VoIP, Inc. Introduces Virtual Service Provider Resale Model for ``ISP,'' ``MSO'' & ``PCO'' Service Operators.

FORT LAUDERDALE, Fla. -- VoIP, Inc. (OTCBB:VOII) today announced the unveiling of their Virtual Service Provider (VSP) resale model for service providers.

Using the industry-leading SIP protocol and a flexible back-end billing and call routing service, VoIP Inc. today announced a new service for network service providers. VoIP, Inc. will be offering a complete Voice over Internet Protocol (VoIP) solution that enables Internet service providers to offer low cost VoIP services to their customers quickly and without the normal high cost of a program rollout.

"We see a growing demand from mid-sized and smaller network service providers in the area of VoIP," says CEO Steven Ivester, "but the high price of operating a soft switch, termination network, billing system, and the related staffing is typically outside the cost effective range for these service providers. Our program is designed to be a very economical and efficient solution for these providers, enabling them to begin offering VoIP to their clients quickly and without a large investment of their time or money."

The VoIP, Inc. service allows ISPs, CLECs, cable operators, and other network service providers to quickly make VoIP services available to their customer base in a matter of weeks. Customized Web site signup forms, provisioning tools, individually customizable rate plans, and customized invoices are available as components of the system. Service providers can access and develop their own billing rates and products to offer to their customers.

VoIP, Inc.'s full solution provides several different Customer Premise Equipment (CPE) options which were developed and manufactured by the company's iMax division. Two-port Ethernet routers, DSL routers, and Packet Cable compliant routers are available with telephony interfaces for residential and home office end-users, though the system will function with any SIP-compliant CPE.

To quickly launch with low rates, service providers can utilize the PSTN termination services provided by eGlobalphone, another subsidiary of VoIP, Inc. With both United States domestic termination as well as extensive relationships with international carriers, eGlobalphone can assist in the immediate launch of outbound and inbound service for a large end user base with minimal delay to market and at a low cost of delivery via eGlobalphone's core network.

"We are very excited about our new offering. We have already received numerous inquiries and requests regarding our program. With the anticipated demand and projected growth of VoIP telephone service, we feel we have the right solution for service providers who want to add to their service package, but do not want to make the large investment required. In our program, service providers can begin offering VoIP services almost immediately. In addition, they will be able to focus their time and efforts on marketing and not be required to build significant additional infrastructure of hardware and employees," added Steven Ivester.

About VoIP, Inc.

VoIP, Inc. is an emerging facilities-based global service provider of superior quality Voice over IP based solutions offering residential and business customers more user friendly and affordable ways to communicate today. 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.

Recent News

On July 7, 2004, VoIP, Inc. announced that it plans to make a stock for stock exchange offer to acquire working control of Internet America, Inc. (OTCBB:GEEK).

VoIP, Inc. has aggressively pursued acquisitions in the IP Telephony space and on June 28, 2004, announced the finalization of the DTNet acquisition. Customers of DTNet include six of the top ten cable companies in the United States, National Cable Television Cooperative and Wide Open West. The customer base includes Time Warner Telecom (Nasdaq:TWTC), Cox (NYSE:COX), Comcast (Nasdaq:CMSA), CableVision (NYSE:CVC), and BrightHouse. VoIP, Inc subsidiaries include:

--eGlobalphone provides premium VoIP local and long distance calling capabilities to their customers from anywhere in the world utilizing their own existing home or office phone.

--VoIPSolutions manufactures customer premise equipment for indoor and outdoor wireless broadband solutions.

--DTNet Technologies is an industry leader in the design and installation of wireless communication networks including video surveillance over IP to a wide range of industry including small-medium businesses and enterprise and government clients. DTNet is also a primary supplier of cable and DSL/ADSL modems and other customer premise equipment for cable and DSL providers including many of the top cable providers in the U.S.

--Imax Solutions provides innovative engineering and manufacturing for its IP-based multimedia home and office networking products out of its facilities located in South Korea and China.

Further information on VoIP, Inc. can be obtained at its Web site: www.voipincorporated.com, or through its Edgar filings on the SEC's website at www.sec.gov/edgar/searchedgar/webusers.htm.

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.