ERA WEST Inc. Announces It Signed a Binding Letter of Intent to Acquire Payless Communications Inc.

CLEARWATER, Fla.--(BUSINESS WIRE)--Aug. 31, 1998--ERA WEST Inc. (ERAW), an international provider of telecommunications and Internet services, announced today the signing of a binding Letter of Intent to acquire privately owned Payless Communications Inc. of Santa Ana, Calif. Payless Communications is a national provider of long distance services and prepaid phone cards. The transaction involves a combination of cash and stock with a total valuation of $15 million and per the LOI, the final sales agreement is to be completed within 60 days.

Payless Communications presently markets in 15 states, sells its prepaid phone cards through more than 1,000 retail outlets, provides long distance telephony services, and distributes travel calling cards in targeted ethnic markets. Its Customer Service Center is staffed with multilingual representatives seven days a week., Payless Communications is profitable and has a current annualized run rate of $30 million in revenues. It has experienced rapid growth over the past 18 months.

Robert Hinson, President of ERAW stated, "This acquisition should add at least $30 million to our annual revenues, will continue to improve our earnings and expand the companies interests in the US markets. Payless's has sustained a continued growth rate by doubling its revenues every quarter for the past three quarters.

"The signing of this LOI with Payless Communications is a continuation of ERAW's growth plan. This new acquisition expands ERAW's current infrastructure in the US. It not only increases the company's product line, but also enhances the hardware that can be utilized by other ERAW subsidiaries to extend ERAW's capability to further cover the globe.

"In taking over as the President of ERAW my commitment to increasing shareholder value is to expand our operations internationally through strategic acquisitions of telecommunications companies and by increasing the earnings and revenues of our existing operations."

Michael Osmon, President & Chairman of Payless Communications stated, "We are very pleased to create this new alliance with ERAW. This allows Payless Communications to expand at an even faster rate. With the increasing demand for our products and services, this acquisition strengthens our ability to meet these demands."

About ERAW

ERA WEST is a telecommunications company. Through its wholly owned subsidiary Dynamic Bell (DBNW), a prominent telecommunications company in Australia providing local, long distance, international telephone services, telecommunications software and Internet access and web publishing. -0-

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    CONTACT:  ERA WEST Inc., Clearwater
               Joose Hadley, 727/447-2147
               Fax:    [phone]
                          or
               Payless Communications Inc.
               Michael Osmon, 714/647-0908
               Fax: [phone]