VoIP Rollout in California and Georgia

The availability of the eGlobalphone Service to residents and businesses in 2 additional states marks the commitment by VoIP, Inc. the parent company of eGlobalphone to meet the needs of customers globally; offering a high-tech alternative for their communications needs.

eGlobalphone Service began setting benchmarks Aug. 1, 2004 for what the company believes will be one of the industries most reliable and innovative broadband phone service in the country as it made the service generally available to consumers in Florida.

The company is on track to expand its service footprint in about 20 new markets monthly concentrating primary on the major metropolitan areas. The company’s plans is to launch service in over 200 markets by year’s end as part of VoIP, Inc.’s growing strategic focus on IP-based communications services. The company’s goal is to sign up 2.3 million business and consumer customers by 2007.

“eGlobalphone Service marks the beginning of an exciting new era in voice communications that gives customers another choice,” said Steven Ivester, CEO of VoIP, Inc. The company will continue to push the adoption of VoIP services to both businesses and consumers as it delivers the next generation of communications that customers demand.

eGlobalphone Service requires that customers have a high-speed Internet connection to the home or business. While a growing number of households and business have access to these broadband connections through their local cable or Telephone Company. Broadband penetration in the United States is about 58 percent and is expected to reach 70 percent by 2007.

“VoIP applications will be the ‘value-add’ that consumers are seeking to justify their investment in broadband,” stated John Todd, CTO. “We expect that broadband Internet access and our VoIP applications will fuel each other’s growth, so we’re in for an exciting time in the next few years as consumer and business telephony services shift towards this new method of delivery for familiar services.”

eGlobalphone Service is different than traditional phone services because through the use of IP-based networks it can offer customers typical features such as call waiting, three-way calling, and call forwarding, and far more advanced ones as well. Indeed, consumers will get unprecedented convenience and control with innovative features including:

— “Call Logs,” which tracks incoming and outgoing calling;

— “Do Not Disturb,” which allows customers to receive calls only when they want, while letting emergency calls ring in;

— “Personal Conferencing,” which enables users to set up a meeting with up to nine additional callers;

— “Locate Me,” which enables home phones to find customers by ringing up to five phones in sequence;

— “Voicemail with eFeatures,” which allows customers to hear their messages from any phone or PC and forward the voicemail to anyone on the Web via e-mail

All that is required for service is an easy-to-connect, plug-in Multimedia Terminal telephone adapter (MTA) provided by VoIP, Inc., and a broadband Internet connection and regular telephone supplied by the customer. It is simple to use and easy for consumers to install, typically within 10 minutes.

The eGlobalphone Service works with most cable modem or digital subscriber line (DSL) broadband connections. The MTA is compatible with most home computer networks and may be used in conjunction with various home networks. And, the adapter can be used from almost any location where there is a telephone and a broadband connection. That gives customers the ability to stay connected by taking this service with them when they travel.

eGlobalphone Service is an innovative service that promises to transform the way people communicate. A core concept to the service, built on eGlobalphone technology, is the ability to quickly introduce new features and capabilities to the platform with seamless integration for the customer.

The company plans to support the marketing of VoIP, Inc. EGlobalphone Service with an extensive communications campaign that will include mass market advertising on television, radio and in print and through direct mail, viral marketing and online advertising.