Global TeleMedia International Announces 1997 Second Quarter Results.

ATLANTA--(BUSINESS WIRE)--Aug. 27, 1997--Global TeleMedia International, Inc. (NASDAQ Bulletin Board: GTMI) ("GTMI"), a full-service, facilities-based telecommunications provider, today announced financial results for the three- and six-month periods ended June 30, 1997 (see attached table).

Revenues for the three months ended June 30, 1997 increased to $3,606,351 from $265,286 last year. The Company reported a net loss for the second quarter of $3,030,205, or $.15 per share, versus a net loss of $949,820, or $.08 per share, for the same period last year. Revenues for the six months ended June 30, 1997 increased to $5,215,357 from $605,051 last year. The net loss for the 1997 six- month period was $5,308,235, or $.29 per share, as compared to a net loss of $1,621,920, or $.15 per share, for the comparable prior year period.

Roderick McClain, President and Chief Executive Officer of GTMI, commented, "The dramatic increases in revenues for the 1997 periods are due primarily to increased levels of operations in both the international wholesale carrier business and the Company's Vision 21 national network marketing subsidiary. Approximately $2.2 million in 1997 second quarter revenues are attributable to revenues realized during the ramp-up period of the May 1997 service agreement we signed with one of the country's largest providers ("the provider") of prepaid calling cards. During the second quarter we experienced certain unforeseen reliability problems with our Workhorse enhanced switching network, which we are utilizing to service the long-distance telephone needs of the purchasers of the provider's cards, thereby delaying the anticipated ramp-up. As a result, 1997 second quarter results include approximately $725,000 in credits issued to the provider related to our inability to achieve volume levels necessary to reach committed threshold levels necessary for more favorable buy rates from our carrier suppliers to route traffic to certain countries. These same factors also resulted in lower than anticipated gross margins and a loss on the contract for the quarter. We expect that increased volume will enable us to obtain more favorable underlying carrier rates, which should improve overall gross margins in future quarters. We are currently working with the vendor to resolve the problems with Workhorse and have purchased and installed a second network architecture to augment existing equipment to meet the $10 million minimum monthly usage levels under this contract."

Mr. McClain continued, "Having undergone a significant restructuring over the past two years, we have recently taken several additional important steps to position GTMI as a growing presence in the global telecommunications industry. In July we acquired a 75% interest in International TeleData Corporation ("ITD"), which markets a variety of high-quality telecommunications products and services. ITD has secured the marketing rights to a proprietary, new satellite transmission protocol, which provides a wide range of business and personal communication services worldwide. We also strengthened our senior management team with the appointment of Terry Huetter as Chief Financial Officer and named two new outside members to our Board of Directors in Don Thone and Ron Berkowitz. We have also revamped the product offerings and compensation program for our Vision 21 subsidiary, adding a travel products package and revising our menu of telecommunications products. Response to date during pre-rollout from our field representatives has been positive."

The statements contained in this release may contain forward-looking statements relating to such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities, and similar matters. The Private Securities Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could cause the Company's actual results to differ materially from the anticipated results or other expenditures expressed in the Company's forward-looking statements. These risks and uncertainties are detailed in the Company's Form 10K for the period ended December 31, 1996 and Form 10Q for the period ended June 30, 1997 and are incorporated herewith by reference.

GTMI is a full service facilities based telecommunications provider offering complete "solutions based" turn key products to other carriers, wholesalers, resellers and independent marketing agents. -0-

           GLOBAL TELEMEDIA INTERNATIONAL, INC. AND SUBSIDIARIES
                      Consolidated Income Statements
                                (Unaudited)

                  Three Months Ended June 30, Six Months Ended June 30,
                             1997        1996       1997       1996

TOTAL REVENUES:          $3,606,351  $265,286   $5,215,357    $605,051

OPERATING EXPENSES:
    Communication and
    Marketing Services    3,818,446   338,921    5,498,455     581,941

    General and
     Administrative       2,475,013   861,013    4,347,441   1,630,671

    Total Operating
     Expenses             6,293,459 1,199,934    9,845,896   2,212,612

      Operating Loss     (2,687,108) (934,648)  (4,630,53)  (1,607,561)

OTHER INCOME (EXPENSES):
    Interest Expense       (336,736)  (26,503)   (677,696)     (33,109)
    Other Income             (6,361)   11,331                   18,750

NET LOSS                $(3,030,205)$(949,820)$(5,308,235) $(1,621,920)

NET LOSS PER SHARE          $ (0.15)   $(0.08)   $  (0.29)     $ (0.15)

WEIGHTED AVERAGE
 NUMBER OF SHARES
   OUTSTANDING (1)      19,582,830  12,264,848  18,557,547  11,128,106


(1) The increase in shares outstanding for the three and six months ended
June 30, 1997 include shares related to the conversion of notes payable,
shares issued to consultants, and shares issued in the exercise of
warrants.

CONTACT: COUNSEL:

Global TeleMedia International, Inc.

Roderick A. McClain, Chief Executive Officer

[phone]

or

GTMI's INVESTOR RELATIONS

The Equity Group

Devin Sullivan, [phone]