or the Creditors' Committee, depending upon
whether either party or both parties file a plan in such period, shall have
until January 14, 2002 to solicit acceptances of any such plan.

STAR filed a voluntary petition for U.S. Bankruptcy Code Chapter 11 bankruptcy
protection on March 13, 2001. Trading in STAR's stock was halted by NASDAQ on
March 13, 2001 in accordance with Marketplace Rule 4450(f), pending receipt and
review of additional information requested by the staff. On March 27, 2001, STAR
requested that NASDAQ terminate the designation of its securities as NASDAQ
National Market securities and requested that the staff delist its securities at
the earliest practicable date, in accordance with Marketplace Rule 4480(b).
STAR's securities were subsequently delisted by NASDAQ on April 4, 2001. Trading
in STAR's stock is extremely limited.

With the termination of its wholesale business, STAR has resolved to pursue an
orderly liquidation of its assets in Chapter 11 in an efficient manner designed
to maximize the value of its assets for the benefit of its creditors.

ABOUT STAR TELECOMMUNICATIONS
STAR Telecommunications provides global telecommunications services to consumers
and long distance carriers. STAR provides international and national long
distance services, international private line, dial around services and
international toll-free services.

Except for the historical information contained herein, this press release
contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21B of the Securities Exchange
Act of 1934, as amended, and are subject to the safe harbors created thereby.
STAR's future actual results could differ materially from the forward-looking
statements discussed herein. Under applicable bankruptcy requirements and
procedures, STAR intends to prepare and file with the Bankruptcy Court monthly
operating statements, which include summary unaudited consolidated statements of
operations, consolidated balance sheets and consolidated statements of cash
flow. As a result of the substantial expense and undue hardship that would be
incurred by STAR in preparing quarterly and annual reports, STAR has ceased
filing quarterly and annual reports on Forms 10-Q and 10-K, respectively, with
the Securities and Exchange Commission and instead will file the monthly
operating statements as exhibits to Current Reports on Form 8-K in accordance
with SEC Release No. 34-9660.


CONTACT
STAR Telecommunications, Inc.
Eric Bohman, 800-899-1962 (Investor Relations)
ir@startel.com