Cybertel Signs Agreement With Bell Atlantic to Share IP Telephony Network

Business Wire, July 7, 1999

LA JOLLA, Calif.--(BUSINESS WIRE)--July 7, 1999--

Cybertel Communications Corporation (OTC BB:CYTP) announced today that it has signed a contract with Bell Atlantic Corp (NYSE:BEL) giving Cybertel the right to terminate Internet Protocol (Voice Over the Internet) long distance and data traffic on Bell Atlantic's Network. This strategic alliance allows the company to deliver IP Telephony calls originating outside of Bell Atlantic's region through the Public Service Telephone Network (PSTN) 24 hours a day, 7 days a week on Bell Atlantic's Termination Gateways. It also allows Cybertel to sell wholesale termination on Bell Atlantic's lines to third parties.

Cybertel, which already has a strong IP presence in the West and Southwest U.S., stated that this contract makes it possible for its calls from anywhere in the world to be delivered to the Northeast Corridor of the United States, including New York, New Jersey, Maryland, Philadelphia, Boston and Washington D.C., via Bell Atlantic's IP telephony network. Because of this, the company will begin marketing IP services soon to the vast overseas markets for both voice and data traffic coming back to the United States.

"This is a major advancement for Cybertel," says Richard Mangiarelli, president and CEO of Cybertel. "This alliance with Bell Atlantic has given us instant access to some of the most lucrative telecommunications markets in the country, and without significant cost. This will go a long way toward helping us reach our goals of serving at least 5 million customers over the next 36 months."

The agreement also has tremendous long-term economic benefits for Cybertel because Bell Atlantic will be solely responsible for the network costs incurred in connection with and use of the PSTN to complete Cybertel's IP Telephony calls. This means that Cybertel will not have to invest millions of dollars in building its own infrastructure in the region. It simply takes full advantage of Bell Atlantic's world-class network.

Cybertel entered into an agreement earlier this year with Level 3 Communications (Nasdaq:LVTL) to collocate its IP Gateways in Level 3's switching centers throughout the U.S. Together, the agreements with Bell Atlantic and Level 3 give Cybertel termination capability in 23 of the largest major U.S. markets, opening up these cities and regions to Cybertel's services while saving the company tens of millions of dollars in equipment costs.

"Our partnerships with Bell Atlantic and Level 3 give us access to a series of state-of-the-art IP networks around the country. The superiority of these networks allow us to provide our customers the best quality and most reliable telecommunications services in the world. Our strategic alliances are allowing us to grow much more rapidly and serve millions of more customers than if we tried to go the traditional route and build all of the infrastructure ourselves," adds Mangiarelli.

Cybertel, which competes with companies like AT&T Corp. (NYSE:T), Qwest Communications (Nasdaq:QWST) and Sprint Communications (NYSE:FON), is quickly building a national reputation as a telecommunications company that gets things done its own way. While building its own IP-based network throughout the West and Midwest, it has pursued a strategy of piggybacking on the nation's best telecom network, allowing it to have access to the best IP networks at a fraction of what it would cost to build its own.

Cybertel has also been building a large customer base with mimimal marketing cost. It utilizes a unique Affinity Group Marketing Program to attract large numbers of customers within large national groups and organizations.

For more information, contact David Drake of Merger Communications at 713/267-2328 or daviddrake@earthlink.net.

The statements made by Cybertel Communications Corporation (Cybertel) may be forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Cybertel believes that its primary risk factors include, but are not limited to: the need for substantial financial requirements; the need to develop effective internal processes and systems; changes in the overall economy; changes in technology; the number and size of competitors in its markets; continued and future strategic alliances; changes in the law and regulatory policy; and the mix of product and services offered in Cybertel's target markets. Merger Communications (Merger) is a media relations firm employed by Cybertel. The statements and opinions presented here represent the views of Cybertel, not Merger, as the release is based on the information provided by Cybertel. Merger and Cybertel believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. Merger's compensation for its media relations services, including preparation of press releases, consists of a monthly retainer and restricted stock. Merger may have a long position in the securities of the companies in which it distributes information to the media, and Merger may be buying or selling securities in the course of its regular business.