$29.95 Flat Rate Long Distance Plan Available From GTC Telecom; AT&T And Sprint See Price Competition From Newly Public GTC Telecom.

COSTA MESA, Calif.--(BUSINESS WIRE)--Feb. 11, 1999--GTC Telecom (OTC BB: GTCC) Thursday announced the details of its flat rate long distance program. GTC Telecom believes that its pricing will directly compete with AT&T (NYSE:T) and Sprint (NASDAQ:FON).

GTC Telecom will offer three initial plans. The first is $29.95 per month which includes 500 minutes for state to state calls. The second plan is priced at $59.95 which includes 1,100 minutes of state to state calls. The final pricing plan is $99.95, which includes 2,000 minutes of state to state calling. For all three plans, all calls exceeding the allotted minutes will be billed at a low rate of 6.9 cents per minute. The initial flat rate program will be available in California, Texas, New Jersey, Colorado, Utah, and Montana. In order to sign up for GTC Telecom's flat rate program customers should visit www.gtctelecom.com on or after Feb. 15, 1999.

The company plans to market the flat rate long distance program, along with its 5.9 cent per minute rate plan, through an aggressive television advertising campaign. GTC Telecom is currently in pre-production for its commercials and has already purchased over 1,500 spots on KCBS, KABC, CNN, The Discovery Channel, ESPN, TNT, CNBC and The Orange County Network. The television spots are scheduled to start airing during the month of March.

Mark Fleming, Executive Vice President of GTC Telecom stated, "We are extremely pleased to be able to offer our customers a flat rate program at such a low cost. This program is so simple to use and requires no more effort than simply dialing 1 and the phone number you are calling. We have no hidden sign-up fees and once a customer exceeds the minutes on the flat rate plan, the overflow minutes are a great deal at 6.9 cents per minute. With this new flat rate product and our existing 5.9 cent per minute long distance rate, we feel as though GTC has two of the best priced residential offerings in the industry."

GTC Telecom currently offers a long distance rate of 5.9 cents per minute in selected states. The company has been adding customers at a steady rate and continues to generate new business daily. In addition, GTC Telecom is scheduled to launch its new e-commerce site, www.ecallingcards.com on Feb. 15, 1999. This site will enable customers to purchase long distance calling cards at a significant savings over the Internet.

Founded in 1997, GTC Telecom is an interexchange carrier, providing long distance service to small and medium sized businesses as well as residential customers throughout the United States. Currently, GTC believes that they have the lowest long distance rates nationwide. GTC's long distance service offerings include outbound service, inbound toll-free 800 service, and dedicated private line services for data. GTC's position as an interexchange carrier gives the company the ability to function as a large telecom company but alleviates the overhead, thus allowing GTC to have rates lower than many of their competitors. Visit GTC's Web site at www.gtctelecom.com

Included in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors including sales levels, distribution and competition trends and other market factors.