Phonetime Renews $2.5 Million Senior Debt Facility

TORONTO, ONTARIO — Phonetime Inc. announced today that has reached agreement with its senior lender to renew its $2.5 million revolving demand facility.

Under its new facility, Phonetime may borrow up to $2.5M, provided that the outstanding amount borrowed may not at any time exceed a specified percentage of Phonetime's "good" accounts receivable. The new facility bears interest at prime plus 2.75% and is secured by all of the assets of the Company with cross guarantees over all of Phonetime's subsidiaries. The facility is as well subject to customary security, covenants, conditions precedent and reporting requirements.

Established in 1994, Phonetime is a leading provider of international and domestic switched voice services to the world's telecommunication operators and voice service providers. Phonetime's clients and suppliers include, fixed line operators, mobile operators, retail and VoIP (Voice over Internet Protocol) service providers, who buy and sell voice and IP telecommunications services. Phonetime has traders in Europe, Asia and the Americas using its proprietary trading platform with embedded intelligence, which includes profitability benchmarking, call routing, credit management, network quality visibility and loss prevention. As voice research evolves Phonetime has commoditized its trading philosophy and along with its platform is positioned to emerge as a leading clearing house. Phonetime is a public company listed on the Toronto Stock Exchange.

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from place to place. See www.sedar.com which contains all securities files.