Cybertel Now Incorporated in All 50 States - Takes Additional Steps Toward Becoming a Switched Carrier.

Business Editors

LA JOLLA, Calif.--(BUSINESS WIRE)--Feb. 3, 2000

Cybertel Communications Corporation (OTCBB:CYTP) announced today that it is now incorporated in all 50 states. This is the next step for Cybertel in its process of transitioning from a switchless carrier to a switched carrier. Through this process, Cybertel is able to decrease its wholesale cost of carrying long-distance traffic by as much as 50%.

In the past, Cybertel has been a switchless carrier, acting as a wholesaler that buys long-distance capacity from large carriers and then resells that capacity to its customer base. Its customers' calls have been routed through other larger telecommunications companies' switches. The nation's largest traditional switched carriers include companies such as MCI/Worldcom (Nasdaq:WCOM), Sprint (NYSE:FON), AT& (NYSE:T), Global Crossing (Nasdaq:GBLX), Qwest (Nasdaq:QWST) and Williams Communications (NYSE:WCG).

By becoming a switched carrier, i.e. a carrier that it able to carry its traffic via its own switches, Cybertel will be able to reduce its overall costs per minute by approximately 50%. Originating and terminating telephone traffic is considered interstate commerce, and as such, requires that the telecommunications company become a corporate entity (be incorporated) in each state it plans to operate in. That part of the process has now been completed.

&uot;Our plans include putting in two circuit switches, one in New York and another one in Los Angeles. These switches will enable us to deliver telephone traffic less expensively, thus supporting both our short and long term plans. Our goal is to build a significant customer base within the next 24 months, and ultimately carry all that traffic over our own Internet-based IP network. However, while our IP network is still under construction, we still need to provide our growing customer base with great quality services at low rates. Becoming a switched carrier enables us to do just that. It lets us compete on a level playing field with the biggest names in the business,&uot; says Richard Mangiarelli, CEO of Cybertel.

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. This information is not a recommendation to buy or sell securities Cybertel. The statements and opinions presented are the views of Cybertel and are subject to change. Merger Communications (Merger) is a media relations firm employed by the Company. Merger and Cybertel believe that all information in this release has been obtained from sources considered reliable, but cannot guarantee that the statements presented herein are accurate or complete. 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; changes in the overall economy; changes in technology; the number and size of competitors in its markets; continued and future strategic alliances; changes in the law and regulatory policy; and the mix of product and services offered in Cybertel's target markets. Merger Communications, its officers, directors and employees own 49,000 restricted shares of company common stock. In addition, Merger is entitled to additional compensation consisting of 77,000 shares of common stock or their equivalent pursuant to an agreement with Cybertel, which includes the preparation of press releases. Merger typically has a long position in the securities of the companies in which it publishes information, and Merger may be buying or selling securities in the course of its regular business.