SOURCE: InteleCom, Inc.

September 10, 2007 08:31 ET

InteleCom, Inc. Signs Global Distribution Agreement With the Sakal Group, Israel's Largest Privately Owned Retail Chain

INDIANAPOLIS, IN--(Marketwire - September 10, 2007) - InteleCom, Inc. (PINKSHEETS: IECM) is pleased to announce that the Company has signed a global sales and distribution agreement with the Sakal Group, Israel's largest privately owned retail chain. The agreement 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 InteleCom 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. This Joint Venture will market InteleCom's products and services through Sakal's numerous sales affiliates in other countries around the world.

With annual sales of more than $300 million, the Sakal Group is made up of six companies: Sakal Hi-Tech, Sakal Duty-Free, Sakal Sports, Super Brand, Sakal Brothers and Layam, 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.

"This agreement with the Sakal Group is another step in our distribution strategy to provide our VoIP phones to customers worldwide. We are very pleased to be working with a company that is a true leader in the Retail Industry and we look forward to following through with the second stage of our agreement as soon as possible," stated John A. Roberts, Jr., CEO and Chairman of InteleCom, Inc.

InteleCom previously announced that the Company has developed a unique seamless Operations Support System (OSS) to monitor, control, analyze, and manage all customer data. This world class OSS Platform seamlessly manages all automated customer functions, including online order processing, account provisioning, worldwide fulfillment and global shipping, customer care and email communications, billing and collections. The System also provides instant remote retail phone activation anywhere in the world through a web portal.

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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