Yak Communications Inc.

Yak Communications Inc.

February 25, 2005 09:30 ET

Yak Communications Receives NASDAQ Marketplace Rule 4310 c 14 Letter


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: YAK COMMUNICATIONS INC.

NASDAQ SYMBOL: YAKC

FEBRUARY 25, 2005 - 09:30 ET

Yak Communications Receives NASDAQ Marketplace Rule
4310 c 14 Letter

MIAMI, FLORIDA and TORONTO, ONTARIO--(CCNMatthews - Feb. 25, 2004) - Yak
Communications Inc. (NASDAQ:YAKC), a provider of telecommunication
services to residential and business customers, received a letter from
The NASDAQ Stock Market on February 23, 2005 advising that it does not
comply with Marketplace Rule 4310(c)(14), which requires the Company to
provide NASDAQ with copies of all reports required to be filed with the
Securities and Exchange Commission (SEC). As a result, NASDAQ will
append the fifth character "E" to Yak's trading symbol as of the opening
of business on February 25, 2005.

As noted in Yak's Notification of Late Filing on Form 12b-25 filed with
the SEC on February 15, 2005, the Company has delayed the filing of its
Form 10-Q for the fiscal quarter ended December 31, 2004 due to a
continuing difference of opinion with its newly appointed auditors,
Deloitte & Touche LLP, regarding the accounting treatment related to the
complex accounting for the transaction of a software acquisition and
certain other tax matters, in which Yak may have used an incorrect
accounting treatment. These matters are in the active research and
consultation stage, and the Company's Audit Committee is attempting to
resolve this matter as quickly as possible.

Yak intends to request an appeal hearing before a NASDAQ Listing
Qualifications Panel to review the NASDAQ Staff's determination in
accordance with NASD Marketplace Rule 4800 Series. A hearing request
will stay the delisting of the Company's securities pending the Panel's
decision. The NASDAQ Hearings Department will determine the time and
place of such a hearing.

About Yak Communications Inc.

Yak Communications Inc. (the "Company") (NASDAQ:YAKC) 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.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Yak Communications, Inc.
    Larry Turel
    Investor Relations
    1-305-933-8322 ext 105
    larry@yak.com
    or
    The Anne McBride Company, Inc.
    Kathy Price
    Investor Relations
    1-212-983-1702 ext 212
    kprice@annemcbride.com