Perfexa Solutions Signs First BPO Contract; Perfexa Solutions to Provide GTC Telecom Call Center Support in Deal Valued At Approximately $4,000,000.

Business Editors

COSTA MESA, Calif.--(BUSINESS WIRE)--Feb. 20, 2003

Perfexa Solutions, Inc. ("Perfexa-U.S."), a wholly owned subsidiary of GTC Telecom Corp. (OTCBB:GTCC) today announced that it has entered into a five year contract to perform call center outsourcing and Information Technology systems development for its parent company, GTC Telecom. Pursuant to the terms of the agreement, GTC Telecom will pay Perfexa-U.S. on a cost plus 5% basis. Based upon GTC Telecom's historical call center needs, Perfexa-U.S. estimates that this agreement will generate approximately $4 million in revenues to Perfexa-U.S. over the next five years.

Perfexa-U.S. will subcontract a majority of the work to its Indian subsidiary, Perfexa Solutions Pvt. Ltd. ("Perfexa-India"). Perfexa-India, located near New Delhi, India, is currently completing construction of its call center and IT development center in Gurgaon, India. Perfexa-India will operate the call center with Perfexa-U.S. performing management and coordination roles.

Eric Clemons, President of GTC Telecom stated, "We have been spending approximately $1,875,000 per year to support our own domestic call center. By outsourcing the majority of our non-core call center and IT needs, we expect to realize significant savings. This is a win-win arrangement. GTC Telecom will obtain a substantial cost savings which should go straight to our bottom line, and Perfexa will gain a valuable and loyal customer with GTC Telecom."

Paul Sandhu, CEO of Perfexa-U.S. and GTC Telecom stated, "In November, it was announced that Perfexa planned to have its New Delhi, India call center operational in the first quarter of 2003. We are on target with that estimate and believe that we will be able to perform under this agreement immediately upon opening our center."

About Perfexa Solutions

Perfexa Solutions, a subsidiary of GTC Telecom, is committed to providing cost-effective customer service, CRM and vertical management solutions for small to medium-sized businesses for the global communication marketplace.

Through its wholly owned subsidiary, Perfexa Solutions Pvt. Ltd., an Indian company, Perfexa provides Inbound Call Center Management Solutions with future plans for Outbound Call Center Management Solutions, IT Management Solutions and Business Operations Management Solutions. Perfexa Solutions is in the process of finalizing its first call center in New Delhi, India which is expected to become operational in the first quarter 2003.

About GTC Telecom

Founded in 1997, GTC Telecom and its subsidiaries provide long-distance, calling card, conference calling and toll-free services, as well as Internet access to residential customers throughout the United States. GTC provides its services directly to consumers, as well as through affiliate marketing programs with companies like Best Buy Inc. For more information visit www.gtctelecom.com.

This release may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from current expectations. GTC Telecom urges investors to review in detail the risks and uncertainties contained within its filings with the Securities and Exchange Commission.