PT-1 Communications and Integrated Payment Systems to Distribute Prepaid Calling Cards Through Western Union

Business Wire, March 26, 1999

SANTA BARBARA, Calif.--(BUSINESS WIRE)--March 26, 1999--PT-1 Communications Inc., the nation's largest prepaid calling card provider and a subsidiary of STAR Telecommunications Inc. (Nasdaq:STRX), today announced that it has signed a distribution agreement with Integrated Payment Systems Inc. a wholly owned subsidiary of First Data Corporation (NYSE:FDC).

First Data has chosen PT-1 to be the exclusive provider of prepaid calling card products using point-of sale activation at over 15,000 Western Union money order locations throughout the United States. Western Union is a unit of First Data Corp.

"PT-1's market-leading calling card products will greatly benefit from this alliance with Western Union, one of the best known and far-reaching financial service institutions in the U.S.," said Chris Edgecomb, Chairman and CEO of STAR. "We have been aggressively expanding the distribution of PT-1's products and today's announcement is an exciting step forward in our growth plans."

"This is a tremendous addition to the PT-1's distribution network," said Sam Tawfik, CEO of PT-1. "By adding electronic point of sale delivery of PT-1 calling cards at Western Union money order locations throughout the U.S., we're one step closer to our customers. As 1999 progresses, we will continue to expand into more communities throughout the U.S. and into foreign markets."

About First Data Corporation

First Data provides transaction processing -- credit, debit and pre-paid card processing; payment systems; electronic commerce and information-based services to businesses and consumers.

With an international employee base of more than 33,000, First Data delivers these services to the institutions that in turn serve the consumer -- financial institutions, merchants, manufacturers, utilities, government agencies and wholesalers. First Data also serves the consumer directly through Western Union and a worldwide agent network spanning more than 160 countries.

About PT-1 Communications

PT-1 Communications, Inc., a wholly-owned subsidiary of STAR Telecommunications, Inc. is the nation's largest provider of prepaid calling cards. PT-1's recent merger with STAR Telecommunications has created the seventh largest long distance provider in the United States.

PT-1 focuses on the international long distance marketplace, which accounts for approximately 70% of all prepaid calling card revenues. With the most widely recognized brands, PT-1 has the top selling line of phone cards in America. PT-1 is also a leading provider of dial around services under the 101-6868 program. Visit PT-1 at www.pt-1.com

About STAR Telecommunications

STAR Telecommunications is a leading provider of global telecommunications services to consumers, long distance carriers, multinational corporations and Internet service providers worldwide. STAR provides international and national long distance services, international private line, Internet services, prepaid calling cards, dial around services and international toll free services.

The STAR Telecom global network connects over 51 countries worldwide and includes 17 global switching facilities, ownership in 17 transoceanic cable systems and a North American fiber network connecting 30 cities. Visit STAR Telecom at www.startel.com

Except for the historical information contained herein, this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. The Company's future actual results could differ materially from the forward-looking statements discussed herein. A list of the factors that could cause actual results to differ materially can be found in the documents the Company files with the SEC, including those contained in STAR's prospectus, and the Form 10-Q for the period ended September 30, 1998.