Phonetime Inc.
TSX : PHD

Phonetime Inc.

April 01, 2010 12:30 ET

Phonetime Announces Delay in Filing of Annual Financial Statements

MISSISSAUGA, ONTARIO--(Marketwire - April 1, 2010) - Phonetime Inc. (TSX:PHD) today announced that it will be late in filing its audited annual financial statements for the year ended December 31, 2009, its management's discussion and analysis relating to the Annual Financial Statements, and its annual information form (collectively, the "Required Filings") on or before the prescribed deadline of March 31, 2010.

The Company made an application with the applicable securities regulators under National Policy 12-203 requesting that a management cease trade order be imposed in respect of this late filing but there is no assurance that it will be granted. The Company was unable to file the Required Filings within the prescribed time due to delays resulting from the preparation of restated financial statements and related management's discussions and analysis in respect of prior financial periods (as previously announced by the Company in its Press Release of February 9, 2010), and certain changes in its internal accounting staff and processes. The Company's management is diligently working through the various issues in order to expedite the finalization of the Required filings, and the Company expects to file the Required Filings on or before May 31, 2010.

The Company confirms that it will satisfy the provisions of the alternative information guidelines under National Policy 12-203 by issuing bi-weekly default status reports in the form of news releases so long as it remains in default of the filing requirements set out above. The Company is not subject to any insolvency proceedings at the present time and there is no other material information relating to the affairs of the Company that has not been generally disclosed.

About Phonetime Inc.

Established in 1994, Phonetime is a leading supplier of international wholesale and retail long distance telecommunications services with network facilities in Canada, the U.S., Europe, Africa and Asia. Through its Wholesale Division, Phonetime buys and resells long-distance services to major telephone carriers around the world using its proprietary call trading platform. Through its Consumer Division, Phonetime provides subscription-based long distance services to targeted ethnic consumers across Canada and competitively markets a range of 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, www.phonetime.com.

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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