Forget AT&T One Rate -R-, Or Sprint Nickel Nights! VOIP-based Long Distance Goes Flat Rate - Cybertel Communications and TeleFreedom USA offer flat-rate Internet-based long distance service - Company Business and Marketing

Cambridge Telcom Report, August 30, 1999

Cybertel Communications Corp. (http://www.cybertelcorp.com) and TeleFreedom USA Inc., announced Tuesday their strategic alliance in which TeleFreedom USA will gain exclusive global rights to market Cybertel's revolutionary flat rate long distance service to businesses and residential customers. Cybertel will now have access to a highly dedicated, massive sales force, consisting of TeleFreedom's professionally managed field organization of 5,000-plus sales representatives. The alliance will transform Cybertel into a telecommunications powerhouse almost overnight, with the capability to increase its customer base by 50,000-plus new customers per month.

TeleFreedom USA Inc. is a telecommunications marketing organization, whose executives have pioneered successful marketing concepts and built nationwide sales organizations for over 20 years. For example, TeleFreedom's president Tom Norfleet was the executive in charge of a sales organization that brought more than three million customers to Sprint (NYSE:FON) from 1986 to 1989. As a consultant to senior management at Excel Communications, which was recently acquired for $4-plus billion, Norfleet spent 1991 creating and installing the marketing and training systems that resulted in the now legendary growth of Excel from a small regional carrier in 1992 to an international organization with more than six million customers in 1996.

With a similar rate of success and conservative revenues estimates of just $30 per customer per month, Cybertel's annual sales would reach as high as $2.2 billion. However, Cybertel's internal estimates are far more conservative.

"By the end of the year, TeleFreedom should be bringing us approximately 50,000 new customers on a monthly basis. Within the next 12 months, we expect our customer base to exceed one million customers. These are huge numbers and with this type of pricing, I don't see any possible way the big long distance companies can even think of challenging us anytime soon," says Richard Mangiarelli, president and CEO of Cybertel.

According to Chris Christofferson, executive vice president of TeleFreedom, "Cybertel is a perfect fit for our marketing organization. Instead of just reselling traditional long distance services to our residential customers, we will now be able to offer unlimited long distance service for $30 or $60 per month, depending on the service package they choose. Multiple line small business users can put a cap on their long distance spending at only $120 per month. We expect our program to be a huge success."

All phone calls are routed over the Internet. Initially, Cybertel's services will be accessible in 35 selected major metropolitan areas, but within 120 days, this service should become available in every major market in the United States.

"Our systems are built to handle large volumes," says Mangiarelli. "We already have agreements and alliances in place with several leading telecommunications companies like Level 3 Communications (Nasdaq:LVLT) and Bell Atlantic (NYSE:BEL). These giants provide us access to their IP networks in the major U.S. markets. Cybertel is also in the process of acquiring Telenomics, the leading provider of telephone accounting and management software. Telenomics is a strategic ally of Hewlett-Packard (NYSE:HWP). We are also working very closely with CyberBills, the company that is pioneering the concept of complete consumers billing via the Internet," adds Mangiarelli.

"With everything else falling into place, marketing has been our only real bottleneck. Our alliance with TeleFreedom eliminates that bottleneck and enables us to move forward at full speed," declares Mangiarelli.