ABA and iPhone2 Sign LOI to Enter Strategic Partnership.

BOCA RATON, Fla. -- iPhone2, Inc. (Pink Sheets:IPHN), a publicly-traded company that created a proprietary video over the Internet software called ImagePhone2(tm), today announced the Company has signed a Letter of Intent to enter into a Strategic Partnership with the American Basketball Association (also referred to as "ABA").

iPhone2 is an enhanced service provider marketing a unique, near broadcast quality, video-enabled software based phone (softphone). The Company's product, called ImagePhone2, is the Next Generation of Internet communications, allowing customers to place unlimited peer-to-peer video and voice calls, as well as to make or receive voice calls from anywhere in the world using their computer and a broadband Internet connection. Customers will enjoy near broadcast video quality (30 frames per second) based on the MPEG4 video codec. Unlike hardware based VoIP models such as those offered by SBC (NYSE:SBC), Comcast (Nasdaqnm:CMCSA), Vonage, AT & T, CallVantage (NYSE:T), Packet 8 (NASDAQ:EGHT) and Delta Three (NASDAQ:DDDC), ImagePhone2(tm) is a software based model and is not constrained by the equipment supply, stocking and delivery issues that plague growth of hardware-based suppliers.

"We're extremely excited to have the ABA as our partner in promoting ImagePhone2(tm)," said Chip Greenberg, iPhone2's President and CEO, "as this will allow us to distribute our product to four million three hundred thousand fans annually. They are a true classic sports icon," stated Greenberg. "Based on only a 3% penetration, this Strategic Partnership should generate $1,200,000 in sales," he added.

ImagePhone2(tm) will be promoted in each of the ABA's 48 venues through banners and special handouts. The ABA will also offer fans special ImagePhone2 promotions and discounts through its Web site which currently receives over 3,000,000 hits per month. "I see the ABA will be a strong partner in helping us penetrate ethnic markets for our Next Generation of product," said Greenberg.

Ricardo Richardson, ABA EVP, added, "We're truly excited to be partnering with such a cutting edge company. We hope every ABA team, employee and fan will be able to take advantage of the special promotions we're developing with iPhone2."

iPhone2 (Pink Sheets:IPHN) is an enhanced service provider that developed and markets a unique software video phone, ImagePhone2(tm). The Company's service is the Next Generation of softphone technology, allowing customers to make and receive unlimited point-to-point voice and video calls as well as make or receive voice calls from anywhere in the world where there is Internet service. ImagePhone2(tm) was developed to be straightforward and user friendly, and is integrated into a carrier grade VolP Platform for feature rich services and carrier class scalability. The service can be scaled to large levels with minimum personnel requirements and no constraining end-user hardware.

For more information, please visit http://www.iPhone2.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although iPhone2 believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be correct. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by iPhone2 or any other person that the objective and plans of iPhone2 will be achieved.