Payless Telephone Company Enters into a Joint-Venture with InterGroup of Honduras, SA. to Deploy WiFi and VoIP Technology Throughout Honduras.

HALLANDALE BEACH, Fla. -- Payless Communication Holdings, Inc. ("PCH") (OTC:PCNH) today announces to its shareholders, that Payless Telephone Company, a wholly-owned subsidiary, has entered into a joint-venture with InterGroup of Honduras, SA. InterGroup of Honduras, SA is a communications company that has executed several contracts with Honduran companies to deploy WiFi and VoIP technology delivering voice, data and video services to residential and commercial customers. Payless will supply the technology and infrastructure for the InterGroup contracts in Honduras. Payless and InterGroup will start deploying services in the cities of: Tegucigalpa, San Pedro Sula, La Ceiba, Tela, El Progreso, La Lima, Choluteca, San Lorenzo, Juticalpa, Catacamas, and Santa Rosa. It is projected that the contract for services exceeds 100,000 users over the next twelve months and shared revenues are estimated to be over $15,000,000 per year.

Mr. Humberto Mejia, President of Business Development, stated, "We are very excited to have signed an agreement with Payless and its management brings over 20 years of telecommunications experience to assist in our growth here in Honduras."

Payless Communication Holdings president and CEO, Ricardo J. Canal, stated, "As our business model states, we are deploying services in Central America and will continue to expand our triple technology to other countries in Central and South America."

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing and access funds from our existing financing arrangements that will allow us to continue our current and future operations and whether demand for our products and services in domestic and international markets will continue to expand. The Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.