SOURCE: InteleCom, Inc.

September 26, 2007 12:33 ET

InteleCom, Inc. Announces JV Partner to Start Phone Sales Through Israel's Leading Electronics Store

INDIANAPOLIS, IN--(Marketwire - September 26, 2007) - InteleCom, Inc. (PINKSHEETS: IECM) is pleased to announce that the Company's joint venture partner, the Sakal Group, will start selling their Internet Travel Phones the second week of October at its duty free electronic store at the Tel Aviv Airport in Israel. InteleCom recently signed an agreement with the Sakal Group, the largest privately owned retail chain in Israel. The Sakal Duty Free Electronic Store is the leader in the sale of electronic products in all of Israel and sold a record $1,000,000 in one day.

With annual sales of more than $300 million, the Sakal Group is made up of eight companies: Sakal Duty-Free, Sakal Sports, Super Brand, Sakal Brothers and Layam, Planet A, Ltd, SBN, Ltd, Sakal Stern Watches, Ltd and Sakal On-Line. The Sakal Group has exclusive agreements for the importation and marketing of numerous leading brands from around the world. Established in 1979 by the Sakal Brothers, the Sakal Group operates 80 retail stores throughout Israel, duty-free shops in the airports and seaports, and about 800 wholesale points-of-sale.

The agreement between the companies is comprised of two stages; the first stage of the agreement will enable the Sakal Group to sell and distribute their current inventory of 21,000 VoIP phones through their Duty-Free Shops. The second stage of the agreement provides for the creation of a Joint Venture between InteleCom and Sakal to market InteleCom's products and services through Sakal's numerous sales affiliates in other countries around the world.

"We are very excited that Sakal Duty-Free will start selling the initial inventory of 21,000 phones within weeks of signing our agreement and that Sakal is already working on additional International sales channels for the Joint Venture company. The Travel Phone and InteleCom's service provides considerable savings and is ideal for travelers worldwide, whether they are on the road or back home," stated W. Michael Connor, President and COO of InteleCom, Inc.

About InteleCom, Inc.:

InteleCom, Inc. has provided and marketed universally desirable, highly competitive telecommunication and Internet products and services worldwide since 1997. InteleCom's Internet phone service branded InteleFone is rated at the highest level for voice quality and clarity because the voice compression is processed through DSP chips located in the Internet phones and adapters. InteleCom's all encompassing vertically integrated VoIP service enterprise has entered the marketplace as a major global force and already has distributors and customers in over 120 countries around the world.

Statements contained in this news release, other than those identifying historical facts, constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company's future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbor protection. Actual Company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements.

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