Phonetime Inc.

Phonetime Inc.

April 07, 2010 09:07 ET

Phonetime Announces a Change in Management and a Strengthening of Its Board of Directors-Gary Clifford, Chairman, Appointed Interim Chief Executive Officer

MISSISSAUGA, ONTARIO--(Marketwire - April 7, 2010) - Phonetime Inc. (TSX:PHD) The Board of Directors of Phonetime announced changes in management and board of directors.

Management Changes

Effective immediately, Phonetime's Chairman, Gary Clifford, will assume the role of Interim Chief Executive Officer. Gary is a managing director with Penfold Capital Corporation; he is well regarded as a Telecommunications executive, restructuring specialist and deal maker. Gary has worked with a number of telecommunications operators including Primus, Startec, and Yak. As lead independent director, Gary oversaw the sale of Yak to Globalive in 2006. Gary is also a Chartered Accountant and holds a Certificate of Director Education with the National Association of Corporate Directors.

Mr. Clifford replaces Wayne Silver as Interim CEO. Mr. Silver, Co-founder of Phonetime, is leaving the Company effective immediately, however he will continue to serve on the Board of Directors. As previously announced, Rodney Franklin, Co-founder and CFO is stepping down and will be assisting the Company with a transition. Mr. Franklin will also continue to serve on Phonetime's Board of Directors.

Trevor Dearman, Torge Dennen and Michael Vazquez will continue to oversee and manage the Wholesale business unit at Phonetime. Trevor and Torge joined Phonetime in 2007 when they sold their telecom business, Symphony Holdings, Inc., to Phonetime. Michael joined Phonetime when the Company entered the Wholesale business in 2006.

Stan Cohen will continue to oversee CallSelect, the Company's retail business, and Fred Panet will continue to oversee the Phonetime's calling card business.

Charlie Belfiore and Steve Walsh, each of whom is a chartered accountant, will oversee Phonetime's accounting as the Company looks to become current with its public filings and completes a search for a new Chief Financial Officer.

Since 1994, Wayne Silver and Rodney Franklin have built Phonetime into a world class global telecommunications company which sells services in more than 150 countries with annual revenues in excess of $170,000,000. "This is an impressive accomplishment and now is a natural time to transition to the next generation of managers. Wayne and Rodney remain significant shareholders in the Company", said Gary Clifford, Interim Chief Executive Officer and Chairman.

"Phonetime has a strong management team and operating business units. The Company was not sufficiently capitalized for the growth experienced over the last three years; this has put pressure on the liquidity and internal processes at the Company. We look forward to significant improvements to both of these critical success factors." said Gary Clifford, newly appointed Interim Chief Executive Officer and Chairman.

The Company also announced that it expects to file its restated financial statements for 2009, as well as restated financial statements for 2008 and 2007, by May 15th, 2010.

Strengthening of Board of Directors

Mr. Salil Munjal, a seasoned senior business executive and corporate lawyer will join the Board of Directors and assume the role of Lead Independent Director and Chair of the Audit Committee, effective immediately. "I would like to thank Salil for joining the Board of Directors and welcome his depth of understanding of business, governance and turnaround experience", said Gary Clifford, Interim Chief Executive Officer and Chairman.

About Phonetime Inc.

Established in 1994, Phonetime is an international telecommunications wholesale carrier. Through its Wholesale Division, Phonetime provides long-distance services to major telephone carriers around the world. Through its Retail Divisions, Phonetime provides subscription-based long distance services to targeted ethnic consumers across Canada and competitively markets a range of pre-paid long distance phone cards. Phonetime's common shares trade on the Toronto Stock Exchange under the symbol PHD. More information can be found at the Company's website,

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time.

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