VoIP, Inc. Expands International Service Provider Roster.

FORT LAUDERDALE, Fla. -- VoIP Inc. (OTCBB:VOII) subsidiary VoIP Solutions Inc. announced today that it has signed a Virtual Service Provider (VSP) Agreement with Telebit Telecomunicacoes e Participacoes Ltda, an affiliate of America Latina Telecomunicacoes Avancadas S/A.

The Company's Enhanced Services Platform will permit Telebit to offer customers rate plans and services in the local currency and language. Telebit will have a local gateway connected to VoIP Solutions' U.S. network hub permitting interconnection with local carriers for local telephone numbers and access to wholesale international termination. Rates and calling plans will be established to meet the local market demand and competition. VoIP Solutions own Customer Premise Equipment, the MTA V102; a 2 line analog telephone adaptor is being supplied for the services.

"VoIP Solutions has established an office in Chile to develop business in Latin America and support customers like Telebit," commented Clive Raines, President of International Operations. "We believe strongly in the potential of this region and the future of the International VoIP market where country to country calling costs are higher than those from the United States. Telebit is the first of many customers in South America that will validate this strategy."

"Telebit joins partners in Europe and Australasia who form components of our global network," commented VoIP Inc.'s CEO, Steven Ivester. "Our global strategy recognizes the unique dynamics and potential of each regional market and the value they will bring to the Company."

VoIP, Inc. makes it easy by providing immediate access to this new market window with an own branded service where the VSP owns the customer, makes the rules and determines their own margins.

Any Cable company, ISP, broadband reseller, Telco, entrepreneur or business with an existing customer base can create a profitable new revenue stream. Broadband Internet reseller can use Telephony as the "killer application" that justifies customers subscribing to broadband Internet service or a voice / Internet bundled package.

VoIP Solutions provide the products, network and billing platform services to get you established quickly without the financial risk and time to market.

Previous Barriers to Entry

--High capital cost of equipment, billing software and back office applications

--Risk of purchasing a switch and billing system that does not work or delivery the required functionality and services

--Lack of secure server facilities, Internet backbone access and back up power supply

--Lack of Telecom knowledge and experience to negotiate with Telco vendors, obtain DID numbers and establish an economical network.

--Fixed overheads, term commitments and deposits required by carriers

--Experienced technical and Telco employees required to maintain equipment and applications

--Losing customer ownership, control and asset value by handing customers to another service provider and receiving only a small commission

VSP Benefits

Your own branded service

Use your own web site, brand and image. Design your own rate plans that best suit your targeted market. Increase the valuation of your business through having your own brand and owning your customer base. This is not putting your logo on someone else's service and being little more than a reseller. You determine the products, rates and margins.

Web Interface

An HTML template is providing making it easy to integrate the service with an existing web site or design a new site. The interface includes customer selection of country / area codes, telephone numbers, equipment rate plan options. VSO customers have secure access to view account balances and individual call details.

Email Integration

An SMTP mail server and email templates permits the automatic sending of customized sign up confirmations, low credit warnings and other applications.

Payment Processing

A library of credit card payment processor interfaces permits real time processing, debiting monthly charges and automatic replenishment of low balance accounts. An invoice template is available for post paid corporate accounts. Cash payments, wire transfers, credits etc can be manually added to customer accounts via the administrator web interface.

Choice of Area Codes

VoIP Solutions provide a choice of United States area codes from major population centers, 1-800 numbers and shortly, numbers from other countries. We can also offer VSP customers the new +878 international VoIP code for non PSTN inbound applications.

Low Customer Premises Equipment Cost

The Company distributes the Multimedia Terminal Adaptor, a two line VoIP that works with any broadband Internet connection. Integrated ADSL and Cable Modem models area also available. The MTA's include a router and are automatically programmed and updated by our auto provisioning server reducing technical support issues. Any analog telephone, cordless or PBX can be connected.

Fully Featured

VSP services include all of the common calling features including Caller ID, Call Waiting etc. Voice mail is included as standard with each message also copied to VSP customers by email. The MTA's provide dial tone and PSTN calling features providing transparency with traditional services.

Global Network

Clients have access to a global network at wholesale rates permitting competitive calling rates and special rate plans to be offered to over 220 countries.

Migration Path

VSP clients have the option to connect with existing carriers or local telephone number providing carriers with a Media Gateway. This hybrid approach can be expanded with the purchase of a complete soft switch and billing solution.

Customer Administration

Each VSP has an exclusive partition of our billing system. Administrators and Customer Service Representatives can access the system from any web browser. All additions, moves and changes have administrator controlled permissions.

Prepaid or Post Paid

Sign up new customers on line in real time and have payments credited to your own merchant account or generate and print monthly invoices. There is no credit risk as customers can be disconnected immediately their credit or debit balance reaches zero. Low credit balance email warnings can be automatically sent. Balances can be exported to a third party billing system so that telephone services can be added as a line item to an existing accounting system for other services.

Customer Self Help

Password Internet access permits customers to get a breakdown of invoiced amounts, check call charges, account balance and update information. This reduces Customer Service calls.

Service providers also have the option of purchasing the complete turnkey carrier solution including soft switch, web interface, E commerce, provisioning server, telephone number management and logistics applications. Contact [e-mail] for further details.

About VoIP, Inc

VoIP, Inc. is an emerging global service provider of superior quality Voice over IP based solutions offering residential and business customers more user friendly and affordable ways to communicate. VoIP, Inc. also manufactures products and provides services to Internet Service Providers, Telecommunication Service Providers and Cable Operators in strategic countries around the world. VoIP, Inc., through its subsidiaries, provides a comprehensive portfolio of IP multimedia-based solutions ranging from subscriber based voice services, to SIP based infrastructure design and deployment, to broadband customer premise equipment design and implementation services, as well as engineering design, manufacturing and distribution of wireless broadband technology. VoIP, Inc. has applied for a patent for its state of the art VoIP Multimedia Terminal Adaptor which today supports the FCC Commission's desire for VoIP providers to deliver Emergency 911 Calling, Disability Access, and Law Enforcement Access capabilities to the marketplace. For more information visit the VoIP, Inc. Web site: http://www.voipinc.com

Safe Harbor 

Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby.

The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks and uncertainties.