APC Telecommunications Launches Internet Telephony - Changes Name To Innofone.Com.

TORONTO--(BUSINESS WIRE)--March 25, 1999--APC Telecommunications Inc. (OTCBB - Symbol APCI) introduced its new Internet Telephony service concurrent with a company name change to Innofone.com, Incorporated.

"We have changed our name to better reflect our innovative telephony strategy," said Innofone President Larry Hunt. The company's new Internet Telephony Service Provider (ITSP) division now delivers state-of-the-art voice (VOIP) fax and data communications over the Internet. Innofone is working with NetSpeak Corporation(r) and PSINet Inc.(r),and is poised to provide Canadian customers with a fully integrated worldwide Internet telephony service including phone-to-phone as well as PC to phone telecommunications as early as next month.

"The Internet telephony service represents a significant expansion of Innofone's product range which includes the innovative Guaranteed Lowest Rate (GLR(tm)) long distance reselling program, said Hunt. While quality voice communications remains the companies mainstay, discount global fax and data communication for Canadian business, has now become a core offering.

"This is a really critical breakthrough, not only for us but for the communications industry in Canada," Hunt continued. "We are very excited about the opportunity to offer the consumer and business sectors another alternative long distance solution."

Innofone is currently raising US $1.0 Million in a public offering to provide the capital necessary to complete the new IP infrastructure. This unique service, in conjunction with Innofone's current GLR(tm) calling program, will position the company as the leading Next Gen Telco in Canada. Analysts suggest that the IP Telephony market will take possibly 20 percent of all international traffic by the year 2000.

Innofone Chairman and Telecom Veteran Ron Crowe said "VOIP has always been on the radar for the company, to ensure competitiveness. After lenghty testing of our current network gateways between Toronto and Montreal during the past six months, we are now ready to move forward to build out the network across the country." In conjunction with the Canadian Network, Innofone plans to deploy a Gateway in the United States in April which will allow the company to terminate traffic in the US and Internationally.

Innofone is working with Industry leaders NetSpeak(r) Corporation (NASDAQ : NSPK) and PSINet Inc.(NASDAQ : PSIX) to establish the basis for the Innofone network. NetSpeak(r) Corporation will be providing Innofone with the IP telephony technology.

"NetSpeak believes that Innofone is truly poised for success in the Telephony marketplace," said Lane Bess, Senior Vice President, NetSpeak(r) Corporation. "With the company's unique understanding of the Canadian market, the core management team's successful track-record, and their overall dedication to high-quality service in the modern IP Telephony infrastructure - this is one company that will make an impact in the IP Telephony space."

PSINet(r) Limited will provide Innofone with the Internet connectivity for it's service. PSINet is a facilities based-based ISP with a network of more than 40 Points of Presence (POPS) in Canada and provides the opportunity for Innofone to expand into 300 POPs Internationally.

Creating a Network on a dependable Back Bone is a priority for Innofone and this is why we have chosen PSINet(r). " PSINet(r) delivers an astonishingly refined level of latency," Hunt explained. "In layman terms this means that voice quality is extremely good and there are no dial-up delays."

Innofone markets traditional long distance telephone services, offering its Guaranteed Lowest Rate Calling program GLR(tm). Utilizing its exclusive billing software, Innofone analyzes its customers' phone bills each month against the rates of the three leading long distance service providers in Canada: Sprint Canada, a division of CallNet (Nasdaq: CNEBS), Bell Canada (Nasdaq: BCICF) and AT&T (NYSE: T), using Innofone's software. (Innofone is not affiliated with Sprint Canada, Bell Canada or AT&T.) The GLRTM program is a powerful tool that Innofone uses both to keep customers from switching long distance service and to market to new customers looking for lowest rates.

Innofone is targeting small and medium sized businesses and the small office/home office (SOHO) market, through a multi-level network-marketing program. Sales agents are being added to Innofone's multi-level sales force at a rapid rate through weekly recruitment meetings which have successfully launched in Toronto and Montreal. Innofone has also created a winning "Affinity program," offering group buying discounts and forging exciting partnerships with charities and other organizations. This program alone is generating an average of 30 new sign ups per week in both the business and residential sector, with committed growth to 150 per week by month end. The result has been that Innofone is adding significant numbers of new customers daily and anticipates enrolment will exceed 1000 businesses by the end of April.

Innofone's telephone business has continued to grow at a monthly rate of approximately 40 percent since launching in October 1998. Management anticipates that revenue growth will continue at this pace, with total revenues for 1999 estimated at $4 million, based on the current growth rate. "This new enhancement of the network will provide high quality voice and data communications, bringing the company closer to its goal of delivering end-to-end solutions for small-medium sized businesses," Hunt concluded.

Safe Harbor Statement: Assertions in this new release which look forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the development of the Internet as a commercial medium and carrier of telephony traffic, market acceptance risks, technological development risks and other risk factors.

Innofone.com, Inc. (OTCBB Symbol APCI), is located at 241 Applewood Crescent, Suite 4, Vaughan, Ontario L4K 4E6, Canada. Tel. [phone]; Fax [phone], email: [e-mail]