SOURCE: InteleCom, Inc.

October 31, 2007 12:11 ET

Sakal Group to Invest $5 Million With InteleCom, Inc. for Global Joint Venture

INDIANAPOLIS, IN--(Marketwire - October 31, 2007) - InteleCom, Inc. (PINKSHEETS: IECM) is pleased to announce that The Sakal Group will invest 5 million dollars with InteleCom, Inc. for a global joint venture to market the company's Internet phones and service in South East Asia, Central America and the Middle East. Sakal recently started sales of InteleCom's Travel InteleFone at its electronic stores and is committed to sell its current inventory of 21,000 phones prior to starting the joint venture. The details of Sakal's current sales efforts and plans were reported in Yediot Aharonot, Israel's largest newspaper.

"An additional 21,000 customers will produce revenues of over $400,000 per month, creating gross profit well in excess of InteleCom's current fixed costs and we are extremely excited to work with Sakal, one of the world's premiere retailers," stated John A. Roberts, Jr., Chairman and CEO of InteleCom, Inc.

With annual sales of more than $300 million, the Sakal Group is made up of eight companies and has exclusive agreements for the importation and marketing of many of the world's leading brands in clothing and electronics. 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.

InteleCom's Internet phones and service provide cost savings to customers worldwide, helping them save up to a dollar or more per minute on long distance and international calls when compared to their regular or cellular phone. InteleCom is able to provide all customers anywhere in the world the same low rates no matter what country the customer is calling from because the calls initially travel over the Internet, bypassing local and national calling systems in other countries.

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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