SOURCE: Flint Telecom Group, Inc.

Flint Telecom Group, Inc.

August 11, 2011 10:36 ET

Flint Telecom Extends Planned Closing Dates for VoIP Provider Acquisitions

OVERLAND PARK, KS--(Marketwire - Aug 11, 2011) - Flint Telecom Group Inc. (http://www.flinttelecomgroup.com) (OTCBB: FLTT), an international telecoms technology and services organization, today updates shareholders on the status of previously announced letters of intent to acquire U.S. based VoIP service providers that it has extended the planned closing dates for two of the three transactions. Due diligence on the third potential acquisition will continue on a non-exclusive basis.

Flint management has taken this decision with the agreement of the parties involved to allow Flint progress ongoing negotiations with potential debt providers for the transactions in order to avoid using equity as the sole funding source given recently low share prices that would not be beneficial to shareholders at this time.

On June 16, 2011, Flint updated shareholders on the previously announced letters of intent to acquire three regional VoIP and telecom service providers with current annual revenues in excess of $2 million, $1.5 million and $3 million per year respectively. All of the planned acquisitions have existing customers, sustained revenue streams and positive net income from delivering next generation VoIP and data services to small and medium sized enterprises within the United States.

When ultimately completed, the three acquisitions would be immediately revenue and gross margin enhancing to Flint with net income of approximately 10%. Once fully consolidated, Flint management expects that the operating costs will be further reduced due to shared common services and network cost reductions that will deliver higher net incomes than are generated individually. Details of each transaction will be announced as definitive agreements are completed.

Vincent Browne, Chairman and Chief Executive of Flint Telecom Group, said, "We have structured these acquisitions to make them as cash neutral as possible with some cash at closing, deferred cash payments with stock and performance related earn-out elements. However, our recent share price means we would have to issue more shares than we had originally planned to complete these transactions within expected timeframes so we have opted to extend the closing dates where possible, to allow us continue our discussions with both existing and new debt holders and to review the share price moving forward in order to minimize the dilution to existing shareholders. We do not believe that existing shareholders would be best served at these levels. We will continue our negotiations with the acquisitions, and new funding providers to enable us close the transactions as soon as it is more economical to do so and will update existing and potential shareholders as we progress these discussions."

About Flint Telecom Group, Inc.
Flint Telecom Group Inc. is an international telecoms technology organization with a portfolio of companies that deliver VoIP and wireless communications and prepaid financial products and services globally. Headquartered in Overland Park, Kansas with offices throughout the US, India and Ireland, Flint Telecom Group is a fully reporting company trading on the OTC Bulletin Board® (OTCBB) under the ticker symbol: FLTT.OB. Flint Telecom ranked number 72 in the 2010 Deloitte Technology Fast 500™, Deloitte's ranking of 500 of the fastest growing technology, media, telecommunications, life sciences and clean technology companies in North America. Flint Telecom was founded by a team of telecom and technology experts with a proven track in building and maintaining international technology companies. Additional information may be found at www.flinttelecomgroup.com

This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

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