Phonetime Inc.

Phonetime Inc.

April 04, 2007 08:00 ET

Phonetime Continues Increasing Revenue and Volumes

March '07 Sales Increase 400% from Prior Year - minutes exceed 200 million

MISSISSAUGA, ONTARIO--(CCNMatthews - April 4, 2007) - Phonetime Inc. (TSX VENTURE:PHD)(PINK SHEETS:PHOEF), Phonetime announced today that its revenue continues to rise each month and that March 2007 would exceed $7.0 million which is a 400% increase over March 2006. This is the fourth consecutive month of increased revenue and is the highest revenue of any single month in the Company's history. March was also the first month that the Company's volume of long distance traffic exceeded 200 million minutes.

Wayne Silver, President & CEO of Phonetime Inc. stated, "We are thrilled with the Company's planned improved performance in March. We hope to steadily grow our revenue and minutes by adding a number of new key customers and suppliers that will be connecting to our network over the next few months.

Rodney Franklin, Phonetime's Chairman added, "The benefit of Phonetime's new proprietary "Quality Based Routing and scalable software architecture" for our wholesale business, enables us to provide long distance routing based on the quality routes set by each customers expectations and our providers abilities on a real time basis. Together with our expanded network capacity and our commitment to our customers, this is providing us the ability to continue growing. Both Phonetime's wholesale and Call Select 1+ long distance companies achieved a record month for revenue and minutes. Our improved purchasing power and new high quality carriers are also helping Call Select achieve higher margins and improved customer satisfaction and our wholesale business is generating exciting growth."


Established in 1994, Phonetime is a leading Canadian supplier of International Long Distance telecommunication services. Phonetime Inc is publicly traded, listed on the Toronto Venture Exchange (TSX VENTURE:PHD). Licensed in Canada as a Class A International Carrier by the CRTC, Phonetime operates one of Canada's largest and most advanced private telecommunications networks in Canada. Phonetime has facilities in North America and Europe and Canada where it has 40 points-of-presence covering most major metropolitan areas, effectively offering on-net service to approximately 85% of Canada's population.

Phonetime's balanced portfolio of services includes retail products for individual consumers and businesses as well as wholesale long distance call delivery to large and small domestic and international carriers, offering both pre-paid and post-paid services. This balance enables Phonetime to maximize revenue from the utilization of available capacity and to minimize costs through volume.

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements within the meaning of securities laws, including the "safe harbour" provisions of the Ontario Securities Act and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook.

Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to Phonetime concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: incorrect assessments of value when making acquisitions; increases in debt service charges; fluctuations in foreign currency and exchange rates; inadequate insurance coverage; changes in tax laws; and Phonetime's ability to access external sources of debt and equity capital.

The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release, and Phonetime does not undertake any obligation to up-date publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The TSX Venture Exchange has neither approved nor disapproved the contents of the press release.

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