GTC Telecom Subsidiary Announces Outsourcing Agreement With U.K.-Based Telephone Company; Perfexa Solutions Enters into Agreement to Provide Customer Support Services to British Telecom Rival

Business Wire, June 21, 2005

COSTA MESA, Calif. -- Perfexa Solutions Inc., a subsidiary of GTC Telecom Corp. (OTCBB:GTCC), today announced that it has entered into a customer service contract with a competitive local telecommunications company that provides service in the United Kingdom. Perfexa will initially provide a minimum of 30 call center agents with the option to increase that number as the project progresses.

From its facilities in India, Perfexa Solutions provides high-quality outsourced customer service solutions to companies throughout the world. Recent de-regulation of the British telecommunications market has allowed for direct competition with British Telecom, the incumbent carrier. Perfexa will assist the client in growing its business by providing customer acquisition services at attractive rates. By outsourcing to Perfexa, companies can efficiently optimize their customer service needs without significantly increasing their operating expenses.

About GTC Telecom

Founded in 1997, GTC Telecom provides local, long-distance, conference calling and toll-free services; dial-up and DSL Internet access to residential customers throughout the United States; as well as Business Process Outsourcing services through its Perfexa Solutions Inc. subsidiary. GTC provides its services directly to consumers, as well as through affiliate marketing programs. For more information, visit www.gtctelecom.com / www.perfexa.com.

This release may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. This report should be read in conjunction with the company's annual report on Form 10-KSB and its quarterly reports on Form 10-QSB. The company's results may vary significantly from quarter to quarter and will depend, among other factors, on product launches and market acceptance, manufacturing contracts, and distribution agreements.