Alliance Group Services, Inc. Terminates Distributor Agreement with ETEL, Supplying Long Distance Services to e.TV Commerce

Business Wire, June 9, 1999

WESTPORT, Conn.--(BUSINESS WIRE)--June 8, 1999--

Alliance Group Services, Inc. (AGSi) today announces that it has terminated its distributor agreement with ETEL Communications Corporation, a wholly owned subsidiary of Compu-DAWN, Inc. This decision reflects changes in marketing direction by ETEL that were incompatible with Alliance Group's understanding of the business intent of the agreement. As a result, Alliance Group will not supply long distance services to ETEL customers on its network, nor will it offer ETEL the opportunity to become a fully certified long distance reseller through an acquisition option. The termination also ends services to e.TV Commerce, Inc., a second subsidiary of Compu-DAWN associated with ETEL.

Sam Brown, Chairman/CEO of Alliance Group, stated, "We are proud of our record of doing business with high quality accounts. Due to some inconsistencies in the implementation of the agreement, we made the decision on April 2nd to terminate the relationship."

About Alliance Group Services, Inc. (AGSi)

Alliance Group is a wholesale telecom provider, utilizing the industry's most extensive network as its backbone carrier, and serves as a primary funding source for resellers. By utilizing the strength of this network, Alliance Group keeps rates competitive and helps its clients maximize profitability.

Alliance Group provides a wide range of services to reduce costs, improve performance and enhance profit margins. These include network provisioning, receivables financing, complete back office support, billing and customer service and exit strategies. Alliance Group's competitive network rates and dedicated management team offer resellers a true partnership in revenue growth.

Alliance Group is located in Westport, Connecticut, and has agent sales offices throughout the U.S. For more information, call Jess DiPasquale of Alliance Group at 1-800-756-2236 or at 1-203-845-9600, ext. 21.