United American Corporation

United American Corporation

March 09, 2005 10:30 ET

United American Corporation Announces More Details About Proposed Spin-Off of its TeliPhone Inc. Subsidiary


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: UNITED AMERICAN CORPORATION

OTC Bulletin Board SYMBOL: UAMA

MARCH 9, 2005 - 10:30 ET

United American Corporation Announces More Details
About Proposed Spin-Off of its TeliPhone Inc.
Subsidiary

MONTREAL, QUEBEC--(CCNMatthews - March 9, 2005) -

UAMA shareholders to receive 1 share of Teliphone Inc. for every share
owned of United American Corp registered at the end of the business day
April 15th, 2005.

United American Corporation (NASD OTCBB:UAMA) is pleased to announce
details of its spin-off strategy of its wholly-owned Teliphone Inc.
subsidiary, to be executed once it has received shareholder approval.
Shareholders of UAMA stock as of the end of business day April 15, 2005
will receive 1 share in the new entity for every share of United
American Corp. Teliphone Inc. intends to then perform all appropriate
filing to register Teliphone Inc. with the United States Security and
Exchange Commission (SEC) in order to become an independent, publicly
traded company on a North American exchange. United American Corp. and
Teliphone Inc. are currently evaluating various financing proposals that
they will finalize in conjunction with the spin-off.

Benoit Laliberte, Chairman and Chief Executive Officer of United
American Corporation adds: "Teliphone Inc. has realized key milestones
in building its subscription and partnership base and is well positioned
to take advantage of the explosive growth in the Voice over Internet
Protocol (VoIP) industry over the next few years. The telecommunications
sector is currently going through a revolution of change, and Teliphone
Inc. is establishing itself as a major player in the market. By spinning
off the company, the market will be able to properly ascertain its value
and provide Teliphone Inc. management additional tools needed to execute
their business plan in a more effective manner."

The spin-off of Teliphone Inc. is directly in line with management's
objectives for United American as a holding and management company. Mr.
Laliberte adds: "Our mission is to incubate companies in the VoIP space
and to spin them off as they become viable on their own. Teliphone Inc.
is a perfect example of the successful execution of this strategy".
United American Telecom, another wholly owned subsidiary is another
example of a VoIP company in the early stage of its development. Its
CaribbeanONE termination switch is now fully operational, permitting the
company to begin to build the necessary billing infrastructures to
expand its business.

Shareholders of United American Corp. will continuously be rewarded with
these types of property dividends as the company continues to innovate
in this highly dynamic VoIP marketplace.

More details will be passed on to shareholders as new information
becomes available.

About TeliPhone, Inc

Teliphone Inc. is a leading Voice over Internet Protocol (VoIP)
telecommunications company offering next generation wireless and
wireline internet communications solutions. Teliphone subscribers pay a
monthly fee to make calls from various handheld devices to any phone
number in the world. Teliphone offers its subscribers value-added
services that simplify the way they communicate, through our Single
Point of Contact, Teliphone, TeliphoneLine and iPCS services. Teliphone
was one of the first companies to offer VoIP and Cellular "dual-mode"
services to its subscribers, offering a fully-integrated and web-based
billing structure and innovative unlimited long distance packages. With
a preliminary focus on the consumer/Small Office Home Office (SOHO)
markets, Teliphone is also the infrastructure of choice for consumers
and businesses throughout the world through its private-label
distribution partners. Teliphone Inc. operates its own Main CO (Central
Office) in Montreal, Canada where all worldwide teliphoneTM devices are
controlled, thus giving the company the advantage of centralized
operations and cost reductions. The company has also established a CO in
Manhattan, USA. For more information, visit the company website at
www.teliphone.us.

About United American Corporation

United American Corporation is a holding and management company of next
generation Voice over Internet Protocol (VoIP) based telecommunication
Company. The organization currently has five subsidiaries. Each
subsidiary operates in a specific niche market in a fast growing global
worldwide IP-based telephony network. The company has created a network,
which provides services from local IP-based telecommunication to
international telecommunication carriers. TeliphoneTM, Inc operates
sophisticated extended local communication VoIP central office, while
United American Telecom, Inc operates CaribbeanONE™, a
state-of-the-art International telecommunication route & gateway. For
more information, visit the company website at
www.unitedamericancorp.com.


This news release contains forward-looking statements that are subject
to various risks and uncertainties. The Company's actual results could
differ materially from those anticipated in such forward-looking
statements as a result of numerous factors that may be beyond the
Company's control. Forward-looking statements are based on the
expectations and opinions of the Company's management on the date the
statements are made, and the Company assumes no obligation to update
forward-looking statements should circumstances in management's
expectations or opinions change.

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