Intellicall Breaks Into Newly Deregulated Canadian Market with Sale of 25,000 Payphones to Paytel; Initial Commitment Valued At Approximately $30 Million.

DALLAS--(BUSINESS WIRE)--Jan. 27, 1999--Intellicall Inc. (NYSE:ICL) announced today that Paytel Canada Inc. will purchase 25,000 of Intellicall's latest generation smart payphones for installation in the Canadian market.

The alliance marks the initial sale of the ASTRATEL 2, model 15135 smart phone in the Canadian market, which opened for competition in 1998. The deal could potentially reach $50 million over the life of the contract and solidifies Intellicall as the leading manufacturer of the most technologically advanced smart phone in the industry.

"In 1998, Intellicall made a commitment to meet all the Canadian market requirements and have a product ready to ship when deregulation was enacted," said John J. McDonald, Jr., president and chief executive officer of Intellicall. "We achieved this goal and are pleased to serve the needs of Paytel Canada."

The model features a vertically positioned card reader and an easy-to-read two-line, 20-character vacuum fluorescent display with billboard and marquee options. Particularly valuable to the Canadian market is the ASTRATEL 2's three-language functionality, offering easy access to English, Spanish and French voice prompts.

A Quadrum electronic coin mechanism, combined with the ASTRATEL 2 software, enables patrons to deposit a variety of coinage and accepts both the Canadian one and two dollar coins. International symbols on volume control, language selection, and follow-on call buttons ensure ease of caller operation regardless of language.

"We are pleased to join forces with Intellicall in providing the Canadian public with access to these smart phones," said Al Chiasson, president and chief executive officer of Paytel Canada, which anticipates installing 40,000 phones over the next 24 to 36 months.

Other software revisions include the ability to accept all major credit cards plus two user defined cards, user expandable card number ranges, and advanced call detail record features.

The deal is the first between Intellicall and Paytel Canada. Backoffice support will be provided by Intellicall via INET, the company's proprietary communications software.

Intellicall is a leading manufacturer of advanced public access telecommunications systems, including intelligent payphones, prepaid and call processing systems, and network control and business management systems. Since the introduction of its smart payphones, Intellicall has shipped more than 350,000 units. Reported revenues for the last three years are in excess of $280 million.

Intellicall's common stock is traded on the New York Stock Exchange under the symbol "ICL" and is listed in alphabetical quotations as "Intellicall" or "Intelcal."

Paytel Canada Inc. is a Canadian company headquartered in Surrey, British Columbia with branch offices in Surrey, Calgary, Markham, London, Toronto, Ottawa, Montreal and Halifax. Additional offices will soon open in Moncton, Hamilton, Winnipeg, Edmonton and Kelowana. Paytel will provide national coast-to-coast service through company-owned and operated offices. The company will begin its installation program throughout Canada in early February.

The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections or future performance of the company, the occurrence of which involves certain risks and uncertainties that could cause the company's actual results to differ materially from expected results. Such risks include the timing of implementation and the scope and success of the program described here.