Cybertel to Enter 30 NFL Cities With 150 New Agents and an Aggressive Marketing Campaign.

Business Editors & High-Tech Writers

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

Cybertel to Utilize Qwest as Interim Provider as It Builds

Out Its Own National Sonus-Based VoIP Network

Cybertel Communications Corporation (OTCBB:CYTP) announced today that it has signed a strategic agreement with Qwest Communications International Inc. (NYSE:Q). The two-year agreement, together with its partnership with Nexbell Communications, will add support to Cybertel's nationwide expansion by allowing it to provide low cost Internet Protocol-based telecommunications services immediately in 30 of the largest markets in the United States. Customers in these 30 markets, often referred to as "NFL" cities, are expected to add up to $1.5 million per month in additional revenue.

Earlier this week Cybertel announced that it has already doubled its sales force, which is fueling exceptional sales growth. The company has now created an aggressive recruiting program where it is hiring highly seasoned, top performing agents from other major telecommunications companies. The company's goal is to have a sales force of 150 agents in place within the next 45 days to be marketing Cybertel's telecommunications services in those 30 new markets. Cybertel is also launching a major integrated marketing campaign that includes a combination of targeted direct mail, advertising and public relations.

"This is helping to enable us to make a major push into the national telecommunications market," says Richard Mangiarelli, CEO of Cybertel. "Our cooperation with companies like Qwest and Nexbell Communications gives us immediate access to these huge markets where we can gain a foothold. We now have a great, temporary infrastructure, allowing us to move forward at full speed with our marketing strategy. We are very serious about rapidly taking a major bite out of the long distance market while also offering value added services. This way, as we work to complete our own network, we'll already have a large established customer base to transition to our 21st Century 3rd generation Sonus network."

Cybertel customers will be able to place long-distance calls with 1+ dialing, at a rate of 7.5 cents/minute with no monthly service charges or minimums. Calling card prices for these customers will also be extremely competitive, as low as 3.9 cents per minute. And, just by switching to Cybertel, all customers will be given Cybertel's new free dial-up Internet access.

"We feel that our service offering is the best in the industry. Our residential customers will easily be able to cut their telecommunications related spending in half by switching their long distance and Internet service to Cybertel. We think this is one of the most exciting programs to hit the telecommunications marketplace in a long time," adds Mangiarelli.

Earlier this summer, Cybertel announced that it plans to build the world's most advanced VoIP/VoDSL network. The network, which is expected to allow Cybertel to become the first major carrier focused exclusively on Internet telephony to introduce a VoIP network with 1+ dialing, will rely heavily on technology from Sonus Networks (Nasdaq:SONS). Once completed, the new network will enhance Cybertel's profitability by providing the company with higher margins on all of the services it offers. It will also put Cybertel in complete control of the network it uses.

About Cybertel Communications Corp.

Cybertel is a La Jolla, Calif.-based fully integrated telecommunications service provider. It supplies a wide range of telecommunications services. Cybertel can offer highly competitive rates to its residential customers on long-distance, personal 1-800 numbers, calling card calls, high speed Internet access as well as completely free traditional Internet dial-up access with its Internet call waiting feature. For businesses, Cybertel offers a wide variety of value-added services. These included high-speed Internet access (DSL), virtual private networks (VPN), unified messaging as well as Web hosting services.

Cybertel (www.cybertelcorp.com) is also in the process of building a state-of-the-art Internet Telephony network throughout the United States. Cybertel plans to expand its network over the next year to include 56 gateways around the U.S., which will serve the entire country. The Sonus gateways give Cybertel a significant advantage over its competition. Once installed, Cybertel believes it will be the only company with an all-IP network capable of worldwide 1+ dialing.

The nation's largest traditional switched carriers include companies such as MCI/Worldcom, Sprint, AT&T, Global Crossing (Nasdaq:GBLX), Qwest and Williams Communications (NYSE:WCG). Companies offering VoIP related services include ITXC Corp (Nasdaq:IXTC), VocalTec (Nasdaq:VOCL) and Level 3 Communications (Nasdaq:LVTL).

About Qwest Communications International Inc.

Qwest Communications International Inc. (NYSE:Q) is a leader in reliable, scalable and secure broadband Internet-based data, voice and image communications for businesses and consumers. The Qwest Macro Capacity(R) Fiber Network, designed with the newest optical networking equipment for speed and efficiency, spans more than 104,000 miles globally.

Last month, Qwest Communications International completed its purchase of local phone company US West (NYSE:USW) for about $44 billion in stock. The new Qwest will have an $85 billion market capitalization; expected pro forma year 2000 revenue of $18.5 billion and pro forma year 2000 earnings before interest, taxes, depreciation and amortization (EBITDA) of $7.4 billion. The merger produces a company featuring Qwest's broadband Internet data, video and voice communications capabilities with digital subscriber line (DSL), wireless services and local communications services in 14 states. For more information, please visit the Qwest Web site at www.qwest.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Cybertel Communications Corp. (the company) to differ materially from those expressed or implied by such forward-looking statements. (Such factors include, among others, the risk factors contained in the company's Annual Reports and other filings with the Securities and Exchange Commission.) In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. The company will remain dependent upon future financing for its growth and development, and for it to successfully implement its business plan. No statement contained herein should be construed as indicating that such financing is or will be available, and if available, will be on terms favorable to the company. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof. Merger Communications (Merger) is a media relations firm employed by the company. Merger and the Company 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. Merger Communications, its officers, directors and employees own forty nine thousand restricted shares of company common stock, and are also entitled to fifteen thousand restricted shares and hold warrants enabling it to purchase another one hundred thousand restricted shares at five dollars/share and has received twenty four thousand dollars as compensation for services Merger performed for the company between 1/15/99-1/15/00. Merger currently receives a monthly retainer of two thousand dollars and warrants that enable it to purchase four thousand restricted shares at five dollars/share per month pursuant to a long-term agreement with the company, 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. For more information on Merger's services, visit www.mergerusa.com.