VoIP, Inc. announced today
that its VoiceOne subsidiary continues to generate substantial
increase in monthly minutes of use. Since the new management team joined the
Company in September, monthly minutes carried over the Network have
increased by approximately 375% due to increased customer usage and the
expansion of its facilities based network. The Company’s revenue has
also increased by approximately 400% compared to the previous year, due to
a higher billable rate per minute. In addition to higher revenue, the
Company has also significantly reduced the cost of carrying the
traffic.

“We continue to make progress in increasing the utilization of our
Network, through the signing up of blue-chip customers,” said Anthony
J. Cataldo, VoIP, Inc.’s Chairman and CEO. “At the same time, we have
streamlined operations, reduced interest expense and focused on
reaching profitability. Despite challenges created by a legacy capital
structure, VoIP has never been in a better position to drive revenue growth
and improve operating results.”

The Company has significantly reduced costs through investments that it
has made in its network. The Company completed the initial phase of
its nationwide network infrastructure service through the expansion into
additional locations in New York, Florida, Massachusetts and Georgia,
which now allows it to service more than 50 million households and
business subscriber lines. The expansion includes the build-out of the
Company’s own facilities, which replace and expand uncovered areas in the
U.S. This has enabled the Company to enhance market penetration,
improve quality of service and reduce its overall cost of goods for products
and services sold. Additional expansion is expected to continue
throughout the year, ultimately enabling the company to offer services in 21
additional states thru use of its own network to more than 200 million
subscriber and enterprise lines.

“We continue to enhance our reputation as a quality provider of
network carrier services,” said Shawn Lewis, VoIP, Inc.’s Chief
Operating Officer. “Several of our recent contract wins reflect our ability
to provide low-cost, high quality solutions to leading companies
throughout the country.”