Cybertel's Online Sales Division Exceeds Estimates.

LA JOLLA, Calif.--(BUSINESS WIRE)--Aug. 18, 1999--

Cybertel Communications Corporation (OTC BB:CYTP) announced today that its online sales division is growing rapidly. In May, Cybertel began selling its communications products and services online through its greatly expanded interactive Web site at http://www.cybertelcorp.com.

"Our online sales have grown rapidly since the launch. The number of new online customers grew by over 600% in our second month of online operation. Even though, in dollar terms, this may not yet represent a significant portion of our total sales revenues, it clearly indicates that Cybertel will likely continue to receive a steady flow of new residential customers through its site in the future," says Richard Mangiarelli, president and CEO of Cybertel Communications. "At this point, we are not even focusing that much on online marketing activities. But, since the initial response to our online offering has been encouraging, we may dedicate more resources to Internet promotion in the near future. Cybertel's Web site sells long distance service, voice and data over the Internet service, cellular and paging services, traditional and prepaid phone cards and Internet access."

Cybertel has an agreement to collocate its Internet Protocol gateway equipment with Level 3 Communications' (NASDAQ:LVLT) switching centers in major metropolitan areas, giving the company access to Level 3's IP telecommunications network. Cybertel also has strategic alliances with other national and international carriers such as MCI/Worldcom (NASDAQ:WCOM), AT&T (NYSE:T), Sprint Communications (NYSE:FON) and Frontier Communications (NYSE:FRO), which carry some of its traffic. The company has been able to negotiate extremely low international rates with these and overseas long distance carriers, thus enabling Cybertel to maintain a high profit margin on its international wholesale operations. Wholesale division sales are predicted to possibly reach as high as $15 million annually.

Cybertel is a La Jolla, Calif.-based Voice Over the Internet (IP) Telephony Company. Cybertel is building a state-of-the-art Internet Telephony network in the Western U.S. that will interconnect with a national IP network to deliver Voice Over the Internet long distance to all 50 states. Cybertel's short-term strategy is to quickly expand its customer base through its unique marketing programs, and then launch its own Internet telephony network, competing with companies such as Level-3 and Qwest (NASDAQ:QWST).

The statements made by Cybertel Communications Corporation (Cybertel) may be forward-looking in nature. Actual results may differ materially from those projected in forward-looking statements. Cybertel believes that its primary risk factors include, but are not limited to: the need for substantial financial requirements; the need to develop effective internal processes and systems; the ability to attract and retain quality employees; changes in the overall economy; changes in technology; the number and size of competitors; changes in the law and regulatory policy; and the mix of product and services offered in its target markets. Merger Communications (Merger) is a media relations firm employed by Cybertel. The statements and opinions presented here represent the views of Cybertel, not Merger, and are based on information provided by Cybertel. Merger and Cybertel believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee its accuracy or completeness. Merger's compensation for its media relations services, including preparation of press releases, consists of a monthly retainer and restricted stock. Merger may have a long position in the securities of the companies in which it distributes information to the media, and Merger may be buying or selling securities in the course of its regular business.