ICM Telecommunications' Strategic Partnership with Digital Communication Services Yields Approximate 20% Hike in Market Penetration in First Month.

Business Editors/High-Tech Writers

LAKE OSWEGO, Ore.--(BUSINESS WIRE)--Jan. 14, 2004

Cross channel marketing and revenue sharing results

in 10 new sites of service

ICM Telecommunications, Inc. (Pink Sheets:ICMH), a rapidly growing provider of prepaid pin-based products through its EPIS Point of Sales Activation (POSA) terminals, today announced that the company has realized a nearly 20% increase in its sites of service since entering into strategic partnership last month with privately held Digital Communication Services (DCS), headquartered in Garden Grove, California.

The company has added 10 new service sites -- including two truck stops and five new check cashing service programs in Oregon, and three additional truck stops in the state of Washington, bringing the total sites of service in both states to 65.

"To say that we are elated would be an understatement," said ICM Telecommunications CEO Doug Hamby. "Since our agreement was signed with DCS less than a month ago, we have entered a whole new dimension. This kind of growth is unprecedented in our company's brief history, and it speaks volumes about the potential of the company going forward with valued partners like DCS."

Under the historic December agreement, both ICM and DCS agreed to jointly sell each other's products and services, as well as share in the revenues from these joint promotional efforts. The efforts involve cross marketing of goods and services, and joint promotional efforts of each company's products and services. These initial steps set the stage for both companies to jointly accelerate service introduction beyond the Pacific Northwest to Northern and Southern California, Arizona, and additional states in the Southwest, especially Texas and New Mexico, according to Hamby.

The two companies offer access, through ICM's POSA terminals, to proprietary and universally accepted VISA cards, as well as proprietary long distance calling cards, with extremely favorable rates worldwide, especially to Mexico. DCS has also become the primary provider for ICM's prepaid cellular phone minutes with major carriers. Other enhancements include DCS becoming the primary provider for vertical integration of ICM's processing capabilities, with faster processing and delivery of POSA pin numbers and direct collection of funds. In addition, DCS is utilizing ICM's merchant service program, already extremely competitive in its marketplace.

"We realize all these rapid developments in such a short period of time may seem especially surprising to many of our new shareholders," said the CEO. "We also hope they give them a sense of solid encouragement about the near- and longer-term future of ICM, so that they may share equally in the future growth of our company."

Hamby said the company has a goal of having more than 1,000 sites of service in operation by the end of 2004, and that those numbers would accelerate markedly in the next several quarters.

"Access to short term capital to help us become an OTC listed Bulletin Board company continues as a top priority," said Hamby. "Once we have achieved that goal, our funding needs to exercise our business plan will become much more achievable. And we hope to have reached that plateau by mid-year." Over the near term, he said, the company is seeking approximately $1 million in new working capital.

"These very encouraging examples of market penetration in less than a month offer substantial evidence that our business model is right on track, and will help support our search for capital to execute our plan," Hamby concluded.

Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties as well as other uncontrollable or unknown factors could cause actual results to materially differ from the results, performance, or expectations expressed or implied by such forward-looking statements.