eLEC Communications Reports First Quarter Results Including 211% Sales Growth; Telecom Gross Margins Exceed 30% - Company Financial Information

Cambridge Telcom Report, April 17, 2000

eLEC Communications Corp. (NASDAQ: ELEC), a provider of integrated communications services to business customers, announced Monday the results of its operations for the first quarter ended February 29, 2000.

eLEC reported revenues for the first quarter ended February 29, 2000 of $2,226,233, an increase of $1,518,180, or 211%, over the revenues from the first quarter of fiscal 1999. The company also reported a net loss for the quarter ended February 29, 2000 of ($648,900), or ($0.06) per share, compared to a net loss of ($1,517,973), or ($0.23) per share, for the prior year quarter, which included a loss of ($820,978), or ($0.12) per share, from discontinued operations.

The gross profit increased by $553,190 to $741,777, or 33% of revenues, for the fiscal 2000 quarter, from $188,587, or 26% of revenues, for the fiscal 1999 quarter. The telecommunications segment, which represented 79% of the company's revenues for the fiscal 2000 quarter, produced a gross profit of $537,887, or 31% of revenues, as compared to $40,112, or 11% of revenues, in the fiscal 1999 quarter.

Paul Riss, eLEC's CEO, stated, "We are beginning to see the results of our telecommunications strategy which utilizes the unbundled network elements platform ("UNE-P") service offering for rapid growth with high margins. Approximately 70% of our business is on UNE-P today, and our goal is to see more than 90% of our business taking advantage of this high margin platform by the end of our fiscal year. As we apply for licensing as a facilities-based carrier in more states, in conjunction with our nationwide UNE-P rollout into every RBOC territory, we look forward to being able to provide services to several potential new multi-state customers that we have targeted as part of our enhanced marketing efforts."

"I am very pleased with the dramatic improvement in our bottom line, as we continue to rapidly build our business without unnecessary fixed overhead costs," added Mr. Riss. "With 65 employees at February 29, 2000, and quarterly

revenues of over $2.2 million, our annual revenues per employee are approximately $135,000. Even with our low employee count, we believe we are on target to triple our line count by year-end. We are rapidly approaching our goal of becoming a high-margin, low-cost Internet communications entity as we build our business with nominal PP&E expenditures, advanced networking systems and low fixed overhead."

eLEC Communications Corp. is a publicly-traded local telecommunications company that is taking advantage of the convergence of the current and future competitive technological and regulatory developments in the Internet and telecommunications markets. eLEC provides an integrated suite of communications services to small and medium-sized business customers, including local, long distance, dial-up access, dedicated access, xDSL, and Web site design and hosting.

           eLEC Communications Corp. and Subsidiaries
         Condensed Consolidated Statements of Operations
                           (Unaudited)

                                      For the Three Months Ended
                                     Feb. 29, 2000   Feb. 28, 1999
                                     -------------   -------------
Revenues:
  Telecommunications services         $  1,750,843    $    362,663
  Specialty retail products                475,390         352,247
                                      ------------    ------------
         Total revenues                  2,226,233         714,910

Costs and expenses:
   Costs of telecommunication services   1,212,956         322,551
   Costs of specialty retail travel
 product sales                             271,500         203,772
   Selling and general and
    administrative                       1,204,358         371,807
   Depreciation and amortization           165,365          88,427
   Equity in loss of Investee               77,321         424,701
                                      ------------    ------------
            Total costs and expenses     2,931,500       1,411,258
                                      ------------    ------------

Loss from operations                      (705,267)       (696,348)

Other (income) expense:
Interest expense                            19,163             680
Interest income                             (8,251)            (33)
Miscellaneous income, net                  (66,000)           --
                                      ------------    ------------
                                           (55,088)            647
                                      ------------    ------------
Loss from continuing operations           (650,179)       (696,995)
                                      ------------    ------------

Gain (loss) from discontinued operations     1,279        (820,978)
                                      ------------    ------------

Net loss                              ($   648,900)   ($ 1,517,973)
                                      ============    ============

Basic and diluted loss per share:

Continuing operations                 ($      0.06)   ($      0.11)
Discontinued operations                       --      ($      0.12)
                                      ------------    ------------
Net loss                              ($      0.06)   ($      0.23)
                                      ============    ============

Weighted average number of common shares
 outstanding                            11,739,156       6,537,492
                                      ============    ============