Destia's Econophone Hellas S.A. Signs Agreement With Pouliadis Associates Corporation.

PARAMUS, N.J.--(BUSINESS WIRE)--Oct. 12, 1999--

Destia Communications, Inc. (NASDAQ: DEST), a leader in the development of innovative telecommunications products and services, announces that its Greek subsidiary, Econophone Hellas S. A., the only licensed alternative long distance provider in Greece, has reached a three-year agreement with the largest information technology company in Greece, Pouliadis Associates Corporation.

The agreement calls for Econophone Hellas to supply Pouliadis Associates with its branded prepaid calling cards, its accompanying technology and all printing and marketing materials for its cards. Under the agreement, Pouliadis will provide their outlets and distribution centers as points of purchase for Econophone's cards.

"This is a significant step for Destia's Econophone Hellas S.A. As one of the first and only alternative long distance companies in Greece, Econophone Hellas is the first emerging carrier to aggressively take its products directly to the end user in this most important market," said Alfred West, chairman and chief executive officer, Destia Communications, Inc. "We wish to grow and compete in Europe and this is another step in establishing Destia as a major telecommunications player in Greece. Our plans are to offer our customers in Greece bundled telephony services, through closed-user groups and additional value-added services such as prepaid calling cards, Presto! Card, our virtual calling card and Internet access."

Pouliadis Associates Corporation (www.pouliadis.gr), traded on the Athens Stock Exchange, is the largest distributor of high technology and computer hardware and software products and services in mainland Greece and surrounding islands. Pouliadis provides over 5,000 information technology products and services to businesses in the Balkan region. Pouliadis clients include Dell Computers, Motorola, Microsoft, Intel and Kodak, to name a few. Pouliadis, under an agreement with Econophone Hellas, will provide these branded pre-paid calling cards at over 5,000 points of sale and additional 600 stand-alone commercial kiosks.

"We are delighted to enter into this agreement with Econophone Hellas." said Yiannis Karatonis, general manager, Telecommunications Section of the Pouliadis Group. "This agreement is a part of our overall strategy to provide the people of the Balkan region the very best products in information technology and communications. We look forward to a strong and profitable relationship with Econophone Hellas, S.A."

"Destia will continue to look for new avenues to grow its business and enter new markets," said Alan Levy, president and chief operating officer, Destia Communications, Inc. "A part of our European strategy is to tap into new industries and markets and this agreement is a start in implementing the spirit of this strategy. Shipping, industrial, fashion, and diamond are just a few of the industries Destia will aggressively target to achieve this growth. Our growth is based on our ability to deliver the very best in telecommunications products at the lowest cost possible and over a broad geographic region with a particular emphasis in Western Europe.

This is what sets Destia apart."

"We look forward to a lengthy and continued relationship with Pouliadis," continued Mr. Levy. "In addition, Destia expects to leverage a broadband European network to further expand its suite of bundled telephony products and services over the coming months."

Destia recently announced a planned merger with Viatel, Inc. (www.viatel.com), a facilities-based, integrated provider of telecommunications services to a variety of end-users, including individual consumers, businesses and carriers in more than 230 countries and territories worldwide. Viatel also provides high-speed, high-capacity and high-quality bandwidth to companies, carriers and Internet service providers. As previously announced, the Destia and Viatel merger is expected to be completed by end of 1999.

Destia Communications, Inc. (www.destia.com) -- formerly EconoPhone -- is a facilities-based provider of domestic and international telecommunications services in North America and nine countries in Europe. Destia provides its end-users with a variety of retail telecommunications services, including international and domestic long distance, calling card and prepaid card services, carrier wholesale transmission services and Internet access.

About Econophone Hellas S.A.

Econophone Hellas, S.A. is the Greek subsidiary of Destia Communications Inc. (formerly known as Econophone Inc.) a US, facilities based telecommunications provider. Destia Communications, along with its overseas subsidiaries, offers a broad portfolio of international and domestic voice and data products along with a wide array of enhanced services to both residential and business markets.

About Pouliadis Associates Corporation

Pouliadis Associates Corporation is the largest provider of high technology and computer hardware and software in Greece and surrounding islands. Pouliadis provides hardware, software and accessories, which are distributed through a powerful distribution network while, services are offered to end users through specialized subsidiaries which provide complete integrated solutions.

Certain statements herein are "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995). These statements are based upon the belief of Destia's management, as well as assumptions made beyond information currently available to Destia's management. Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such "forward-looking statements". Factors that could cause results to differ materially from those expressed or implied by such "forward-looking statements" include, but are not limited to, highly competitive market conditions; general economic conditions; the rate of expansion of Destia's network and/or customer base; inaccuracies in Destia's forecasts of telecommunications traffic or customers; changes in the availability of transmission facilities; customer retention and credit risk; changes in or developments under laws, regulations, licensing requirements or telecommunications standards; currency fluctuations; changes in retail or wholesale telecommunications rates; changes in international settlement.