10 Million US Households to be Directly Offered Five Cent Any Time, Any Day Long Distance Rate Plan by GTC Telecom.

COSTA MESA, Calif.--(BUSINESS WIRE)--August 25, 1999--

Company Retains Kent Marketing For Acquisition of New

Customers Through Aggressive, State of the Art

Marketing Program

GTC Telecom (OTCBB:GTCC) announced today that it retained Kent Marketing of Lake Forest, CA to implement an aggressive direct marketing campaign for the Company's unprecedented five cent per minute long distance rate plan.

Kent Marketing has proprietary marketing technology which can directly reach over 10 million US households via the telephone. Using this technology for one of its mortgage company clients, Kent Marketing was responsible for the completion of over $100 million in fundings for the client. Kent Marketing has agreed to invest up to $1.5 million in marketing funds to help launch GTC Telecom's five cent per minute long distance rate plan. GTC Telecom's campaign will begin the beta testing stage on Monday, August 30, 1999. The term of this agreement is for 90 days, however, GTC has the option at the end of the 90 day term to expand the market reach of this program to 40 million US households.

GTC recently announced their most competitive rate plan to date, which offers consumers a rate of five cents per minute anytime, any day with no monthly fee. If the consumer opts for the charges to be placed on their regular phone bill instead of a credit card, there will be a $1.95 service fee per month. Interested parties may sign-up or receive more information via the Company's website www.gtctelecom.com or by contacting GTC Customer Service at [phone].

"We have implemented the infrastructure to have this great rate plan. Now GTC plans to aggressively market this plan to the consumer. Our agreement with Kent Marketing is the first step to achieve mass interest in our product," stated Paul Sandhu, President & CEO of GTC Telecom. "We look forward to watching their proprietary direct marketing technology being implemented and are geared up to take on even more customers at our great price points. In addition to being on the cutting edge with our products, GTC intends to utilize cutting edge marketing techniques that complement our plans. We believe that Kent Marketing's direct marketing campaign will meet these criterion and provide us with an entirely new customer base."

O.C. Jenkins, Director of Marketing for Kent Marketing, Inc. commented, "Our technology combined with our unique messaging and target marketing approach is a results driven program and has been very successful with our other clients. We anticipate that this program coupled with GTC's unbeatable long distance rates will enable GTC to acquire a substantial number of customers within the next ninety days. Kent Marketing is extremely eager to begin work on this program and looks forward to watching the customers roll in for GTC Telecom."

"Consumers have been bombarded with complex and confusing rate plans with special terms and conditions. Many of the larger Telco's such as AT&T (NYSE:T), MCI/Worldcom (NASDAQ:WCOM), Sprint (NYSE:FON) and Qwest (NASDAQ:QWST) have tried to come out with similar plans but have failed to offer a simple one-rate plan. In addition, there are companies like Net2Phone (NASDAQ:NTOP) that do offer rates at 4.9 cent per minute rate through a PC (computer) to telephone connection. In order to take advantage of these rates the consumer must use a PC. Those consumers that do not have a PC, or do not want to place a call via their PC due to privacy reasons, are excluded from the offer. Any consumer that has a telephone can utilize GTC's offer. We believe that consumers would rather pay the extra .01 cent per minute and enjoy the benefits and reliability of the Public Switched Telephone Network. Overall, we feel that GTC Telecom still has the best rate plan and offerings for long distance services out in the market today," concluded Sandhu.

About GTC Telecom

Founded in 1997, GTC Telecom is a Telecom/Internet company, providing long distance service to small and medium sized businesses as well as residential customers throughout the United States. GTC Telecom offers basic Internet and long distance bundled and non-bundled plans. For basic unlimited 56K dial up Internet access, GTC offers a plan for $9.95 per month. GTC Telecom has some of the lowest long distance rates in the industry today. GTC's long distance service offerings include outbound service, inbound toll-free 800 service, and dedicated private line services for data. In addition, GTC offers an array of other Internet services, including wireless T1 access, web hosting at www.gtcinternet.com, and a portal site, www.gtczone.com. The Company also offers long distance calling cards via the Internet on its site, www.ecallingcards.com. For further information visit GTC's web site at www.gtctelecom.com.

Included in this release are "forward-looking statements" that the Company believes falls 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.