Alpha 2001 Receives Pioneer U.S. Patent on Enhanced Prepaid Phonecard Technology.

NEW YORK--(BUSINESS WIRE)--Sept. 1, 1998--

Company Establishes Licensing Agent and Hires Leading Patent

Litigation Firm to Pursue Licensing Agreements with Companies Currently Utilizing their Patented Technology

For its development work more than 10 years ago, Alpha 2001 Inc. has been granted a pioneer U.S. patent for its intellectual property used by the prepaid telephone industry.

This telephone system, uniquely, is controllable directly by card issuers and their customers, and is essentially full-proof in preventing fraud abuse.

The official announcement on the grant of U.S. Patent No. 5,790,636 -- also known as the "Marshall Patent" -- after its creator Marvin E. Marshall, was made today in New York at a press conference held in conjunction with the 1998 Telecard World Conference & Exposition by company spokesman Mario L. Herman, Esq. The company also disclosed at this time plans to pursue its newly acquired rights under the Marshall Patent, as well as highlighted the significant impact the patent will have on the existing prepaid phonecard industry.

According to Herman, the company has established a wholly-owned subsidiary known as Alpha 2010 LLC. This marketing and licensing arm of Alpha 2001 Inc. will actively seek out licensing opportunities for the patented telephone technology in the prepaid phonecard market. The company has retained the professional services of telecommunications industry specialists in a Big Five international accounting and consulting firm to assist the company in determining royalty rates for the patent that are reasonable and consistent for the industry.

Herman, who has been named vice president and general counsel of Alpha 2010 LLC, noted, "The tremendous impact of the 'Marshall Patent' technology on the industry has been undeniable in bringing down telephone costs. We recognize the implications that this announcement will have in the marketplace and we look forward to licensing of its users in the industry."

In addition, Herman announced that through various research, the company has determined an estimated 85 - 90 percent of the prepaid phone card companies are currently utilizing the telephone system of the Marshall Patent. To aid in the collection of royalties from such telephone companies, the company has engaged intellectual property attorney Arland Stein (famous for the "intermittent windshield wiper" case against Chrysler) of the law firm Reed Smith Shaw & McClay (RSSM) LLP, to handle patent licensing and infringement litigation.

Stein, also on hand for the announcement, revealed, "Our present purpose is to identify telephone companies using the Marshall telephone system who are attending the Telecard World Show and talk with them concerning an appropriate license. We are optimistic that most companies will want to license, given the pioneer nature of the patented invention and the breadth of the patent claims. We have made extensive efforts to determine the proper license fees for the Marshall Patent to avoid litigation, but if litigation is the alternative, infringers will be vigorously pursued and an injunction against use of the system plus higher royalties will be the result for those companies.

The work that resulted in the invention covered by the Marshall Patent was started in 1988 and completed in 1990. It is a unique telephone system for both debit and credit travel card users which enables service providers to program a telephone switch through computers and computer software so that the system completes, cuts off, re-routes or refuses to complete calls as predetermined by issuers and their customters. This technology allows customers to curtail calling card fraud and abuse, to modify authorization to use the system in real time, to receive billing information in real time (not only at end of monthly billing cycle) and other preselected basis and to gain enormous business advantages for the customter from interactive control of the switch.

Marvin Marshall, the patent's inventor, confirmed "There is no other more convenient and comprehensive telephone technology currently out there that can better service the prepaid phonecard market. We have given the service provider and card issuer all of the controls to automatically control usage and run a successful calling card business very efficiently at low cost."

Unlike its international competitor, the "Kamil Patent", the most unique feature of the "Marshall Patent" is its ability to integrate with any standard switch (used throughout the U.S.). Furthermore, this pioneer system provides with high-efficiency and low cost features such as: card validation and account status control and termination during a call, valid PIN identification and change in real time, and moreover, is equipped with a voice response means and means for accessing the system through cellular telephones as well as personal computers. For instance, a customer desiring to change one or all of its valid PINs or to change the call areas of valid PINs, may do so from its home office in real-time by direct communication with the DCO switching equipment through a computer. You also have the ability to redirect calls and limit who can be called by using the card.

Based on reports from industry experts, the ability to terminate on a real time basis is the most crucial aspect of any prepaid calling card system.

For more information on securing a licensing agreement for the "Marshall Patent" please e-mail your requests to [e-mail] or contact Mario L. Herman at Alpha 2010 LLC at 703/222-3900. The company has also established a Website and can be reached at www.alpha2010.com.

Founded in 1994, Alpha 2001 Inc. is a privately held, Virginia-based company dedicated to the development of technology that is patentable in the telecommunications industry. Offices are located at 5667 Stone Road, Suite 160, Centreville, Va. 20120; Tel: [phone]; Fax: [phone].

    CONTACT: Sharon Holle, Public Relations
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