Emerging VoIP Leader Plans to Explore Voice over DSL; Recent Acquisition Gives Cybertel Communications Technology Necessary to Begin Work On the Delivery of VoDSL.

Business Editors & High Tech Writers

LA JOLLA, Calif.--(BUSINESS WIRE)--May 18, 2000

Cybertel Communications Corporation (OTCBB:CYTP) announced today that it plans to become one of the pioneers of the Voice over DSL industry. Through the company's recent acquisition of DSL provider, LDVL, Cybertel now has access to the latest DSL and SDSL technology as well as its own Voice over Internet Protocol (VoIP) expertise.

"The acquisition of LDVL is definitely one of the biggest moves Cybertel has made in the few short years we've been around," says Richard Mangiarelli, CEO of Cybertel Communications. "With the combined brain trust of LDVL and Cybertel and both companies' planned and existing networks, it would only be natural that we would want to be one of the first companies to develop ultra high bandwidth telecommunications via DSL."

Even though VoIP is predicted by many to be the next major revolution in telephony, Cybertel believes that VoDSL can be the next logical step in the coming years. At present, most Internet telephony applications require the user to possess computers, hardware and software to utilize them. This has made it very inconvenient and impractical for most users so far.

Cybertel knows that Internet-based calling is just beginning to come in to its own. The company is planning to take full advantage of the growth of this new marketplace, which Gartner Group's Dataquest predicts to reach $87 billion by 2004. It knows that by routing calls over the Internet, it can easily undercut all of the major carriers and offer long distance at some of the most competitive prices in the industry.

As the telecommunications industry evolves, Cybertel plans to stay on the leading edge by being one of the first companies to offer its own brand of VoDSL. This service is also likely to attract huge numbers of users who want or need the ability to transmit large amounts of audio and video data over their telephone lines. High bandwidth applications such as video conferencing are expected to become much more prevalent in the next few years, necessitating services such as VoDSL.

"Cybertel is already poised to be a leading provider of VoIP. It only makes sense that with the technology we are adding through of acquisition of LDVL, we make sure that we are positioned well to be a VoDSL leader too. As we build our nationwide VoIP network, we will be paying close attention to how we can effectively supply VoDSL as the demand builds. That way, we'll never have to play catch up like the big guys," adds Mangiarelli.

The recent acquisition of LDVL.com, a leading New York-based commercial DSL provider has allowed Cybertel to access LDVL.com's expanding customer base to co-market their combined services. LDVL.com provides business-to-business (B2B) DSL services to over 130 commercial businesses in the New York area. LDVL is presently marketing its DSL services to over 27,000 businesses in the metro New York City area, with additional plans to expand along the Eastern Seaboard.

A key aspect of Cybertel's acquisition is the access to LDVL's existing network of commercial DSL-SDSL circuits throughout the nation's major metropolitan markets. LDVL specializes as one of the leading Internet Service Providers (ISPs) that uses the cutting edge technology of SDSL - Symmetric Digital Subscriber Line - networks.

SDSL circuits allow data to be transmitted in equally sized blocks both while sending and receiving, as opposed to the more typical, ADSL (Asymmetric Digital Subscriber Line) technology, in which data blocks that are received by the user are of a different size than those that are sent by the user. SDSL lines are therefore capable of handling streaming media in a much smoother, cleaner format, enabling near-real time communications in the VoIP network world.

LDVL.com uses Covad (Nasdaq:COVD) as its nationwide DSL service provider and Digex (Nasdaq:DIGX) as its global service provider for high-speed Internet access, web hosting and e-mail services. Redback Networks (Nasdaq:RBAK) supplies the company with its Subscriber Management Systems and it relies heavily on switching technology from Cisco Systems (Nasdaq:CSCO).

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&T (NYSE:T), Global Crossing (Nasdaq:GBLX), Qwest (Nasdaq:QWST) and Williams Communications (NYSE:WCG). Companies offering VoIP related services include ITXC Corp (Nasdaq:IXTC) and VocalTec (Nasdaq:VOCL).

Additional companies focused on DSL services include Northpoint Communications (Nasdaq:NPNT), Rhythms NetCommunications (Nasdaq:RTHM), mPhase Technologies Inc. (OTCBB:XDSL) and DSL.net (Nasdaq:DSLN). Traditional telecommunications companies that are offering or planning to offer high-speed services in the future include Excite At Home (Nasdaq:ATHM) and US West (NYSE:USW).

About Cybertel

Cybertel is a La Jolla, California-based Voice over the Internet Telephony (VoIP) company in the process of building a state-of-the-art Internet Telephony network throughout the United States. Cybertel has recently signed contracts with other major carriers like MCI/Worldcom, Bell Atlantic Corp. (NYSE:BEL) and Level 3 Communications (Nasdaq:LVLT), which have made it possible for Cybertel to offer 1+ long distance, 1-800 numbers, regular and pre-paid calling cards and Internet access at some of the most competitive rates on the market today. Cybertel is a fully reporting company, listed on the OTC Bulletin Board under the symbol OTC BB: CYTP.

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.