First "Virtual" Prepaid Phone Card Provides Local and Long-Distance Calling Capability in Seconds

Business Wire, Dec 2, 1998

PARAMUS, N.J.--(BUSINESS WIRE)--Dec. 2, 1998--

Presto! Card from EconoPhone Enables Dial Out on Any Phone Immediately after Sign Up on the Web at www.prestocard.com

EconoPhone, Inc., an international, facilities-based, telecommunications company, announced today the availability of the first "virtual" prepaid phone calling card, which customers can use for domestic or international long-distance calling immediately after an easy sign-up at www.prestocard.com.

Called Presto! CardTM, it is the only prepaid phone card that never gets lost or stolen, is easily recharged on the web and offers savings of up to 85% on every call. The virtual Presto! Card enables long-distance calls to be made from anywhere in the United States to almost everywhere in the world.

"Presto! Card is ideal for business travelers, college students, sales executives, leisure travelers and those with instant communication needs. Even better, it is the lowest priced prepaid card of its kind," said Alfred West, CEO, EconoPhone. "Sales from our website have skyrocketed since we began previewing it a few weeks ago."

Presto! Card is available in denominations of $10, $15, $20, $25 or $50. To order, customers simply complete the easy on-line order form and hit the submit button. The order is sent over a secure connection to EconoPhone for verification. Within seconds, the credit card information is authorized, and an e-mail comes back with a toll-free access number and a personal security code for the Presto! Card account.

Presto! Card `s billing rate is 9.9 cents per minute and there is no per call surcharge. The minimum call length is 30 seconds and the customer is billed in six second increments after that. Presto! Card users can go online to view their calling record and determine the number of minutes remaining on the virtual card account. Rates remain the same 24 hours a day, seven days a week. Additional terms and conditions are specified on the Presto! Card website.

Presto! Card offers special local rates to callers in the 212, 516, 718 and 914 area codes as well as competitive international rates.

EconoPhone, Inc., headquartered in Paramus, New Jersey, owns and operates a carrier-grade digital network throughout the United States and Europe. The company has sustained exceptional growth since it was founded in 1990 with a strong emphasis on technological innovation and low cost structuring that enable EconoPhone to offer extremely competitive pricing while maintaining outstanding quality. EconoPhone's aggressive network expansion includes carrier-grade Northern Telecom switches in London, Brussels, Paris, Berlin, Frankfurt, Milan, Zurich, Amsterdam and Toronto as well as in major U.S. cities including New York and Los Angeles. The EconoPhone network contains points of presence in several major U.S. cities and 20 European cities. EconoPhone also has operating agreements that reach into Northern Europe, the Baltic region and the Middle East. Visit EconoPhone at http://www.econophone.com/.> Presto! Card is a trademark of EconoPhone, Inc.

Certain statements herein are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management. Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such "forward-looking statements". Factors that could cause results to differ materially from those expressed or implied by such "forward-looking statements" include, but are not limited to, highly competitive market conditions; general economic conditions; the availability of domestic and international transmission facilities; customer retention and credit risk; relationships with vendors; changes in or developments under laws, regulations, licensing requirements or telecommunications standards; the availability of interconnection with foreign carriers; product introductions and acceptance; the loss of the services of certain members of the Company's senior management and other factors discussed in filings made by the Company with the Securities and Exchange Commission. The foregoing review of important factors should not be construed as exhaustive; the Company undertakes no obligation to release publicly the results of any future revisions it may make to any forward-looking statements to reflect events or circumstances after the date hereof, including the occurrence of unanticipated events.

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