eLEC Communications to Acquire Liberty Bell Telecom; Adding $5 Million in Yearly Revenue

Business Wire, Feb 27, 2006

NEW YORK -- eLEC Communications Corp. (OTCBB:ELEC), a telecommunications holding company and the parent company of Voice-over-IP (VoIP) services provider, VoX Communications Corp., today announced that it has signed a letter of intent to acquire Liberty Bell Telecom, LLC, a privately-held telecommunications company that provides local and long distance telephone service in the State of Colorado. Liberty Bell was founded by Radio and Television Consumer Advocate, Tom Martino, in response to his frustration with the service he was receiving from large local telephone companies.

"We believe Liberty Bell has one of the best customer acquisition and retention models in the industry," stated Paul Riss, eLEC's CEO. "Backed by Tom Martino's reputation and passion to help consumers, Liberty Bell has captured a solid customer base and experiences less than 1 percent customer churn and bad debt per month. We believe that, under the eLEC umbrella, we can take Liberty Bell's successful marketing model and expand it to a VoIP marketing engine in 48 states."

Liberty Bell's President, Jay Weber, will assume an executive management position within eLEC and Liberty Bell's customers will continue to receive the same great quality and customer service at prices equal to or lower than those they pay today.

Liberty Bell generated $5 million of revenue in 2005 and produced over $150,000 in net profits in its latest fiscal quarter. Tom Martino will become a stockholder in eLEC and will remain with Liberty Bell to help roll out its new VoIP service offerings, which meet his vision of excellent telephone service at affordable prices -- nationwide.

Tom Martino has obtained more than $100 million in direct refunds, exchanges and related services for consumers who have turned to his Troubleshooter Network for free help. His nationally-syndicated radio show features a wealth of consumer information, including a referral list of reliable businesses that a consumer can trust to provide quality service at a fair price.

"We are very excited that Tom has tried our VoIP product and strongly believes in the value our VoIP service offerings will bring to the consumer. Tom has agreed to stay on board to help us promote our VoX digital voice services throughout the U.S. He is eager to educate consumers and to show them how they can save money by switching from any of the giant local carriers, which still function as an incumbent monopoly in many respects," said eLEC's CTO and Board member, Michael Khalilian.

Khalilian added, "Tom Martino and his listeners have a passion for ensuring consumers receive good value and exceptional treatment. We are equally passionate about delivering an affordable, high-quality telecommunications product that is backed by superior support. I am highly confident this acquisition will be a good fit."

Liberty Bell Telecom has experienced success and profitability as a licensed CLEC (Competitive Local Exchange Carrier) in Colorado. "We have been looking for the right opportunity to take our model to 48 states and I am confident our agreement with eLEC will open that door for us," said Martino. "I am proud to be associated with eLEC's experienced and reputable management team. Additionally, eLEC's VoX subsidiary offers bullet-proof VoIP digital phone services that I fully trust."

About Liberty Bell Telecom, LLC

Liberty Bell Telecom is a Colorado-based Competitive Local Exchange Carrier and a nationwide Voice Over IP (VoIP) Service Provider. Liberty Bell Telecom was formed by nationwide consumer advocate, Tom Martino, who wanted to offer consumers a choice in local and long distance telephone service at affordable rates and to set a new standard for customer service. The company is committed to providing outstanding customer service, problem solving and easy-to-read billing, while passing on substantial savings to both business and residential customers across the nation.

About VoX Communications

Based in Celebration, Florida, VoX Communications (a wholly-owned subsidiary of eLEC Communications Corp.) offers wholesale broadband voice, origination and termination services for cable operators, carriers, ISPs, CLECs, resellers and other wireless and wireline operators, as well as enhanced VoIP telephone service to the small business and residential marketplace. VoX's VoIP services are a feature-rich, low-cost and high-quality alternative to traditional landline telephone service. For more information, visit http://www.voxcorp.net.

About eLEC Communications

eLEC Communications Corp. is a telecommunications holding company that is taking advantage of the convergence of the technological and regulatory developments in the Internet and telecommunications markets. eLEC's operating subsidiaries provide an integrated suite of telephone services to business and residential customers, including local, long distance, dedicated access and VoIP. For more information, visit http://www.elec.net.

The acquisition transaction is subject to execution of a definitive purchase agreement, the consummation of due diligence and other typical closing conditions, including certain financing conditions, and is expected to be complete within 90 days.