Cybertel Gives Update on its Push to Become a Tier 1 Telecommunications Provider; Company Fast Approaching National Marketing Campaign to Affinity Group Members

Business Wire, March 7, 2000

Business Editors/High-Tech Writers

LA JOLLA, Calif.--(BUSINESS WIRE)--March 7, 2000

Cybertel Communications Corporation (OTC BB: CYTP) announced today that it has made significant progress in its push to become a Tier 1 switched telecommunications carrier in 2001. The company is already certified in 23 states and expects to complete the certification process in all 50 states within the next 2-3 months. Cybertel is also getting closer to installing two more telecommunications circuit switches, one in New York City and the other in Irvine, CA and to launching a nationwide marketing program aimed at members of the affinity groups it already has partnership deals with.

"We are very close now to rolling out our expanded service to our affinity groups around the country. By mid-year, we should begin marketing to the millions of members of those groups. Within the next couple of months, we should be able to service up to 7 million minutes of long distance per month, which could provide us with up to $700,000 in monthly revenue," says Richard Mangiarelli, CEO of Cybertel. "The amount of traffic we can carry will continue to increase as we build our own IP network over the next 9-12 months, which means that our revenues should continue to rise accordingly. If our expansion goes as planned, we should be a Tier 1 provider, meaning we are carrying over $100 million in traffic per year next year."

Cybertel recently announced that it has incorporated in all 50 states and was near the completion of the process of transitioning from a switchless carrier to a switched carrier. Originating and terminating telephone traffic is considered interstate commerce, and as such, requires that the telecommunications company become a corporate entity (be incorporated) in each state it plans to operate in. That part of the process has now been completed. By becoming a switched carrier, the company is able to decrease its wholesale cost of carrying long-distance traffic by as much as 50%. This means that every call run over the company's network automatically becomes more profitable. It also means that it is putting into place the national "footprint" it needs to effectively serve the millions of affinity group members it plans to begin marketing to next quarter.

In the past, Cybertel has been a switchless carrier, acting as a wholesaler that buys long-distance capacity from large carriers and then resells that capacity to its customer base. Its customers' calls have been routed through other larger telecommunications companies' switches. The nation's largest traditional switched carriers include companies such as MCI/Worldcom (Nasdaq: WCOM), Sprint (NYSE: FON), AT&T (NYSE: T), Global Crossing (Nasdaq: GBLX), Qwest (Nasdaq: QWST) and Williams Communications (NYSE: WCG).

"Our new switches in New York and Irvine, south of Los Angeles, will enable us to deliver telephone traffic less expensively, thus supporting both our short and long term plans. Our goal is to build a significant customer base within the next 24 months, and ultimately carry all that traffic over our own Internet-based IP network. However, while our IP network is still under construction for another 9-12 months, we'll still need to provide our growing customer base with great quality services at low rates. Becoming a switched carrier enables us to do just that. It lets us compete on a level playing field with the biggest names in the business," adds Mangiarelli.

Cybertel is a La Jolla, California-based Voice over the Internet Telephony (VoIP) company in the process of building a state-of-the-art Internet Telephony network throughout the United States. Cybertel has recently signed contracts with other major carriers like MCI/Worldcom (Nasdaq: WCOM), Bell Atlantic Corp. (NYSE: BEL) and Level 3 Communications (Nasdaq: LVLT), which have made it possible for Cybertel to offer 1 long distance, 1-800 numbers, regular and pre-paid calling cards and Internet access at some of the most competitive rates on the market today. Cybertel is a fully reporting company, listed on the OTC Bulletin Board under the symbol OTC BB: CYTP.

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. This information is not a recommendation to buy or sell securities Cybertel. The statements and opinions presented are the views of Cybertel and are subject to change. Merger Communications (Merger) is a media relations firm employed by the Company. 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. 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, its officers, directors and employees own 49,000 restricted shares of company common stock. In addition, Merger is entitled to additional compensation consisting of 77,000 shares of common stock or their equivalent pursuant to an agreement with Cybertel, which includes the preparation of press releases. Merger typically has a long position in the securities of the companies in which it publishes information, and Merger may be buying or selling securities in the course of its regular business.