Talk America Highest in J.D. Power and Associates' Customer Satisfaction Study for Local Residential Telephone Service.

Business Editors

RESTON, Va.--(BUSINESS WIRE)--July 15, 2003

Talk America Achieves Highest Score in the Study and Ranks Highest in the North Central Region

Talk America (NASDAQ:TALK), a provider of bundled local and long distance phone service, announced that it achieved the highest overall customer satisfaction score of any provider in the J.D. Power and Associates Local Residential Telephone Study. Talk America was evaluated in the North Central regional study, where it ranked highest in its first year in the study. The North Central region includes Illinois, Michigan, Ohio, Indiana and Wisconsin.

Within the study, Talk America ranked highest in both Customer Service and Cost of Service by a wide margin. Talk America customers typically pay up to 30% less than the Regional Bell Operating Companies. According to the study, its customers are also the least likely to experience a problem or question and require the fewest number of customer service contacts to resolve problems.

J.D. Power and Associates indicated that Talk America performed strongly in its first year in the study. And, Talk America's success is part of a changing tide in the industry, where customers are now demanding and expecting more value and better service from their providers.

Given these survey results, it is not surprising that Talk America is one of the fastest growing bundled local and long distance companies in the country. Over the past 18 months, Talk America has grown from 194,000 bundled customers to 443,000 by offering local and long distance phone service that is tailored to its customers' need for better service, simplicity and savings.

"The most important gauge of our success is the satisfaction of our customers," said Gabe Battista, Chairman and Chief Executive Officer of Talk America. "We have built our service to better meet their needs. Our customers use the same phone, the same phone lines, and even keep the same phone number. The difference is that they pay significantly less, receive bills that are clear and accurate, and don't get the runaround usually associated with customer service departments."

The majority of Talk America's bundled growth has come from the North Central region; however, the company is expanding its marketing efforts to several other states. "As we extend our marketing efforts out of our core North Central states," Mr. Battista continued, "our operations are designed to ensure that these customers receive the same level of quality as those customers in states for which we received this award."

The J.D. Power and Associates Local Residential Telephone Study is an annual survey of telephone customers nationwide. It ranks telephone providers by the following criteria: Billing, Cost of Service, Customer Service, Image, Offers/Promotions, and Performance/Reliability. The study was conducted in six regions across the country: North Central, North East, Mid-Atlantic, South East, South West, and West. More than 8,560 customers across the country participated in the study.

To learn more about Talk America's products and services call (866) 895-TALK.

About Talk America's Services

Talk America currently offers four simple residential calling plans: United 1000, United Unlimited, United Unlimited Plus and Talk Unlimited Nationwide. Talk America will review its customer's past usage and recommend the plan that can save them the most on their monthly phone bill. In a direct comparison, Talk America can save customers up to 30% off of a customer's phone service. With simplified service plans, one integrated and easy-to-read phone bill, and a single customer service line, Talk America offers more value at a lower price than its competitors.

About Talk America

Talk America offers a bundle of local and long distance phone services to residential and small business customers. The Company delivers value in the form of savings, simplicity and quality service to its customers. The Company operates its own nationwide long distance network and delivers local services through wholesale operating agreements with the Bell Operating Companies.