Yak Communications Inc.

Yak Communications Inc.

March 30, 2005 18:00 ET

Yak Communications Presents Written Submission to the Office of the Chief Accountant of the SEC Seeking Guidance on Accounting Issues; Changes Audit Firm


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: YAK COMMUNICATIONS INC.

NASDAQ SYMBOL: YAKCE

MARCH 30, 2005 - 18:00 ET

Yak Communications Presents Written Submission to the
Office of the Chief Accountant of the SEC Seeking
Guidance on Accounting Issues; Changes Audit Firm

MIAMI, FLORIDA and TORONTO, ONTARIO--(CCNMatthews - March 30, 2005) -
Yak Communications Inc. (NASDAQ:YAKCE), announced that it has presented
a written submission to the Office of the Accountant ("OCA") of the U.S.
Securities and Exchange Commission seeking guidance with respect to the
accounting issues that have delayed the filing of its Quarterly Report
on Form 10-Q for the quarter ending December 31, 2004.

The issues involve the application of certain accounting treatments in
connection with a software acquisition transaction. In the written
submission, Yak states that it believes its historical accounting
treatment of the transaction is appropriate. Nevertheless, due to the
judgments involved in the applicable accounting analysis, the Company,
in consultation with its Audit Committee, has decided to obtain the
opinion of the OCA on the Company's analysis and conclusions.

"Yak decided to seek the guidance of the OCA in resolving this
accounting matter because it has impeded the Company's ability to report
financial results in a timely and accurate manner," said Charles
Zwebner, Chairman and CEO. "We believe that we have adhered to the
highest standards in financial reporting, and therefore, do not expect
any changes to our historical financial statement to result in any
material difference in the trends of our business."

Mr. Zwebner concluded, "The outlook for Yak remains positive. We
continue to be well positioned for strong growth in 2005 in both our
traditional telephony products in Canada and the U.S., as well as in our
voice over high speed internet (VoIP) offerings in Canada, the US and
worldwide."

The question of appropriate accounting treatment arose following the
engagement of Deloitte & Touche, LLP ("Deloitte") as the Company's new
independent auditor on January 28, 2005. Yak was unable to attain
resolution on the accounting matter between Deloitte and Horwath
Orenstein LLP ("Horwath"), the Company's former auditor. Therefore, the
Company decided to seek guidance from the OCA in order to prepare and
file its Quarterly Report on Form 10-Q for the quarter ended December
31, 2004 and come into compliance with the reporting requirements of the
Securities Exchange Act of 1934. On March 25, 2005, Deloitte advised
that it was resigning from the engagement.

Yak is negotiating to re-engage Horwath as its independent auditor.

About Yak Communications Inc.

Yak Communications Inc. (the "Company") (NASDAQ: YAKCE) is an Integrated
Communications Provider (ICP) offering a full array of long distance
(1+, toll free and dial-around), local lines, travel cards, cellular
long distance, data services, and broadband voice (VoIP) to residential
and small businesses in North America over high speed internet access.
Yak currently serves approximately 860,000 customers for its traditional
telecom services. For more information, visit http://www.yak.com.

Forward Looking Statements:

Statements contained in this news release, which are not strictly
historical, are forward looking within the meaning of the safe harbor
clause of the Private Securities Litigation Reform Act of 1995. The
Company makes these statements based on information available to it as
of the date of this news release and assumes no responsibility to update
or revise such forward-looking statements.

Editors and investors are cautioned that forward-looking statements
invoke risk and uncertainties that may cause the Company's actual
results to differ materially from such forward-looking statements.

Words such as "projects", "believe", "anticipates", "estimate", "plans",
"expect", "intends", and similar words and expressions are intended to
identify forward-looking statements and are based on our current
expectations, assumptions, and estimates about us and our industry. In
addition, any statements that refer to expectations, projections or
other characterizations of future events or circumstances are
forward-looking statements. Although the Company believes that such
forward-looking statements are reasonable, we cannot assure you that
such expectations will prove to be correct. Our actual results could
differ materially from those anticipated in such forward-looking
statements as a result of several factors, risks and uncertainties.
These factors, risks and uncertainties include, without limitation, the
Company's success in integrating the operations of its newly-acquired
businesses, and associated reduction in costs, the successful
implementation of its business plans including growth of existing
product offerings, strategic acquisitions and development of broadband
telephony products, the successful integration of new management team
members, continued and increased demand for its services, the successful
deployment of new equipment and realization of material savings there
from, competition from larger and/or more experienced telecommunications
providers, its ability to continue to develop its markets, general
economic conditions, changes in governmental regulation, and other
factors that may be more fully described in the Company's literature and
periodic filings with the Securities and Exchange Commission. You are
urged to carefully review and consider these disclosures, which describe
certain factors that affect our business.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Yak Communications, Inc.
    Larry Turel
    Investor Relations
    (305) 933-8322 ext. 105
    larry@yak.com
    or
    The Anne McBride Company, Inc.
    Kathy Price
    Investor Relations
    (212) 983-1702, x212
    or
    S&S Public Relations, Inc.
    Heather Kelly
    1-847-955-0700
    heather@sspr.com