CALLFREE TELECOM COMMUNICATIONS CORP
SB-2, 1999-08-05
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                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    FORM SB-2
             REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

                      CALLFREE TELECOM COMMUNICATIONS CORP.
                 (Name of Small Business issuer in its Charter)
           New York                      4813                     11-3436237
 -------------------------     ----------------------------     ---------------
 (State or Jurisdiction of     (Primary Standard Industrial     I.R.S. Employer
Incorporation or organization    Classification Code No.      Identification No.

                 400 Perimeter Center Terrace, Atlanta, GA 30346
                                 (770) 352-0162
           ------------------------------------------------------------
          (Address and Telephone Number of Principal Executive Offices)

                 400 Perimeter Center Terrace, Atlanta, GA 30346
                                 (770) 352-0162
               ---------------------------------------------------
               (Address of principal place of business or intended
                          principal place of business)

                                  Stuart Radin
                               1116 Neilson Street
                          Far Rockaway, New York 11691
                                 (718) 868-0383
            (Name, Address and Telephone Number of Agent for Service)

Approximate  date of proposed sale to the public:  As soon as practicable  after
the effective date of this Registration Statement.

If this Form is filed to register additional securities for an offering pursuant
to Rule 462(b) under the Securities Act, please check the following box and list
the  Securities  Act  registration  statement  number of the  earlier  effective
registration statement for the same offering |_| ____

If this Form is a post effective  amendment  filed pursuant to Rule 462(c) under
the Securities  Act,  please check the following box and list the Securities Act
registration  statement number of the earlier effective  registration  statement
for the same offering |_| ___________

If this Form is a post effective  amendment  filed pursuant to Rule 462(d) under
the Securities  Act,  please check the following box and list the Securities Act
registration  statement number of the earlier effective  registration  statement
for the same offering |_| ___________

If delivery  of the  prospectus  is  expected  to be made  pursuant to Rule 434,
please check the following box |_| ___________
<TABLE>
<CAPTION>

                                                   CALCULATION OF REGISTRATION FEE
===================================================================================================================================
Title of Each Class of Securities    Amount to be      Proposed Maximum Offering   Maximum Aggregate Offering    Amount of
to be Registered                     Registered        Price per Unit (1)          Price (1)                     Registration Fee
===================================================================================================================================
<S>                                    <C>                <C>                      <C>                             <C>
Units each consisting of one share     500,000            $6.00                    $ 3,000,000                     $  909
of Common Stock $.001 par value,
one Class A Warrant and one Class
B Warrant
- -----------------------------------------------------------------------------------------------------------------------------------
Common Stock $.001 par value (2)       500,000            $8.00                    $ 4,000,000                     $1,212
- -----------------------------------------------------------------------------------------------------------------------------------
Common Stock $.001 par value (3)       500,000            $7.00                    $ 3,500,000                     $1,061
- -----------------------------------------------------------------------------------------------------------------------------------
Total                                                                              $10,500,000                     $3,182
===================================================================================================================================
</TABLE>
(1) Estimated  solely for the purpose of calculating  the  registration  fee (2)
Issuable upon exercise of the Class A Warrants (3) Issuable upon exercise of the
Class B Warrants


<PAGE>




                      CALLFREE TELECOM COMMUNICATIONS CORP.

Cross-Reference  Sheet  pursuant  to  Item  501(b)  of  Regulation  S-K  between
Registration Statement (Form SB-2) and Form of Prospectus.

Item Number and Caption                                 Caption in Prospectus
- -----------------------                                 ---------------------
1.  Front of Registration Statement and Outside         Cover Page-Inside Front
    Front Cover Page of Prospectus                      Cover page-Back Cover

2.  Inside Front and Outside Back                       Inside Front Cover Page
    Cover Pages of Prospectus                           Back Cover page

2.  Summary Information and Risk Factors                Summary of Prospectus
                                                        Risk Factors

4.  Use of Proceeds                                     Use of Proceeds

5.  Determination of Offering Price                     Cover Page;
                                                        Description of Shares

6.  Dilution                                            Dilution

7.  Selling Security Holders                            Not Applicable

8.  Plan of Distribution                                Cover Page; Inside
                                                        Cover Page; Offering

9.  Legal Proceedings                                   Litigation

10. Directors, Executive Officers                       Management
    Promoters and Control Persons

11. Security Ownership of Certain                       Principal Shareholders
    Beneficial Owners and Management

12. Description of Securities                           Offering; Description of
                                                        Shares

13.  Interest of Named Experts and Counsel              Legal Matters


14. Disclosure of Commission Position                   Indemnification
    on Indemnification for Securities Act

15. Organization Within Last Five Years                 Certain Transactions

16. Description of Business                             Business of the Company

17. Management's Discussion and                         Business of the Company
    Analysis of Plan of Operation

18. Description of Property                             Business of the Company

19. Certain Relationships and                           Certain Transactions
    Related Transactions

                                        i



<PAGE>







20. Market for Common Equity and                      Risk Factors
    Related Stockholder Matters

21. Executive Compensation                            Management-Remuneration

22. Financial Statements                              Financial Statements

23. Changes in and Disagreements with                 Not Applicable
    Accounts on Accounting and
    Financial Disclosures












































                                       ii


<PAGE>



                      CALLFREE TELECOM COMMUNICATIONS CORP.
                            (A New York Corporation)
                              Minimum 200,000 Units
                              Maximum 500,000 Units

                          Offering Price $6.00 Per Unit

Callfree Telecom Communications Corp. (the "Company") hereby offers a minimum of
200,000 and a maximum of 500,000  Units  ("Units")  each Unit  consisting of one
share of the  Company's  common stock (the "Common  Stock" or "Shares")  and two
common stock  purchase  warrants  ("Warrants"),  designated  "A Warrants" and "B
Warrants".  Each of the A Warrants  entitles  the  registered  holder  hereof to
purchase  one  share  of the  Common  Stock  at a price  of  $8.00,  subject  to
adjustment  in  certain  circumstances  at any time  after the  Warrants  become
separately tradeable, until 12 months from the date of this Prospectus.  Each of
the B Warrants  entitles the registered  holder thereof to purchase one share of
the  Common  Stock  at a price  of  $7.00,  subject  to  adjustment  in  certain
circumstances,  at any time after the  exercise of the A Warrant  related to the
Units until 24 months from the date of this Prospectus. The Common Stock and the
Warrants included in the Units will not be separately transferable until 90 days
after  the date of this  Prospectus  or such  earlier  date as the  Company  may
determine. See "Description of Securities".

THE SHARES OFFERED HEREBY INVOLVE A HIGH DEGREE OF RISK AND SUBSTANTIAL DILUTION
TO THE  POTENTIAL  INVESTORS  AND SHOULD BE  PURCHASED  ONLY BY PERSONS  WHO CAN
AFFORD TO LOSE THEIR ENTIRE INVESTMENT. (SEE "RISK FACTORS" AND "DILUTION.")

PRIOR TO THIS  OFFERING,  THERE HAS BEEN NO PUBLIC  MARKET FOR THE SHARES OF THE
COMPANY,  AND  THERE  CAN BE NO  ASSURANCE  THAT A  PUBLIC  MARKET  WILL  RESULT
FOLLOWING THE SALE OF THE SHARES  OFFERED  HEREBY OR THAT THE SHARES CAN BE SOLD
AT OR NEAR THE OFFERING  PRICE, OR AT ALL. THE INITIAL PUBLIC OFFERING PRICE HAS
BEEN  ARBITRARILY  DETERMINED  BY  THE  COMPANY  BASED  UPON  WHAT  IT  BELIEVES
PURCHASERS OF SUCH SPECULATIVE ISSUES WOULD BE WILLING TO PAY FOR THE SECURITIES
OF THE COMPANY AND BEARS NO RELATIONSHIP  WHATSOEVER TO ASSETS,  EARNINGS,  BOOK
VALUE OR ANY OTHER ESTABLISHED CRITERIA OF VALUE.

THE  SECURITIES  HAVE NOT BEEN APPROVED OR  DISAPPROVED  BY THE  SECURITIES  AND
EXCHANGE  COMMISSION  OR THE  SECURITIES  DIVISION  OF ANY  STATE,  NOR  HAS THE
COMMISSION OR ANY STATE PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

THE SHARES  AND  WARRANTS  ARE  OFFERED BY THE  COMPANY  SUBJECT TO PRIOR  SALE,
ACCEPTANCE  OF THE  SUBSCRIPTIONS  BY THE COMPANY AND APPROVAL OF CERTAIN  LEGAL
MATTERS BY COUNSEL TO THE COMPANY.

OFFEREES  AND  SUBSCRIBERS  ARE  URGED TO READ  THIS  PROSPECTUS  CAREFULLY  AND
THOROUGHLY.

- --------------------------------------------------------------------
                                     Underwriter     Proceeds to the
                     Price (1)       Commissions      Company (2)(3)
- --------------------------------------------------------------------
Price Per Unit     $     6.00      $      .60          $     5.40
Aggregate
Subscription:
 (200,000 Units
 Minimum)          $1,200,000      $  120,000          $1,080,000
 (500,000 Units
 Maximum)          $3,000,000      $  300,000          $2,700,000
- --------------------------------------------------------------------

                 The date of this Prospectus is August 2, 1999.

                                       iii


<PAGE>



     1. The offering price of $6.00 per Unit has been arbitrarily  determined by
the Company. The price per Unit was selected because the Company believes it can
sell the Units at that  price.  The price  has no  relation  to the value of the
Company or its assets, or any other established criteria of value. The Units are
offered for cash or check only and must be accompanied  by a properly  completed
and executed subscription agreement. (See "OFFERING.")

     A  minimum  of  200,000  Units  are  being  offered  on  a  "best  efforts,
all-or-none"  basis and an  additional  300,000  Units are  being  offered  on a
"best-efforts"  basis by the  Company on the terms  described  herein  under the
caption  "Offering".  There is no assurance that any or all of the Units will be
sold.  The Offering will commence on the effective  date of this  Prospectus and
continue  for a  period  of 90  days,  unless  extended  by the  Company  for an
additional  90 days,  or until  completion  of the  Offering,  whichever  occurs
sooner.  All funds  received in this Offering will be held in escrow by American
Securities Transfer & Trust, Inc., 1825 Lawrence Street, Denver, Colorado 80201,
until a minimum of $1,200,000 has been received,  at which time such sum will be
paid to the Company.  Thereafter, all funds received by the escrow agent will be
immediately  paid to the Company until a maximum of $3,000,000 has been received
or the  Offering  period  expires,  whichever  first  occurs.  If a  minimum  of
$1,200,000 is not received by the expiration of the offering  period,  all funds
will promptly be returned to  subscribers  without  interest or deduction.  (See
"OFFERING" and "UNDERWRITING.")

     2. The Company has engaged the services of Boe & Company,  3668 So.  Jasper
St.,  Aurora,  CO  80013,  an  Underwriter  who  is a  member  of  the  National
Association of Securities Dealers, Inc. (NASD) as its agent to sell the Units to
the public,  and will agree to pay sales  commissions  equal to 10% of the gross
sales price of the Units to said  broker-dealer  for any Units they may sell. No
sales  commissions  will be paid  unless a minimum  of  200,000  Units have been
subscribed and paid for. For purposes of estimating net proceeds,  it is assumed
the full 10% commission will be paid on all 500,000 Units.

     3.  Before  deduction  for  filing,  printing  and  miscellaneous  expenses
relating to this  Offering,  estimated  at $5,000;  legal and  accounting  fees,
estimated at $35,000; a possible  nonaccountable  expense allowance,  payable to
the  Underwriter  in an amount  equal to 3% of the sales  price per Unit,  or an
aggregate total of $36,000 (minimum offering) or $90,000 (maximum offering),  to
be paid by the Company out of the proceeds of this Offering.

     THE  DELIVERY  OF THIS  PROSPECTUS  AT ANY  TIME  DOES NOT  IMPLY  THAT THE
INFORMATION  CONTAINED  HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO ITS DATE.
NO PERSON IS AUTHORIZED TO GIVE ANY  INFORMATION  OR TO MAKE ANY  REPRESENTATION
NOT CONTAINED IN THIS  PROSPECTUS  AND, IF GIVEN OR MADE,  SUCH  INFORMATION  OR
REPRESENTATION  MUST  NOT  BE  RELIED  UPON  AS  HAVING  BEEN  AUTHORIZED.  THIS
PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR THE  SOLICITATION OF AN OFFER
TO SELL ANY  SECURITIES  TO ANY PERSON IN ANY  JURISDICTION  WHERE SUCH OFFER OR
SOLICITATION WOULD BE UNLAWFUL.

     THE  COMPANY  HAS THE  RIGHT,  IN ITS SOLE  DISCRETION  TO ACCEPT OR REJECT
SUBSCRIPTIONS IN WHOLE OR IN PART, FOR ANY REASON OR FOR NO REASON.

     THE COMPANY HAS TAKEN NO STEPS TO CREATE AN AFTERMARKET FOR THE COMMON
STOCK OFFERED HEREBY AND HAS MADE NO ARRANGEMENTS WITH BROKERS OR OTHERS TO
TRADE OR MAKE A MARKET IN THE COMMON STOCK. AT SOME TIME IN THE FUTURE, THE

                                       iv


<PAGE>



COMPANY MAY ATTEMPT TO ARRANGE FOR INTERESTED  BROKERS TO TRADE OR MAKE A MARKET
IN THE  COMMON  STOCK AND TO QUOTE THE  COMMON  STOCK IN A  PUBLISHED  QUOTATION
MEDIUM.  HOWEVER,  NO SUCH  ARRANGEMENTS  HAVE  BEEN  COMMENCED  AND THERE IS NO
ASSURANCE  THAT ANY BROKERS  WILL EVER HAVE SUCH AN INTEREST IN THE COMMON STOCK
OR THAT THERE EVER WILL BE A MARKET THEREFOR.

     THE COMPANY WILL PROVIDE AUDITED FINANCIAL STATEMENTS TO ITS
SHAREHOLDERS ON AN ANNUAL BASIS AND WILL PROVIDE UNAUDITED FINANCIAL
STATEMENTS ON A QUARTERLY BASIS.

     UNTIL_____________________,  ALL  DEALERS  EFFECTING  TRANSACTIONS  IN  THE
REGISTERED SECURITIES, WHETHER OR NOT PARTICIPATING IN THIS DISTRIBUTION, MAY BE
REQUIRED  TO DELIVER A  PROSPECTUS.  THIS IS IN ADDITION  TO THE  OBLIGATION  OF
DEALERS TO DELIVER A PROSPECTUS WHEN ACTING AS UNDERWRITERS  AND WITH RESPECT TO
THEIR UNSOLD ALLOTMENTS OR SUBSCRIPTIONS.

     SUBSEQUENT  TO THE  COMPLETION  OF THIS  OFFERING,  THE COMPANY WILL BECOME
SUBJECT TO THE  INFORMATIONAL  REQUIREMENTS  OF THE  SECURITIES  EXCHANGE ACT OF
1934,  AND IN ACCORDANCE  THEREWITH,  WILL BE REQUIRED TO FILE REPORTS AND OTHER
INFORMATION  WITH THE  SECURITIES  AND  EXCHANGE  COMMISSION.  SUCH  REPORTS AND
INFORMATION  CAN BE  INSPECTED  AND  COPIED AT THE PUBLIC  REFERENCE  FACILITIES
MAINTAINED BY THE COMMISSION AT 450 FIFTH STREET, N.W.,  WASHINGTON,  D.C. 20549
AND COPIES OF SUCH MATERIAL CAN BE OBTAINED FROM THE PUBLIC REFERENCE SECTION OF
THE  COMMISSION,  450 FIFTH STREET,  N.W.  WASHINGTON,  D.C. 20549 AT PRESCRIBED
RATES.  THE COMPANY  INTENDS TO FURNISH  ITS  SHAREHOLDERS  WITH ANNUAL  REPORTS
CONTAINING  AUDITED  FINANCIAL   STATEMENTS  AND  WITH  ADDITIONAL   INFORMATION
CONCERNING THE BUSINESS  AFFAIRS OF THE COMPANY  WHEREVER DEEMED  APPROPRIATE BY
ITS BOARD OF DIRECTORS.



























                                        v


<PAGE>



                                TABLE OF CONTENTS
                                                                       PAGE

SUMMARY OF PROSPECTUS                                                    1
The Company                                                              1
The Offering                                                             1
RISK FACTORS                                                             2
     Start-up Company                                                    2
     High Risk                                                           2
     Reliance On Outside Financing                                       2
     Dependence on Additional Financing;
          Risk of Unavailability                                         2
     Reliance Upon Officers and Directors                                3
     Dependence on Key Employees                                         3
     Control of the Company                                              3
     Benefit to Present Shareholders                                     3
     Dilution; Excessive Burden of Risk                                  3
     Possible Rule 144 Sales                                             4
     Competition                                                         4
     Insurance; Indemnification                                          4
     No Cash Dividends Paid                                              5
     Arbitrary Determination of Offering Price                           5
     No Present Market for Securities                                    5
     Compliance with "Penny Stock" Rules                                 5
     Issuance of Additional Shares                                       6
     No Commitments to Purchase Shares                                   6

USE OF PROCEEDS                                                          6
DILUTION                                                                 7
CAPITALIZATION                                                           9
SUMMARY FINANCIAL INFORMATION                                            10
OFFERING                                                                 10
     Engagement of the Services of an Underwriter                        10
     Offering Period and Expiration Date                                 11
     Procedures for Subscribing                                          11
     Determination of Offering Price                                     11
     Escrow                                                              11
     Right to Reject                                                     12

UNDERWRITING                                                             12
     Proposed Underwriting Agreement                                     12
     Proposed Underwriter Compensation                                   12

BUSINESS OF THE COMPANY                                                  12
     General                                                             12
     Government Regulations                                              15
     Employees                                                           15
     Management's Discussion and Analysis of Financial                   15
        Condition and Results of Operations

MANAGEMENT                                                               15
     Officers and Directors                                              15

                                       vi


<PAGE>



                          TABLE OF CONTENTS - continued
                                                                        PAGE


     Background Information                                              16
     Executive Compensation                                              16
     Indemnification                                                     17
     Office Facilities                                                   17

PRINCIPAL SHAREHOLDERS                                                   17
     Future Sales by Present Shareholders                                18

DESCRIPTION OF SECURITIES                                                18
     Common Stock                                                        18
     Units                                                               19
     Preferred Stock                                                     19
     Warrants                                                            20
     Non-Cumulative Voting                                               21
     Dividends                                                           21
     Reports to Shareholders                                             21
     Transfer Agent                                                      21

CERTAIN TRANSACTIONS                                                     21
LITIGATION                                                               22
ADDITIONAL INFORMATION                                                   22
EXPERTS                                                                  22
LEGAL MATTERS                                                            22
FINANCIAL STATEMENTS                                                     22


























                                       vii


<PAGE>



                              SUMMARY OF PROSPECTUS

THE  FOLLOWING  INFORMATION  IS  QUALIFIED  IN  ITS  ENTIRETY  BY  THE  DETAILED
INFORMATION AND FINANCIAL STATEMENTS APPEARING ELSEWHERE IN THIS PROSPECTUS, ALL
OF WHICH SHOULD BE READ CAREFULLY AND THOROUGHLY.

The Company

     Callfree  Telecom  Communications  Corp.,  a  New  York  corporation,  (the
"Company")  was formed on April 8, 1998.  The Company  currently  maintains  its
principal  offices  at 400  Perimeter  Center  Terrace,  Atlanta,  GA 30346  and
itsregistered  agent's  office at 1116 Neilson  Street,  Far Rockaway,  New York
11691.  The Company is engaged in the business of providing  free long  distance
telephone  service  which is  financed by  advertising.  (See  "BUSINESS  OF THE
COMPANY.")

The Company has a limited  operating  history.  There is no  assurance  that the
Company will be successful in raising the capital or in developing its business.
(See "MANAGEMENT" and "BUSINESS OF THE COMPANY").  The proceeds from the sale of
Shares  offered  hereby  will  enable  the  Company  to  develop  and expand its
business. (See "BUSINESS OF THE COMPANY", "CERTAIN TRANSACTIONS", "RISK FACTORS"
and "USE OF PROCEEDS.")

Messrs.  Stuart Radin,  Eric Popkoff and Jay Radin, who are officers,  directors
and  principal  shareholders  of the Company,  may be deemed to be "parents" and
"promoters" of the Company. (See "MANAGEMENT" and "PRINCIPAL SHAREHOLDERS.")

The Offering

Securities  Offered:  A minimum  of 200,000  and a maximum  of 500,000  Units of
Common Stock, par value $.001. (See "OFFERING.")

Offering Price per Unit:  $6.00 (See "OFFERING.")

Offering:  The Units are being offered for a period not to exceed 90 days.  Such
period may be extended by the Board of Directors for an additional 90 days. (See
"OFFERING.")

Net Proceeds:  Approximately $1,080,000 (Minimum) $2,700,000 (Maximum) (See "USE
OF PROCEEDS.")

Use of Proceeds: To be used for working capital and operating expenses,
                 deposits on equipment, repayment of notes. (See "USE OF
                 PROCEEDS.")

Number of Shares: Outstanding
                  Before the Offering:  800,000
                  After the Offering: 1,000,000 (Minimum) 1,300,000 (Maximum)

(See "OFFERING" and "DESCRIPTION OF SHARES.")

                                        1

<PAGE>



                                   RISK FACTORS

     AN INVESTMENT IN THE SECURITIES  OFFERED HEREBY  INVOLVES AN  EXCEPTIONALLY
HIGH DEGREE OF RISK AND IS EXTREMELY  SPECULATIVE IN NATURE.  IN ADDITION TO THE
OTHER INFORMATION REGARDING THE COMPANY CONTAINED IN THIS PROSPECTUS,  INVESTORS
SHOULD  CONSIDER MANY IMPORTANT  FACTORS IN DETERMINING  WHETHER TO PURCHASE THE
SECURITIES  OFFERED HEREBY.  THE FOLLOWING RISK FACTORS ARE NOT EXHAUSTIVE,  BUT
ARE MERELY  ILLUSTRATIVE,  OF THE SUBSTANTIAL RISKS INVOLVED IN AN INVESTMENT OF
THIS NATURE.

1.  Start-up Company.

     The Company has only been in  business  for a short  period of time and has
engaged in limited business since its inception.  There is no assurance that the
Company  will be  successful  in raising  the funds or, if the funds are raised,
there is no assurance that the Company will be able to develop its business,  or
that  the  business  will be  profitable  if and  when  developed.  The  Company
anticipates  being able to sustain  operations  for a period of at least  twelve
months  after  receipt of the minimum  proceeds ( and  twenty-four  months after
receipt of the maximum  proceeds) of this Offering,  without being  compelled to
seek   additional   funds  to  continue   development  of  its  business.   (See
"MANAGEMENT","CERTAIN TRANSACTIONS" and "BUSINESS OF THE COMPANY").

2. High Risk.

       An investment in the shares offered hereunder  involves an extremely high
degree of risk. A prospective investor should,  therefore,  be aware that in the
event  the  Company's  exploration  is not  successful,  any  investment  in the
Company's  Common  Stock may be entirely  lost and the Company may be faced with
the  possibility  of  liquidation.  In the event of  liquidation,  the  existing
shareholders   would,   to  the  extent  that  assets  would  be  available  for
distribution,  receive  a  disproportionately  greater  share of the  assets  in
relation  to  their  cash  investment  in the  Company  than  would  the  public
shareholders,  in that  holders of Common  Stock are  entitled to share on a pro
rata basis in the assets,  if any, of the Company  that would be  available  for
distribution.   (See  "BUSINESS  OF  THE  COMPANY",  "DILUTION"  and  "PRINCIPAL
SHAREHOLDERS".)

3. Reliance on Outside Financing.

     The Company  believes  that the  minimum  proceeds  of this  Offering  will
provide  sufficient cash to fund its operations and current  obligations for the
next  twelve  months.  Should the  Company  expand its  operations  and/or  make
acquisitions  that would require funds in addition to the funds received in this
Offering, it may have to seek additional debt or equity financing.  There can be
no assurance that such financing  would be available on terms  acceptable to the
Company, as and when needed. Since its inception,  the Company's operations have
been financed, in part, through private sales of the Company's  securities,  and
the  balance  of  financing   was  obtained   through  a  loan.   (See  "CERTAIN
TRANSACTIONS".)


                                        2

<PAGE>



4. Dependence On Additional Financing/Risk of Unavailability.

     The continued  operation of the Company will be dependent  upon its ability
to  generate  revenues  from its  current  operations/properties  and/or  obtain
further  financing,  if and when needed,  through  borrowing from banks or other
lenders or equity funding. There is no assurance that sufficient revenues can be
generated or that additional financing will be available,  if and when required,
or on terms favorable to the Company. (See "USE OF PROCEEDS.")

5. Reliance Upon Officers and Directors.

     The Company is wholly dependent,  at present, upon the personal efforts and
abilities of its officers and directors. While the Company will solicit business
through its officers and  directors,  there can be no assurance as to the volume
of business,  if any, which the Company may obtain,  or that its operations will
prove to be profitable. Of the five officers and directors of the Company, three
will devote full time to the Company's business.  (See "MANAGEMENT" and "CERTAIN
TRANSACTIONS.")

6. Dependence on Key Employees.

     The  success of the  Company is  dependent,  in large  part,  on the active
participation  of Messrs.  Stuart Radin,  Eric Popkoff,  Oscar Hasan and Abraham
Ben-David,  officers  and  directors  of the  Company,  who  are  also  its  key
employees. Although the loss of their services would materially adversely affect
the Company's business and future success. The Company has employment agreements
with each of the above  officers  and  directors.  The Company has key-man  life
insurance in effect for such employees. (See "MANAGEMENT.")

7. Control of the Company.

     Upon the sale of all the Shares offered hereby, the present shareholders of
the  Company  will  continue  to control the Company and will be able to elect a
majority of the Board of Directors and, thereby, control the business operations
and policies of the Company. (See "PRINCIPAL SHAREHOLDERS" AND "DILUTION.")

8. Benefit to Present Shareholders.

     Following  the  successful   completion  of  this  Offering,   the  present
shareholders  of the  Company  will own  approximately  80%  (minimum)  or 61.5%
(maximum)  of  the  outstanding  Common  Stock.  The  majority  of  the  present
shareholders  purchased their shares at prices  substantially below the price at
which Shares are offered  hereunder.  Therefore,  the present  shareholders will
experience  an  immediate  increase  in the net  tangible  book  value  of their
securities,  while the purchasers of Shares in this Offering will  experience an
immediate   dilution  in  the  value  of  their   securities.   (See  "PRINCIPAL
SHAREHOLDERS" and "DILUTION.")

9. Dilution: Excessive Burden of Risk.

     The present  shareholders  of the Company  acquired  their shares at a cost
less  than that  which  the  purchasers  hereunder  will pay for  their  Shares.
Accordingly, an investment in the Common Stock of the Company by the Subscribers
will result in the  immediate  dilution of the net tangible  book value of their
Shares.  Subscribers purchasing Shares hereunder will bear a risk of loss, while
control  of the  Company  will  effectively  remain in the hands of the  present
shareholders. (See "DILUTION" and "PRINCIPAL SHAREHOLDERS.")



                                        3

<PAGE>




10. Possible Rule 144 Sales.

     A total of 1,067,000  shares of the Company's Common Stock have been issued
by the  Company  prior  to this  Offering  and all of those  shares  are held by
persons who are, or were,  officers,  directors and control persons, or who hold
such  shares as  "restricted  securities",  as that term is  defined in Rule 144
promulgated  under the  Securities  Act of 1933,  as amended (the "Act").  These
securities  may only be sold in compliance  with Rule 144,  which  provides,  in
essence,  that a person (or persons  whose shares are  aggregated)  beneficially
owning  restricted  securities  for a period of two years may sell,  every three
months,  in brokerage  transactions,  a number of shares equal to the greater of
one percent of the total  number of the  Company's  then  outstanding  shares of
Common Stock or the average weekly trading volume in the Company's  Common Stock
during the preceding four calendar weeks.  The possible sale of these restricted
shares under Rule 144, may, in the future, have a depressive effect on the price
of the Company's Common Stock in the over-the-counter  market, assuming there is
such a market, of which there can be no assurance.  Furthermore, persons holding
restricted  securities for two years who are not "affiliates" of the Company, as
that term is defined in Rule 144, may sell their securities pursuant to Rule 144
without  any   limitations  on  the  number  of  shares  sold.  (See  "PRINCIPAL
SHAREHOLDERS  -FUTURE SALES BY PRESENT  SHAREHOLDERS" and "DILUTION - RESTRICTED
SHARES ELIGIBLE FOR FUTURE SALE.")

11. Competition.

     There  is  intense  competition  in the  telephone  industry.  Many  of the
Company's  competitors  have  greater  financial  and  other  resources,  better
distribution networks or greater name recognition than the Company. There can be
no  assurance  that the  Company  will be able to  successfully  compete in this
industry. (See "BUSINESS OF THE COMPANY.")

12. Insurance; Indemnification.

     The Company has limited capital and,  therefore,  does not currently have a
policy of insurance  against  liabilities  arising out of the  negligence of its
officers and directors  and/or  deficiencies in any of its business  operations.
Even assuming it obtained  insurance,  there is no assurance that such insurance
coverage  would be  adequate to satisfy any  potential  claims made  against the
Company, its officers and directors, or its business operations or products. Any
such liability  which might arise could be substantial and may exceed the assets
of the  Company.  However,  the  Articles  of  Incorporation  and By-Laws of the
Company  provide for  indemnification  of officers and  directors to the fullest
extent  permitted under Nevada law. Insofar as  indemnification  for liabilities
arising under the Securities Act of 1933 may be permitted to directors, officers
and  controlling  persons,  it is the  opinion of the  Securities  and  Exchange
Commission that such  indemnification  is against public policy, as expressed in
the Act,  and is  therefore,  unenforceable.  (See  "FINANCIAL  STATEMENTS"  and
"BUSINESS OF THE COMPANY.")




                                        4

<PAGE>



13. No Cash Dividends Paid.

     No cash  dividends have been paid on the shares of the Company to date, nor
is it anticipated  that any such dividends will be paid to  shareholders  in the
foreseeable  future.  Any income received from operations will be reinvested and
devoted  to  the  Company's  future   operations   and/or  to  expansion.   (See
"DESCRIPTION OF SECURITIES.")

14. Arbitrary Determination of Offering Price.

     The offering  price of the Units being  offered  hereunder  was  determined
arbitrarily  by the Company.  Such  offering  price should not be  considered an
indication  of, nor was it based upon,  the actual  value of the Company and the
offering  price may bear no direct  relationship  to the book  value,  assets or
earnings  of the  Company,  or any other  recognized  criteria  of  value.  (See
"OFFERING.")

15. No Present Market for Securities.

     There is presently no market for the Company's  securities and there can be
no assurance  that any such market will develop.  In the event a public  trading
market does  develop,  there is no assurance it will  continue.  Therefore,  any
investment  in the  Company's  Common  Stock may be highly  liquid and without a
market value. (See "OFFERING.")

16. Compliance with Penny Stock Rules.

     Rule  3a51-1  of the  Exchange  Act  defines  a "penny  stock" as an equity
security that is not, among other things: a) a reported  security (i.e.,  listed
on certain national securities exchanges);  b) a security registered or approved
for registration and traded on a national securities exchange that meets certain
guidelines,  where the trade is effected through the facilities of that national
exchange;  c) a security listed on NASDAQ; d) a security of an issuer that meets
certain minimum financial requirements, i.e., "net tangible assets" in excess of
$2,000,000  (if the issuer has been  continuously  operating for less than three
years) or  $5,000,000  (if the issuer has been  continuously  operating for more
than three  years),  or "average  revenue" of at least  $6,000,000  for the last
three years);  or e) a security with a price of at least $5.00 per share for the
transaction  in question or that has a bid quotation (as defined in the Rule) of
at least $5.00 per share. Under Rule 3a51-1, if the Company's Common Stock sells
below  $5.00  per  share,  the  Company's  Common  Stock  will fall  within  the
definition of "penny stock."

     If the  Company's  Common  Stock is  deemed  to be a penny  stock,  trading
therein  will be subject to the  requirements  of Rule 15g-9 and  Section  15(g)
under  the  Exchange  Act.  Rule  15g-9  imposes   additional   sales   practice
requirements on broker-dealers  who sell non-exempt  securities to persons other
than  established   customers.   For  transactions  covered  by  the  rule,  the
broker-dealer  must make a special  suitability  determination for the purchaser
and receive the purchaser's  written  agreement to the transaction  prior to the
sale. Pursuant to Section 15(g) and related Rules, brokers and/or dealers, prior
to effecting a transaction in penny stock, will be required to provide investors
with written  disclosure  documents  containing  information  concerning various
aspects involved in the market for penny stocks as well as specific  information
about the penny stock and the  transaction  involving  the  purchase and sale of
that  stock,   e.g.,  price  quotes  and  broker-dealer  and  associated  person
compensation.  Subsequent  to the  transaction,  the broker  will be required to
deliver monthly or quarterly  statements  containing specific  information about
the penny stock. The foregoing  requirements  will most likely negatively affect
the ability of purchasers herein to sell their shares in the secondary market.

                                        5

<PAGE>


17. Issuance of Additional Shares.

     Assuming  sale of all Units offered  hereby,  there will still be 8,533,000
shares (assuming a minimum subscription) or 8,233,000 shares (assuming a maximum
subscription)  of Common Stock which the Board of Directors  will have authority
to issue.  The  issuance  of any such  shares to  persons  other than the public
investors  herein will reduce the amount of control held by the public investors
following  this  Offering  and may  result in a  dilution  of the book value per
share. There are presently no commitments,  contracts or intentions to issue any
additional shares to any persons other than as set forth herein.
(See "DILUTION.")

18. No Commitments to Purchase Units.

     There is no commitment of any kind on the part of anyone to purchase all or
any part of the 500,000 Units being offered  hereby;  consequently,  the Company
can give no assurance  that all or any part of the Units will be sold.  However,
the  escrow  arrangements  provide  that  unless  200,000  Units  are  sold  and
$1,200,000  is raised  within 90 days from the date of this  Prospectus,  unless
extended  at the  discretion  of the  Company  for an  additional  90 days,  the
proceeds  will be returned  in full to the  subscribers,  without  any  interest
thereon or deductions  therefrom.  Thus,  an investor  could invest money in the
Company for as long as 180 days,  through the  subscription for Units hereunder,
and have the money returned without interest.

                                 USE OF PROCEEDS

     As set forth  below,  the  Company  estimates  the net  proceeds  from this
Offering will be approximately $1,004,000,  assuming a minimum subscription,  or
$2,570,000 assuming a maximum subscription, after deducting $120,000, assuming a
minimum subscription,  or $180,000,  assuming a maximum subscription,  for sales
commissions  and $40,000 for estimated  offering  expenses,  including legal and
accounting  fees.  The proceeds from this Offering are expected to be disbursed,
in the priority set forth below,  during the first 12 months after completion of
this  Offering;  however,  the  Company  reserves  the  right to  amend,  in its
discretion, the proposed Use of Proceeds.

                                       Minimum                Maximum
Description                         Subscription            Subscription
- -----------                         ------------            ------------
Total Proceeds                       $1,200,000              $3,000,000
Offering Expenses:
Sales Commissions (1)                   120,000                 300,000
Non-Accountable Expense
  Allowance (2)                          36,000                  90,000
Legal and Accounting Fees
  and Offering Expenses (3)              40,000                  40,000
                                     ----------              ----------
Total Net Proceeds                   $1,004,000              $2,570,000


                                        6

<PAGE>



<TABLE>
<CAPTION>

                                    Minimum         % of net         Maximum       % of net
Description                      Subscription       Proceeds      Subscription     Proceeds
- -----------                      ------------       --------      ------------     --------
<S>                                 <C>                <C>             <C>            <C>
Administrative and Salaries
 Rent                               60,000             6.6             60,000         2.33
 Advertising                        48,000             4.8            240,000         9.34
 Office Expense                     84,000             8.4            120,000         4.67
 Fees/legal &
     accounting                     24,000             2.4             24,000          .94
 Salaries                          303,000                            598,000        23.27
                                   -------                          ---------        -----
                                   519,000           51.69          1,042,000        40.55

Directors Expenses                      -0-                            60,000         2.3
Repayment of Notes                 108,000            9.96            108,000         4.2
Working Capital                    277,000           28.39            760,000        29.57
Deposit for POPs                   100,000            9.96            600,000        23.35
                                   -------           -----          ---------        -----
                                 1,004,000             100%         2,570,000          100%
</TABLE>

(1) Assumes that an  underwriters'  commission of 10% will be paid on all Shares
sold. (See "UNDERWRITING" and "OFFERING.")

(2)  Assumes  that  a  non-accountable  expense  allowance  may be  paid  to the
underwriter  equal to $36,000 in the event of a minimum  subscription or $90,000
or in the event of a maximum subscription.

(3) The  organizational  and offering  expenses,  including  accounting,  legal,
printing,  clerical and other expenses,  and  registration  and filing fees, are
estimated to total $40,000.

    While the Company currently intends to utilize the proceeds of this Offering
substantially  in the manner set forth above,  the Company reserves the right to
reassess and reassign  such use if, in the  judgement of the Board of Directors,
such changes are  necessary or advisable in the  circumstances.  At present,  no
material changes are  contemplated.  Should there be any material changes in the
Company's use of proceeds in connection with this Offering, it will issue a post
effective amendment to its Registration Statement to reflect such change.

Until used, the working  capital  proceeds will be invested in  certificates  of
deposit or U.S. Treasury Notes.

                                    DILUTION

     "Dilution" represents the difference between the offering price and the net
tangible book value per share immediately after the completion of this Offering.
"Net tangible book value" is the amount that results from  subtracting the total
liabilities  and  intangible  assets from the Company's  total assets.  Dilution
arises  mainly  from the  arbitrary  decision by the  Company to  establish  the
offering  price of the Shares offered  hereunder  based on market factors rather
than book value considerations

     In addition,  it is important to note that the present  shareholders of the
Company's Common Stock acquired their shares at a price substantially lower than
the Offering price due to the Company's need to acquire  working  capital during
the past two years. The present shareholders, therefore, will incur an immediate
substantial  increase  in the price  which  they paid for their  shares  and the
purchasers  of  shares  in the  Offering  will  incur an  immediate  substantial
dilution in the price which they pay for their shares.


                                        7

<PAGE>

     As of June 30,  1999,  the net  tangible  book  value of the  shares of the
Company (total assets,  excluding  intangible  assets,  less total  liabilities,
excluding  contingent liabilities) was (4203,923) or ($.20) per share based upon
1,067,000 shares outstanding at that time.

     Upon  completion  of this  Offering,  but without  taking into  account any
change in such net tangible book value after completion of this Offering,  other
than that resulting from the sale of the shares offered hereby, the net tangible
book  value of the  1,067,000  shares,  based  upon a minimum  subscription  (or
1,567,000 shares,  based upon a maximum  subscription) to be outstanding will be
approximately  $996,077 based upon a minimum  subscription  (or $2,766,077 based
upon a maximum  subscription),  or  approximately  $.79 per share,  based upon a
minimum  subscription (or $1.77 per share,  based upon a maximum  subscription).
Accordingly,  the net  tangible  book  value of the Shares  held by the  present
shareholders of the Company (i.e.,  1,067,000  shares) will be increased by $.59
per share,  based upon a minimum  subscription (or increased by $1.77 per share,
based upon a maximum  subscription),  without any additional investment on their
part and the  purchasers  of the Shares  offered  hereby  will  incur  immediate
dilution (a  reduction  in net  tangible  book value per share from the offering
price of $6.00 per Unit) of approximately  $5.21 per share, based upon a minimum
subscription (or $4.23 per share, based upon a maximum subscription).

     After  completion of this  Offering,  the  purchasers of the Shares offered
hereby will own  approximately  15.9% (31.9%) of the total number of shares then
outstanding, for which they will have made a cash investment of $1,200,000 based
upon a minimum subscription (or $3,000,000,  based upon a maximum subscription),
or  $6.00  per  Unit.  The  current   shareholders   of  the  Company  will  own
approximately  84.1% (68%) of the total number of shares then  outstanding,  for
which they have made actual cash contributions of $1,067 or $.001 per share.

    The following table sets forth a comparison of the respective investments of
the current  shareholders and the public investors,  assuming both a minimum and
maximum subscription.

                              PRESENT SHAREHOLDERS

                                    Minimum Subscription    Maximum Subscription
                                    --------------------    --------------------
Price Per Share                        $       .001              $        .001

Net Tangible Book
Value per Share                        $       (.20)             $        (.20)
before Offering

Net Tangible Book
value per Share                        $        .79              $        1.77
after Offering

Increase to present
Shareholders in
net tangible book
value per share due
to Offering                            $        .99              $        1.77


                                        8

<PAGE>

Capital
 contributions                         $      1,067              $       1,067

Number of Shares
outstanding
before Offering                           1,067,000                  1,067,000

Number of Shares
 outstanding
After Offering                            1,267,000                  1,567,000

Percentage of ownership
after the Offering                             84.1%                      68.1%

                                PUBLIC INVESTORS

                                    Minimum Subscription    Maximum Subscription
                                    --------------------    --------------------

Price Per Share                         $     6.00              $     6.00

Dilution Per Share

Capital contributions                        1,200                   3,000

Number of Shares after the
Offering held by the
Public Investors                           200,000                 500,000

Percentage of ownership
after the Offering                            15.9%                   31.9%

     All 1,067,000 of the Company's currently outstanding shares of Common Stock
are "restricted  securities"  which, in the future, may be sold pursuant to Rule
144 under  the  Securities  Act of 1933,  as  amended,  if  available.  Rule 144
currently provides, in essence, that persons holding restricted securities for a
period of one year may each sell, every three months, in brokerage transactions,
a number of shares equal to one percent of the aggregate number of the Company's
outstanding shares, and after two years,  persons other than "affiliates" of the
Company, may sell shares without any volume restrictions.

     Sales  of  shares  (a)  held  by  present  shareholders,  after  applicable
restrictions  expire;  and  (b)  offered  in  this  Offering,   which  would  be
immediately  resalable,  may  have  a  depressing  effect  on the  price  of the
Company's shares in any market that may develop. (See "DILUTION.")

                                 CAPITALIZATION

     The following table sets forth the capitalization of the Company as of June
30, 1999,  and as adjusted to reflect the sale of the minimum  (maximum)  Shares
offered  hereby  and  the  application  of  the  net  proceeds  therefrom.  (See
"FINANCIAL STATEMENTS.")


                                        9

<PAGE>




                                Present         As Adjusted
                                -------         -----------
 Common Stock:
 10,000,000 Shares
 authorized, par value
 $.001; 1,067
 issued and outstanding          1,067             1,267

 Preferred Stock
 1,000,000 of shares
 authorized, par value
 $.01, no shares issued
 and outstanding

 Shareholders' Equity:         $(203,922)        996,077


                          SUMMARY FINANCIAL INFORMATION

 BALANCE SHEET DATA:                                 June 30, 1999

 Current Assets......................................  $  21,387
 Current Liabilities.................................  $ 255,310
 Total Assets........................................  $  21,387
 Shareholders' Equity................................  $(203,922)
                           (See "FINANCIAL STATEMENTS)

                                    OFFERING

Engagement of the Services of an Underwriter.

     The Company has engaged the services of an  underwriter  who is a member of
the National Association of Securities Dealers, Inc. ("NASD") to offer its Units
directly to prospective investors on a "best-efforts, all-or none" basis as to a
minimum  of  200,000  Units and on a  "best-efforts"  basis as to an  additional
500,000 Units.

     The Company has agreed to pay a sales commissions equal to 10% of the gross
sales price of the Units to such  underwriter  for any Units it may sell, plus a
nonaccountable  expense allowance of 3% of the gross proceeds and Warrants equal
to 10% of the  shares  sold to the  public.  However,  no sales  commissions  or
expense  allowance  will be paid  unless  a total of  200,000  Units  have  been
subscribed and paid for.

     The Units will be offered by the Company  subject to prior sale and subject
to approval of certain legal matters by the Company's legal counsel. The Company
reserves  the  right to reject  any  subscription  in whole or in part,  for any
reason or for no reason.

     A total of 800,000  shares of the  Company's  Common  Stock were  issued to
three persons who were officers,  directors and control  persons of the Company,
in December,  1998. An additional 105,000 shares were issued in May, 1999 to two
persons who are  officers  and  directors  of the  Company.  Such shares are all
"restricted  securities" as that term is defined in Rule 144,  promulgated under
the Securities Act of 1933, as amended, and under such Rule, may not be sold for
a period of at least two years from acquisition thereof.



                                       10

<PAGE>




     Prior to this Offering,  there has been no market for the Company's Shares.
Consequently,  the offering price has been determined arbitrarily by the Company
and should not be  considered an indication of the actual value of the Company's
Shares.  There can be no assurance  that the Common Stock offered  hereby can be
resold at the offering price, or at all. Nor can there be any assurance that any
public market for the Company's  Common Stock will  develop.  It is  anticipated
that the Shares will trade in the over-the counter market.

Offering Period and Expiration Date

     This Offering will commence on the date of this Prospectus and continue for
a period of ninety (90) days, unless extended,  by the Company for an additional
ninety (90) days, or unless this  Offering is completed or otherwise  terminated
by the Company (the "Expiration Date").


Procedures for Subscribing

     Each  investor  subscribing  for any of the Shares  offered  hereby will be
required to execute a Subscription  Agreement and tender it, to the Underwriter,
together  with a check or  certified  funds  payable  to the Escrow  Agent,  for
acceptance or rejection of their subscription.

Determination of Offering Price

     The public offering price of the Shares has been determined  arbitrarily by
the Company.  The price does not bear any relationship to the Company's  assets,
book value, earnings, or other established criteria for valuing a privately held
company.  In determining  the number of Shares of Common Stock to be offered and
the offering  price,  the  Company's  capital  structure,  financial  condition,
prospects for the Company and the industry in general, and the general condition
of the  securities  market were  considered  by the  Company.  Accordingly,  the
offering price should not be considered an indication of the actual value of the
Company's securities.

Escrow

     Proceeds from the subscription for Units will be transmitted by noon of the
next business day after receipt by the  Underwriter to be deposited in a special
account at American Securities Transfer & Trust, Inc., Denver, Colorado, until a
minimum of 200,000 Units have been sold, at which time the proceeds will be paid
to the Company by the  Underwriter  from time to time as  received.  Thereafter,
proceeds  will be paid  directly to the Company until a maximum of 500,000 Units
have been sold or the  offering  period  expires,  whichever  first  occurs.  If
200,000 Units are not sold by the Expiration Date, or any extension thereof,  or
if this Offering is terminated  sooner,  all funds which have been received will
be promptly returned to the subscribers without interest or deduction.

     All checks for subscriptions  should be made payable to American Securities
Transfer and Trust, Inc./Callfree Telecom Communications, Inc.


                                       11

<PAGE>



Right to Reject

     The Company shall have the right to accept or reject subscriptions in whole
or in  part,  for  any  reason  or for  no  reason.  All  monies  from  rejected
subscriptions shall be returned immediately to the investors without interest or
deduction.  Subscriptions for securities shall be accepted or rejected within 48
hours after receipt thereof by the Company.

                                  UNDERWRITING

Proposed Underwriting Agreement

     The Company has entered into an Underwriting  Agreement (the  "Underwriting
Agreement")  with  Boe &  Company,  a  member  of the  National  Association  of
Securities Dealers ("NASD") as its agent to publicly offer and sell a minimum of
200,000 Units on a "best-efforts,  all-or-none basis" up to a maximum of 500,000
Units on a  "best-efforts  basis" at a public  offering price of $6.00 per Unit,
for a total maximum  offering of $3,000,000.  If a total of 200,000 Units is not
sold within 90 days from the  commencement of the Offering,  which period may be
extended for an  additional  period of up to 90 days upon the mutual  consent of
the  Company  and the  Underwriter,  all  proceeds  received  would be  promptly
refunded to subscribers in full,  without interest or deductions for commissions
or expenses. All proceeds from the sale of the Units will be payable to American
Securities Transfer & Trust,  Inc./Callfree Telecom Communications,  Inc. Escrow
Account,  and will be  deposited  in an escrow  account  maintained  at American
Securities Transfer & Trust, Inc. as Escrow Agent (the "Escrow Agent"), pursuant
to an Escrow Agreement among the Company, the Underwriter and the Escrow Agent.

Proposed Underwriter Compensation

     The Underwriting  Agreement further provides that, subject to the sale of a
minimum  of  200,000  up to a maximum  of  500,000  Units  offered  hereby,  the
Underwriter will receive (a) a cash commission of 10% of the gross price of each
Unit it sells (i.e.  $.60 per Unit,  or a total of $120,000,  assuming a minimum
subscription,   or  $300,000   assuming  a  maximum   subscription)  and  (b)  a
non-accountable  expense  allowance of 3%, and  warrants to purchase  additional
shares (without underlying warrants) in the amount of 10% of the number of Units
sold to the  Public  by the  Underwriter.  (SEE  "UNDERWRITERS  AGREEMENT")  Any
unexpended portion of the  non-accountable  expense allowance may be retained by
the underwriter and may be deemed additional  underwriting  compensation for the
purposes of the Securities Act of 1933, as amended.

     The  foregoing  is a summary  of the  principal  terms of the  Underwriting
Agreement and does not purport to be complete.  Reference is made to the copy of
said  proposed  Underwriting  Agreement  which  is on file as  Exhibit  1 to the
Registration Statement of which this Prospectus is a part.

                             BUSINESS OF THE COMPANY

General

     Callfree  Telecom  Communications  Corp.,  a  New  York  corporation,   was
incorporated  on April 8, 1998. The Company  maintains  offices at 400 Perimeter
Center Terrace, Atlanta, GA 30346. (See "OFFICE FACILITIES")

                                       12

<PAGE>




     The Company is a telecommunications  opportunity company, formed in 1998 to
provide free long distance  service to selected  target  markets.  The Company's
principal business is providing free long distance service to its customers with
the  cost  of  the  calls  being  assured  by  various   entities  which  supply
advertisements  to be aired before and during  telephone calls. The Company will
commence its initial  operations  between New York City and Tel Aviv, Israel and
New York City and London,  England.  The Company's principal service consists of
an  Active  Point Of  Presence  ("POP")  which  will be  equipped  with a Server
supporting between 1 to 144 simultaneous calls (with the option of supporting up
to 240 simultaneous  calls when necessary) on one Internet T-1 (1,540K) line and
between 1 to 240 PSTN (Public  Switch  Telephone  Network).  The service will be
accessed by its customers through the use of either of two calling cards.

         1.  UTILITY - The UTILITY card will expire after 2 months or 2 hours of
telephone  time,  whichever  comes first.  The user will not have to provide any
information  to  receive  this  card,  but  will  have  to go  to an  authorized
distribution  center to receive  it. The three  industries  that the  Company is
targeting  to advertise  on this card are  Alcohol,  Tobacco and  Prophylactics,
which are not allowed to be  advertised  on  conventional  television,  radio or
print media. The card will be provide $20 worth of calling time. When the caller
dials into the Company's  server with the phone number  provided on the front of
the card, and the caller punches in his/her pre selected personal Identification
number ("PIN #"), a 20 second commercial known as the IMPACT  advertisement will
air. This will be the only  advertisement  the caller will hear if the call does
not go through.  On the back of the card there will be an advertisement  for the
distribution center where the card was issued. After the initial  advertisement,
the caller will be prompted to enter the area code and phone number he wishes to
call.  After every 3 minutes of talk time,  the caller and receiver will both be
HIT with a 30 second advertisement. The advertisements will be in either English
or Hebrew  depending  on which area code is being  dialed and which phone number
was dialed to access the service.  If the call is  originating  in Tel Aviv, the
caller will hear the advertisement in Hebrew,  and the receiver in New York will
hear a different  advertisement  in English.  The IMPACT  advertiser  will pay a
premium for the initial  advertisement over the regular  advertisements that HIT
after every 3 minutes of talk time. The Company will receive the proceeds of the
IMPACT  HIT  whether  or not the call  actually  reached  its  destination.  The
Advertisers  will be given a monthly  report  detailing  the  calling  patterns,
length of calls,  origination of calls,  destination of calls and how many times
their  advertisement was listened to. The UTILITY card cannot be recharged,  and
is transferable. The initial charge to the advertisers for the UTILITY card will
be $.30 for each HIT and $.10 for each destination HIT.


                                       13

<PAGE>



     2. PREMIUM - The PREMIUM card is a non transferable  rechargeable  card. An
application  is  filled  out by the user in  order to  receive  this  card.  The
application  can be filled out by phone,  fax,  mail or internet.  The price for
this card is a $10  processing fee charged on a major credit card every 6 months
when the calling card expires.  The caller  receives 180 hours or 10,800 minutes
of talk time for the $10 fee. Like the UTILITY card, the PREMIUM card will start
off with a 20 second IMPACT HIT.  However,  since an application has been filled
out with pertinent  demographic  data, and a $10 processing fee has been paid by
credit  card,  the  advertisers   will  select  the  listening   audience  base.
Advertisers  will pay a premium to be the IMPACT HIT on this select target.  For
an advertiser  who is just a HIT on the select  target,  they will pay less than
the IMPACT HIT but more than those  advertisers  HITing on the UTILITY card. The
regular HIT will air for 15 seconds  after  every 3 minutes of talk time.  There
will be an option for the caller to ignore the  commercial  by pressing "1" when
the warning tone airs 10 seconds  before the  commercial.  Since the Company has
the caller's major credit card information,  it can bill the credit card for the
phone call if the user chooses to ignore the commercial. The Company will charge
a competitive rate for these minutes if this option is chosen. The receiver will
also hear a HIT,  but since the Company has no  demographic  information  on the
receiver, a premium charge will not be applied to that advertiser.  The language
requirement  will be the same as the UTILITY  card.  The  initial  charge to the
advertisers for the PREMIUM card will be $.55 for each Impact HIT, $.35 for each
origination HIT and $.10 for each destination HIT.

Product and Delivery.  The key factor in the Company's  long distance  telephone
service is that the call will be free to its  subscribers.  The subscriber  will
pay a subscription fee of $10 and answer a questionnaire.  The Company will then
insert this demographic  information into its customer  database.  The Marketing
Director will market the customer database  information to the advertisers.  The
advertisement or HIT will air when the customer dials into the Company's server.
Every 3 minutes another HIT will be aired.

Market Definition.  The long distance  telecommunications market is growing at a
rapid rate. The market in 1994 for outgoing calls between the USA and Israel was
195,400,000  minutes.  The market in 1994 for outgoing calls between the USA and
the UK was 905,500,000 minutes. In 1995 it was 1,017,400,000  minutes (Source of
statistics: Federal Communications Commission). For the calls between the US and
Israel,  the Company believes that 27% of these calls originated in New York and
had a destination  of Tel Aviv or Jerusalem.  This  translates  into  57,618,000
minutes which is the Company's target market. The Company anticipates  capturing
at least 60% of this market with its callfree  plan.  The Company  believes that
70% of the calls between the US and the UK are business  calls. Of the remaining
30% of the  market  between  the US and the UK,  20% is from the NY area,  which
translates into 61,044,000 minutes which is the Company's target market.

Distribution  Channels.  The Company plans to promote its long distance  service
through  several  channels:  print and  electronic  media,  direct  sales,  club
associations, and barter deals with in-flight magazines. The determining factors
in choosing  these  channels are low cost and  effectiveness  in targeting  this
specific customer market.

Advertising  and  Promotion.  The Company will utilize the  following  media and
methods to allow its message to reach its  customers:  direct  response mail and
direct  response  advertising and  telemarketing.  During the next 18 months the
Company will spend  approximately  $500,000 on advertising and promotion.  On an
ongoing basis, the Company will budget its advertising investment at 5% of total
sales.   The  Company   has  entered   into  an   agreement   with   Inter-World
Communications,  LLC,  60-50  Peachtree  Parkway,  Norcross  Georgia,  to handle
advertising  for the Company.  The Company will pay Inter-World a 15% commission
on all advertisements  generated through Inter-World.  In addition,  the Company
will establish its own marketing department.


                                       14

<PAGE>



Government Regulations

     Because   the   Company   will   be   operating   in  the   long   distance
telecommunications  and  internet  telephony  industry,  it  will be  under  the
regulation of the FCC (Federal Communication Commission). No federal regulations
are  currently  in place in  regard to the  internet  portion  of the  Company's
service.

     The sale of long  distance  telephone  service is regulated by both federal
and state  authorities.  The Company  will obtain all the  required  federal and
state permits, licenses and bonds to operate it facilities.  Pursuant to current
FCC  regulations,  all  communication  companies  are required to obtain FCC 214
licenses.  The cost of each FCC 214 license is approximately 45,000. The Company
does not have to file this  application,  which  takes 90 - 120 days to process,
until  activation of its  switching  facility.  Once the  switching  facility is
activated,  the FCC  grants  a six  month  grace  period  in  which  to file the
application.  There  can  be no  assurance  that  the  Company's  operation  and
profitability  will not be subject to more  restrictive  regulation or increased
taxation by federal state or local agencies in the future.

Employees

     The  only  direct  employees  of  the  Company  in  its  initial  stage  of
operations,  will be its officers and  directors,  all of whom  presently  serve
without compensation.

Management's Discussion and Analysis of Financial Condition and Results of
Operations

     The net proceeds from the  successful  completion  of the minimum  offering
will  provide the Company with  sufficient  cash to operate its business for the
next twelve months,  without the necessity of raising additional funds.  Product
research and development  will be conducted for the Company other companies with
which the Company has  business  relationships,  so the Company will not have to
conduct such research and  development.  The Company does not expect to purchase
or sell any plant or significant  equipment during the next twelve month period.
Upon successful completion of the minimum offering,  the Company intends to hire
two  persons  for  office  support  and  clerical  and  administrative   duties.
Thereafter,  the Company intends to hire 1-4 additional personnel in advertising
and marketing capacities.

                                   MANAGEMENT

Officers and Directors

     Each  director  of the  Company is elected to a term of one year and serves
until his/her successor is elected and qualified. Each officer of the Company is
elected by the Board of Directors to a term of one year and serves until his/her
successor is duly elected and qualified or until he/she is removed. The Board of
Directors has no nominating, auditing or compensation committees.



                                       15

<PAGE>

     The  officers  and  directors  of the  Company,  and  further  biographical
information concerning them are as follows:

Name and Address              Age      Position
- ----------------              ---      --------
Stuart Radin                   32      President, Chief Executive Officer,
1116 Neilson Street                    Director
Far Rockaway, New York
11691

Eric A. Popkoff                44      Vice President Investor Relations,
1750 East 23rd Street                  Secretary and Director
Brooklyn, NY 11229

Oscar Hasan                    35      Chief Operating Officer, Director


Jay Radin                      32      Chief Financial Officer, Director
1239 East 34th Street
Brooklyn NY 11210

Abraham S. Ben-David, Phd.     53      Chief Engineering Officer, Director



Background Information

Stuart  Radin has been the  President  of the  Company  since  inception.  He is
currently a professor at Baruch College,  City University of New York,  teaching
business data  communications.  He has also taught courses  including  Business,
Accounting,  Tax,  and  Computers in other  colleges.  Mr. Radin holds an MBA in
business specializing in taxation from Baruch College, CCNY.

Eric A. Popkoff - From 1989 to 1994 Mr.  Popkoff was a teacher of social studies
and  accounting  and business  practices  at various  sites in the New York City
Public  School  system.  He is  currently  an adjunct  lecturer in  economics at
Brooklyn  College,  City  University  of New  York.  Since  1994 he has been the
President and Chief Executive  Officer of Undiscovered  Equities Research Corp.,
an information  services  company located in Brooklyn,  New York, which provides
research on request from securities brokers and broker dealers,  and distributes
from time to time a written  review of  selected  securities.  Since 1997 he has
been a vice  president  and  director of Summa  Metals  Corp.  located in Laguna
Nigel,  California.  Mr.  Popkoff  holds  an  MBA  in  Management  and an MBA in
International Business from Baruch College, CUNY.


Oscar  Hasan  - Mr.  Hassan  has  been  engaged  in  marketing  development  and
operations of  telecommunications  companies in the United States and Europe for
the past 10 years.

Abraham S. Ben-David - Mr.  Ben-David  received his doctorate in information and
communications  technology from Lehigh  University in 1976. From 1976 to 1979 he
was  Associate  Scientist at Xerox  Corporation  where he  participated  in both
advanced office and communications software technology development (hardware and
software).  Thereafter,  he became  Director of R&D for Fujitsu America where he
was  responsible  for  development  of  communication  and office  hardware  and
software.  He became Director of R&D for Intafile  International (a Geneva based
company with R&D facilities in Jerusalem) in 1981,  where he was responsible for
the development of leading edge mobile  communication and office  equipment.  He
has  served on  several  senior  faculty  positions  in Isreal and in the United
States.

Jay  Radin - has been the  Chief  Financial  Officer  of the  Company  since its
inception. He is a graduate of Turo college, New York, and is the Fiscal Manager
of New York Community Hospital, Brooklyn, New York.

Executive Compensation

     Upon completion of the minimum Offering the following salaries will be paid
to the officers and directors of the Company:

                                       16

<PAGE>




     Name               Capacities Served                   Annual Compensation
     ----               -----------------                   -------------------
Stuart Radin            President                                 $92,300

Eric A. Popkoff         Vice-President-Corporate                  $35,000
                        Relations, Secretary, Director

Oscar Hasan             Chief Operating Officer, Director         $72,000

Jay Radin               Director                                  $59,800

Abraham S. Ben-David    Chief Engineering Officer, Director       $72,000


     These  salaries  will  not be  retroactive  and  will  only  commence  upon
completion of the minimum Offering.

     No Option/SAR Grants or long-term Incentive  Plans-Awards have been granted
or awarded to any officers or  directors of the Company and there are  presently
no plans to implement any such benefits.

Indemnification

     Pursuant  to the  By-Laws of the  corporation,  the  Company  has agreed to
indemnify  an  officer  or  director  who is  made a  party  to any  proceeding,
including a law suit, because of his/her position, if he/she acted in good faith
and in a manner  he/she  reasonably  believed to be in the best  interest of the
corporation and, in certain cases,  may advance  expenses  incurred in defending
any such proceeding. To the extent that the officer or director is successful on
the merits in any such  proceeding as to which such person is to be indemnified,
the Company must  indemnify  him/her  against all expenses  incurred,  including
attorney's fees. With respect to a derivative action, indemnity may be made only
for expenses actually and reasonably  incurred in defending the proceeding,  and
if the  officer  or  director  is  judged  liable,  only by a court  order.  The
indemnification  is intended to be to the fullest  extent  permitted by New York
law.

     Insofar as indemnification for liabilities arising under the Securities Act
of 1933,  as  amended,  may be  permitted  to  officers,  directors  or  persons
controlling the Company,  pursuant to the foregoing provisions,  the Company has
been informed that, in the opinion of the  Securities  and Exchange  Commission,
such  indemnification  is against  public policy as expressed in said Act and is
therefore unenforceable.

Office Facilities

     The  Company's  principal  offices  are  located  at 400  Perimeter  Center
Terrace,  Atlanta,  GA 30346, and are provided on a rent free basis by a company
affiliated with Oscar Hasan and an officer and director of the Company.

                             PRINCIPAL SHAREHOLDERS

     The following table sets forth certain  information  regarding ownership of
the Company's Common Stock as of the date of this Memorandum, and as adjusted to
reflect the sale of the Shares offered hereby, by each officer and director, all
officers and directors as a group,  and by all other  shareholders who own 5% or
more of the Company's Common Stock.


                                       17

<PAGE>




                          No.    Percent Ownership      Percent Ownership
                          of     Before Offering         After Offering
                         Shares                      Minimum       Maximum
                        -------                      -------       -------
Stuart Radin            560,000         70%             56            43

Eric A. Popkoff         230,000       28.8%             23          17.7

Jay Radin                10,000        1.3%              1           .08

All officers and        800,000        100%             80          61.5
Directors as a Group
(3 persons)(1)

Future Sales by Present Shareholders

     The  aggregate  of 1,067,000  shares of  Common Stock  held by the  present
shareholders are deemed "restricted securities,  as that term is defined in Rule
144 of the Rules and  Regulations  of the SEC  promulgated  under the Act ("Rule
144").  Under Rule 144,  such  shares can be  publicly  sold,  subject to volume
restrictions  and certain  restrictions  on the manner of sale,  commencing  two
years after their acquisition.  Sales of shares by "affiliates" are also subject
to volume  restrictions and certain other restrictions  pertaining to the manner
of sale, all pursuant to Rule 144.

     The 200,000 (500,000) Shares offered hereby are not "restricted securities"
under  Rule 144 and can be  publicly  sold  without  compliance  with  Rule 144,
assuming there is a market therefor, of which there can be no assurance.

                            DESCRIPTION OF SECURITIES

     The following  description of the Company's  securities does not purport to
be complete and is subject in all respects to applicable New York law and to the
provision of the Company's Certificate of Incorporation and By-laws, the Warrant
Agreement among the Company, the Underwriter, and American Securities Transfer &
Trust,  Inc.,  as warrant  agent (the  "Warrant  Agent"),  pursuant to which the
Warrants will be issued, and the Underwriting  Agreement between the Company and
the  Underwriter,  copies of all of which have been filed with the Commission as
Exhibits to the Registration Statement of which this Prospectus is a part.

Common Stock

     The authorized  capital stock of the Company consists of 10,000,000  shares
of Common Stock, par value $.001 per share. The holders of Common Stock (i) have
equal ratable rights to dividends from funds legally available  therefor,  when,
as and if declared by the Board of Directors, of the Company;


(1) Assumes that all of the Units offered hereby are sold, of which there can be
no  assurance,  and that the present  shareholders  do not purchase any Units in
this  Offering.  In either of such  events,  their  percentage  ownership  would
increase accordingly. (See "RISK FACTORS-CONTROL OF THE COMPANY", "DILUTION" and
"OFFERING.")


                                       18

<PAGE>



 (ii) are entitled to share  ratably all of the assets of the Company  available
for  distribution  to holders of Common Stock upon  liquidation,  dissolution or
winding  up of the  affairs  of the  Company;  (iii)  do  not  have  preemptive,
subscription  or  conversion  rights and there are no redemption or sinking fund
provisions  or  rights  applicable  thereto;   and  (iv)  are  entitled  to  one
non-cumulative vote per share on all matters on which stockholders may vote. All
shares of Common Stock now outstanding are fully paid for and non-assessable and
all shares of Common Stock which are the subject of this Offering,  when issued,
will be fully paid for and nonassessable.

    The Board of Directors is authorized to issue additional Common Stock within
the limits authorized by the Company's Articles of Incorporation and Bylaws.

Units

     The Company is offering a minimum of 200,000 and a maximum of 500,000 Units
of Common Stock,  par value $.001,  pursuant to this  Prospectus,  at a price of
$6.00 per Unit. No fractional Units may be purchased.  Each Unit consists of one
Share of Common  Stock (the  "Common  Stock" or  "Shares")  and two common stock
purchase warrants ("Warrants"), designated "A Warrants" and "B Warrants".

Preferred Stock

     The  5%  Cumulative  Convertible  Preferred  Shares  at the  option  of the
respective  holders  thereof,  may at any time, and from time to time,  prior to
April 1, 2016, be converted into fully paid and  nonassessable  Common Shares of
the Company at the rate of one Common  Share for one 5%  Cumulative  Convertible
Preferred  Share  provided,  however,  that such right of conversion  may not be
exercised  and shall be  suspended  during the  period of five days  immediately
preceding the date of any meeting of  shareholders,  or the date for the payment
of any  dividend,  or the date for the issuance of rights,  or the date when any
change  of  conversion  or a change  of shares  shall go into  effect.  Upon the
conversion,  as herein provided, of any shares of the 5% Cumulative  Convertible
Preferred  Shares,  all rights of the  holders of such  shares  shall  cease and
terminate, and the Common Shares issued in lieu thereof shall be of record as of
the time of such conversion.

     So long as any of the 5% Cumulative  Convertible  Preferred Shares shall be
outstanding,  the  Company  will not make any share  distribution  on its Common
Shares unless the Company,  by proper legal action,  shall have  authorized  and
reserved an amount of shares equal to the amount  thereof  which would have been
declared  upon the  Common  Shares  into which  such 5%  Cumulative  Convertible
Preferred  Shares might have been converted,  and the Company shall, out of such
additional   shares  so  authorized  and  reserved  on  account  of  such  share
distribution, upon the conversion of any 5% Cumulative Preferred Shares, deliver
with any Common Shares into which 5% Cumulative Convertible Preferred Shares are
converted,  but without additional consideration therefor, such amount of Common
Shares as would have been  deliverable  to the holders of the Common Shares into
which such 5% Cumulative  Convertible Preferred Shares has been so converted had
such Common Shares been outstanding at the time of such share distribution.  For
the purpose of this paragraph,  a share distribution shall be a dividend payable
only in Common Shares of the Company of the same class as the present authorized
Common Shares.  This shall not limit the right of the Corporation,  however,  to
declare and pay any dividends whether in cash,  shares, or otherwise,  except as
specifically otherwise provided in this paragraph.


                                       19

<PAGE>




     Any holder of the 5% Cumulative  Convertible  Preferred  Shares desiring to
exercise  the  right of  conversion  herein  provided,  shall  surrender  to the
Corporation at one of its share transfer agencies,  or in the event that at that
time there is no such agency,  then at the principal  office of the Corporation,
the  certificate  or  certificates  representing  the 5% Cumulative  Convertible
Preferred  Shares so to be  converted,  duly  endorsed in blank for  transfer or
accompanied by properly executed instruments for the transfer thereof,  together
with a written  request for the  conversion  thereof.  No such shares,  however,
shall be accepted for  conversion  on or after April 1, 2016,  at which time the
conversion privilege and right shall cease and terminate.

The Warrants

     Each of the A Warrants  entitles the  registered  holder hereof to purchase
one share of the  Common  Stock at a price of $8.00,  subject to  adjustment  in
certain   circumstances  at  any  time  after  the  Warrants  become  separately
tradeable,  until 12  months  from the  date of this  Prospectus.  Each of the B
Warrants  entitles the  registered  holder  thereof to purchase one share of the
Common  Stock  at  a  price  of  $7.00,   subject  to   adjustment   in  certain
circumstances,  at any time after the  exercise of the A Warrant  related to the
Units until 24 months from the date of this Prospectus. The Common Stock and the
Warrants included in the Units will not be separately transferable until 90 days
after  the date of this  Prospectus  or such  earlier  date as the  Company  may
determine.  The shares of Common Stock underlying the Warrants, when issued upon
the exercise  thereof and payment of the purchase price,  will be fully paid and
nonassessable.

     The  Warrants  will be issued  pursuant  to a Warrant  Agreement  among the
Company, the Underwriter and the Warrant Agent, and will be evidenced by warrant
certificates in registered form. Upon notice to the Warrant holders, the Company
has the right to reduce the exercise price or extend the expiration  date of the
Warrants.  The exercise price and number of shares of Common Stock issuable upon
the exercise of the Warrants are subject to  adjustment  upon the  occurrence of
certain events, including stock splits,  combinations and reclassification.  The
Company has reserved from its authorized but unissued shares a sufficient number
of shares of Common Stock for issuance upon the exercise of Warrants.

     The Warrants may be exercised upon the surrender of the Warrant Certificate
on or prior to the expiration of the exercise period,  with the form of election
to purchase included on the Warrant Certificate  properly complete and executed,
together with payment of the exercise price to the Warrant Agent.  No fractional
shares will be issued upon the  exercise of the  Warrants.  The  Warrants do not
confer  upon the  holders  thereof  any  voting  rights or any  other  rights as
shareholders of the Company. The exercise price of the Warrants is arbitrary and
there can be no assurance that the value of the Common Stock will ever rise to a
level where  exercise of the Warrants  would be of any  economic  benefit to the
Warrant holder.


                                       20

<PAGE>



     In order for the holder to exercise the  Warrants,  there must be a current
registration  statement on file with the Securities and Exchange  Commission and
various state securities  commissions to continue  registration of the shares of
Common Stock  underlying the Warrants.  The Company intends to file an amendment
to this Registration  Statement  covering the Warrants at a time when the market
price of the Common Stock is higher than the exercise price of the Warrants. The
filing  of  an  amendment  to  this  Registration   Statement  could  result  in
substantial  expense  to the  Company,  and there can be no  assurance  that the
Company will be able to file an amendment to this  Registration  Statement.  The
Company  will  make  reasonable  efforts  and  believes  that is will be able to
qualify the shares of Common  Stock  underlying  the  Warrants for sale in those
states where the Units are offered. The Warrants may be deprived of any value if
a current  prospectus  covering the Shares issuable upon exercise thereof is not
kept  effective,  if the underlying  Shares are not qualified in states in which
the Warrant  holder  resides,  or if the holder is unable to sell the  Warrants.
Warrant  holders who move to states in which the Warrants are not  qualified for
sale may not be able to exercise their Warrants.

Non-Cumulative Voting

     The holders of shares of Common Stock of the Company do not have cumulative
voting rights, which means that the holders of more than 50% of such outstanding
shares, voting for the election of directors,  can elect all of the directors to
be elected,  if they so choose, and, in such event, the holders of the remaining
shares  will not be able to elect any of the  Company's  directors.  After  this
Offering  is  completed,  the present  shareholders  will own 80% (65.5%) of the
outstanding shares. (See "PRINCIPAL SHAREHOLDERS.")

Dividends

     As of the  date of this  Prospectus,  the  Company  has not  paid  any cash
dividends  to  shareholders  nor does it  anticipate  payment  of any such  cash
dividends  in  the  foreseeable  future.  The  declaration  of any  future  cash
dividends  will be at the  discretion  of the Board of Directors and will depend
upon earnings,  if any, capital  requirements and the financial  position of the
Company, general economic conditions, and other pertinent actors.

Reports to Shareholders

     The Company will furnish annual reports to shareholders  containing audited
financial  statements of the Company,  and will also furnish unaudited quarterly
financial statements.

Transfer Agent

     The Company  has  appointed  American  Securities  Transfer & Trust,  Inc.,
Denver, Colorado, as the transfer agent for its Common Stock.

                              CERTAIN TRANSACTIONS

     Callfree Technologies,  an Israeli based company, will implement a standard
Point of Presence (a "POP") ready for operation  for the Company.  This POP will
enable  Callfree  Telecom to provide the services as described  above.  This POP
will be based on a hardware product,  Hi-Pnet,  from ECI Telecom,  Ltd. with the
addition  of  software  developed  by  Callfree  Technologies.  Each POP will be
installed  and tested for a one time charge of $100,000.  Thereafter,  a royalty
fee of $US 0.01 will be paid to  Callfree  Technologies  on a per  minute  usage
basis. Callfree Technologies is a wholly owned subsidiary of CF Management, Ltd.
which is owned 32% by Rimon Corporation 2% by David Sandel, 25% by Stuart Radin,
8% by Oscar Hasan, and 33% by the Philip & Rebecca Goodman Family Trust. Messrs.
Stuart  Radin  and  Hasan are  officers  and  directors  of the  Company.  Rimon
Corporation is a Florida corporation.  Dr. Abraham Ben David, the Chief Engineer
and a director of the Company,  is a  controlling  shareholder  and President of
Call  Free  Technologies.  Stuart  Radin is also a  Vice-President  of Call Free
Technologies.


                                       21

<PAGE>




                                   LITIGATION

     The  Company is not a party to any pending  litigation  and, to the best of
its knowledge, none is contemplated or threatened.

                             ADDITIONAL INFORMATION

     The  Company  has  filed  with  the  Securities  and  Exchange   Commission
("Commission"),   450  Fifth  Street  N.W.,  Washington,  D.C.  20549,  an  SB-2
Registration  Statement  under the  Securities  Act of 1933,  as  amended,  with
respect to the securities  offered by this  Prospectus.  This  Prospectus  omits
certain  information  contained  in  the  Registration  Statement.  For  further
information,  reference is made to the  Registration  Statement and the Exhibits
and Schedules filed therewith. Statements contained in this Prospectus as to the
contents of any document  referred to are not  necessarily  complete,  and where
such document is an Exhibit to the Registration  Statement,  each such statement
is deemed to be qualified and amplified in all respects by the provisions of the
Exhibit. Copies of the complete Registration Statement,  including Exhibits, may
be examined at the  Securities  and Exchange  Commission  offices in Washington,
D.C.  Copies of the  Registration  Statement may be obtained upon payment of the
usual fees prescribed by the Commission for reproduction and handling.

                                     EXPERTS

     The audited  financial  statements  of the Company as of February 28, 1999,
included in this Prospectus, have been examined by Ronald R. Chadwick, P.C.


                                  LEGAL MATTERS

     The law office of Steven L. Siskind, 645 Fifth Avenue, Suite 403, New York,
New York 10022,  Telephone  (212)  750-2002,  has acted as legal counsel for the
Company regarding the validity of the securities offered hereby.

                              FINANCIAL STATEMENTS

         The Company's  fiscal year ends  December 31. The financial  statements
for the  Company  for the  period  ended  June 30,  1999 and  audited  financial
statements for the period ended February 28, 1999 follows immediately.




                                       22

<PAGE>



                                     PART II

                     INFORMATION NOT REQUIRED IN PROSPECTUS

Item 22.  Indemnification of Directors and Officers.

    The only statute,  charter provision,  bylaw, contract, or other arrangement
under which any  controlling  person,  director or officer of the  Registrant is
insured or indemnified in any manner against any liability which he may incur in
his capacity as such, is as follows:

(1) Article  Sixth of the Articles of  Incorporation  of the  Company,  filed as
Exhibit 3.1 to the Registration Statement.

(2)  New York General Business Law ss. 722

     The general  effect of the  foregoing  is to  indemnify  a control  person,
officer or director from liability,  thereby making the Company  responsible for
any expenses or damages incurred by such control person,  officer or director in
any  action  brought  against  them  based on their  conduct  in such  capacity,
provided they did not engage in fraud or criminal activity.

Item 23.  Other Expenses of Issuance and Distribution.

     The estimated  expenses of the offering (assuming all Shares are sold), all
of which are to be paid by the Registrant, are as follows:

SEC Registration Fee                   $ 3,182.00
National Association of
Securities Dealers, Inc.
 Filing Fees                               800.00
 Printing Expenses                         500.00
 Accounting Fees and Expenses            5,000.00
 Legal Fees and Expenses                27,500.00
 Blue Sky Fees/Expenses                  1,000.00
 Transfer Agent Fees                       500.00
 Miscellaneous Expenses                  1,518.00
                                       ----------
   TOTAL                               $40,000.00

Item 24.  Recent Sales of Unregistered Securities.

     During the past three years,  the Registrant  issued  securities which were
not  registered  under the  Securities  Act of 1933, as amended,  pursuant to an
exemption  under  Section  4(2) of that Act, to its  founders  and  promoters as
follows:

Name & Address           Date of Issuance       Number of Shares Consideration
- --------------           ----------------     ----------------------------------
 Stuart Radin                12/31/98         560,000 shares in lieu of services
 1116 Neilson Street
 far Rockaway, NY 11691

 Eric Popkoff                12/31/98         230,000 shares in lieu of services
 1750 East 23rd Street
 Brooklyn, NY 11229

 Jay Radin                   12/31/98          10,000 shares in lieu of services

     Between March 1, 1999 and June 30, 1999 the Company  issued an aggregate of
200,067  shares of common stock to 27 investors,  pursuant to an exemption  from
Registration under Section 4(2) of the Act.

     All purchasers of the  Registrant's  Common Stock  acknowledged  in writing
that they were obtaining "restricted  securities",  as defined in Rule 144 under
the Act; that such shares cannot be transferred without appropriate registration
or exemption therefrom;  that they must bear the economic risk of the investment
for an  indefinite  period  of time;  that they  would  not sell the  securities
without  registration  or exemption  therefrom;  and that the  Registrant  would
restrict the transfer of the securities in accordance with such representations.
Each purchaser  agreed that any  certificate  representing  such shares would be
stamped with the usual legend restricting the transfer of such shares.


                                       23

<PAGE>




     No underwriters  were used in the sale and issuance of the foregoing shares
and none of the shares were offered publicly.

     All of the foregoing shares were issued in transactions between the Company
and its  promoters and founders,  and did not involve any public  offering.  The
purchasers were all officers and directors of the Company.

Item 25.  Exhibits.

     The following  Exhibits are filed as part of this  Registration  Statement,
pursuant to Item 601 of Regulation S-K:

Exhibit No.       Title
- -----------       ------
1                 Underwriting Agreement
1.1               Select Dealer Agreement
1.2               Warrant Agreement*
3.1               Articles of Incorporation
3.2               Bylaws
4.1               Subscription Agreement
5                 Opinion of Steven L. Siskind, Esq. regarding the legality of
                    the Securities being registered
10.1(a)           Promissory Note payable to Tina Chromey
10.1(b)           Promissory Note payable to Philip Goodman
10.1(c)           Promissory Note payable to Robert P. Hennig
10.1(d)           Promissory Note payable to James L. Perry
10.10(a)          Common stock purchase option with Philip Goodman
10.11             Proceeds Escrow Agreement with American Securities Transfer &
                    Trust, Inc.*
10.12(a)          Employment Agreement with Stuart Radin
10.12(b)          Employment Agreement with Eric Popkoff
10.12(c)          Employment Agreement with Jay Radin
23                Consent of Steven L. Siskind, Esq. (See Exhibit 5)
24.1              Consent of Ronald P. Chadwick, C.P.A.

* To be filed later

     Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors,  officers and controlling  persons of the
Registrant pursuant to the foregoing  provisions,  or otherwise,  the Registrant
has been advised that in the opinion of the Securities  and Exchange  Commission
such  indemnification  is against  public policy as expressed in the Act and is,
therefore,  unenforceable. In the event that a claim for indemnification against
such liabilities  (other than the payment by the Registrant of expenses incurred
or paid by a director,  officer or  controlling  person of the Registrant in the
successful  defense of any  action,  suit or  proceeding)  is  asserted  by such
director,  officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been  settled by  controlling  precedent,  submit to a court of  appropriate
jurisdiction the question whether such  indemnification  by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.


                                       24

<PAGE>




         The undersigned Registrant hereby undertakes:

     (1) To file,  during any period in which  offers or sales are being made, a
post-effective amendment to this Registration Statement:

         (i)  To include any prospectus required by Section 10(a)(3) of the
         Securities Act of 1933;

         (ii) To reflect in the prospectus any facts or events arising after the
         effective  date  of the  Registration  Statement  (or the  most  recent
         post-effective  amendment  thereof)  which,   individually  or  in  the
         aggregate,  represent a fundamental change in the information set forth
         in the Registration Statement;

         (iii) To include any material  information  with respect to the plan of
         distribution not previously disclosed in the Registration  Statement or
         any change to such information in the Registration Statement.

     (2) That, for the purpose of determining any liability under the Securities
Act of 1933,  each  such  post-effective  amendment  shall be deemed to be a new
Registration  Statement  relating to the  securities  offered  therein,  and the
offering of such  securities at that time shall be deemed to be the initial bona
fide offering thereof.

     (3) To remove from registration by means of a post-effective  amendment any
of the securities being registered which remain unsold at the termination of the
offering.

                 THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK


                                       25

<PAGE>


                                   SIGNATURES

     Pursuant to the  requirements of the Securities Act of 1933, the Registrant
certifies  that it has  reasonable  grounds to believe  that it meets all of the
requirements for filing on Form SB-2 and has duly caused this Amendment No. 1 to
the  Registration  Statement  to be  signed  on its  behalf  by the  undersigned
thereunto  duly  authorized  in Far  Rockaway,  New York on the ___ day of July,
1999.

                                      CALLFREE TELECOM COMMUNICATIONS CORP.



                                     By:
                                          Stuart Radin, President

     Pursuant  to  the   requirements  of  the  Securities  Act  of  1933,  this
Registration  Statement  has  been  signed  by  the  following  persons  in  the
capacities and on the dates indicated.

Signatures                                         Date



/s/ Stuart Radin                                 July  1, 1999
- ---------------------------------
Stuart Radin, President



/s/ Eric A. Popkoff                              July  1, 1999
- ---------------------------------
Eric A. Popkoff, Vice-President
Corporate Relations, Director



/s/ Oscar Hasan                                  July  1, 1999
- ---------------------------------
Oscar Hasan



/s/ Jay Radin                                    July  1, 1999
- ---------------------------------
Jay Radin, Director



/s/ Abraham S. Ben-David                         July  1, 1999
- ---------------------------------
Abraham S. Ben-David


<PAGE>




                     CALLFREE TELECOM COMMUNICATIONS CORP.
                         (A Development Stage Company)

                              FINANCIAL STATEMENTS

                               December 31, 1998
                              & February 28, 1999
                       and Six Months Ended June 30, 1999

<PAGE>

                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                                  BALANCE SHEET
<TABLE>
<CAPTION>

                                                                 December 31,             February 28,            June 30,
                                                                     1998                     1999                  1999
                                                                 ------------             ------------            --------
                                  ASSETS


Current assets
<S>                                                               <C>                      <C>                     <C>
     Cash                                                         $(     250)              $    27,740              $21,387
                                                                  -----------              -----------              -------
       Total current assets                                        (     250)                   27,740               21,387
                                                                  -----------              -----------              -------
Total Assets                                                      $(     250)              $    27,740              $21,387
                                                                  -----------              -----------              -------






            LIABILITIES AND STOCMIOLDERS' EQUITY

Current liabilities
     Accrued payables - related party                             $    49,437                   68,187                61,186
     Accounts payable                                                   1,877                    4,877                 2,028
     Interest payable                                                   2,463                    3,213                 6,344
     Notes payable                                                     45,000                   75,000               155,750
                                                                  -----------             ------------

          Total current liabilities                                    98,777                  151,277               225,310
                                                                  -----------             ------------               -------

Total Liabilities                                                      98,777                  151,277               225,310
                                                                  -----------             ------------               -------

    Stockholders' equity

        Preferred stock: $.01 par value,
          1,000,000 shares authorized,
          0 shares issued & outstanding

        Common stock: $.001 par value,
          10,000,000 shares authorized
          800,000 shares issued & outstanding
          & 1,067,000 shares issued & outstanding                         800                      800                 1,067
         Additional paid in capital                                     7,238                    7,318                 9,423
         Deficit accumulated during
          the development stage                                     ( 107,065)               ( 131,655)             (214,412)
                                                                  -----------              ------------             ---------
      Stockholders' Equity (Deficit)                                 ( 99,027)               ( 123,537)             (203,922)
                                                                  -----------              ------------             ---------
      Total Liabilities And Stockholders' Equity                   $     (250)             $    27,740              $ 21,387
                                                                  ===========              ============             =========
</TABLE>





    The accompanying notes are an integral part of the financial statements.

                                       F-2



<PAGE>


                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                             STATEMENT OF OPERATIONS



<TABLE>
<CAPTION>


                                                             Two Months        Six Months                 April 8, 1998
                                               Year Ended.       Ended           Ended            ________(inception to)_______
                                               December 31,   February 28,      June 30,          February 28,       June 30,
                                                  1998            1999            1999               1999              1999
                                              -------------  -------------     -----------        ------------       ---------

<S>                                            <C>            <C>              <C>                 <C>               <C>
Revenues.                                      $        -     $        -                           $        -
Operating expenses                                104,564         23,360          103,504             128,324           208,068
                                               ----------     ----------       ----------          ----------        ----------
Income (loss) from operations                    (104,564)       (23,360)        (103,504)           (128,324)         (208,068)
                                               ----------     ----------       ----------          ----------        ----------

Other income (expense)
         Interest                                 (2,501)           (830)          (3,843)             (3,331)           (6,344)
                                               ----------     ----------       ----------          ----------        ----------

          Income (loss) before provision
          for income taxes                      (107,065)        (24,590)        (107,347)           (131,655)         (214,412)
                                               ----------     ----------       ----------          ----------        ----------


Provision for income tax
Net income (loss)                                (l07,065)       (24,590)        (107,347)           (13l,655)         (214,412)
                                               ==========     ==========       ==========          ==========        ==========
Net income (loss) per share                   $     (.13)    $     (.03)      $     (.10)         $     (.17)       $     (.20)
                                               ==========     ==========       ==========          ==========        ==========
       Weighted average number of
       common shares outstanding                  800,000        800,000        1,067,000             800,000         1,067,000
                                               ==========     ==========       ==========          ==========        ==========

</TABLE>


    The accompanying notes are an integral part of the financial statements.

                                       F-3

<PAGE>


                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                        STATEMENT OF STOCKHOLDERS' EQUITY
         For the Period April 8, 1998 (inception) to February 28, 1999

<TABLE>
<CAPTION>

                                    COMMON STOCK                                                             Total
                                                                 Paid in        (Accumulated             Stockliolders'
                                Shares         Amount            Capital         Deficit                 Equity (Deficit)
                                ------         ------            --------        --------                ----------------

Balances at
<S>                            <C>             <C>            <C>               <C>                         <C>
April 8,1998                         -         $    -         $         -       $       -                   $         -

Common stock Issued
on December 15, 1998
at $.0 1/share, for services   800,000             800              7,200               -                         8,000

Paid in capital                      -               -                 38               -                            38

Net gain (loss)
for the period ended
December 31, 1998                    -               -                  -        (107,065)                     (107,065)
                             ---------         -------         ----------       ---------                    ----------

Balances at
December31, 1998               800,000         $   800         $    7,238       $(107,065)                   $  (99,027)

Paid in capital                      -               -                 80               -                            80

Common stock issued            262,000             267              2,105               -                    $    2,372
and additional
Paid in Capital

Net gain (loss)                                                                  (107,347)                     (107,347)
for the period
ended June 30,
1999

Balances at
  June 30, 1999              1,067,000           1,067              9,423        (214,412)                     (203,922)
                             ---------         -------         ----------       ---------                    ----------

</TABLE>



    The accompanying notes are an integral part of the financial statements.

                                       F-4

<PAGE>


                     CALLFREEE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                             STATEMENT OF CASH FLOWS

<TABLE>
<CAPTION>
                                                             Two Months        Six Months                 April 8, 1998
                                               Year Ended.       Ended           Ended            ________(inception to)_______
                                               December 31,   February 28,      June 30,          February 28,       June 30,
                                                  1998            1999            1999               1999              1999
                                              -------------  -------------     -----------        ------------       ---------


Cash Flows From Operating Activities:


<S>                                             <C>           <C>              <C>                 <C>               <C>
    Net income  (loss)                          $(107,065)    $(24,590)        $(107,347)          $(131,655)        $(214,412)
    Adjustments  to
    reconcile  net income (loss) to net
    cash provided by (used for) operating
    activities:

        Stock issuances
        Compensatory stock issuances                8,000            -               267               8,000            1, 067
        Increase  in accrued  payables -
          related  parties                         49,437       18,750            11,749              68,187            61,186
        Increase  in accounts payable               1,877        3,000               151               4,877             2,028
        Increase in interest payable                2,463          750             3,881               3,213             6,344
        Option interest expense                        38           80             2,185                 118             1,423

Additional paid-in capital
             Net  cash provided by (used for)
             operating activities                 (45,250)      (2,010)          (89,112)            (47,260)         (134,362)
                                                  -------       ------           -------              ------           -------


Cash Flows From Financing Activities:

         Receipts from notes payable               45,000       30,000           110,750              75,000           155,750
         Payments on notes payable                      -            -                 -                   -                 -
                                                  -------       ------           -------              ------           -------
                 Net cash provided by (used for)
                     financing activities          45,000       30,000           110,750              75,000           155,750
                                                  -------       ------           -------              ------           -------


    Net Increase (Decrease) In Cash                  (250)      27,990            21,637              27,740            21,387



Cash At The Beginning Of The Period                     -         (250)             (250)                  -                 -
                                                  -------       ------           -------              ------           -------
Cash At The End Of The Period                     $  (250)     $27,740           $21,387             $27,740          $ 21,387
                                                  =======       ======            ======              ======           =======
</TABLE>

Schedule Of Non-Cash Investing And Financing Activities:

During the period ended December 31,1998 the Company:

           1)recorded $8,000 in stockholders' equity from compensatory stock
             issuances.

Supplemental Disclosure

Cash paid from April 8, 1998 (inception) to June 30, 1999 for income taxes: 680




    The accompanying notes are an integral part of the financial statements.

                                       F-5






<PAGE>

                      CALLEREE TELECOM COMMUNICATIONS CORP.
                         (A Development Stage Company).
                          NOTES TO FINANCIAL STATEMENTS


NOTE 1. ORGANIZATION, OPERATIONS AND:SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Callfree  Telecom  Communications  Corp.   ("Callfree",   the  "Company"),   was
incorporated  in the state of New York on April 8, 1998.  The Company was formed
to provide long distance  telephone and advertising  services over the Internet.
The Company has conducted  only limited  planned  principal  operations and is a
development stage company.

Income tax

Deferred taxes are provided on a liability  method  whereby  deferred tax assets
are  recognized  for  deductible   temporary   differences  and  operating  loss
carryforwards  and deferred tax liabilities are recognized for taxable temporary
differences.'  Temporary  differences are the  differences  between the reported
amounts of assets and liabilities  and their tax bases.  Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management,  it is more
likely than not that some  portion or all of the deferred tax assets will not be
realized.  Deferred tax assets and  liabilities  are adjusted for the effects of
changes in tax laws and rates on the date of enactment.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of
three months or less as cash equivalents.

Accounting year

The Company employs a calendar accounting year.

Use of estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the reported amounts of revenue and expenses during the reporting  period.Actual
results could differ from those estimates.


                                      F-6
<PAGE>




                      CALLFREE TELECOM COMMUNICATIONS CQRP.
                         (A Development Stage' Company)
                    NOTES TO FINANCIAL STATEMENTS - Continued


NOTE 1. ORGANIZATION,  OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):

Net income (loss) per share

The net 'income (loss) per share is computed by dividing,  the net income (loss)
by the weighted average number of shares of common outstanding.  Warrants, stock
options,  and common stock issuable upon  conversion of the Company's  preferred
stock are not included in the  computation if the effect of such inclusion would
be anti-dilutive and would increase the earnings or decrease loss per share.

Stock offering costs

Expenditures  incident to the public stock offering  which consist  primarily of
legal,  underwriting,  commissions  and  printing  expenses are  capitalized  as
incurred and will be charged against the proceeds of the public offering if said
offering is  successful,  and  charged off as an expense if the  offering is not
successful.


NOTE 2. RELATED PARTY TRANSACTIONS

As of June 30,  1999  the  Company  owed  Stuart  Radin,  an  officer,  $46,937,
consisting  of $36,937  for  expenses  incurred  on behalf of the  Company,  and
$10,000 in compensation,  and owed Eric Popkoff, an officer, $2,500. At June 30,
1999, the Company owed Stuart Radin $61,187,  consisting of $36,937 for expenses
incurred on behalf of the Company, and $24,250 in compensation.


NOTE 3. INCOME TAXES

Deferred  income taxes arise from the temporary  differences  between  financial
statement  and  income  tax  recognition  of net  operating  losses.  These loss
carryovers  are limited  under the Internal  Revenue  Code should a  significant
change in ownership  occur.  The Company  accounts for income taxes  pursuant to
SFAS 109. As of June 30, 1999, the Company had approximately $ 214,000 of unused
federal net operating loss  carryforward,  which will expire in the year 2019 if
not used. A deferred tax asset, arising from the net operating loss carryforward
of approximately $64,200 has been offset by a 100% valuation allowance.



                                      F-7
<PAGE>



                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS - Coutinued


NOTE 4. NOTES PAYABLE

At December 31, 1998 and February 28, 1999, the Company had the following  notes
payable outstanding:
<TABLE>
<CAPTION>

                                                               Balances at                Balances at
                                                               December 31,               June 30,
                                                                  1998                       1999
                                                               ------------               -----------
<S>                                                              <C>                       <C>
Three notes payable, unsecured, interest at
10% per annum, maturing November26, 1998,
currently delinquent                                             $ 40,000                  $ 40,000

Note payable1 unsecured, interest at
5% per annum, maturing August 4, 1999                               5,000                     5,000


Note payable, unsecured, interest at 10% per annum,
maturing on various dates.                                              -                   110,750
                                                                 --------                  --------
    Total notes payable                                          $ 45,000                  $155,750

</TABLE>

   The schedule of  maturities  by fiscal year for all notes  outstanding  is as
follows:

                       Year ending December 31,
                         1998       $ 40,000
                         1999          5,000
                         2000        115,750
                         Total      $115,750


                                      F-8

<PAGE>




                      CALLFREE TELECOM COMMUNICATIONS CQRP.
                          (A Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS - Continued


NOTE 5. STOCKHOLDERS' EQUITY

Common stock

The  Company as of June 30,  1999 had  10,000,000  shares of  authorized  common
stock, $.00l par value, with 1,067,00O shares issued and outstanding.

Preferred stock

The Company has  1,000,000  shares of  authorized,  5%  cumulative,  convertible
preferred  stock,  par value $.01,  with 0 shares  issued and  outstanding  (the
"Preferred"). The Preferred is convertible at the option of the holder, prior to
April 1, 2016,  into fully paid,  nonassessable  common shares of the Company at
the rate of one common share for one share of the Preferred.

Stock compensation awards

In December of 1998 the Company issued founders' stock to insiders,  recording a
total compensation expense of $8,000.

Stock  options:  In June and August of 1998,  and February of 1999,  the Company
issued stock options to several  individuals in connection with the borrowing of
money to support Company operations.  The Company accounts for the fair value of
these  note  related  options  in  accordance  with SFAS 123.  The  options  are
considered by the Company as a cost of borrowed funds. The exercise price of the
options  granted  in 1998 is $.001 per share,  and $.01 and $7.20 per s hare for
those in 1999, and market price has been estimated at par ($.00l per share). The
related interest cost has been expensed on the date of grant, as the options are
immediately exerciseable or the amounts nominal. The Company has set no specific
limit on the  amount of shares it may  issue for  options  underlying  borrowing
activities, and the maximum term of any one of these options is four years.



                                      F-9

<PAGE>








                     CALLFREE TELECOM COMMUNICATIONS CORP.
                         (A Development Stage Company)

                              FINANCIAL STATEMENTS

                               December 31, 1998
                              & February 28, 1999














<PAGE>





                     CALLFREE TELECOM COMMUNICATIONS CORP.
                         (A Development Stage Company)

                              FINANCIAL STATEMENTS




TABLE OF CONTENTS


                                                                    Page
                                                                    ----

INDEPENDENT AUDITOR'S REPORT ON
     THE FINANCIAL STATEMENTS                                       F-1

FINANCIAL STATEMENTS

     Balance sheet                                                  F-2
     Statement of operations                                        F-3
     Statement of stockholders' equity                              F-4
     Statement of cash flows                                        F-5
     Notes to financial statements                                  F-6











<PAGE>


                             RONALD R. CHADWICK, P.C.
                           CERTIFIED PUBLIC ACCOUNTANT
                               3025 5. PARKER ROAD
                                    SUITE 109
                             AURORA, COLORADO 80014

                             TELEPHONE:(3O3)3O6-I967
                            TELECOPIER:(303)306-1944




                          INDEPENDENT AUDITOR'S REPORT


Board of Directors
Callfree Telecom Communications Corp.
Far Rockaway, New York

I  have   audited  the   accompanying   balance   sheets  of  Callfree   Telecom
Communications  Corp.  as of  December  31, 1998 and  February  28, 1999 and the
related  statements of operations,  stockholders'  equity and cash flows for the
period from April 8, 1998  (inception)  to February  28, 1999.  These  financial
statements are the responsibility of the Company's management. My responsibility
is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally  accepted auditing  standards.
Those standards  require that I plan and perform the audit to obtain  reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.  Ah audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the financial  position of Callfree Telecom  Communications
Corp.  as of  December  31,  1998 and  February  28, 1999 and the results of its
operations  and its cash flows for the period from April 8, 1998  (inception) to
February 28, 1999 in conformity with generally accepted accounting principles.


Aurora, Colorado                                       /s/RONALD CHADWICK, P.C.
March23, 1999                                             RONALD CHADWICK, P.C.


<PAGE>


                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                                  BALANCE SHEET
<TABLE>

                                                                     December 31, February 28,
                                                                         1998        1999
                                                                      ---------    ---------

ASSETS
Current assets
<S>                                                                   <C>          <C>
    Cash ..........................................................   $    (250)   $  27,740
                                                                      ---------    ---------
     Total current assets .........................................        (250)      27,740
                                                                      ---------    ---------
Total Assets ......................................................         250)   $  27.740
                                                                      =========    =========

          LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
    Accrued payables - related party ..............................   $  49,437       68,187
    Accounts payable ..............................................       1,877        4,877
    Interest payable ..............................................       2,463        3,213
    Notes payable .................................................      45,000       75,000
                                                                      ---------    ---------
    Total current liabilities .....................................      98,777      151,277
                                                                      ---------    ---------
Total Liabilities .................................................      98,777      115,277
                                                                      ---------    ---------

Stockholders' equity
      Preferred stock: $.0l par value, 1,000,000 shares authorized,
        0shares issued & outstanding...............................           -            -
      Common stock: $.00l par value, 10,000,000 shares authorized
       800,000 shares issued & outstanding ........................         800          800
    Additional paid in capital ....................................       7,238        7,318

      Deficit accumulated during
       the development stage.......................................    (107.065)    (131,655)
                                                                      ---------    ---------
Stockholders' Equity ('Deficit) ...................................     (99.027)    (123,537)
                                                                      ---------    ---------
Total Liabilities And Stockholders' Equity ........................   $    (250)   $  27,740
                                                                      =========    =========

</TABLE>





    The accompanying notes are an integral part of the financial statements.

                                       F-2
<PAGE>



                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                             STATEMENT OF OPERATIONS
<TABLE>

<CAPTION>

                                                                                                         April 8, 1998
                                                       Year Ended             Two Months Ended           (inception) to
                                                    December 31, 1998         February 28, 1999         February 28, 1999
                                                    -----------------         -----------------         -----------------
<S>                                                   <C>                       <C>                       <C>
Revenues.........................................     $        -                $        -                $         -
Operating expenses...............................        104.564                    23.760                    128.324
                                                      -----------               -----------               ------------
Income (loss) from operations....................     (  104.564)               (   23.760)               (   128.324)
                                                      -----------               -----------               ------------

Other income (expense)
           Interest..............................     (    2.501)               (      830)               (     3,331)
                                                      -----------               -----------               ------------
           Income (loss) before provision
           for income taxes......................     (  107,065)               (   24,590)               (   131.655)
                                                      -----------               -----------               ------------
Provision for income tax
Net income (loss)................................     (  107,065)               (   24,590)               (   131,655)
                                                      -----------               -----------               ------------
Net income (loss) per share......................     $     (.13)                    $(.03)               $      (.17)
                                                      -----------               -----------               ------------
      Weighted average number of
       common shares outstanding.................        800.000                   800.000                    800,000
                                                      -----------               -----------               ------------

</TABLE>

















    The accompanying notes are an integral part of the financial statements.

                                      F-3
<PAGE>







                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                        STATEMENT OF STOCKHOLDERS' EQUITY
          For the Period April 8, 1998 (inception) to February 28, 1999
                               COMMON STOCK
<TABLE>
<CAPTION>
                                                                                                       Total
                                                              Paid in           (Accumulated           Stockholders'
                                Shares        Amount          Capital           Deficit                Equity  (Deficit)
                                ------        ------          -------           ------------           -----------------

Balances at
<S>                            <C>          <C>              <C>                  <C>                   <C>
April 8, 1998 ..............   $     --     $     --         $     --             $      --             $       --

Common stock issued
on December 15, 1998
at $.0 1/share, for services    800,000          800            7,200                    --                  8,000
Paid in capital ............         --           --               38                    --                     38

Net gain (loss)
for the period ended
December 31, 1998 ..........         --           --               --              (107.065)             ( 107.065)
                               --------     --------        --------              ----------             ----------
Balances at
December 31, 1998 ..........    800,000     $    800         $  7,238             $(107,065)            $(  99,027)
Paid in capital ............         --           --               80                    --                     80

Net gain (loss)
for the period ended
February 28, 1999 ..........         --           --              --              (  24.590)             (  24,590)
                               --------     --------        --------              ----------             ----------
Balances at
February 28, 1999 ..........    800.000     $    800        $  7.318              $(131.655)             $(123,537)
                               ========     ========        ========              ==========             ==========

</TABLE>












    The accompanying notes are an integral part of the financial statements.

                                      F-4
<PAGE>







                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                             STATEMENT OF CASH FLOWS

<TABLE>

<CAPTION>

                                                                           Two Months       April 8,1998
                                                         Year Ended          Ended          (inception) to
                                                         December 31,      February 28,     February 28,
                                                            1998              1999             1999
                                                         ------------      -----------     --------------
Cash Flows From Operating Activities:
<S>                                                       <C>              <C>          <C>
     Net income (loss) ................................   $(107,065)       $ (24,590)       $(131,655)
     Adjustments to reconcile net income
     (loss) to net cash provided by (used for)
      operating activities:
         Compensatory stock issuance ..................       8,000
         Increase in accrued payables - related parties      49,437           18,750           68,187
         Increase in accounts payable .................       1,877            3,000            4,877
         Increase in interest payable .................       2,463              750            3,213
         Option interest expense ......................          38               80              118
                                                          ---------        ---------        ---------
             Net cash provided by (used for)
                  operating activities ................     (45,250)          (2,010)         (47,260)
                                                          ---------        ---------        ---------
Cash Flows From Financing Activities:
     Receipts from notes payable ......................      45,000           30,000           75,000
                                                          ---------        ---------        ---------
      Payments on notes payable

             Net cash provided by (used for)
                  financing activities ................      45,000           30,000           75,000
Net Increase (Decrease) In Cash .......................        (250)          27,990           27,740
Cash At The Beginning Of The Period ...................          --             (250)              --
Cash At The End Of The Period .........................   $    (250)       $  27,740        $  27,740
                                                          =========        =========        =========

     Schedule Of Non-Cash Investing And Financing Activities:

     During the period ended December 31, 1998 the Company:

          1) recorded $8,000 in  stockholders'  equity from  compensatory  stock
          issuances.

     Supplemental Disclosure

     Cash paid from April 8, 1998  (inception) to February 28, 1999 for interest
     and income taxes: None.

</TABLE>

    The accompanying notes are an integral part of the financial statements.

                                      F-5
<PAGE>


                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS


NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

Callfree  Telecom  Communications  Corp.   ("Callfree",   the  "Company"),   was
incorporated  in the state of New York on April 8, 1998.  The Company was formed
to provide long distance  telephone and advertising  services over the Internet.
The Company has conducted  only limited  planned  principal  operations and is a
development stage company.

Income tax

Deferred taxes are provided on a liability  method  whereby  deferred tax assets
are  recognized  for  deductible   temporary   differences  and  operating  loss
carryforwards  and deferred tax liabilities are recognized for taxable temporary
differences.  Temporary  differences  are the  differences  between the reported
amounts of assets and liabilities  and their tax bases.  Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management,  it is more
likely than not that some  portion or all of the deferred tax assets will not be
realized.  Deferred tax assets and  liabilities  are adjusted for the effects of
changes in tax laws and rates on the date of enactment.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of
three months or less as cash equivalents.

Accounting year

The Company employs a calendar accounting year.

Use of estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of assets  and  liabilities  and  disclosure  of
contingent  assets and  liabilities at the date of the financial  statements and
the reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.

                                      F-6
<PAGE>



                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS - Continued



NOTE 1. ORGANIZATION,  OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued):

Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by
the weighted  average number of shares of common  outstanding.  Warrants,  stock
options,  and common stock issuable upon  conversion of the Company's  preferred
stock are not included in the  computation if the effect of such inclusion would
be anti-dilutive and would increase the earnings or decrease loss per share.

Stock offering costs

Expenditures  incident to the public stock offering  which consist  primarily of
legal,  underwriting,  commissions  and  printing  expenses are  capitalized  as
incurred and will be charged against the proceeds of the public offering if said
offering is  successful,  and  charged off as an expense if the  offering is not
successful.


NOTE 2. RELATED PARTY TRANSACTIONS

As of December  31, 1998 the Company  owed Stuart  Radin,  an officer,  $46,937,
consisting  of $36,937  for  expenses  incurred  on behalf of the  Company,  and
$10,000 in compensation,  and owed Eric Popkoff, an officer, $2,500. At February
28,  1999,  the Company  owed Stuart Radin  $65,187,  consisting  of $36,937 for
expenses  incurred on behalf of the Company,  and $28,250 in  compensation,  and
owed Eric Popkoff $3,000.


NOTE 3. INCOME TAXES

Deferred  income taxes arise from the temporary  differences  between  financial
statement  and  income  tax  recognition  of net  operating  losses.  These loss
carryovers  are limited  under the Internal  Revenue  Code should a  significant
change in ownership  occur.  The Company  accounts for income taxes  pursuant to
SFAS 109. As of December 31,  1998,  the Company had  approximately  $107,000 of
unused  federal net operating loss  carryforward,  which will expire in the year
2019 if not used. A deferred  tax asset,  arising  from the net  operating  loss
carryforward  of  approximately  $30,000  has been  offset  by a 100%  valuation
allowance.

                                      F-7
<PAGE>



                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS - Continued


NOTE 4. NOTES PAYABLE

At December 31, 1998 and February  28,1999,  the Company had the following notes
payable outstanding:

<TABLE>

                                                                  Balances at           Balances at
                                                                 December 31,           February 28,
                                                                     1998                   1999
                                                                 ------------           ------------
<S>                                                              <C>                    <C>
Three notes payable,
unsecured, interest at 10% per annum,
maturing November 26, 1998,
currently delinquent                                              $ 40,000               $ 40,000

Note payable,
unsecured, interest at 5% per annum,
maturing August 4, 1999                                              5,000                  5,000

Note payable,
unsecured, interest at 10% per annum,
maturing February 18, 2000                                              --                 30,000
                                                                  --------               --------
Total current notes payable                                       $ 45.000               $ 75.000
                                                                  ========               ========

</TABLE>

The  schedule  of  maturities  by fiscal  year for all notes  outstanding  is as
follows:

            Year ending December 31,

                    1998.....................$ 40,000
                    1999.....................   5,000
                    2000.....................  30,000
                   Total.....................$ 75.000

                                      F-8
<PAGE>



                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS - Continued


NOTE 5. STOCKHOLDERS' EQUITY

Common stock

The Company as of December 31, 1998 and February 28, 1999 had 10,000,000  shares
of authorized  common  stock,  $.001 par value,  with 800,000  shares issued and
outstanding.

Preferred stock

The Company has  1,000,000  shares of  authorized,  5%  cumulative,  convertible
preferred  stock,  par value $.0l,  with 0 shares  issued and  outstanding  (the
"Preferred"). The Preferred is convertible at the option of the holder, prior to
April 1, 2016,  into fully paid,  nonassessable  common shares of the Company at
the rate of one common share for one share of the Preferred.

Stock compensation awards

In December of 1998 the Company issued founders' stock to insiders,  recording a
total compensation expense of $8,000.

Stock  options:  In June and August of 1998,  and February of 1999,  the Company
issued stock options to several  individuals in connection with the borrowing of
money to support Company operations.  The Company accounts for the fair value of
these  note  related  options  in  accordance  with SFAS 123.  The  options  are
considered by the Company as a cost of borrowed funds. The exercise price of the
options granted in 1998 is $.001 per share,  and $.01 and $7 per share for those
granted in 1999,  and market price has been  estimated at par ($.001 per share).
The related interest cost has been expensed on the date of grant, as the options
are  immediately  exercisable  or the  amounts  nominal.  The Company has set no
specific  limit on the  amount of shares  it may  issue for  options  underlying
borrowing  activities,  and the maximum term of any one of these options is four
years.








                                      F-9
<PAGE>


                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS - Continued


NOTE 5. STOCKHOLDERS' EQUITY (Continued)

A summary of the status of the  Company's  stock options as of December 31, 1998
and  February 28,  1999,  and changes  during the period ended on those dates is
presented below:

<TABLE>


                                        December 31, 1998                 February 28, 1999
                                     ---------------------              ---------------------
                                          Weighted Ave.                      Weighted Ave.
Options                              Shares Exercise Price              Shares Exercise Price
- -------                              ------ --------------              ------ --------------

Outstanding at
<S>                                  <C>        <C>                   <C>         <C>
  beginning of period                    --         --                  38,000      $ .001
Granted                              38,000     $ .001                  80,000      $ 3.50
Exercised                                --         --                      --          --
Forfeited                                --         --                      --          --
                                     ------                            -------
Outstanding at
  end of period                      38.000      $.OO1                 118,000      $ 2.37
                                     ======
Options exercisable
  at period end                      38,000         --                  78,000          --
Weighted average fair
  value of options
  granted during the
  the period                         $ .001         --                  $ .001          --

</TABLE>




The following table summarizes  information  about stock options  outstanding at
Decembe 31, 1998.

<TABLE>

<CAPTION>

                                    Options Outstanding                             Options Exercisable
                     ---------------------------------------------------   ------------------------------------
                       Number          Weighted Ave.                           Number
    Range of           Outstanding     Remaining          Weighted Ave.        Exercisable      Weighted Ave.
Exercise Price         at 12/31/98     Contractual Life   Exercise Price       at 12/31/98      Exercise Prices
- ---------------------------------------------------------------------------------------------------------------
<S>                      <C>            <C>               <C>                  <C>              <C>
$ .001 only              38,000         6 months          $ .001               38,000           $ .001
</TABLE>


The following table summarizes  information  about stock options  outstanding at
February 28,1999.
<TABLE>
<CAPTION>

                                    Options Outstanding                             Options Exercisable
                     ---------------------------------------------------   ------------------------------------
                       Number          Weighted Ave.                           Number
    Range of           Outstanding     Remaining          Weighted Ave.        Exercisable      Weighted Ave.
Exercise Price         at 12/31/98     Contractual Life   Exercise Price       at 12/31/98      Exercise Prices
- ---------------------------------------------------------------------------------------------------------------
<S>                  <C>             <C>                <C>                  <C>              <C>
$ .001-7.00            118,000         23 months          $ 2.37               78,000           $ .006
</TABLE>

                                      F-10
<PAGE>


                      CALLFREE TELECOM COMMUNICATIONS CORP.
                          (A Development Stage Company)
                    NOTES TO FINANCIAL STATEMENTS - Continued


NOTE 6. PROPOSED PUBLIC OFFERING

The Company plans to raise capital through a public stock offering. The offering
calls for the sale to the public of a minimum of 200,000  units and a maximum of
500,000 units on a best efforts basis,  at a price of $6.00 per unit.  Each unit
consists of 1 share of common stock and 2 warrants.


















                                      F-11






Exhibit 1

PROPOSED UNDERWRITING AGREEMENENT


Gentlemen:

CALLFREE TELECOM  COMMUNICATIONS  CORP. (the "Company"),  a New York corporation
incorporated  on April  8,  1998  desires  to offer  for sale to the  public  an
aggregate of 500,000  Units of its Common  Stock $.001 par value (the  "Units").
The Units will be offered to the public at an offering  price of $6.00 per share
for an aggregate of $3,000,000.

The Company  desires to offer such Units for sale  through  you, Boe and Company
(the "Underwriter"). The offering will be undertaken by the Underwriter as agent
for the Company on a "best efforts,  all Units or none" basis as to a minimum of
200,000  Units and on a "best  efforts"  basis  thereafter  up to a  maximum  of
500,000 Units. In the event $1,200,000 for the minimum purchase of 200,000 Units
is not  received  within  the  agreed  period,  no  Units  will be sold  and the
Underwriter  will not be  entitled to any  compensation  other than as set forth
herein.

1.      Appointment of Underwriter

The  Company  hereby  appoints  Underwriter,  on all the  terms  and  conditions
hereinafter set forth, as the Company's  exclusive agent to use its best efforts
to sell on behalf of the  Company  up to 500,000  Units at the  public  offering
price set forth herein.

2.      Representations and Warranties of the Company

As an inducement to and to obtain the reliance of the  Underwriter in connection
herewith,  the Company  represents,  warrants and agrees with the Underwriter as
follows:

(a) The Company has prepared  and filed with the United  States  Securities  and
Exchange Commission (the "Commission"),  a Registration  Statement on Form SB-2,
including a Prospectus,  relating to the shares in accordance  with Section 5 of
the  Securities  Act of 1933, as amended,  and the Rules and  Regulations of the
Commission promulgated  thereunder  (collectively referred to hereinafter as the
"Act"). As used in this Agreement,  the term "Registration Statement" means such
Registration Statement,  including exhibits, financial statements and schedules,
as amended, when the post-effective  amendment thereto naming the Underwriter as
"underwriter"  becomes effective and the term "Prospectus"  means the Prospectus
filed  with  said  Registration  Statement.   (The  Registration  Statement  and
Prospectus,  as defined herein, are herein-after collectively referred to as the
"Filing") . The company will utilize its best efforts to cause the  Registration
Statement to become effective and to maintain its effectiveness  during the term
hereof.

<PAGE>


(b) The Commission has not issued and to the knowledge and belief of the Company
does not have cause to issue an order  preventing or  suspending  the use of the
Prospectus;  the Registration  Statement and Prospectus  conform in all material
respects with the  requirements  of the Act and the rules and regulations of the
Commission  promulgated  thereunder (the  "Regulations")  and do not include any
untrue  statement of material fact or omit to state a material fact necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading;  and on the Effective Date (as hereinafter defined) and at
all  times  subsequent  thereto  up to  the  Termination  Date  (as  hereinafter
defined),  the Filing and any amendment or supplement  thereto will fully comply
with the  provisions  of the Act and the  Regulations,  and will not contain any
untrue  statements  of a  material  fact or  omit to  state  any  material  fact
necessary to make the statements  therein,  in light of the circumstances  under
which  they  were   made,   not   misleading;   provided   that  the   foregoing
representations  and  warranties  shall not apply to  statements in or omissions
from the Filing, or any amendments or supplements thereto, made in reliance upon
and in conformity with information furnished herein or in writing to the Company
by or on behalf of the Underwriter expressly for use therein.

(c) The Company has no subsidiaries.

(d) Except as reflected in or contemplated  by the Filing,  since the respective
dates as of which  information is given in the Filing,  there as not been and on
the Effective Date there will not have been, any material adverse changes in the
condition  of the  Company,  financial  or  otherwise,  or in the results of its
operations.

(e) The authorized capital stock of the Company consists of 10,000,000 shares of
common stock,  par value $.00l,  of which  1,067,000  shares of common stock are
duly and validly authorized and issued, are fully paid and  non-assessable,  and
conform to the description  thereof  contained in the Filing. On the Termination
Date,  the Shares (as hereafter  defined)  will be duly and validly  authorized,
and, when issued and paid for in accordance with this Agreement, will be validly
issued,  fully paid and  non-assessable,  and will  conform  to the  description
thereof  contained in the Filing.  The execution and delivery of, and compliance
with, this  Agreement,  and the issuance of the Shares will not conflict with or
constitute a breach of or default under the Articles of Incorporation or By-Laws
of the  Company,  and  indenture,  agreement  or other  instrument  by which the
Company is bound or any order,  decree,  rule or regulation of any court, or any
law or administrative regulation, applicable to the Company.

(f) The  Company  has  been  duly  incorporated  and is  validly  existing  as a
corporation  in good  standing  under  the laws of the State of New York with an
authorized and  outstanding  capitalization  as set forth in the Filing and with
full  corporate  power and authority to carry on the business in which it is now
engaged.  The Company is qualified or licensed and in good standing as a foreign
corporation  in each  jurisdiction  in which the  ownership  or  leasing  of any
properties or the character of its  operations  requires such  qualification  or
licensing.  The Company has all requisite corporate power and authority, and all
material and necessary authorizations, approvals, orders, licenses, certificates
and permits of and from all governmental  regulatory officials and bodies to own
or  lease  its  properties  and  conduct  its  businesses  as  described  in the
Prospectus, and the Company is doing business in strict compliance with all such
authorizations,  approvals,  orders, licenses,  certificates and permits and all
federal,  state and local laws, rules and regulations concerning the business in
which the Company is  engaged.  The  disclosures  in the Filing  concerning  the
effects of federal, state and local regulations on the Company's business as

<PAGE>


currently conducted and as contemplated are correct in all material respects and
do not omit to state a material  fact.  The Company has all corporate  power and
authority  to enter  into this  Agreement  and to carry out the  provisions  and
conditions  hereof,  and all  consents,  authorizations,  approvals  and  orders
required in connection  therewith  have been obtained or will have been obtained
prior to the Closing Date. No consent,  authorization or order of, and no filing
with any court,  governmental  agency or other body is required for the issuance
of the Shares pursuant to the Prospectus and the Registration Statement,  except
with respect to applicable federal and State securities laws.

(g) The Filing contains or will contain on the Effective Date an audited balance
sheet of the Company as of ________________,  ("the Balance Sheet"); the related
audited statements of operations,  changes, in stockholders'  equity and changes
in financial  position of the Company for the period from inception to _______ ,
including  the notes hereto,  together  with the opinion of Ronald R.  Chadwick,
P.C.,  certified  public  accountants,  with  respect  thereto  (the  "Financial
Statements").  Such Financial  Statements  have been prepared in accordance with
generally accepted accounting  principles  consistently  followed throughout the
periods  indicated,  except as  otherwise  indicated in the notes  thereto.  The
Balance  Sheet  presents  fairly as of its date the  financial  condition of the
Company;  the Company did not have, as of the date of such Balance Sheet, except
as and to the  extent  reflected  or  reserved  against  in such  Balance  Sheet
(including the notes  thereto),  any  liabilities  or  obligations  (absolute or
contingent)  of a nature  customarily  reflected in a balance sheet or the notes
thereto prepared in accordance with generally  accepted  accounting  principles.
The statement of income included in the Financial  Statements present fairly the
results of operations of the Company for the period indicated.  The statement of
stockholders'  equity  and  changes in  financial  position  present  fairly the
information  which  should be presented  therein in  accordance  with  generally
accepted accounting principles.

(h) Except as set forth in the Filing,  there is no action,  suit or  proceeding
before any court or  government  agency,  authority  or body  pending or, to the
knowledge of the Company, threatened which might result in judgments against the
Company which is not adequately covered by insurance, or which is pending or, to
the  knowledge  of  the  Company,  threatened  by any  public  body,  agency  or
authority,  which might result in any material  adverse  change in the condition
(financial  or  otherwise),  business  or  prospects  of the  Company  or  would
materially affect its properties or assets.

(i) The  execution  and  delivery of this  Agreement,  the  consummation  of the
transactions herein  contemplated,  and compliance with the terms and provisions
hereof will not  conflict  with,  or  constitute  a breach of, any of the terms,
provisions  or conditions of any agreement or instrument to which the Company is
a party,  nor will  any one or any  combination  of the  foregoing  have  such a
result.

(j) The  Company has the legal  right,  power and  authority  to enter into this
Agreement,  and the execution,  delivery and,  except as otherwise  indicated in
this Agreement, performance thereof by the Company do not require the consent or
approval  of any  governmental  body,  agency  or  authority  which has not been
obtained.

(k) The  Company  is not a party to any  material  contract  (meaning  thereby a
contract  materially  affecting its business or properties) that is not referred
to in the  Filing.  No default of any  material  significance  exists in the due
performance and observance by the Company of any term,  covenant or condition of
any such  contract;  all such  contracts  are in full  force and  effect and are

<PAGE>


binding upon the parties  thereto in  accordance  with their terms;  and, to the
knowledge  of the  Company,  no other party to any such  material  contract  has
threatened or instituted any action or proceeding wherein the Company is alleged
to be in default thereunder.

(l) No stock options or warrants are or will be outstanding or issued during the
period covered by this Agreement except as set forth in the Filing.

(m) The  Company  is not  delinquent  in the  filing of any tax return or in the
payment of any taxes,  knows of no proposed  predetermination  or  assessment of
taxes;  and has  paid or  provided  for  adequate  reserves  for all  known  tax
liabilities.

(n) The Company has obtained a CUSIP number for its Shares.

(o) During the period of the  offering of the Shares and for six (6) months from
the  Effective  Date,  the  Company  will not sell any  securities  without  the
Underwriter's prior written consent, which will not be unreasonably withheld.

(p)  The  Company's  securities,  however  characterized,  are  not  subject  to
pre-emptive rights.

(q) The  Company  will have the legal  right and  authority  to enter  into this
Agreement upon its execution,  to effect the proposed sale of the Shares, and to
effect all other transactions contemplated by this Agreement.

(r) The Company knows of no person who rendered any services in connection  with
the  introduction  of the  Company  to the  Underwriter.  No  broker's  or other
finder's fees are due and payable by the Company and none will be paid by it.

(s) The Company and its affiliates are not currently offering any securities nor
has the  Company  or its  affiliates  offered or sold any  securities  except as
required to be described in the Prospectus.

(t) All  original  documents  and other  information  relating to the  Company's
affairs  have  and  will  continue  to be made  available  upon  request  to the
Underwriter and to its counsel at the  Underwriter's  office or at the office of
the  Underwriter's  counsel and copies of any such  documents  will be furnished
upon  request  to the  Underwriter  and  to its  counsel.  Included  within  the
documents made available  have been at least the Articles of  Incorporation  and
any  Amendments,  Minutes  of all  of the  meetings  of  the  Incorporators  and
Directors  and  Shareholders,   all  financial  statements  and  copies  of  all
contracts,  leases,  patents,  copyrights,  licenses or  agreements to which the
Company is a part or in which the Company has an interest.

(u) The  Corporation  will use the  proceeds  from the sale of the Shares as set
forth in the Prospectus.

(v) There are no  contracts or other  documents  required to be described in the
Prospectus  or to be filed as  exhibits  to the  Prospectus  which have not been
described or filed as required.

(w) The Company has not made any representations, whether oral or in writing, to
anyone,  whether an existing  shareholder or not, that any of the Shares will be
reserved for or directed to them during the proposed offering.

(x) The Company has caused each of its current  shareholders to agree in writing
with respect to shares  acquired by them prior to the  effective  date that they
have acquired the shares for investment  purposes only and they acknowledge that
they hold "restricted securities" as defined in Rule 144.

<PAGE>


3.      Employment of the Underwriter

Upon the foregoing  representations,  agreements,  and warranties and subject to
the terms and conditions of this  Agreement:

(a) The  Company  hereby  employs the  Underwriter  as its agent to sell for the
Company's  account up to 500,000 Units.  The Underwriter  agrees to use its best
efforts as agent,  promptly  following  the  receipt  of  written  notice of the
Effective Date of the Registration Statement, to offer for sale the aggregate of
500,000 Units subject to the terms,  provisions,  and conditions hereinafter set
forth.

(b) In the event  the  Underwriter  does not find  subscribers  for the  minimum
number of Shares having a total aggregate purchase price of $1,200,000 within 90
days  following the Effective  Date (unless  extended for up to an additional 90
days by written  agreement of the Company and the  Underwriter),  this Agreement
shall  terminate and neither party to this Agreement  shall have any obligations
to the  other  party  hereunder  except  for  certain  expenses  payable  to the
Underwriter.  Appropriate  arrangements  for placing all funds  received for the
Shares  in  escrow  shall be made  prior  to the  commencement  of the  offering
hereunder,  with  provisions  for refund to the purchasers as set forth above or
for  delivery  to the  Company  of the  net  proceeds  therefrom  if  more  than
$1,200,000 in cash has been received from the sale of Shares hereunder.

(c) The  500,000  Units  shall be offered to the  general  public at the initial
public offering price of $6.00 per Unit.

(d) The Underwriter is granted irrevocable authority as agent for the Company to
declare any  contract  to purchase  Shares  offered to the public  hereunder  in
default if such Shares are not paid for in cash within  seven (7) days after the
contract  date.  The  Underwriter   shall  deposit  promptly   pursuant  to  the
requirements  of Rule 15c2-4  promulgated  under the Securities  Exchange Act of
1934 the gross proceeds from sales of Shares in the amount with the escrow agent
until $1,200,000  is received  from said sale.  In no event shall the deposit in
escrow  of any  proceeds  required  hereunder  be made  later  than  noon of the
business day after receipt of such funds by the Underwriter.  Said deposit shall
include all cash and checks received with respect to the offering and all checks
received from customers shall be made payable to the escrow agent.

(e) As its  compensation and subject to the sale of the minimum number of Units,
the  Underwriter  shall be entitled to receive a commission  of 10% of the sales
price per Unit and a non-accountable  expense allowance of 3% of the sales price
per  Unit,  and  Underwriter's   Warrants  issued  by  the  Company,  for  total
consideration of $100, entitling it to purchase shares in an amount equal to Ten
(10%) of the amount of Units sold by the  Underwriter  in this offering at $7.20
per share as compensation.  The shares contained in the  Underwriter's  Warrants
are  identical  to the shares  being  offered  to the  public,  except  that the
exercise price of the Class A and Class B Warrants are,  respectively  $8.00 and
$7.00 per share. The Underwriter's  Warrants will be exercisable only during the
48 month period  commencing 12 months after said Effective Date of the Company's
Registration  Statement  (the  "Effective  Date"),  as amended,  and expiring 60
months after the  Effective  Date.  The  Underwriter's  Warrants  shall  contain
provisions  protecting  the  holders  of  the  Underwriter's   Warrants  against
dilution.

(f) The  Company  agrees to issue or have  issued  such Shares in such names and
denominations  as  may  be  specified  by  the   Underwriter,   and  to  deliver
certificates  representing  the Shares against payment to the Company in cash or
cashier's  check in the  amount  of the  selling  price of the  Shares  less the
Underwriter's sales commission and expenses as provided herein. Such payment and
delivery shall be made to _________at such a date and time within three (3) days
following the sale of the minimum number of Shares as provided in subparagraph 3
(b)  hereof as shall be agreed  upon by the  Underwriter  and the  Company  (the
"Closing Date") . The  Underwriter's  requisitions for certificates  shall be in
writing  and  shall  be given to the  Company  before  the  delivery  date.  The

<PAGE>



Underwriter  agrees to deliver  certificates  to the buyers of the Shares within
seven (7) days of the delivery of  certificates  to the  Underwriter as provided
herein.   For  purposes  of  expediting   the  checking  and  packaging  of  the
certificates,  the  Company  agrees  to  make  the  certificates  available  for
inspection  by  the   Underwriter,   the  transfer  agent  or  other  authorized
representative at the Company's  principal office at least 24 hours prior to the
time of each closing.

(g) The  Underwriter is hereby  authorized to organize a group of  participating
dealers  consisting  exclusively  of  members  of the  National  Association  of
Securities  Dealers,  Inc.  (the "selling  group").  Such members of the selling
group  are  to act as  agents,  and  shall  be  allowed  to  purchase  from  the
Underwriter  at a price which  provides a  concession  out of the  Underwriter's
commission in such amount as the Underwriter may determine.

(h) The Company  has  appointed  American  Securities  Transfer  (AST) in Denver
Colorado to act as the Transfer Agent.  AST has acted in said capacity since the
inception of the Corporation.

4.      Representations and Warranties of the Underwriter

As an  inducement  and to obtain  the  reliance  of the  Company  in  connection
herewith,  the Underwriter  represents,  warrants and agrees with the Company as
follows:

(a)  The  Underwriter  is  duly  registered  as a  securities  broker-dealer  in
accordance with the Securities  Exchange Act of 1934 and the states in which the
offering  shall be sold by it.

(b) The  Underwriter  will not publish,  issue or  circulate  or  authorize  the
publication,  issuance or circulation of any circular,  notice or  advertisement
which offers the Shares for sale which shall not have  previously  been approved
by the Company and its counsel, except for so-called "tombstone" advertisements,
and which has not been  approved  by the  Commission  prior to its use,  if such
prior approval is required.

   (c) The Underwriter  is, to the best of its  information and belief,  in good
standing with and in full and current  compliance in all material  respects with
the rules of the National Association of Securities Dealers,  Inc., ("NASD"). It
is  understood  that any  Dealer to whom an offer  may be made as herein  before
provided  shall be a member of the NASD or a foreign  dealer  not  eligible  for
membership  in the NASD who agrees not to re-offer,  resell or deliver the Stock
in the United States of to persons to whom it has reason to believe are citizens
or  residents  of the United  States  and, in making  sales,  to comply with the
NASD's  Interpretation  with Respect to Free-riding and withholding and Sections
8, 24 and 36 of Article  III of the  NASD's  Rules of Fair  Practice  as if such
foreign  dealer  were an NASD  member and  Section 25 of such  Article III as it
applies to a non-member broker or dealer in a foreign country.

5.      Covenants by the Company

In further  consideration of the agreements by the Underwriter herein contained,
the Company covenants as follows:

(a) At least 48 hours  prior to  submission  of the Filing or any  amendment  or
supplement  thereto to the Commission,  the Underwriter and its counsel shall be
provided  with a copy of such  Filing or  amendment,  and no such Filing will be
made to which the  Underwriter  or its counsel  shall object  within the 48 hour
period.

<PAGE>


(b) The Company will use its best efforts to cause the registration Statement to
become  effective  and will not at any  time,  whether  before,  on or after the
Effective  Date,  file  any  amendments  to  the  Filing  or  supplement  to the
Prospectus  without first obtaining the  Underwriter's  approval.  Such approval
shall be obtained by compliance with  subsection (a) above.  Said Filings or any
amendments or  supplements  thereto shall be in compliance  with the Act and the
Regulations  of the Commission to best of the Company's  knowledge,  information
and belief.

(c) As soon as the  Company is advised  thereof,  the  Company  will  advise the
Underwriter  and confirm  the advice in writing (i) as to when the  Registration
Statement has become  effective;  (ii) of any request made by the Commission for
amendment of the Filing,  for  supplementing  the  Prospectus or for  additional
information with respect thereto; and (iii) of the issuance by Commission of any
stop order suspending the effectiveness of the Registration  Statement or of any
amendment thereto or the initiation, or threat of initiation, of any proceedings
for such  purpose,  and the  Company  will use its best  efforts to prevent  the
issuance  of any such  order  and to  obtain  as soon as  possible  the  lifting
thereof, if issued.

(d) The  Company  will  deliver to the  Underwriter  and  members of the selling
group,  as  designated  by  the  Underwriter,   prior  to  the  Effective  Date,
preliminary  prospectuses  and,  on  the  Effective  Date  of  the  Registration
Statement,  without charge and from time to time  thereafter,  Prospectuses  and
amendments  thereto as required by law to be delivered in connection with sales,
in such quantities as the Underwriter may request.

(e) The Company will deliver to the  Underwriter,  without charge,  one manually
executed copy and one conformed copy of the Registration Statement together with
all required  exhibits,  as filed and all amendments thereto with exhibits which
have not previously been furnished to the  Underwriter,  and will deliver to the
Underwriter  and  to  members  of  the  selling  group,  as  designated  by  the
Underwriter,   without  charge,   such  reasonable   number  of  copies  of  the
Registration  Statement and Prospectus  (excluding  exhibits) and all amendments
thereto as the Underwriter may reasonable request.

(f)  Prior to the  Termination  Date if,  in the  opinion  of the  Underwriter's
counsel,  any statements are contained in the Prospectus which are misleading or
inaccurate  in  light of the  circumstances  under  which  they  are  made,  the
Underwriter  may require the Company to amend or  supplement  the  Prospectus to
correct said statements and may request such reasonable  number of copies of any
amended or  supplemented  Prospectus  as may be necessary to comply with the Act
and Regulations.

(g) The Company will secure, on or before the Effective Date of the Registration
Statement,  and maintain  for such period as may be required  for  distribution,
such exemptions,  registrations and  qualifications of the Shares as will permit
the  public  offering  thereof  under the  securities  or "blue sky" laws of the
states as the  Underwriter and the Company shall agree upon;  provided,  that no
such qualification shall be required if, as a result thereof,  the Company would
be made  subject to service or general  process or would be  required to qualify
for authority to do business as a foreign  corporation in any jurisdiction where
it is not now so subject or qualified.

<PAGE>


(h) The Company will pay all costs and expenses  incident to the  performance of
its obligations under this Agreement, including (i) all expenses incident to its
insurance and delivery of the Shares, (ii) the fees and expenses incident to the
preparation,  printing and filing of the  Registration  Statement and Prospectus
(including  all exhibits  thereto) with the  Commission,  the various "blue sky"
agencies and the National Association of Securities Dealers, Inc., and (iii) the
costs of  furnishing  the  Underwriter  copies  of the  Registration  Statement,
Prospectus and  preliminary  prospectuses.  The Company shall not,  however,  be
required  to pay for  transfer  tax stamps on any sales of the Shares  which the
Underwriter may make; or to pay for any of the  Underwriter's  expenses or those
of any other dealers other than as herein set forth.

(i) For a period of five years from the Effective Date, the Company will furnish
the  Underwriter  with (i) all reports and financial  statements,  if any, filed
with or furnished by the Company to the  Commission  or any stock  exchange upon
which the  securities  of the Company are listed,  (ii) such other  periodic and
special reports as the Company from time to time furnishes  generally to holders
of any class of its stock,  (iii)  every  press  release and every news item and
article  with  respect to the affairs of the Company  which was  released by the
Company,  and (iv) such additional documents and information with respect to the
affairs  of the  Company  which was  released  by the  Company,  if any,  as the
Underwriter may from time to time reasonably request. For 180 days following the
Effective  Date of the  registration  Statement,  the  Company  will  cause  its
transfer agent or agents to furnish to the  Underwriter  weekly  transfer sheets
covering the transfers of the Company's securities, including the Shares.

(j) The Company will mail or otherwise make generally  available to its security
holders as soon as  practicable,  but in no event more than fifteen months after
the  close  of the  fiscal  quarter  ending  after  the  Effective  Date  of the
Registration  Statement,  an  earnings  statement,  which  need not be  audited,
covering a period of at least twelve months  beginning  after the Effective Date
of the Registration Statement.

(k) The Company  will, as promptly as  practicable  after the end of each fiscal
year,  release to the press an  appropriate  report  covering its operations for
such  year,  and  send to the  Underwriter,  to all  holders  of  record  of the
Company's common stock and to recognized statistical services, a report covering
operations  for  such  year,  including  a  balance  sheet  of the  Company  and
statements  of earnings and of retained  earnings,  as examined by the Company's
independent accountants.

(l) The Company will apply the net proceeds from the offering  received by it in
substantially the manner set forth in the Prospectus.

(m) The  Company  will  comply with the  reporting  requirements  to which it is
subject pursuant to Section 15(d) of the Securities Exchange Act of 1934.

(n) The Company will file with the  Commission  the required  Reports on Form SR
and will file with the appropriate state securities  commissioners any sales and
other  reports  required by the rule and  Regulations  of such agencies and will
supply copies to the Underwriter.

(o) Except with the Underwriter's  approval, the Company agrees that the Company
will not do the  following  until  (a) the  completion  of the  offering  of the
Shares,  or (b) the  termination  of this  Agreement,  or (c) 90 days  after the
Effective Date, whichever occurs later:

<PAGE>


     (i)  Undertake  or  authorize  any  change  in  its  capital  structure  or
     authorize,  issue,  or permit any public or private  offering of additional
     securities;

     (ii) Authorize,  create,  issue, or sell any funded  obligations,  notes or
     other evidences of indebtedness,  except in the ordinary course of business
     and within 12 months from their creation;

     (iii) Consolidated or merge with or into any other corporation; or

     (iv) Create any mortgage or any lien upon any of its  properties  or assets
     except in the ordinary course of its business.


(p) The  Company  agrees to have the Shares  listed in the "Pink  Sheets" of the
National Quotation Bureau on the first day of trading in the Shares.

(q) Within 30 days  after the  successful  termination  of the  offering  of the
Shares,  the  Company  agrees to submit  information  about  the  Company  to be
included  in  various   securities   manuals,   including  Standard  and  Poor's
Corporation Records to facilitate secondary trading in the Shares.

(r) The  Company  agrees to cause the stock  certificates  of all of the current
shareholders  of the Company  and of any future  officers  or  directors  of the
Company to be clearly  legended as being  restricted  against  transfer  without
compliance  with the Act and to cause the Company's  transfer  agent to put stop
transfer instructions against such stock certificates.


6.      Reciprocal Indemnification

(a) The Company  agrees to  indemnify  and hold  harmless  the  Underwriter  and
members of the  selling  group and any person who may be deemed to be in control
of the  Underwriter  or any member of the  selling  group  within the meaning of
Section 15 of the Act; and

(b) The  Underwriter  agrees to indemnify  and hold  harmless  the Company,  its
directors,  such of its  officers  as sign the  Registration  Statement  and any
person who may be deemed to control and  company  within the meaning of the Act,
and to obtain a similar  indemnification from each of the members of the selling
group;  against any and all losses,  claims,  damages or liabilities  whatsoever
(including,  but- not limited to, any and all legal or other expenses whatsoever
reasonably incurred in investigating, preparing or defending against any actions
or threatened actions or claims) based on or arising out of any untrue statement
or alleged  untrue  statement of a material fact  contained in the  Registration
Statement or Prospectus  (as from time to time amended or  supplemented)  or any
application or other  document filed in any state in order to register,  qualify
or  obtain an  exemption  for  the  Shares  under  the laws  thereof  (blue  sky
application),  as the case may be, or any omission or alleged  omission to state
therein a material fact  required to be stated  therein or necessary to make the
statements  therein not misleading,  or any violation by any of the indemnifying
parties  of any  provisions  of  the  Act or any  Regulation,  or of  common  or
statutory  law, and against any and all losses,  claims,  damages or liabilities
whatsoever  to the extent of the  aggregate  amount  paid in  settlement  of any
action, commenced or threatened,  or of any claim whatsoever based upon any such
untrue statement or omission or any such violation (including but not limited to
any  and  all  legal  or  other  expenses  whatsoever   reasonably  incurred  in
investigation,  preparing  or  defending  against any such actions or claims) if
such settlement is effected with the written consent of any indemnifying  party.
The  indemnification  by the  Underwriter and members of the selling group shall
not extend to any such  statements  or  omissions  made in reliance  upon and in
conformity with written information  furnished by the Company to the Underwriter
or members of the selling group.

<PAGE>


Each of the  foregoing  indemnification's  is  expressly  conditioned  upon  the
indemnifying  parties being notified by the person seeking  indemnification,  by
letter or by telegram  confirmed by letter, of any action commenced against such
person,  within a reasonable  time after such person shall have been served with
the Summons or other first legal process giving information as to the nature and
basis of the claim, and in any event at least ten days prior to the entry of any
judgment in such  action,  but the failure to give such notice shall not relieve
any indemnifying party of any liability which such party may have to such person
otherwise  than  on  account  of  this  indemnity  agreement.  Any  party  whose
indemnification  is being  relied upon shall assume the defense of any action or
claim,  including the employment of counsel and the payment of all expenses. Any
indemnified  party shall have the right to  separate  counsel in any such action
and to  participate  in the defense  thereof  but the fees and  expenses of such
counsel  shall  be at the  expense  of such  indemnified  party  unless  (i) the
employment  thereof shall have been specifically  authorized by the indemnifying
party or (ii) the indemnifying party shall have failed to assume the defense and
employ counsel.

The  indemnification  contained above in this Section 6, and the representations
and warranties of the Company set forth in this Agreement will remain  operative
and in full force and effect,  regardless  of any  investigations  made by or on
behalf of the Underwriter or any controlling person thereof,  or by or on behalf
of the Company or its  directors or officers  and will  survive  delivery of and
payment for the Shares.

7.      Conditions to Obligations of the Company

The  obligation  of  the  Company  to  deliver  the  Shares  being  sold  by the
Underwriter  hereunder is subject to the  conditions  that (i) the  Registration
Statement  shall have become  effective  not later than 5:00 West Coast Time the
twenty-fifth  business day following the date hereof or such later time and date
as is  acceptable  to the  Company;  and  (ii)  no  stop  order  suspending  the
effectiveness of the Registration  Statement shall have been issued and shall be
in effect at the time of closing and no  proceeding  for that purpose shall have
been  initiated  or,  to  the  knowledge  of  the  Company,  threatened  by  the
Commission,  it being  understood that the Company shall use its best efforts to
prevent  the  issuance of any such stop order and,  if one has been  issued,  to
obtain the lifting  thereof.  In the event that the Shares (or any part thereof)
are not delivered by virtue of the  provisions of clause (i) of this  paragraph,
the Company shall not be liable to the Underwriter.

8.      Conditions to the Obligations of the Underwriter

The  several  obligations  of  the  Underwriter  hereunder  are  subject  to the
accuracy,  as of the date hereof and on the Closing Date of the  representations
and  warranties  made herein by the  Company;  to the  accuracy in all  material
respects of the  statements  of the officers of the Company made pursuant to the
provisions  hereof;  to the  performance  by  the  Company  of  its  obligations
hereunder  required on its part to be performed or complied  with prior to or at
such Closing Date; and to the following additional conditions:

(a) The Registration Statement and Prospectus shall have fully complied with the
provisions of the Act and the  Regulations,  and neither  document shall contain
any untrue  statement  of a  material  fact or omit to state any  material  fact
required to be stated  therein or necessary to make the  statements  therein not
misleading;  provided, however, that statements or omissions in the Registration
Statement or Prospectus in reliance  upon, and in conformity  with,  information
furnished  in  writing  by or on behalf  of the  Underwriter  expressly  for use
therein shall not be considered within the scope of this provision.

<PAGE>


(b) The  Underwriter  shall not have advised the Company  that the  Registration
Statement or  prospectus,  or any amendment or supplement  thereto,  contains an
untrue  statement or fact which, in the opinion of counsel for the  Underwriter,
is material,  or omits to state a fact which, in the opinion of such counsel, is
material  and is  required  to be stated  therein  or is  necessary  to make the
statements therein not misleading.

(c) The  Registration  Statement shall have become  effective not later than the
date specified in Section 7, or such later time and date as is acceptable by the
Underwriter,  and prior to the Closing Date no stop order shall have been issued
by the Commission with respect to the Registration Statement and Prospectus,  no
proceedings  therefor  shall have been initiated by the  Commission,  and to the
knowledge  of the  Company  or the  Underwriter,  no such  proceedings  shall be
contemplated by the Commission.

(d) Each  contract  to which  the  Company  is a party  and which is filed as an
exhibit to the  Registration  Statement shall be in full force and effect at the
Closing Date, or shall have been  terminated,  in accordance  with its terms; no
party to any such contract  shall have given any notice of  cancellation,  or to
the knowledge of the Company, shall have threatened to cancel any such contract;
and there shall be no material  misstatement  in any  description  of a contract
contained in the Registration Statement or Prospectus.

(e) From the date hereof until the Closing Date, no material litigation or legal
proceedings  of any nature shall have been  commenced or threatened  against the
Company,  nor any litigation of the  transactions  herein  contemplated;  and no
substantial change,  financial or otherwise,  shall have occurred in or relating
to the  condition,  business  or assets of the Company  which shall  render such
condition, business or assets substantially less favorable, in the Underwriter's
judgment, than as set forth in the Filing.

(f) The  Underwriter  shall  have  received  at the  Closing  Date  an  opinion,
addressed  to the  Underwriter,  of Steven L. Siskind,  counsel for the Company,
dated as of the Closing Date and in a form and substance satisfactory to counsel
for the Underwriter, to the following effect:

     (i) The Company  has been duly  incorporated  and is validly  existing as a
     corporation  in good  standing  under the laws of  New York, with power and
     authority  to own its  properties,  hold its  franchises  and  conduct  its
     business, as described in the Prospectus, and, to the best of the knowledge
     and information of said counsel, is duly qualified to do business and is in
     good  standing  in every  other  jurisdiction  where  the  location  of its
     properties  or  the  conduct  of  its  business  makes  such  qualification
     necessary;

     (ii)  The  Company  has  authorized  capital  stock  as  set  forth  in the
     Prospectus;  the Shares and all other outstanding shares of common stock of
     the Company have been duly and validly  authorized and issued and are fully
     paid and  non-assessable;  and the  description of the capital stock of the
     Company made in the  Registration  Statement and Prospectus  accurately set
     forth matters respecting such shares required to be set forth therein;

     (iii) The Agreement has been duly authorized, executed and delivered by the
     Company and constitutes a valid and binding agreement of the Company;

     (iv) The  certificates  to be issued  for the  Shares are in due and proper
     form;

<PAGE>


     (v) The  Registration  Statement  has become,  and at the Closing  Date is,
     effective under the Act, and is effective in each state in which the Shares
     are sold and, to the best of the knowledge of such counsel,  no proceedings
     for a stop order are pending or threatened  under the  Regulations  and the
     Act;

     (vi) The Registration  Statement and Prospectus (except as to the financial
     statements  contained  therein,  with  respect to which said  counsel  need
     express no opinion)  comply as to form in all  material  respects  with the
     requirements  of the Act and the applicable  Regulations,  and said counsel
     has no  reason  to  believe  that  either  the  Registration  Statement  or
     Prospectus as then amended or supplemented contains any untrue statement of
     a material  fact or omits to state a material  fact  required  to be stated
     therein  or  necessary  in  order  to  make  the  statements   therein  not
     misleading;

     (vii) All contracts and documents summarized in the Registration  Statement
     and Prospectus are accurately  summarized,  such summaries fairly presented
     the information  required to be show; and such counsel does not know of any
     contract or document  required to be  summarized,  disclosed or filed which
     have not been so summarized, disclosed or filed;

     (viii) Such  counsel  knows of no  material  legal  proceedings  pending or
     threatened against the Company except as set forth in the Prospectus; and

     (ix) To the  best of said  counsel's  knowledge,  the  consummation  of the
     transactions  contemplated  herein  did not and will not  conflict  with or
     result in a breach of any of the terms,  provisions  or  conditions  of any
     agreement  or  instrument  to which the  Company is a party or by which the
     Company may be  bound.Such  counsel  may rely,  as to matters of local law,
     upon opinions of local counsel  satisfactory  to him, and, as to matters of
     fact, upon affidavits or certifications of officers of the Company.

(g) The Company shall have  furnished to the  Underwriter  a certificate  of the
president or vice president and any financial  officer of the Company,  dated as
of the Closing Date, to the effect that:

     (i) The representations and warranties of the Company in this Agreement are
     true  and  correct  at and as of the  Closing  Date,  and the  Company  has
     complied with all the  agreements  and satisfied all the  conditions on its
     part to be performed or satisfied at or prior to the first Closing Date.

     (ii)  The  Registration   Statement  has  become  effective  and  no  order
     suspending the effectiveness of the Registration Statement has been issued;
     and to the best of the knowledge of the respective  signers,  no proceeding
     for that purpose has been initiated or is threatened by the Commission.


     (iii) The respective  signers have each carefully examined the Registration
     Statement and the Prospectus and any  amendments and  supplements  thereto,
     and to the best of  their  knowledge  the  Registration  Statement  and the
     Prospectus and any amendments  and  supplements  thereto and all statements
     contained  therein  are true and  correct,  and  neither  the  Registration
     Statement  nor any  amendment  or  supplement  thereto  includes any untrue
     statement of a material  fact or omits to state any material  fact required
     to be stated  therein  or  necessary  to make the  statements  therein  not
     misleading,  and since the effective  date of the  Registration  Statement,
     there has  occurred  no event  required  to be set forth in an  amended  or
     supplemented Prospectus which has not been so set forth.

<PAGE>


     (iv)  Except as set forth in the  Registration  Statement  and  Prospectus,
     since the respective dates as of which or periods for which  information is
     given in the Registration  Statement and Prospectus,  and prior to the date
     of such  certificate,  (A)  there  has not been any  substantially  adverse
     change, financial or otherwise, in the affairs or condition of the Company,
     and (B) the Company has not incurred any liabilities, direct or contingent,
     or entered into any  transactions  otherwise than in the ordinary course of
     business.

(h) The Company shall have furnished to the  Underwriter,  at each Closing Date,
such other certificates,  additional to those specifically  mentioned herein, as
the  Underwriter   may  have  reasonably   requested  as  to  the  accuracy  and
completeness,  at the  Closing  Date,  of  any  statement  in  the  Registration
Statement or the Prospectus,  or in any amendment or supplement  thereto,  as to
the accuracy,  at the Closing Date, of the representations and warranties of the
Company  herein and as to the  performance  by the  Company  of its  obligations
hereunder,  or as to the fulfillment of the conditions  concurrent and precedent
to its  obligations hereunder which are required to be performed or fulfilled on
or prior to the Closing Date.

     (i) The  Company  shall  have'  furnished  to the  Underwriter  a letter of
     auditors  to  the  Company,  in  form  and  substance  satisfactory  to the
     Underwriter, to the effect that:

          (i) They are independent accountants within the meaning of the Act and
          the Regulations.

          (ii) In the opinion of said auditor,  the financial  statements of the
          Company  included  in the  Prospectus  and  covered  by their  opinion
          thereon comply as to form in all material  respect with the applicable
          accounting requirements of the Act and the Regulations.

          (iii)  On  the  basis  of a  limited  review  (but  not  an  audit  or
          "examination"  as  used  in  accountants'   opinions)  of  the  latest
          available  financial  statements  of the  Company,  a  reading  of the
          minutes  of the  Company  and  consultations  with  and  inquiries  of
          officers of the  company  responsible  for  financial  and  accounting
          matters,  said auditor has no reason to believe that during the period
          from April 8, 1998,  to a specified  date not more than five  business
          days prior to the Closing Date,  there has been any material change in
          the capital stock,  or funded or current debts of the Company,  or any
          significant  increases  or  decreases in the  financial  position,  or
          results of  operations,  if any, of the Company from that set forth in
          the financial  statements  included in the  prospectus,  except as set
          forth or contemplated therein.

          (iv) On the  basis of the  examination  referred  to in their  opinion
          included  in the  Prospectus,  the  other  procedures  referred  to in
          subdivision  (iii) above and such other  procedures as the Underwriter
          may specify,  nothing came to their  attention which in their judgment
          would  indicate  that the  statements  appearing  in the  Registration
          Statement  and the  information  of a financial or  accounting  nature
          pertaining  to the  Company  set  forth in the  Prospectus  under  the
          captions "Use of Proceeds", "Capitalization", "Dilution", "Description
          of the Common Stock" to the extent such statements and information are
          derived  from the  general  accounting  records  of the  Company,  and
          excluding any questions requiring interpretation by legal counsel, are
          not in all material respects a fair and reasonable presentation of the
          information  purported  to  be  shown.  All  the  opinions,   letters,
          certificates  and  evidence  mentioned  above  or  elsewhere  in  this
          Agreement  shall be deemed  to be in  compliance  with the  provisions
          hereof only if they are in form and substance  satisfactory to counsel
          to the Underwriter, whose approval shall not be unreasonably withheld.
          The  Underwriter  reserves  the right to waive  any of the  conditions
          herein above set forth.

<PAGE>


(j) All  proceedings  taken and to be taken in  connection  with the sale of the
Shares  pursuant to this Agreement  shall be satisfactory as to legal aspects to
counsel to the Underwriter.

(k) If (i) any of the  foregoing  conditions  shall not have been  fulfilled  as
above  provided;  or (ii)  prior to the  Closing  Date,  the  conditions  of the
securities market, or any material factor, whether of an economic or military or
political  nature or  otherwise,  bearing upon the  marketability  of the Shares
proposed to be sold shall be such as, in the Underwriter's  reasonable judgment,
would  seriously  affect the  offering,  sale or  delivery  to the public of the
Shares,  or would  render such  delivery at the initial  public  offering  price
impracticable or inadvisable,  the Underwriter shall have the right to terminate
its obligations under this Agreement forthwith, by written or telegraphic notice
to the Company, without any liability on the part of the Underwriter.

(l) If at any time prior to the Closing  Date (i) trading in  securities  on the
New York  Stock  Exchange  shall be  suspended,  (ii)  minimum  prices  shall be
established on said Exchange by action of said Exchange or the Commission, (iii)
there  shall be an outbreak  of  hostilities  between the United  States and any
foreign  power which  resulted in the  declaration  of a national  emergency  or
declaration  of war or there shall be an outbreak of civil  disorder  within the
United States which has resulted in the declaration of a national emergency, the
Underwriter  shall  have the  right to  terminate  its  obligations  under  this
Agreement  forthwith,  by written or telegraphic notice to the Company,  without
any liability on the part of the Underwriter.

If the sale of the  Shares  as herein  contemplated  shall  not be  carried  out
because of any of the  conditions  set forth in Sections 7 or 8 hereof shall not
have been fulfilled, then the Company shall not be liable to the Underwriter for
lost profits or expenses  incurred by it in connection  herewith;  provided that
the  Underwriter  shall be entitled  to retain the  accountable  legal  expenses
allowance to the extent  necessary to reimburse it for legal  expenses  actually
incurred.  In no event shall the  Underwriter  be liable to the Company for lost
profits or for expenses incurred in connection herewith.

9.      Definitions

(a) "Effective  Date" shall mean the date following any required waiting period,
when the  Registration  Statement  shall  have been  declared  effective  by the
Commission.

(b) "Termination Date" shall mean the date specified below which first occurs:

          (i) The date which is 90 days  following  the  Effective  Date, or the
          date  180  days  from  the  Effective  Date  if the  Company  and  the
          Underwriter have agreed to so extend the offering period.

          (ii) The date  upon  which all  offered  Shares  are sold and  payment
          received therefor by the Company.

10.     Miscellaneous Provisions

(a) This  Agreement  contains  the entire  agreement  of the parties  hereto and
cannot be altered  except in a writing  signed by both parties  hereto and which
makes specific reference to this Agreement.

(b) The  representations  and  warranties  contained  herein  shall be effective
regardless of any investigations made or participation in the preparation of the
Filing, or any amendment or supplement thereto and shall survive the Termination
Date and the delivery of and payment of the Shares contemplated herein.

<PAGE>


(c)  This  Agreement  has  been  and is  made  solely  for  the  benefit  of the
Underwriter,  the Company and their  respective  successors,  and, to the extent
expressly provided herein, for the benefit of the directors of the Company,  the
officers  of the  Company who signed the Filing,  or  authorized  the same,  the
persons  controlling  the  Underwriter  or the  Company,  and  their  respective
successors and assigns, and no other person or persons shall acquire or have any
right  under or by  virtue of this  Agreement.  The term  "successor"  shall not
include any purchaser, as such, of any Shares from the Underwriter.

(d) Each of the parties  hereto hereby  respectively  warrant and represent that
the person  executing  this Agreement on its behalf has full power and authority
to execute,  acknowledge  and deliver this  Agreement  for and on behalf of such
corporation.


(e) Except as otherwise provided herein,  all communications  hereunder shall be
in  writing  and,  if sent to the  Underwriter,  shall be mailed,  delivered  or
telegraphed to it at the following address:


with copies to:




Or, if sent to the  Company,  shall be  mailed,  delivered  or  telegraphed  and
confirmed to it at the following address:

                                       400 Perimeter Center Terrace, Suite 60
                                       Atlanta, GA 30346

                                       with copies to:

                                       Steven L. Siskind, Esq.
                                       645 Fifth Avenue, Suite 403
                                       New York, NY  10022


(f) In the event that any party  prevails in any action or suit  brought by them
to obtain  relief for any default  under the terms  hereof,  the  non-prevailing
party  shall  be  liable  to the  prevailing  party  for  all  costs,  including
reasonable attorney's fees, incurred in connection with such action or suit.

(g) The  representations,  warranties and undertakings herein on the part of the
Company  and the  Underwriter  shall not  create  any rights in or duties to any
person not a party to this Agreement. It is expressly understood and agreed that
such persons as shall purchase Shares in the public offering  described  herein,
shall be entitled to rely solely and only on the statements and  representations
made in the Prospectus.

(h) This  Agreement  may be  executed  in one or more  counterparts  which taken
together shall constitute one and the same instrument.

As evidence of our understanding,  this Agreement has been signed,  accepted and
copies  thereof  delivered  by or on behalf  of,  and to,  the  Company  and the
Underwriter, on _______________, 1999.


Very truly yours,


BY___________________________________
        Duly Authorized Officer


The  foregoing  Underwriting  Agreement  is  accepted  on the date  first  above
written.

BY___________________________________
        Duly Authorized Officer





                                    PROPOSED
                            SELECTED DEALER AGREEMENT

Dear Sirs:

         Subject to the terms and conditions of the Underwriting  agreement with
___________________________________________   we  have  been  employed  to  find
purchasers  for an  aggregate  of 500,000  Units:  of Common  Stock of  Callfree
Telecom Communications Corp. (the "Company"{ on a best efforts, 200,000 Units or
none basis as to the minimum offering, and on a best efforts basis thereafter up
to 500,000 Units,  as more fully  described in and subject to the conditions set
forth in the  Prospectus  contained in the  Registration  Statement on Form SB-2
under the Securities Act of 1933 with respect to the Units,  which is effective.
The public offering price is $6.00 per Unit.

         As  underwriters,  we are offering to certain  selected dealers who are
members in good standing of the National Association of Securities Dealers, Inc.
("NASD") (herein  collectively  called the "Selected  Dealers") the right as set
forth  herein to  subscribe  to a portion of the  Unites at the public  offering
price of $6.00  per  Unit,  less a  concession  as set  forth  below  and on the
following  terms and  conditions;  provided,  however,  that no NASD  member may
re-allow commissions to any non-member broker-dealer.

         1. Terms and  Allotments.  We expressly  reserve the right to accept or
reject  in our  discretion,  either  in  whole,  or in part,  and to  allot  and
over-allot. in the case of over-allotment,  we agree to accept subscriptions, up
to the amount of a Selected Dealer's Allotment, in the order of their receipt by
us. If the above described offering is over-allotted,  we agree to notify you as
soon as  practicable  if we may not be able to fill orders for the entire number
of Units indicated on y our acceptance hereof.

         2. Concessions.  Except as may otherwise  expressly be agreed, we agree
to allow a  concession  of  $______  per Unit on all Units  confirmed  by us. We
reserve  the  right  to  modify  or  change,  but not  decrease,  the  foregoing
concessions,  and shall be under no obligation  to allow the same  concession to
all Selected Dealers.  We reserve the right not to pay such concession on Unites
purchased  by  members  from us and  repurchased  by us at or below  the  public
offering price prior to termination of this Agreement.

         Subscribers  will be permitted to purchase  only whole number of Unites
in round loots as the Company will issue no fractional Units.

         3.  Delivery and  Payment.  You will notify us in writing when you have
obtained  subscriptions  to the Unites  allotted  to you and have  received  the
purchase price therefor.  All checks received in payment for the Unites shall be
payable to "American Securities Transfer & Trust, Inc. Escrow Agent for Callfree
Telecom   Communications   Corp."  You  agree  and  covenant  to  transmit  such
subscriptions  (if any) without  deduction  for  concessions  promptly  upon the
receipt  thereof.  (but  in any  event  by noon of the  business  day  following
receipt)  for deposit to the escrow  account of American  Securities  Transfer &
Trust, For the Benefit of Callfree Telecom Communications Corp., where they will
be held until paid to the Company on the closing date,  hereinafter specified or
until returned to the respective  subscribers.  Each transmittal of funds to the
escrow account must be accompanied by a transmittal  letter specifying the total
amount transmitted and the name,  address,  tax I.D. number and number of Unites
purchased for each subscriber whose funds are being transmitted.


<PAGE>


A copy of such  letter must be sent to us at  ______________________________  In
the event that  subscriptions  for a minimum of 200,000 Units are obtained,  you
will receive a notice from us to that effect  specifying a closing date on which
delivery will be made to you of Units  purchased by you pursuant  hereto against
payment  therefor at the public offering price. The closing shall be held at the
offices of_____________________________on such closing date. In the event that a
minimum of 200,000  Units are not sold prior to  _____________________  19__ (90
days from the Effective  Date) or the date 9O day thereafter if we have notified
you of such  extension1 you will be so notified,  and you covenant and agree, in
such  event,  that  all   subscriptions   received  by  you  (other  than  those
subscriptions  returned  directly by the Escrow Agent) shall be returned without
charge and without interest to the respective  subscribers promptly upon receipt
of notice from us. Delivery of certificates for Units. subscribed for by you and
confirmed by us hereunder  will take place at the closing or as soon  thereafter
as  practicable.  certificates  delivered  will  be in  customer's  names  where
practicable and the balance in street name and. in denominations of 1,000 Units.
Settlement for concessions payable will be made as promptly as practicable after
delivery  of  certificates.  In the event  that you fail to make  payment  of an
accepted  subscription  as above  provided,  we may,  in  addition  to any other
remedies  provided by law,  cancel such  subscription  by letter,  telephone  or
telegraph notice to you.

         4. Offering.  Selected Dealers may immediately offer Units for sale and
take  orders  therefor,  but only  subject  to  confirmation.  We, in turn,  are
prepared to receive  subscriptions and orders,  subject,  as set forth above, to
acceptance and allotment by us in whole or in part. Orders  transmitted to us by
telephone should be confirmed by you by letter or telegram.

         You agree to make a bona fide public  offering  of said Units,  but you
will not offer or sell any of such Units below the public  offering price before
the termination of this Agreement.

         You also agree to abide by all applicable  provisions of the Securities
Act of 1933, as amended,  the Securities Exchange Act of 1934, and the Rules and
Regulations under such Acts.

         You  agree,  upon  our  request,  at any  time or  times  prior  to the
termination  of  this  Agreement  to  report  to us as to the  number  of  Units
purchased by you pursuant to the provisions  hereof which then remain unsold and
sell to us, for our account, such portion of such unsold as we may designate, at
the public offering price less an amount to be determined by us not in excess of
the concession allowed to you.

         No expenses shall be charged to Selected  Dealers;  however,  you shall
pay any  transfer  tax on  sales  of the  Units  by you and you  shall  pay your
proportionate  share of any transfer tax or other tax in the event that any such
tax shall from time to time be assessed  against you and other Selected  Dealers
as a group or otherwise.

         You further agree not to sell any of the Units offered hereunder to any
officer, director,  controlling stockholder,  partner, employee or agent of your
organization,  or member of the immediate  family of any such person,  except as
permitted  under the  Rules of Fair  Practice  of the  National  Association  of
Securities Dealers, Inc., and the interpretations thereof.

         5. Blue Sky.  You agree to limit your  offers and sales of the Units to
the  following  state in which you are qualified to act as a broker or dealer in
securities:


<PAGE>


         6.  Termination.  This  Agreement  shall  terminate  o'90 days from the
Effective  Date unless the  offering is extended  for an  additional  90 days or
unless sooner terminated by us by notice to you for any reason.

         You understand that the offering is being made on a Shares or none best
efforts  basis,  as to the  minimum  of 200,000  Units,  by the  Underwriter  in
accordance with the terms of the  Underwriting  Agreement and will be terminated
in the event 200,000 Units are not sold in accordance with the terms thereof. In
such event,  none of the Unit-s- to be sold  hereunder  shall be issued or sold;
and you agree that in such case you will promptly  return all funds  received by
you and Which you may be holding on account of proposed  purchases  of the Units
to the persons who tendered  the same,  without  deduction.  In the event of any
termination, the Underwriter shall have no responsibility to you.

         Notwithstanding  such termination,  you may remain liable to the extent
provided by law for your proportionate  amount of any claim, demand or liability
which may be  asserted  against  you alone or against  you  together  with other
Selected  Dealers  and/or us, based upon the claim that the Selected  Dealers or
any of them and/or we constitute an association,  an unincorporated business, or
any other separate entity.

         7. Use of Prospectus. Neither you nor any other person is authorized by
the Company or by us to give any  information or make any  representation  other
than those  contained in the Prospectus in connection with the sale of the Units
and, if given or made,  such  information or  representation  must not be relief
upon as having been authorized by the company or us. You also agree to deliver a
copy  of the  Prospectus  to  each  prospective  purchaser  as  required  by the
Securities Act and by the Rules and Regulations thereunder. Additional copies of
the Prospectus will be supplied in reasonable quantity upon request.

         You are not  authorized to act as our agent or as agent for the Company
in offering the Units to the public or otherwise.  Nothing  contained  herein or
otherwise  shall  constitute  Selected  Dealers  partners  with us or  with  one
another.

         8. Underwriter's Authority. We shall have authority to take such action
as we deem  advisable  in respect of all matters  pertaining  to the Offering or
arising  hereunder.  We and our agents shall be under no liability to you for or
in respect of the  authorization,  issue,  full  payment,  non-assessability  or
validity of the Shares or the component securities thereof; for or in respect of
the form of, or the statements contained in or omitted from the Prospectus,  the
Underwriting  Agreement,  or other  instruments  executed  by the  Company or by
others;  for or in respect of the delivery of the Shares or the  performance  by
the  Company  or by  others of any  agreement  on its or their  part;  for or in
respect  of the  qualifications  of the  Shares  for sale  under the laws of any
jurisdiction;  or for or in  respect  of any other  matter  connected  with this
Agreement, except agreements expressly assumed by us herein and for lack of good
faith.  No obligations not expressly  assumed herein shall be implied;  provided
that nothing  herein  contained  shall be deemed to deny,  exclude or impair any
liability  imposed upon us or our agents as an  underwriter  by state or federal
securities law.


<PAGE>

         9.  Applicable  Securities  Laws.  By accepting  this offer to become a
Selected  Dealer,  you represent to the Underwriter that you are qualified under
the Securities  Exchange Act of 1934 and the Blue Sky laws of any State in which
you offer the Shares,  as a dealer or broker in  securities,  and that you are a
member in good standing of the National Association of Securities Dealers1 Inc.;
provided, however, that no NASD member may re-allow commission to any non-member
broker-dealer. Alternatively, this offer may be accepted by a foreign dealer not
eligible  for  membership  in the NASD who  agrees  not to  re-offer,  resell or
deliver  the Shares in the United  States or to persons to whom ~t has reason to
believe are citizens or residents of the United States and, in making sales,  to
comply with NASD'S  Interpretation  with Respect to Free-Riding  and Withholding
and Sections 8, 24 and 36 of Articles  III of the NASD's Rules of Fair  Practice
as if such foreign dealer were an NASD member and Section 25 of such Article III
as it applies to a non-member broker or dealer in a foreign country.

         10.  Communications.  All  communications  from  you  to us  should  be
addressed to  ____________________________________.  All communications  from us
and/or  the  Company  to you shall be deemed to have been duly  given if mailed,
telegraphed  or telephoned to you at the address to which this letter is mailed,
unless written notification shall be received from you of a change in address.

         If you desire to become a Selected Dealer, please advise us immediately
by signing and returning to us the form of acceptance attached hereto.


                                                          Very truly yours,


                                                  By _________________________

    DATED _______________________


<PAGE>


Dear Sirs:

         We agree to become a Selected  Dealer with  respect to the  offering of
Units of Common Stock of Callfree  Telecom  Communications  Corp.  at the public
offering  price  of  $6.00  per  Unit  as  outlined  in this  Agreement,  and we
acknowledge receipt of the Prospectus, dated _________________________ , 1999.

         We agree to  subscribe  on the terms set  forth in this  Agreement  for
_________________Units  of Common Stock of Callfree Telecom Communications Corp.
as described in the Prospectus,  and to make payment for such securities  within
(10) days of the date of the confirmation  from you of our order,  provided that
funds received from our customers on subscription for Units shall be transmitted
to the escrow  account of American  Securities  Transfer & Trust,  Inc.  For the
Benefit of Callfree Telecom Communications Corp. in accordance with Rule 15c2-4.

         We  confirm  that we are a  member  in good  standing  of the  National
Association of Securities Dealers,  Inc., and we agree to abide by the "Rules of
Fair Practice' of the National Association of Securities Dealers,  Inc., and the
interpretations thereof.



DATED: ______________                      __________________________________
                                              Signature of Selected Dealer


                                         Address: ___________________________

                                                  ___________________________
                                                  ___________________________

                                          Phone: ____________________________




                          CERTIFICATE OF INCORPORATION

                                       OF

                      CALLFREE TELECOM COMMUNICATIONS CORP.






Filed by
                                                       Michael S. Winokur, Esq.
                                                       97-49  63rd Drive
                                                       Rego Park, New York 11374


<PAGE>

                          CERTIFICATE OF INCORPORATION


                       CALLFREE TELECOM COMMUNICATIONS CORP.

Under Section 402 of the Business Corporation Law.

         The undersigned,  for the purpose of forming a corporation  pursuant to
Section  402 of the  Business  Corporation  Law of the State of New  York,  does
hereby certify and set forth:

         FIRST:   The name of the corporation is CALLFREE TELECOM COMMUNICATIONS
                  CORP.

         SECOND:  The purposes for which the corporation is formed are:

         To engage in any lawful act or activity for which  corporations  may be
organized under the business  corporation law,  provided that the corporation is
not formed to engage in any act or activity  which  requires the act or approval
of any state  official,  department,  board,  agency or other body  without such
approval or consent first being obtained.

         To establish,  maintain and conduct a general service  organization for
the purpose of providing  communications services of every kind and description.
To maintain  executive  and  operating  personnel  for the purpose of  providing
communications  services  of  every  kind  and  description.   Generally  to  do
everything  ordinarily  done by those  engaged  in a  similar  line of  business
including owning,  buying selling,  renting,  leasing and otherwise dealing with
and  disposing of any and all  equipment,  materials,  supplies and  accessories
necessary  to conduct  the  foregoing,  and to dispose of all real and  personal
property.

         To carry on a general  mercantile,  industrial,  investing  and trading
business  in all  its  branches;  to  devise,  invent,  manufacture,  fabricate,
assemble,  install, service, maintain, alter, buy, sell, import, export, license
as licensor or licensee, lease as lessor or lessee, distribute, job, enter into,
negotiate,  execute,  acquire,  and assign  contracts  in respect  of,  acquire,
receive,  grant, and assign licensing  arrangements,  options,  franchises,  and
other rights in respect of, and  generally  deal in and with,  at wholesale  and
retail,  as  principal,  and as sales,  business,  special,  or  general  agent,
representative,  broker, factor, merchant,  distributor,  jobber, advisor, or in



<PAGE>


any other lawful  capacity,  shares with a par value of One Tenth ($0. 001) of a
Cent and One goods, wares, merchandise,  commodities, and unimproved,  improved,
finished,  processed and other real,  personal and mixed property of any and all
kinds, together with the components, resultants, and by - products thereof.

         To acquire by purchase, subscription, underwriting or otherwise, and to
own, hold for  investment,  or otherwise,  and to use, sell,  assign,  transfer,
mortgage, pledge, exchange or otherwise dispose of real and personal property of
every sort and description and wheresoever situated,  including shares of stock,
bonds,  debentures,   notes,  scrip,  securities,   evidences  of  indebtedness,
contracts or obligations of any corporation or association,  whether domestic or
foreign,  or of any firm or  individual  or of the  United  States or any state,
territory or  dependency  of the United  States or any foreign  country,  or any
municipality or local authority within or without the United States, and also to
issue in exchange  therefor,  stocks,  bonds or other securities or evidences of
indebtedness  of this  corporation  and,  while  the owner or holder of any such
property, to receive, collect and dispose of the interest,  dividends and income
on or from such  property and to possess and exercise in respect  thereto all of
the rights,  powers and  privileges  of  ownership,  including all voting powers
thereon.

         To construct,  build,  purchase,  lease or otherwise  acquire,'  equip,
hold,  own,  improve,  develop,  manage,  maintain,   control,  operate,  lease,
mortgage,  create liens upon, sell,  convey or otherwise  dispose of and turn to
account,  any and  all  plants,  machinery,  works,  implements  and  things  or
property,  real and  personal,  of every kind and  description,  incidental  to,
connected  with, or suitable,  necessary or  convenient  for any of the purposes
enumerated herein, including all or any part or parts of the properties, assets,
business and goodwill of any persons, firms, associations or corporations.

     The powers,  rights and privileges  provided in this certificate are not to
be deemed to be in limitation of similar, other or additional powers, rights and
privileges  granted or permitted to a  corporation  by the Business  Corporation
Law, it being intended that this corporation  shall have all rights,  powers and
privileges granted or permitted to a corporation by such statute.

     THIRD The  office of the  corporation  is to be  located  in the  County of
Queens, State of New York.

     FOURTH: The aggregate number of shares which the corporation shall have the
authority to issue is Ten Million (10,000,000) common shares with a par value of



<PAGE>



One Tenth ($0.01) of a Cent and One Million convertible  preferred shares with a
par value of one ($0.01) Cent.

         The 5%  Cumulative  Convertible  Preferred  Shares at the option of the
respective  holders  thereof,  may at any time,  and from time to time1 prior to
April 1, 2016, be converted into fully paid and  nonassessable  Common Shares of
the  Corporation  at the  rate  of  one  Common  Share  for  one  5%  Cumulative
Convertible Preferred Share provided, however, that such right of conversion may
not be  exercised  and  shall  be  suspended  during  the  period  of five  days
immediately  preceding the date of any meeting of shareholders,  or the date for
the payment of any dividend, or the date for the issuance of rights, or the date
when any change of conversion  or a change of shares shall go into effect.  Upon
the  conversion,  as  herein  provided,  of any  shares  of  the  5%  Cumulative
Convertible  Preferred  Shares,  all rights of the holders of such shares  shall
cease and  determine  and the Common  Shares  issued in lieu thereof shall be of
record as of the time of such conversion.

         So long as any of the 5% Cumulative  Convertible Preferred Shares shall
be  outstanding,  the  Corporation  will not make any share  distribution on its
Common  Shares  unless  the  Corporation,  by proper  legal  action,  shall have
authorized  and reserved an amount of shares equal to the amount  thereof  which
would have been  declared  upon the Common  Shares into which such 5% Cumulative
Convertible  Preferred  Shares might have been  converted,  and the  Corporation



<PAGE>


shall,  out of such  additional  shares so authorized and reserved on account of
such share  distribution,  upon the  conversion of any 5%  Cumulative  Preferred
Shares,  deliver  with any Common  Shares into which 5%  Cumulative  Convertible
Preferred Shares are converted,  but without additional  consideration therefor,
such amount of Common  Shares as would have been  deliverable  to the holders of
the Common Shares into which such 5% Cumulative Convertible Preferred Shares has
been so converted  had such Common Shares been  outstanding  at the time of such
share  distribution.  For the purpose of this  paragraph,  a share  distribution
shall be a dividend payable only in Common Shares of the Corporation of the same
class as the present authorized Common Shares. This shall not limit the right of
the  Corporation,  however,  to declare and pay any  dividends  whether in cash,
shares,  or  otherwise,  except  as  specifically  otherwise  provided  in  this
paragraph.

     Any holder of the 5% Cumulative  Convertible  Preferred  Shares desiring to
exercise  the  right  of  conversion  herein  provided  shall  surrender  to the
Corporation at one of its share transfer agencies,  or in the event that at that
time there is no such agency,  then at the principal  office of the Corporation,
the  certificate  or  certificates  representing  the 5% Cumulative  Convertible
Preferred  Shares so to be  converted,  duly  endorsed in blank for  transfer or
accompanied by properly executed instruments for the transfer thereof,  together



<PAGE>



with a written  request for the  conversion  thereof.  No such shares,  however,
shall be accepted for  conversion  on or after April 1, 2016,  at which time the
conversion privilege and right shall cease and determine.

     FIFTH: The Secretary of State is designated as the agent of the corporation
upon whom process against it may be served. The post office address to which the
Secretary  of State  shall mail a copy of any process  against  the  corporation
served on him is:

                                  Stuart Radin
                               1043 Neilson Street
                          Far Rockaway, New York 11691


     SIXTH:  The  personal  liability of  directors  to the  corporation  or its
shareholders  for  damages  for any  breach of duty in such  capacity  is hereby
eliminated  except that such  personal  liability  shall not be  eliminated if a
judgment or other final adjudication  adverse to such direct9r  establishes that
his acts or omissions were in bad faith or involved intentional  misconduct or a
knowing  violation  of law or that he  personally  gained  in fact a  financial.
profit or other advantage to which he was not legally  entitled or that his acts
violated Section 719 of the Business Corporation Law.

     IN WITNESS WHEREOF, this certificate has been subscribed to this 6th day of
April,  1998 by the  undersigned who affirms that the statements made herein are
true under the penalties of perjury.








                                                 /S/
                                                 -------------------------------
                                                 GERALD WEINBERG
                                                 90 State Street
                                                 Albany, New York






                              --------------------
                                     BY-LAWS
                              --------------------

                                    ARTICLE I

                                 The Corporation


     Section 1. Name. The legal name of this corporation (hereinafter called the
"Corporation") is

     Section 2. Offices.  The Corporation shall have its principal office in the
State of New York.  The  Corporation  may also have offices at such other places
within and without the United  States as the Board of Directors may from time to
time appoint or the business of the Corporation may require.

     Section 3. Seal. The corporate  seal shall have inscribed  thereon the name
of the Corporation,  the year of its organization and the words "Corporate Seal,
New York." One or more duplicate  dies for impressing  such seal may be kept and
used.


                                   ARTICLE II

                            Meetings of Shareholders

     Section 1. Place of  Meetings.  All meetings of the  shareholders  shall be
held at the principal  office of the  Corporation in the State of New York or at
such other  place,  within or without the State of New York,  as is fixed in the
notice of the meeting.

     Section 2. Annual  Meeting.  An annual meeting of the  shareholders  of the
Corporation  for the election of  directors  and the  transaction  of such other
business as may  properly  come  before the  meeting  shall be held on the first
Monday of in each year if not a legal holiday,  and if a legal holiday,  then on
the next secular day following,  at ten o'clock A.M.,  Eastern Standard Time, or
at such other time as is fixed in the notice of the  meeting.  If for any reason
any annual meeting shall not be held at the time herein specified,  the same may
be held at any time

                                       4
<PAGE>


thereafter  upon notice,  as herein  provided,  or the  business  thereof may be
transacted at any special meeting called for the purpose.

     Section 3. Special Meetings. Special meetings of shareholders may be called
by the President whenever he deems it necessary or advisable.  A special meeting
of the  shareholders  shall be called by the  President  whenever so directed in
writing by a majority of the entire  Board of  Directors or whenever the holders
of  one-third  (113)  of the  number  of  shares  of the  capital  stock  of the
Corporation  entitled to vote at such  meeting  shall,  in writing,  request the
same.

     Section 4. Notice of  Meetings.  Notice of the time and place of the annual
and of each special  meeting of the  shareholders  shall be given to each of the
shareholders  entitled to vote at such  meeting by mailing the same in a postage
prepaid wrapper  addressed to each such shareholder at his address as it appears
on the books of the  Corporation,  or by delivering  the same  personally to any
such  shareholder  in lieu of such mailing,  at least ten (10) and not more than
fifty (50) days prior to each  meeting.  Meetings may be held without  notice if
all of the  shareholders  entitled  to vote  thereat are present in person or by
proxy,  or if notice thereof is waived by all such  shareholders  not present in
person or by proxy, before or after the meeting.  Notice by mail shall be deemed
to be given when deposited,  with postage thereon prepaid,  in the United States
mail. If a meeting is adjourned to another  time,  not more than thirty (30 days
hence,  or to another  place,  and if an  announcement  of the adjourned time or
place is made at the  meeting,  it shall not be  necessary to give notice of the
adjourned  meeting unless the Board of Directors,  after  adjournment  fix a new
record date for the  adjourned  meeting.  Notice of the annual and each  special
meeting of the shareholders  shall indicate that it is being issued by or at the
direction of the person or persons calling the meeting, and shall state the name
and capacity of each such  person.  Notice of each  special  meeting  shall also
state the purpose or purposes for which it has been called. Neither the business
to be transacted at nor the purpose of the annual or any special  meeting of the
shareholders need be specified in any written waiver of notice.

     Section 5. Record Date for Shareholders. For the purpose of determining the
shareholders  entitled to notice of or to vote at any meeting of shareholders or
any adjournment  thereof,  or to express consent to corporate  action in writing
without a meeting,  or for the purpose of determining  shareholders  entitled to
receive  payment of any dividend or other  distribution  or the allotment of any
rights) or entitled to exercise any rights in respect of any change, conversion,
or exchange of stock or  for  the purpose of any other  lawful action, the Board

                                       5
<PAGE>

of   Directors  may  fix, in  advance,  a record date,  which  shall not be more
than  fifty(S) days nor less than ten (10) days before the date of such meeting,
nor more than fifty (50) days prior to any other  action.  If no record  date is
fixed, the record date for determining  shareholders entitled to notice of or to
vote at a meeting of  shareholders  shall be at the close of business on the day
next preceding the day on which notice is given,  or, if no notice is given, the
day on which the meeting is held; the record date for  determining  shareholders
entitled to express  consent to corporate  action in writing  without a meeting,
when no prior action by the Board of Directors is necessary, shall be the day on
which  the  first  written  consent  is  expressed;  and  the  record  date  for
determining shareholders for any other purpose shall be at the close of business
on the day on which  the  Board of  Directors  adopts  the  resolution  relating
thereto.  A determination  of shareholders of record entitled to notice of or to
vote at any  meeting  of  shareholders  shall  apply to any  adjournment  of the
meeting;  provided,  however)  that the Board of Directors  may fix a new record
date for the adjourned meeting.

     Section 6. Proxy  Representation.  Every  shareholder may authorize another
person or persons to act for him by proxy in all matters in which a  shareholder
is entitled to participate,  whether by waiving notice of any meeting, voting or
participating at a meeting,  or expressing consent or dissent without a meeting.
Every proxy must be signed by the  shareholder  or by his  attorney-in-fact.  No
proxy shall be voted or acted upon after eleven months from its date unless such
proxy  provides  for a longer  period.  Every  proxy shall be  revocable  at the
pleasure  of the  shareholder  executing  it,  except as  otherwise  provided in
Section 608 of the New York Business Corporation Law.

     Section 7.  Voting at  Shareholders'  Meetings.  Each share of stock  shall
entitle  the  holder  thereof  to one vote.  In the  election  of  directors,  a
plurality of the votes cast shall elect. Any other action shall be authorized by
a majority of the votes cast except where the New York Business  Corporation Law
prescribes  a different  percentage  of votes or a different  exercise of voting
power. In the election of directors,  and for any other action,  voting need not
be by ballot.

     Section  8.  Quorum  and  Adjournment.  Except  for a special  election  of
directors pursuant to Section 603 of the New York Business  Corporation Law, the
presence,  in person or by proxy,  of the holders of a majority of the shares of
the stock of the  Corporation  outstanding and entitled to vote thereat shall be
requisite and shall constitute a quorum at any meeting of the shareholders. When
a quorum is  once  present to  organize  a meeting, it  shall  not be  broken by

                                       6
<PAGE>

the subsequent withdrawal of any shareholders. If at any meeting of shareholders
there shall be less than a quorum so present, the shareholders present in person
or by proxy and entitled to vote  thereat,  may adjourn the meeting from time to
time until a quorum shall be present, but no business shall be transacted at any
such adjourned  meeting  except such as might have been lawfully  transacted had
the meeting not adjourned.

     Section 9. List of  Shareholders.  The  officer who has charge of the stock
ledger of the Corporation shall prepare, make and certify, at least ten (1) days
before every meeting of shareholders, a complete list of the shareholders, as of
the record date fixed for such  meeting,  arranged in  alphabetical  order,  and
showing the address of each  shareholder and the number of shares  registered in
the name of each shareholder.  Such list shall be open to the examination of any
shareholder,  for any purpose germane to the meeting,  during ordinary  business
hours, for a period of at least ten (10) days prior to the meeting,  either at a
place within the city or other municipality or community where the meeting is to
be held.  The list shall also be produced  and kept at the time and place of the
meeting during the whole time thereof,  and may be inspected by any  shareholder
who is  present.  If the  right  to  vote  at any  meeting  is  challenged,  the
inspectors of election,  if any, or the person presiding thereat,  shall require
such list of shareholders to be produced as evidence of the right of the persons
challenged to vote at such meeting, and all persons who appear from such list to
be shareholders entitled to vote thereat may vote at such meeting.

     Section 10. Inspectors of Election.  The Board of Directors,  in advance of
any meeting,  may, but need not,  appoint one or more  inspectors of election to
act at the meeting or any adjournment thereof. If an inspector or inspectors are
not  appointed,  the person  presiding at the meeting may, and at the request of
any shareholder  entitled to vote thereat shall, appoint one or more inspectors.
In case any person who may. be appointed as an inspector fails to appear or act,
the  vacancy  may be filled by  appointment  made by the Board of  Directors  in
advance of the meeting or at the meeting by the person presiding  thereat.  Each
inspector,  if any, before entering upon the discharge of his duties, shall take
and sign an oath  faithfully  to execute the duties of inspector at such meeting
with  strict  impartiality  and  according  to  the  best  of his  ability.  The
inspectors,  if any, shall  determine the number of shares of stock  outstanding
and the voting power of each,  the shares of stock  represented  at the meeting,
the existence of a quorum, the validity and effect of proxies, and shall receive

                                       7
<PAGE>


votes, ballots or consents, determine the result, and do such acts as are proper
to conduct the election or vote with fairness to all shareholders. On request of
the person presiding at the meeting or any shareholder entitled to vote thereat,
the  inspector  or  inspectors,  if any,  shall  make a report in writing of any
challenge,  question  or  matter  determined  by  him  or  them  and  execute  a
certificate of any fact found by him or them. Any report or certificate  made by
the  inspector or inspectors  shall be prima facie  evidence of the facts stated
and of the vote as certified by them.

     Section 11. Action of the Shareholders  Without Meetings.  Any action which
may be taken at any annual or special meeting of the  shareholders  may be taken
without a meeting on written consent,  setting forth the action so taken, signed
by the  holders of all  outstanding  shares  entitled to vote  thereon.  Written
consent  thus given by the holders of all  outstanding  shares  entitled to vote
shall have the same effect as a unanimous vote of the shareholders.


                                   ARTICLE Ill

                                    Directors
                                    ---------

     Section  1.  Number of  Directors.  The  number of  directors  which  shall
constitute  the entire Board of Directors  shall be at least three,  except that
where  all  outstanding  shares  of the  stock  of  the  Corporation  are  owned
beneficially  and of record  by less  than  three  shareholders,  the  number of
directors  may be less than three but not less than the number of  shareholders.
Subject to the foregoing limitation,  such number may be fixed from time to time
by action of a majority of the entire Board of Directors or of the  shareholders
at an annual or special meeting, or, if the number of directors is not so fixed,
the  number  shall be three or  shall  be equal to the  number  of  shareholders
(determined as aforesaid), whichever is less. Until such time as the corporation
shall issue  shares of its stock,  the Board of Directors  shall  consist of two
persons.  No decrease in the number of directors  shall  shorten the term of any
incumbent director.

     Section 2.  Election  and Term.  The initial  Board of  Directors  shall be
elected by the  incorporator  and each  initial  director so elected  shall hold
office until the first annual  meeting of  shareholders  and until his successor
has been elected and qualified.  Thereafter,  each director who is elected at an
annual meeting of shareholders, and each  director who is elected in the interim

                                       8
<PAGE>

to fill a vacancy or a newly created  directorship,  shall hold office until the
next annual meeting of shareholders and until his successor has been elected and
qualified.

     Section 3. Filling  Vacancies.  Resignation  and Removal.  Any director may
tender  his  resignation  at any  time.  Any  director  or the  entire  Board of
Directors may be removed, with or without cause, by vote of the shareholders. In
the interim  between  annual  meetings of  shareholders  or special  meetings of
shareholders  called for the  election of directors or for the removal of one or
more  directors  and for the  filling of any vacancy in that  connection,  newly
created  directorships  and any vacancies in the Board of  Directors,  including
unfilled  vacancies  resulting from the  resignation or removal of directors for
cause or without cause, may be filled by the vote of a majority of the remaining
directors  then in office,  although less than a quorum or by the sole remaining
director.

     Section 4.  Qualifications  and  Powers.  Each  director  shall be at least
eighteen  years of age. A director need not be a  shareholder,  a citizen of the
United  States  or a  resident  of the State of New York.  The  business  of the
Corporation  shall  be  managed  by  the  Board  of  Directors,  subject  to the
provisions of the  Certificate of  Incorporation.  In addition to the powers and
authorities by these By-Laws expressly conferred upon it, the Board may exercise
all such powers of the Corporation and do all such lawful acts and things as are
not by  statute  or by the  Certificate  of  Incorporation  or by these  By-Laws
directed or required to be exercised or done exclusively by the shareholders.

     Section  5.  Regular  and  Special  Meetings  of the  Board.  The  Board of
Directors may hold its meetings,  whether  regular or special,  either within or
without the State of New York.  The newly  elected  Board may meet at such place
and  time as  shall be fixed  by the.  vote of the  shareholders  at the  annual
meeting,  for the purpose of  organization  or otherwise,  and no notice of such
meeting  shall be necessary to the newly  elected  directors in order legally to
constitute  the  meeting,  provided a  majority  of the  entire  Board  shall be
present;  or they  may  meet at such  place  and  time as  shall be fixed by the
consent in writing of all directors.  Regular  meetings of the Board may be held
with or  without  notice at such  time and  place as shall  from time to time be
determined  by  resolution  of the Board.  Whenever the time or place of regular
meetings of the Board shall have been  determined by resolution of the Board, no
regular  meetings  shall  be  held  pursuant  to any  resolution  of  the  Board

                                       9
<PAGE>

altering or modifying its previous  resolution  relating to the time or place of
the  holding of  regular  meetings,  without  first  giving at least  three days
written notice to each director,  either personally or by telegram,  or at least
five days written  notice to each  director by mail, of the substance and effect
of such new resolution  relating to the time and place at which regular meetings
of the board may  thereafter  be held without  notice.  Special  meetings of the
Board  shall be held  whenever  called  by the  President,  Vice-President,  the
Secretary  or any  director in writing.  Notice of each  special  meeting of the
Board shall be delivered  personally to each director or sent by telegram to his
residence or usual place of business at least three days before the meeting,  or
mailed to him to his  residence  or usual  place of  business at least five days
before the meeting.  Meetings of the Board,  whether regular or special,  may be
held at any time and place,  and for any purpose,  without notice,  when all the
directors are present or when all directors not present shall, in writing, waive
notice  of and  consent  to  the  holding  of  such  meeting.  All or any of the
directors  may waive  notice of any meeting and the  presence of the director at
any  meeting of the Board  shall be deemed a waiver of notice  thereof by him. A
notice,  or waiver of notice,  need not  specify  the purpose or purposes of any
regular or special meeting of the Board.

     Section 6. Quorum and Action.  A majority of the entire  Board of Directors
shall  constitute  a quorum  except that when the entire  Board  consists of one
director,  then one director shall  constitute a quorum,  and except that when a
vacancy or vacancies  prevents  such  majority,  a majority of the  directors in
office shall  constitute a quorum,  provided that such majority shall constitute
at lease  one-third of the entire Board.  A majority of the  directors  present,
whether or not they  constitute a quorum,  may adjourn a meeting to another time
and place. Except as herein otherwise provided, and except as otherwise provided
by the New  York  Business  Corporation  Law,  the vote of the  majority  of the
directors  present at a meeting at which a quorum is present shall be the act of
the Board.

     Section  7.  Telephonic  Meetings.  Any  member or  members of the Board of
Directors,  or of any committee  designated by the Board,  may  participate in a
meeting of the  Board,  or any such  committee,  as the case may be, by means of
conference  telephone or similar  communications  equipment allowing all persons
participating  in the  meeting  to  hear  each  other  at  the  same  time,  and
participation in a meeting by such means shall constitute  presence in person at
such meeting.

                                       10
<PAGE>


     Section 8. Action Without a Meeting.  My action required or permitted to be
taken at any meeting of the Board of Directors, or of any committee thereof, may
be taken without a meeting if all members of the Board or committee, as the case
may be, consent  thereto in writing,  and the writing or writings are filed with
the minutes of proceedings of the Board or committee.

     Section  9.  Compensation  of  Directors.  By  resolution  of the  Board of
Directors,  the directors may be paid their expenses,  if any, for attendance at
each regular or special  meeting of the Board or of any committee  designated by
the Board  and may be paid a fixed  sum for  attendance  at such  meeting,  or a
stated salary as director,  or both. Nothing herein contained shall be construed
to preclude any director from serving the  Corporation in any other capacity and
receiving  compensation  therefor;  provided however that directors who are also
salaried officers shall not receive fees or salaries as directors.


                                   ARTICLE IV

                                   Committees

     Section  1. In  General.  The Board of  Directors  may,  by  resolution  or
resolutions passed by the affirmative vote therefore of a majority of the entire
Board,  designate an Executive  Committee and such other committees as the Board
may from time to time determine, each to consist of three or more directors, and
each of which, to the extent provided in the resolution or in the certificate of
incorporation or in the By-Laws,  shall have all the powers of the Board, except
that no such Committee  shall have power to fill  vacancies in the Board,  or to
change the  membership  of or to fill  vacancies in any  Committee,  or to make,
amend,  repeal  or  adopt  By-Laws  of  the  Corporation,  or to  submit  to the
shareholders any action that needs  shareholder  approval under these By-Laws or
the  New  York  Business  Corporation  Law,  or to fix the  compensation  of the
directors  for  serving on the Board or any  committee  thereof,  or to amend or
repeal any  resolution of the Board which by its terms shall not be so amendable
or  repealable.  Each  committee  shall serve at the pleasure of the Board.  The
Board may designate one or more directors as alternate members of any committee,
who may  replace  any  absent  or  disqualified  member  at any  meeting  of the
committee.  In the absence of disqualification  of a member of a committee,  the
member or members  thereof  present at any  meeting  and not  disqualified  from
voting,  whether or not he or they constitute a quorum, may unanimously  appoint
another  member of the Board of  Directors to act at the meeting in the place of
any such absent or disqualified member.

                                       11
<PAGE>


     Section 2. Executive Committee. Except as otherwise limited by the Board of
Directors or by these By-Laws, the Executive Committee,  if so designated by the
Board of  Directors,  shall  have  and may  exercise,  when the  Board is not in
session,  all the  powers of the Board of  Directors  in the  management  of the
business and affairs of the  Corporation,  and shall have power to authorize the
seal of the  Corporation  to be affixed to all papers  which may require it. The
Board shall have the power at any time to change the membership of the Executive
Committee,  to fill vacancies in it, or to dissolve it. The Executive  Committee
may make rules for the conduct of its business  and may appoint such  assistance
as it shall from time to time deem  necessary.  A majority of the members of the
Executive Committee, if more than a single member, shall constitute a quorum.


                                    ARTICLE V

                                    Officers

     Section 1. Designation, Term and Vacancies. The officers of the Corporation
shall be a President, one or more Vice-Presidents, a Secretary, a Treasurer, and
such  other  officers  as the  Board of  Directors  may from  time to time  deem
necessary.  Such  officers  may have and perform  the powers and duties  usually
pertaining  to their  respective  offices,  the powers  and duties  respectively
prescribed by law and by these By-Laws, and such additional powers and duties as
may from time to time be prescribed  by the Board.  The same person may hold any
two or more offices,  except that the offices of President and Secretary may not
be held by the same person  unless all the issued and  outstanding  stock of the
Corporation  is owned by one person,  in which instance such person may hold all
or any combination of offices.

     The initial  officers of the Corporation  shall be appointed by the initial
Board of  Directors,  each to hold  office  until  the  meeting  of the Board of
Directors  following  the first  annual  meeting of  shareholders  and until his
successor has been  appointed  and  qualified.  Thereafter,  the officers of the
Corporation  shall be  appointed by the Board as soon as  practicable  after the
election of the Board at the annual meeting of shareholders, and each officer so
appointed  shall hold office  until the first  meeting of the Board of Directors
following the next annual  meeting of  shareholders  and until his successor has
been  appointed and qualified.  Any officer may be removed at any time,  with or
without  cause,  by the  affirmative  vote  therefor of a majority of the entire
Board of Directors. All other agents and employees of the Corporation shall hold


                                       12
<PAGE>

office during the pleasure of the Board of Directors.  Vacancies occurring among
the officers of the Corporation  shall be filled by the Board of Directors.  The
salaries  of all  officers  of the  Corporation  shall be fixed by the  Board of
Directors.

     Section 2.  President.  The President  shall preside at all meetings of the
shareholders  and at all  meetings of the Board of  Directors at which he may be
present.  Subject to the  direction of the Board of  Directors,  he shall be the
chief executive officer of the Corporation, and shall have general charge of the
entire business of the Corporation.  He may sign  certificates of stock and sign
and seal bonds,  debentures,  contracts or other  obligations  authorized by the
Board, and may, without previous  authority of the Board, make such contracts as
the ordinary conduct of the Corporation's  business requires.  He shall have the
usual powers and duties vested in the President of a corporation.  He shall have
power to  select  and  appoint  all  necessary  officers  and  employees  of the
Corporation,  except those selected by the Board of Directors, and to remove all
such officers and employees except those selected by the Board of Directors, and
make new appointments to fill vacancies.  He may delegate any of his powers to a
Vice-President of the Corporation.

     Section  3.  Vice-President.  A  Vice-President  shall  have  such  of  the
President's powers and duties as the President may from time to time delegate to
him,  and shall have such other  powers and perform  such other duties as may be
assigned to him by the Board of  Directors.  During the absence or incapacity of
the  President,  the  Vice-President,  or,  if  there  be  more  than  one,  the
Vice-President having the greatest seniority in office, shall perform the duties
of the President, and when so acting shall have all the powers and be subject to
all the responsibilities of the office of President.

     Section 4.  Treasurer.  The Treasurer  shall have custody of such funds and
securities  of the  Corporation  as may come to his hands or be committed to his
care by the Board of Directors.  Whenever  necessary or proper, he shall endorse
on  behalf  of  the  Corporation,  for  collection,   checks,  notes,  or  other
obligations, and shall deposit the same to the credit of the Corporation in such
bank or banks or  depositaries,  approved by the Board of Directors as the Board
of Directors or President  may  designate.  He may sign receipts or vouchers for
payments  made to the  Corporation,  and the Board of Directors may require that
such  receipts  or  vouchers  shall also be signed by some  other  officer to be
designated by them. Whenever required by the Board of Directors, he shall render


                                       13
<PAGE>


a  statement  of his cash  accounts  and such other  statements  respecting  the
affairs of the Corporation as may be required. He shall keep proper and accurate
books of account. He shall perform all acts incident to the office of Treasurer,
subject to the control of the Board.

     Section 5.  Secretary.  The Secretary shall have custody of the seal of the
Corporation and when required by the Board of Directors,  or when any instrument
shall have been signed by the  President  duly  authorized  to sign the same, or
when necessary to attest any proceedings of the shareholders or directors, shall
affix it to any instrument requiring the same and shall attest the same with his
signature,   provided  that  the  seal  may  be  affixed  by  the  President  or
Vice-President  or other officer of the Corporation to any document  executed by
either of them  respectively on behalf of the Corporation which does not require
the  attestation of the Secretary.  He shall attend to the giving and serving of
notices of  meetings.  He shall have charge of such books and papers as properly
belong  to his  office  or as may be  committed  to his  care  by the  Board  of
Directors.  He shall  perform such other duties as appertain to his office or as
may be required by the Board of Directors.

     Section  6.  Delegation.  In  case of the  absence  of any  officer  of the
Corporation,  or for any  other  reason  that the  Board of  Directors  may deem
sufficient,  the Board may temporarily  delegate the powers or duties, or any of
them, of such officer to any other officer or to any director.


                                   ARTICLE VI

                                      Stock

     Section 1. Certificates  Representing Shares. All certificates representing
shares  of the  capital  stock  of the  Corporation  shall  be in such  form not
inconsistent with the Certificate of Incorporation, these By-Laws or the laws of
the State of New York and shall set forth thereon the  statements  prescribed by
Section 508, and where  applicable,  by Sections  505, 616, 620, 709 and 1002 of
the  Business  Corporation  Law.  Such shares  shall be approved by the Board of
Directors,  and shall be signed by the President or a Vice-President  and by the
Secretary or the Treasurer and shall bear the seal of the  Corporation and shall
not be valid unless so signed and sealed.  Certificates  countersigned by a duly
appointed  transfer agent and/or registered by a duly appointed  registrar shall
be  deemed  to be so signed  and  sealed  whether  the  signatures  be manual or
facsimile signatures and  whether the seal be a facsimile seal or any other form

                                       14
<PAGE>


of seal. All certificates  shall be  consecutively  numbered and the name of the
person owning the shares represented thereby, his residence,  with the number of
such shares and the date of issue, shall be entered on the Corporation's  books.
All certificates  surrendered  shall be canceled and no new certificates  issued
until the  former  certificates  for the same  number of shares  shall have been
surrendered and canceled, except as provided for herein.

     In case any  officer or officers  who shall have signed or whose  facsimile
signature  or  signatures  shall have been  affixed to any such  certificate  or
certificates,  shall cease to be such  officer or  officers  of the  Corporation
before  such  certificate  or  certificates  shall  have been  delivered  by the
Corporation, such certificate or certificates may nevertheless be adopted by the
Corporation, and may be issued and delivered as though the person or persons who
signed such certificates,  or whose facsimile signature or signatures shall have
been  affixed  thereto,  had not ceased to be such  officer or  officers  of the
Corporation.

     Any  restriction on the transfer or  registration of transfer of any shares
of stock of any class or series shall be noted  conspicuously on the certificate
representing such shares.

     Section 2. Fractional Share Interests. The Corporation,  may, but shall not
be required to, issue  certificates for fractions of a share. If the Corporation
does not issue fractions of a share, it shall (1) arrange for the disposition of
fractional  interests by those entitled thereto,  (2) pay in cash the fair value
of  fractions  of a share as of the time when those  entitled  to  receive  such
fractions are determined, or (3) issue scrip or warrants in registered or bearer
form which shall  entitle the holder to receive a  certificate  for a full share
upon the  surrender  of such  scrip or  warrants  aggregating  a full  share.  A
certificate for a fractional share shall, but scrip or warrants shall not unless
otherwise.  provided  therein,  entitle the holder to exercise voting rights, to
receive dividends thereon,  and to participate in any distribution of the assets
of the Corporation in the event of liquidation. The Board of Directors may cause
scrip or warrants to be issued subject to the conditions  that they shall become
void if not  exchanged  for  certificates  representing  full  shares  before  a
specified  date, or subject to the condition  that the shares for which scrip or
warrants  are  exchangeable  may be sold  by the  Corporation  and the  proceeds
thereof distributed to the holders of scrip or warrants, or subject to any other
conditions which the Board of Directors may impose.

     Section 3. Addresses of Shareholders.  Every  shareholder shall furnish the
Corporation  with an address to which  notices of meetings and all other notices

                                       15

<PAGE>


may be served  upon or mailed to him,  and in  default  thereof  notices  may be
addressed to him at his last known post office address.

     Section 4. Stolen. Lost or Destroyed  Certificates.  The Board of Directors
may in its sole  discretion  direct that a new  certificate or  certificates  of
stock be issued in place of any certificate or certificates of stock theretofore
issued by the Corporation,  alleged to have been stolen, lost or destroyed,  and
the Board of Directors when  authorizing the issuance of such new certificate or
certificates,  may, in its  discretion,  and as a condition  precedent  thereto,
require the owner of such stolen, lost or destroyed  certificate or certificates
or his legal representatives to give to the Corporation and to such registrar or
registrars  and/or  transfer  agent or transfer  agents as may be  authorized or
required to countersign such new certificate or certificates, a bond in such sum
as the  Corporation  may  direct  not  exceeding  double  the value of the stock
represented by the certificate  alleged to have been stolen,  lost or destroyed,
as indemnity  against any claim that may be made against them or any of them for
or in respect of the shares of stock  represented by the certificate  alleged to
have been stolen, lost or destroyed.

     Section  5.  Transfers  of  Shares.  Upon  compliance  with all  provisions
restricting the  transferability  of shares, if any, transfers of stock shall be
made only upon the books of the  Corporation  by the  holder in person or by his
attorney thereunto authorized by power of attorney duly filed with the Secretary
of the  Corporation  or with a transfer  agent or  registrar,  if any,  upon the
surrender and  cancellation of the  certificate or certificates  for such shares
properly  endorsed  and the  payment  of all  taxes  due  thereon.  The Board of
Directors  may appoint one or more  suitable  banks  and/or  trust  companies as
transfer agents and/or  registrars of transfers,  for facilitating  transfers of
any class or series of stock of the  Corporation  by the holders  thereof  under
such regulations as the Board of Directors may from time to time prescribe. Upon
such  appointment  being made all  certificates of stock of such class or series
thereafter  issued shall be  countersigned by one of such transfer agents and/or
one of  such  registrars  of  transfers,  and  shall  not  be  valid  unless  so
countersigned.


                                   ARTICLE VII

                              Dividends and Finance

     Section 1.  Dividends.  The Board of Directors  shall have power to fix and
determine and to vary,  from time to time, the amount of the working  capital of
the Corporation  before declaring any dividends among its  shareholders,  and to


                                       16
<PAGE>


direct and determine the use and disposition of any net profits or surplus,  and
to determine the date or dates for the  declaration and payment of dividends and
to  determine  the  amount  of any  dividend,  and the  amount  of any  reserves
necessary  in  their  judgment   before   declaring  any  dividends   among  its
shareholder,  and to determine the amount of the net profits of the  Corporation
from time to time available for dividends.

     Section 2. Fiscal Year. The fiscal year of the Corporation shall end on the
last day of in each year and shall begin on the next succeeding day, or shall be
for such other period as the Board of Directors may from time to time  designate
with the consent of the Department of Taxation and Finance, where applicable.


                                  ARTICLE VIII

                            Miscellaneous Provisions.

     Section 1. Stock of Other  Corporations.  The Board of Directors shall have
the right to authorize  any  director,  officer or other person on behalf of the
Corporation  to attend,  act and vote at  meetings  of the  Shareholders  of any
corporation in which the Corporation  shall hold stock,  and to exercise thereat
any and all rights and powers  incident to the  ownership of such stock,  and to
execute waivers of notice of such meetings and calls therefor; and authority may
be given to exercise  the same either on one or more  designated  occasions,  or
generally on all  occasions  until  revoked by the Board.  In the event that the
Board shall fail to give such authority,  such authority may be exercised by the
President in person or by proxy appointed by him on behalf of the Corporation.

     Any stocks or securities owned by this Corporation may, if so determined by
the Board of Directors,  be registered either in the name of this Corporation or
in the name of any nominee or nominees  appointed  for that purpose by the Board
of Directors.

     Section 2. Books and Records.  Subject to the New York Business Corporation
Law, the  Corporation  may keep its books and accounts  outside the State of New
York.

     Section 3. Notices.  Whenever any notice is required by these By-Laws to be
given,  personal notice is not meant unless expressly so stated,  and any notice
so required  shall be deemed to be sufficient if given by depositing the same in


                                       17
<PAGE>


a post office box in a sealed postpaid wrapper, addressed to the person entitled
thereto at his last known post office  address,  and such notice shall be deemed
to have been given on the day of such mailing.

     Whenever any notice whatsoever is required to be given under the provisions
of any law, or under the provisions of the Certificate of Incorporation or these
By-Laws a waiver thereof in writing, signed by the person or persons entitled to
said notice,  whether before or after the time stated  therein,  shall be deemed
equivalent thereto.

     Section 4. Amendments.  Except as otherwise provided herein,  these By-Laws
may be  altered,  amended  or  repealed  and  By-Laws  may be made at any annual
meeting of the  shareholders  or at any special meeting thereof if notice of the
proposed  alteration,  amendment  or repeal or By-Law or  By-Laws  to be made be
contained in the notice of such special meeting, by the holders of a majority of
the shares of stock of the Corporation outstanding and entitled to vote thereat;
or by a majority of the Board of Directors  at any regular  meeting of the Board
of Directors,  or at any special meeting of the Board of Directors, if notice of
the proposed  alteration,  amendment or repeal, or By-Law or By-Laws to be made,
be contained in the Notice of such Special Meeting.

                                       18



                             SUBSCRIPTION AGREEMENT


Califree Telecom Communications Corp.
400 Perimeter Center Terrace
Atlanta, Georgia  30346

Dear Sirs:

Concurrent with execution of this Agreement,  the undersigned (the  "Purchaser")
is  purchasing  ________________  Units  of  Common  Stock of  Callfree  Telecom
Communications  Corp.  (the  "Company")  at a  price  of  $6.00  per  Unit  (the
"Subscription Price")

Purchaser  hereby confirms the  subscription  for and purchase of said number of
Units and hereby agrees to pay herewith the Subscription Price for such Units.


MAKE CHECK PAYABLE TO:

American  Securities  Transfer  &  Trust,
Escrow  Agent  for  Callfree  Telecom
Communications Corp.



   Executed this             day of                                  1999 at
   Street Address: ___________________________________________________________
                   ___________________________________________________________
                               City                       State       Zip Code


                      Signature of Purchaser _________________________________

                      Printed Name of Purchaser_______________________________

______________________________________________________________________________
   Street Address

______________________________________________________________________________
   City                                     State                  Zip Code


   Social Security Number/ Tax I.D. Number ____________________________


   Number of Units Purchased __________________________________________



                                       CALLFREE TELECOM COMUUNICATIONS CORP.


                                       BY: _________________________________


                                   LAW OFFICES
                                STEVEN L. SISKIND


MEMBER OF NEW YORK
AND FLORIDA BARS
                                    Suite 403
                                645 FIFTH AVENUE
                              NEW YORK, NEW ~ 10022
                                 (212) 750-2002              FLORIDA OFFICE:
                               Fax (212) 838-7982          ONE FINANCIAL PLAZA
                                                               SUITE 2626
                                                        FT. LAUDERDALE, FL 33394
                                                             (305) 523-2626



                                 August 3, 1999

          Mr. Stuart Radin
          Callfree Telecom Communications Corp.
          400 Perimeter Center Terrace
          Atlanta, Georgia   30346

          Dear Mr. Radin:

          I have acted as counsel to Callfree Telecom  Communications Corp. (the
          "Company"),  in  connection  with an offering of 500,000  Units of the
          Company's  securities,  pursuant to a  Registration  Statement on Form
          SB-2 ("Registration  Statement") . You have requested my opinion as to
          certain matters in connection with the post effective amendment to the
          Registration Statement.

          In my  capacity  as counsel to the  Company,  I have  examined  and am
          familiar with the originals or copies,  the authenticity of which have
          been  established  to my  satisfaction,  of all  documents,  corporate
          records and other  instruments I have deemed  necessary to express the
          opinions hereinafter set forth.

          Based on the foregoing and upon consideration of applicable law, it is
          my opinion that the 500,000  Units to be issued by the Company,  will,
          upon payment for and delivery of the Units in the manner  described in
          the  Registration   Statement,  be  validly  issued,  fully  paid  and
          non-assessable.

          Furthermore, I consent to the use of this opinion as an Exhibit to the
          Post Effective Amendment to the Registration Statement.



                                        Very truly yours,

                                        /s/ Steven L. Siskind
                                        ----------------------
                                        Steven L. Siskind



                                 PROMISSORY NOTE
$20,000                                                      Dated: May 27, 1998

     FOR VALUE RECEIVED, the undersigned. CALLFREE TELECOM COMMUNICATIONS, INC.,
a New York corporation with an office at 1043 Nielson Street, Far Rockaway,  New
York  11591  (the  "Company"),  promises  to pay to the  order  of Tina  Chromey
("Payee"), the sum of Twenty Thousand ($20,000) Dollars, with interest, from the
date written above until paid,  at the rate of ten (10%) percent per annum.  All
payments  hereunder  shall be made in lawful  currency  of the United  States of
America, at the address of the Payee located at 20 Mason Road,  Willington,  CT,
06279,  or at such other place as the Holder  hereof may  designate  in writing.
Interest  shall  accrue  commencing  on  the  date  hereof  and  shall  be  paid
simultaneously with the principal, six months from the date hereof.

     This Note may be prepaid at any time in whole or from time to time in part,
in each case without premium or penalty, but with interest on the amount prepaid
to the date of prepayment.

     The  entire  unpaid  principal  amount of this Note and  interest  then due
thereon and any other  amount due  hereunder  shall become  immediately  due and
payable on the happening of any one or more of the following events:

(a)  the dissolution or termination of existence of the Company;

(b)  any  petition  in  bankruptcy  being filed by or against the Company or any
     endorser or guarantor hereof or any. proceedings in bankruptcy or under any
     laws relating to the relief of debtors,  being  commenced for the relief or
     readjustment  of any  indebtedness  of the  undersigned  or any endorser or
     guarantor hereof, either through reorganization,  composition, extension or
     otherwise;

(c)  the making by the Company of any assignment for the benefit of creditors or
     the taking advantage by any of the same of any insolvency law;

(d)  the appointment or a receiver of any property of the Company;

(e)  the  attachment or restraint of any funds or other  property of the Company
     which may be in or come into the possession or control of the Payee,. or of
     any third party  acting for the Payee,  or if such  property or funds shall
     become  subject at any time to any mandatory  order of court or other legal
     process;

     The Company and all other  parties  liable  herein,  whether as  principal,
endorser,  guarantor  or  otherwise,  hereby  jointly  and  severally  (i) waive



<PAGE>


presentment,  demand for  payment,  notice of  dishonor,  notice of protest  and
protest  and all other  notices  or  demands in  connection  with the  delivery,
acceptance,  performance,  default,  endorsement  or guaranty of this Note1 (ii)
waive recourse to suretyship defenses generally,  including oextensions of time,
release of security and other indu1gence which nay be granted, from time to time
by the Holder of this Note to the Company or any party liable herein,  and (iii)
agree to pay all costs and expenses,  including  reasonable  attorneys' fees, in
connection with the enforcement or collection of this Note.

     The Company  hereby  represents  that it is a corporation  duly  organized1
validly  existing and in good standing  under the laws of the state of New York,
that it has the  corporate  power and the right and legal  authority  to execute
deliver and perform its obligations  under this Note and has taken a1l corporate
action to authorize  the execution  and delivery of and the  performance  of its
obligations under this Note and that this Note constitutes its legal,  valid and
binding obligations.

     This Note shall be governed by the  internal  laws of the State of New York
without regard to its principles of conflict of laws.

     No delay on the part of Payee in exercising  any of its options,  powers or
rights, nor any partial or single exercise of its options, power or right, shall
constitute  a waiver  thereof  or of any other  option,  power or right,  and no
waiver  on the part of Payee  of any of its  options,  powers  or  rights  shall
constitute a waiver of any other option, power or right.

     This Note may be modified or canceled only by the written agreement of the
Company and Payee. Failure of the Holder hereof to assert any right herein shall
not be deemed to be a waiver thereof.

     The  Company  hereby  waives  any  right  to  trial  by jury  in any  legal
proceeding related in any way to this Note.

     IN WITNESS  WHEREOF,  the Company has executed this Note as of the 27th day
of May, 1998.

                                           CALLFREE TELECOM COMMUNICATIONS, INC.

                                           BY: /s/ Eric Popkoff
                                               ---------------------------------
                                               Eric Popkoff, Vice President





                                PROMISSORY NOTE

$30,000                                                 Dated; February 19, 1999


     FOR VALUE RECEIVED, the undersigned CALFREE TELECOM COMMUNICATIONS, Inc., a
New York  corporation with an office at 1043 Nielson Street,  Far Rockaway,  New
York  11591  (the  "Company")  promises  to pay to the order of  Philip  Goodman
("Payee'1),  the sum of Thirty Thousand ($30,000) Dollars,  with interest,  from
the date written  above until paid,  at the rate of ten (10%)  percent per annum
All payments  hereunder shall be made in lawful currency of the United States of
America,  at the  address of the Payee  located  at Kokav  Yaakov  #92,  Mizrach
Benjamin,  Israel,  90622,  ,or at such  other  place as the  Holder  hereof may
designate in writing.  Interest  shall accrue  commencing on the date hereof and
shall be paid, simultaneously with the principal, one year from the date hereof.

     This Note may be prepaid at any time in whole or from time to time in part,
in each case without premium or penalty, but with interest on the amount prepaid
to the date of prepayment.

     The  entire  unpaid  principal  amount of this Note and  interest  then due
thereon and any other  amount due  hereunder  shall become  immediately  due and
payable on the happening of any one or more of the following events:

(a{  the dissolution or termination of existence of the Company;

(b)  any  petition  in  bankruptcy  being filed by or against the Company or any
     endorser or guarantor hereof or any. proceedings in bankruptcy or under any
     laws relating to the relief of debtors,  being  commenced for the relief or
     readjustment  of any  indebtedness  of the  undersigned  or any endorser or
     guarantor hereof, either through reorganization,  composition, extension or
     otherwise;

(c)  the making by the Company of any assignment for the benefit of creditors or
     the taking advantage by any of the same of any insolvency law;

(d)  the appointment or a receiver of any property of the Company;

(e)  the  attachment or restraint of any funds or other  property of the Company
     which may be in or come into the possession or control of the Payee,. or of
     any third party  acting for the Payee,  or if such  property or funds shall
     become  subject at any time to any mandatory  order of court or other legal
     process;

     The Company and all other  parties  liable  herein,  whether as  principal,
endorser,  guarantor  or  otherwise,  hereby  jointly  and  severally  (i) waive



<PAGE>


presentment,  demand for  payment,  notice of  dishonor,  notice of protest  and
protest  and all other  notices  or  demands in  connection  with the  delivery,
acceptance,  performance,  default,  endorsement  or  guaranty of this Note (ii)
waive recourse to suretyship defenses generally,  including oextensions of time,
release of security  and other  indu1gence~  which nay be granted,  from time to
time by the Holder of this Note to the Company or any party liable  herein,  and
(iii) agree to pay all costs and expenses, including reasonable attorneys' fees,
in connection with the enforcement or collection of this Note.

     The Company  hereby  represents  that it is a corporation  duly  organized1
validly  existing and in good standing  under the laws of the state of New York,
that it has the  corporate  power and the right and legal  authority to execute,
deliver and perform its obligations  under this Note and has taken &1l corporate
action to authorize  the execution  and delivery of and the  performance  of its
obligations under this Note and that this Note constitutes its legal,  valid and
binding obligations.

     This Note shall be governed by the  internal  laws of the State of New York
without regard to it. principles of conflict of laws.

     No delay on the part of Payee in exercising any of its' options,  powers or
right~1 nor any  partial or single  exercise  of its  options,  powers or rights
shall constitute a waiver thereof or of any other option, power or right, and no
waiver  on the part of Payee of any of it's  options,  powers  or  rights  shall
constitute a waiver of any other option1 power or right.

     This Note may be modified or canceled only by the written agreement 'of the
Company and Payee. Failure of the Holder hereof to assert any right herein shall
not be deemed to be a waiver thereof.

     The  Company  hereby  waives  any  right  to  trial  by jury  in any  legal
proceeding related in any way to this Note.


     IN WITNESS  WHEREOF,  the Company has executed this Note as of the 19th day
of February, 1999.

                                           CALLFREE TELECOM COMMUNICATIONS, INC.



                                           BY:/s/ Stuart Radin
                                              ----------------------------------
                                              Stuart Radin, President





                                PROMISSORY NOTE

$10,000                                                      Dated: May 27, l998

     FOR VALUE RECEIVED, the undersigned CALLFREE TELECOM COMMUNICATIONS,  INC.,
a New York corporation with an office at 1043 Nielson Street, Far Rockaway,  New
York 11591 (the  "Company"),  promises  to pay to the order of Robert P.  Hennig
("Payee"),  the sum of Ten Thousand  ($10,000)  Dollars,  with interest from the
date written above until paid,  at the rate of ten (10%) percent per annum.  All
payments  hereunder  shall be made in lawful  currency  of the United  States of
America, at the address of the Payee located at 601 W. Monroe Street.  Princeton
Indiana  47670,  or at such other place as the Holder  hereof may  designate  in
writing.  Interest shall accrue  commencing on the date hereof and shall be paid
simultaneously with the principal, six months from the date hereof.

     This Note may be prepaid at any time in whole or from time to time in part,
in each case without premium or penalty, but with interest on the amount prepaid
to the date of prepayment.

     The  entire  unpaid  principal  amount of this Note and  interest  then due
thereon and any other  amount due  hereunder  shall become  immediately  due and
payable on the happening of any one or more of the following events:

(a{  the dissolution or termination of existence of the Company;

(b)  any  petition  in  bankruptcy  being filed by or against the Company or any
     endorser or guarantor hereof or any. proceedings in bankruptcy or under any
     laws relating to the relief of debtors,  being  commenced for the relief or
     readjustment  of any  indebtedness  of the  undersigned  or any endorser or
     guarantor hereof, either through reorganization,  composition, extension or
     otherwise;

(c)  the making by the Company of any assignment for the benefit of creditors or
     the taking advantage by any of the same of any insolvency law;

(d)  the appointment or a receiver of any property of the Company;

(e)  the  attachment or restraint of any funds or other  property of the Company
     which may be in or come into the possession or control of the Payee,  or of
     any third party  acting for the Payee,  or if such  property or funds shall
     become  subject at any time to any mandatory  order of court or other legal
     process;

     The Company and all other  parties  liable  herein,  whether as  principal,
endorser,  guarantor  or  otherwise,  hereby  jointly  and  severally  (i) waive



<PAGE>


presentment,  demand for  payment,  notice of  dishonor,  notice of protest  and
protest  and all other  notices  or  demands in  connection  with the  delivery,
acceptance,  performance,  default,  endorsement  or guaranty of this Notes (ii)
waive recourse to suretyship defenses generally,  including oextensions of time,
release of security  and other  indu1gence~  which nay be granted,  from time to
time by the Holder of this Note to the Company or any party liable  herein,  and
(iii) agree to pay all costs and expenses, including reasonable attorneys' fees,
in connection with the enforcement or collection of this Note.

     The Company  hereby  represents  that it is a corporation  duly  organized1
validly  existing and in good standing  under the laws of the 9tate of New York,
that it has the corporate  power and the right and legal  authority to execute;'
deliver and perform its obligations  under this Note and has taken &1l corporate
action to authorize  the execution  and delivery of and the  performance  of its
obligations under this Note and that this Note constitutes its legal,  valid and
binding obligations

     This Note shall be governed by the  internal  laws of the State of New York
without regard to it principles of conflict of laws.

     No delay on the part of Payee in exercising any of its' options,  powers or
rights nor any partial or single exercise of its options, powers or rights shall
constitute  a waiver  thereof  or of any other  option,  power or right,  and no
waiver  on the part of Payee of any of it's  options,  powers  or  rights  shall
constitute a waiver of any other option1 power or right.

     This Note may be modified or canceled only by the written agreement 'of the
Company and Payee. Failure of the Holder hereof to assert any right herein shall
not be deemed to be a waiver thereof.

     The  Company  hereby  waives  any  right  to  trial  by jury  in any  legal
proceeding related in any way to this Note,


     TN WITNESS  WHEREOF,  the Company has executed this Note as of the 27th day
of May, 1998.

                                           CALLFREE TELECOM COMMUNICATIONS, INC.



                                           BY: /s/ Stuart Radin
                                               ---------------------------------
                                               Stuart Radin, President






                                 PROMISSORY NOTE

$10,000                                                      Dated: May 27, 1998

     FOR VALUE RECEIVED, the undersigned CALLFREE TELECOM COMMUNICATIONS,  INC.,
a New York corporation with an office at 1043 Nielson Street, Far Rockaway,  New
York  11591  (the  "Company"),  promises  to pay to the order of James L.  Perry
("Payee"),  the sum of Ten Thousand ($10,000) Dollars,  with interest,  from the
date 'written above until paid, at the rate of ten (10%) percent per annum.  All
payments  hereunder  shall be made in lawful  currency  of the United  States of
America, at the address of the Payee located at 474 Woolbridge, San Luis, Obispo
93401,  or at such other place as the Holder hereof may  designate in.  writing.
Interest  shall  accrue  commencing  on  the  date  hereof  and  shall  be  paid
simultaneously with the principal, six months from the date hereof.

     This Note may be prepaid at any time in whole or from time to time in part,
in each case without premium or penalty, but with interest on the amount prepaid
to the date of prepayment.

     The  entire  unpaid  principal  amount of this Note and  interest  then due
thereon and any other  amount due  hereunder  shall become  immediately  due and
payable on the happening of any one or more of the following events:

(a)  the dissolution or termination of existence of the Company;

(b)  any  petition  in  bankruptcy  being filed by or against the Company or any
     endorser or guarantor hereof or any. proceedings in bankruptcy or under any
     laws relating to the relief of debtors,  being  commenced for the relief or
     readjustment  of any  indebtedness  of the  undersigned  or any endorser or
     guarantor hereof, either through reorganization,  composition, extension or
     otherwise;

(c)  the making by the Company of any assignment for the benefit of creditors or
     the taking advantage by any of the same of any insolvency law;

(d)  the appointment or a receiver of any property of the Company;

(e)  the  attachment or restraint of any funds or other  property of the Company
     which may be in or come into the possession or control of the Payee,. or of
     any third party  acting for the Payee,  or if such  property or funds shall
     become  subject at any time to any mandatory  order of court or other legal
     process;

     The Company and all other  parties  liable  herein,  whether as  principal,
endorser,  guarantor  or  otherwise,  hereby  jointly  and  severally  (i) waive



<PAGE>


presentment,  demand for  payment,  notice of  dishonor,  notice of protest  and
protest  and all other  notices  or  demands in  connection  with the  delivery,
acceptance,  performance,  default,  endorsement  or guaranty of this Notes (ii)
waive recourse to suretyship defenses generally,  including oextensions of time,
release of security  and other  indu1gence~  which nay be granted,  from time to
time by the Holder of this Note to the Company or any party liable  herein,  and
(iii) agree to pay all costs and espenses, including reasonable attorneys' fees,
in connection with the enforcement or collection of this Note.

     The Company  hereby  represents  that it is a corporation  duly  organized1
validly  existing and in good standing  under the laws of the 9tate of New York,
that it has the corporate  power and the right and legal  authority to execute;'
deliver and perform its obligations  under this Note and has taken &1l corporate
action to authorize  the execution  and delivery of and the  performance  of its
obligations under this Note and that this Note constitutes its legal,  valid and
binding obligations

     This Note shall be governed by the  internal  laws of the State of New York
without regard to it. principles of conflict of laws.

     No delay on the part of Payee in exercising any of its' options,  powers or
right~1 nor any  partial or single  exercise  of its  options,  powers or rights
shall constitute a waiver thereof or of any other option, power or right, and no
waiver  on the part of Payee of any of it's  options,  powers  or  rights  shall
constitute a waiver of any other option1 power or right.

     This Note may be modified or canceled only by the written agreement 'of the
Company and Payee. Failure of the Holder hereof to assert any right herein shall
not be deemed to be a waiver thereof

     The  Company  hereby  waives  any  right  to  trial  by jury  in any  legal
proceeding related in any way to this Note,


     IN WITNESS  WHEREOF,  the Company has executed this Note as of the 27th day
of May, 1998.

                                           CALLFREE TELECOM COMMUNICATIONS, INC.



                                           BY: /s/Stuart Radin
                                               ---------------------------------
                                           Stuart Radin, President






                          OPTION HOLDER: Philip Goodman

                    THIS OPTION EXPIRES ON FEBRUARY 18, 2004

                              STOCK PURCHASE OPTION

                     To Subscribe for and purchase Shares of

                      CALLFREE TELECOM COMMUNICATIONS,INC.

     THIS CERTIFIES  THAT, for value  received,  Philip Goodman or his Designees
("Optionee")  are entitled to purchase  from  Callfree  Telecom  Communications,
Inc., a New York corporation  ("Optionor/the  Company"), up to 40,000 restricted
Shares of Common Stock ~.001 par value per share at, an option purchase price of
$7.00 per share (the  "Option"),  pursuant to Rule 144 of the  Securities Act of
1933,' as  amended  (the  "Act")  Optionor  warrants  and  represents  that upon
exercise and payment,  the optioned share will be fully paid and  non-assessable
shares of the Company's Common Stock1 $.00l par value per share.

     This  Option may be  exercised  in whole or in part at any time  commencing
February 18, 2000 and terminating on February 18, 2004 (the "Expiration Date").

     Any Option not exercised by the Expiration Date expires automatically.

     This Option may be sold, transferred,  assigned or hypothecated by Optionee
for the  life of the  Option.  During  the life of this  Option,  it may also be
transferred by the laws of descent by Optionee.

     By  acceptance  of this  Option,  the Optionee  agrees  that,  prior to the
disposition  of any shares of common stock  purchased  upon the exercise of this
Option,  the  Optionee  will  comply with the  provisions  of the Act as then in
force1  or any  similar  federal  statute  then  in  force,  and the  rules  and
regulations then in effect.

     The Optionor  covenants  and agrees that the  optioned  shares when issued,
will be validly issued, fully paid and non-assessable,  and free from all taxes,
liens and charges with respect to their issue.

     The Optionee will not have any of the rights, privileges, or liabilities af
a Shareholder of the Company  (either in law or equity) prior to the purchase of
shares subject to this Option.

     IN WITNESS  WHEREOF,  the Optionor has caused this Option to be signed this
19th day of February, 1999.


                                            CALLFREE TELECOM COMMUNICATIONS,INC.

                                            By: /s/ Stuart Radin
                                                --------------------------------
                                                Stuart Radin, President




                     CALLFREE TELECOM COMMUNICATIONS, CORP.
                               1116 NEILSON STREET
                           FAR ROCKAWAY, NY 11691-4720
                                 (718) 868-0383

                              EMPLOYMENT AGREEMENT

         AGREEMENT made as of the 27th day of May, 1999 by and between  Callfree
Telecom Communications,  Corp. a New York corporation with its principal offices
at 1116 Neilson Street, Far Rockaway, New York 11691 (the "Company"), and Stuart
Radin whose address is 1116 Neilson  Street,  Far Rockaway,  New York 11691-4720
(the "Employee").

                                   WITNESSETH:

         WHEREAS,  the Company  desires to obtain the benefit of the services of
Employee,  and  Employee  desires  to  render  such  services,  on the terms and
conditions hereinafter set forth;

          NOW THEREFORE,  the parties hereto,  in  consideration of the premises
and mutual covenants herein contained, hereby agree as follows:

1.  Upon the  execution  of this  Agreement,  all prior  employment  agreements,
whether  written  or  oral,  between  Employee  and the  Company,  or any of its
parents, subsidiaries,  affiliates, or predecessor constituent corporations, are
terminated and are of no further force and effect.

2. Subject to the terms and conditions hereinafter set forth, the Company hereby
employs  Employee,  and Employee hereby enters into the Employ of the Company as
the Company shall from time to time select, for an employment term commencing on
the Effective Date of this Agreement as hereinafter  provided,  and  terminating
two (2) years thereafter (the "Term of Employment").

3. This  Agreement  shall  become  effective  on the date of the  closing of the
minimum public offering of shares of the Company's  Common Stock ("the Effective
Date),  and shall  continue  for a period of two (2) years  from such  Effective
Date.

4.  During  the Term of  Employment,  Employee  shall  render and  perform  such
executive and  managerial  services as President & CEO for the Company as may be
assigned  to him by or under  the  authority  of the Board of  Directors  of the
Company.  During the Term of Employment,  Employee shall hold such other offices
of the Company or its  subsidiaries to which he may be appointed by the board of
Directors  subject to the by-laws of the Company and the direction and action of
the Board of  Directors;  it being  understood  and  agreed  that all  policy in
connection  with the operations and conduct of the business of the Company shall
be set by the Board of Directors,  whose  instructions  in connection  therewith
shall be  followed  by  Employee.  Employee  shall  devote such time as shall be
reasonably required to perform his duties as such President,  CEO & Director for
the Company,  and the Company  acknowledges that Employee has other business and
employment agreements. Employee shall serve the Company faithfully and shall use
his best efforts to promote the  interests  of the  Company.  During the Term of
Employment,  Employee  agrees  not to engage,  directly  or  indirectly,  in any
business  which is competitive  with the business now or hereafter  conducted by
the Company, or by the parent,  subsidiary,  or affiliate of the company, in the
capacity of proprietor, partner, joint venturer, stockholder, director, officer,
lender,  manager,  employee,  consultant,  advisor,  or  agent,  or as a  person
controlling  such  business;  provided,  however,  that Employee may buy or sell
stock in any  corporation  which is  traded on any  stock  exchange  or over the
counter,  except  that  Employee  shall not  purchase or sell more than one (1%)
percent  of the  outstanding  stock of any  corporation  engaged  in the same or
similar business to that of the Company or any parent,  subsidiary, or affiliate
of the Company.

5. As full  compensation  for all  services  of  employee  provided  for herein,
including,  without limiting the generality of the forgoing,  all services to be
rendered by Employee as an officer or director of the company, or of any parent,
subsidiary,  or affiliate  of the Company,  the Company will pay, or cause to be
paid to Employee, during the Term of Employment, and Employee will accept,

     A.   (i) for the first year of the Term of Employment, a salary at the rate
          of $72,000.00, and:

          (ii) for the second  year of the Term of  Employment,  a salary at the
               rate of $79,200.00 and $101,530.00 respectively.

<PAGE>

     B.   Such salary will be paid in regular  installments  in accordance  with
          the Company's  usual paying  practices,  but not less  frequently than
          monthly.  Such  payments  will be  subject to such  deductions  by the
          Company as the Company is from time to time  required to make pursuant
          to law,  government  regulations,  or order,  or by agreement  with or
          consent of Employee.

6. Employee  shall be entitled to  reimbursement  by the Company for  reasonable
expenses  actually incurred by him on its behalf in the course of his employment
by the Company, upon presentation by Employee,  from time to time of an itemized
account of such  expenditure,  together with said vouchers and other receipts as
the Company may require.

7.  Employee  shall be entitled to vacations in  accordance  with the  company's
prevailing policy for its operating executives,  provided that such vacations do
not interfere with the business operations of the Company.

8. During the Term of Employment,  if Employee shall be unable,  for a period of
more than two (2)  consecutive  months or for periods of  aggregating  more than
eight (8) weeks in any fifty-two (52) consecutive weeks, to perform the services
provided for herein as a result of illness or incapacity or a physical,  mental,
or other disability of any nature, the Company, upon not less than ten (10) days
notice,  may  terminate  Employee's  employment  hereunder.  Employee  shall  be
considered unable to perform the services provided for herein if he is unable to
attend to the normal duties  required of him. The Company shall pay to Employee,
or to his legal representatives, compensation as specified in Paragraph 5 hereof
to the end of the month in which  termination  occurs.  Upon  completion  of the
termination  payments  provided  for in  this  paragraph,  all of the  Company's
obligations to pay compensation under this Agreement shall cease.

9. Employee shall be entitled to participate in all group insurance, medical and
hospitalization  plans and pension  and profit  sharing  plans as are  presently
offered by the Company or which may  hereafter  during the Term of Employment be
offered by the Company generally to its operating Executives.

10.  Employee  will not,  at any time  during  or after the Term of  Employment,
directly  or  indirectly  disclose  or  furnish  to any  other  person,  firm or
corporation any information relating to the Company or its parent, subsidiaries,
or affiliates with respect to technology of the Company's  products,  methods of
obtaining business,  advertising products,  obtaining customers or suppliers, or
any  confidential  or proprietary  information  acquired by employee  during the
course  of  his  employment  by the  Company  or its  parent,  subsidiaries,  or
affiliates.

11. As between Employee and the Company, all products,  processes,  discoveries,
materials,  ideas,  creations,   inventions,  and  properties,  whether  or  not
furnished by employee or created,  developed,  invented,  or used in  connection
with Employees employment  hereunder,  or prior to this Agreement while employed
by the Company,  which  relate to the business of the Company,  will be the sole
and  absolute  property of the Company for any and all purposes  whatsoever,  in
perpetuity,  whether or not  conceived,  discovered,  and / or developed  during
regular working hours. Employee will not have, under the Agreement or otherwise,
any right,  title or interest of any kind or nature whatsoever in or to any such
products;  process,  discoveries,  materials,  ideas,  creations,  inventions or
properties.

12. The Employee represents and warrants to the Company that he is not under any
obligation of a contractual or their nature to any other party which  obligation
is  inconsistent  or in conflict  with this  Agreement  or which would  prevent,
limit, or impair in any way the performance by Employee of his obligations  here
under.

13. The parties  hereto  recognize  that  irreparable  damage will result to the
Company and its business and  properties if Employee fails or refuses to perform
his  obligations  under this  Agreement  and that the remedy at law for any such
failure or refusal  will be  inadequate.  Accordingly,  in addition to any other
remedies  and damage  available,  the Company  shall be  entitled to  injunctive
relief, and Employee may be specifically restrained from violating the terms and
conditions of this Agreement.

14.  Employee  will execute and deliver all such other further  instruments  and
documents as may be necessary,  in the opinion of the Company,  to carry out the
intents and purposes of this Agreement and the transactions contemplated hereby,
and to  confirm,  assign,  or convey to the  Company  any  products,  processes,
discoveries,  materials, ideas, creations, inventions, or properties referred to
in  Paragraph 11 hereof,  including  the  execution of all patent and  copyright
applications.

<PAGE>

15. This Agreement  constitutes the entire agreement  between the parties hereto
relating to the subject  matter set forth herein and  supersedes  any prior oral
and / or written agreements, understandings, negotiations, or discussions of the
parties.  There are no  warranties,  representations  or agreements  between the
parties in connection  with the subject  matter  hereof,  except as set forth or
referred to herein.  No supplement,  modification,  waiver or termination of the
Agreement or any provisions  here shall be binding unless executed in writing by
the  parties  to be  bound  thereby.  Waiver  of any of  the  provisions  of the
Agreement shall not constitute a waiver of any other  provision  (whether or not
similar),  nor shall such waiver constitute a continuing waiver unless otherwise
specifically provided.

16. The failure of either party at any time to require  performance by the other
of any  provision  hereof  shall not affect in any way the full right to require
such performance at any time thereafter, nor shall the waiver by either party of
the  breach  of any  provision  hereof be taken or be held to be a waiver of the
provision itself.

17. Any notice or other communication required or permitted to be given under or
in connection with this Agreement shall be in writing, delivered in person or by
public  telegram,  or by mailing  same,  certified or registered  mail,  postage
prepaid, in an envelope addressed to the party to whom notice is to be given, at
the address  given at the  beginning of this  Agreement,  and shall be effective
upon  receipt  thereof.  Each party  shall be  entitled  to specify a  different
address by giving notice as aforesaid to the other party.

18. The  invalidity or  unenforceability  of any  paragraph,  term, or provision
hereof shall in no way affect the validity or  enforceability  of the  remaining
paragraphs,  terms or provisions  hereof.  In addition,  in any such event,  the
parties agree that it is their  intention and agreement that any such paragraph,
term or provision  which is held or  determined to be  unenforceable  as written
shall nonetheless be in force and binding to the fullest extent permitted by law
as though such  paragraph,  term or prevision  had been written in such a manner
and to such an  exact  as to be  enforceable  under  the  circumstance.  Without
limiting the  foregoing,  with  respect to any  restrictive  covenant  contained
herein,  if it is determined that any such provision is excessive as to duration
or scope, it is intended that it nevertheless  shall be enforce for such shorter
duration, or with such narrower scope, as will render it enforceable.

19. All of the terms and provisions of this Agreement  shall be binding upon and
shall  inure to the benefit of the parties  hereto and their  respective  heirs,
executors,  administrators,  transferees,  successors,  and assigns, except that
Employee  shall have not right to assign any of his rights or obligations to any
other party.

20. This Agreement  shall be governed and construed  under the laws of the State
of New York.  Each of the parties  hereto  consents to the  jurisdiction  of the
appropriate  state and federal courts of New York for all purposes in connection
with this  Agreement.  Each of the  parties  hereto  further  consents  that any
process or notice of motion or other  application  of either of said Courts or a
judge thereof, or any notice in connection with any proceedings  hereunder,  may
be served  inside or outside the State of New York by  registered  or  certified
mail, return receipt  requested,  or by personal service,  provided a reasonable
time for  appearance is allowed,  or in such other manner as may be  permissible
under the rules of said Courts.

21. This  Agreement may be executed in one or more  counterparts,  each of which
shall be deemed an original and all of which,  taken together,  shall constitute
one and the same instrument.

IN WITNESS WHEREOF,  the parties hereto have caused this Agreement to be entered
into as of the date and year hereinabove first set forth.

                                          CALLFREE TELECOM COMMUNICATIONS, CORP.

                                          By: /s/ Eric Popkoff
                                              ----------------------------------
                                              Eric Popkoff, Vice President

                                          By: /s/ Stuart Radin
                                              ----------------------------------
                                              Stuart Radin, Employee




                     CALLFREE TELECOM COMMUNICATIONS, CORP.
                               1116 NEILSON STREET
                           FAR ROCKAWAY, NY 11691-4720
                                 (718) 868-0383

                              EMPLOYMENT AGREEMENT

         AGREEMENT made as of the 27th day of May, 1999 by and between  Callfree
Telecom Communications,  Corp. a New York corporation with its principal offices
at 1116 Neilson Street, Far Rockaway,  New York 11691 (the "Company"),  and Eric
Popkoff  whose address is 1750 East 23rd Street,  Brooklyn,  New York 11229 (the
"Employee").

                                   WITNESSETH:

         WHEREAS,  the Company  desires to obtain the benefit of the services of
Employee,  and  Employee  desires  to  render  such  services,  on the terms and
conditions hereinafter set forth;

NOW THEREFORE,  the parties hereto,  in consideration of the premises and mutual
covenants herein contained, hereby agree as follows:

1.  Upon the  execution  of this  Agreement,  all prior  employment  agreements,
whether  written  or  oral,  between  Employee  and the  Company,  or any of its
parents, subsidiaries,  affiliates, or predecessor constituent corporations, are
terminated and are of no further force and effect.

2. Subject to the terms and conditions hereinafter set forth, the Company hereby
employs  Employee,  and Employee hereby enters into the Employ of the Company as
the Company shall from time to time select, for an employment term commencing on
the Effective Date of this Agreement as hereinafter  provided,  and  terminating
two (2) years thereafter (the "Term of Employment").

3. This  Agreement  shall  become  effective  on the date of the  closing of the
minimum public offering of shares of the Company's  Common Stock ("the Effective
Date),  and shall  continue  for a period of two (2) years  from such  Effective
Date.

4.  During  the Term of  Employment,  Employee  shall  render and  perform  such
executive and managerial  services as Vice  President of Investor  Relations for
the Company as may be assigned to him by or under the  authority of the Board of
Directors of the Company.  During the Term of  Employment,  Employee  shall hold
such  other  offices  of the  Company  or its  subsidiaries  to  which he may be
appointed  by the board of  Directors  subject to the by-laws of the Company and
the  direction  and action of the Board of Directors;  it being  understood  and
agreed  that all policy in  connection  with the  operations  and conduct of the
business  of  the  Company  shall  be  set  by the  Board  of  Directors,  whose
instructions  in connection  therewith  shall be followed by Employee.  Employee
shall  devote  at  least  ten  (10)  hours  per  week or such  time as  shall be
reasonably  required  to perform his duties as such Vice  President  of Investor
Relations & director for the Company and the Company  acknowledges that Employee
has other business and employment  agreements.  Employee shall serve the Company
faithfully  and shall use his best  efforts  to  promote  the  interests  of the
Company. During the Term of Employment,  Employee agrees not to engage, directly
or indirectly,  in any business  which is  competitive  with the business now or
hereafter conducted by the Company, or by the parent,  subsidiary,  or affiliate
of  the  company,  in the  capacity  of  proprietor,  partner,  joint  venturer,
stockholder,  director, officer, lender, manager, employee, consultant, advisor,
or agent, or as a person  controlling  such business;  provided,  however,  that
Employee may buy or sell stock in any  corporation  which is traded on any stock
exchange or over the counter,  except that  Employee  shall not purchase or sell
more than one (1%) percent of the outstanding  stock of any corporation  engaged
in the  same  or  similar  business  to  that  of  the  Company  or any  parent,
subsidiary, or affiliate of the Company.

5. As full  compensation  for all  services  of  employee  provided  for herein,
including,  without limiting the generality of the forgoing,  all services to be
rendered by Employee as an officer or director of the company, or of any parent,
subsidiary,  or affiliate  of the Company,  the Company will pay, or cause to be
paid to Employee, during the Term of Employment, and Employee will accept,

     A.   (i) for the first year of the Term of Employment, a salary at the rate
          of $35,000.00 and:

          (ii) for the second  year of the Term of  Employment,  a salary at the
               rate of $45,000.00

<PAGE>

     B.   Such salary will be paid in regular  installments  in accordance  with
          the Company's  usual paying  practices,  but not less  frequently than
          monthly.  Such  payments  will be subject to such  deductions  by ,the
          Company as the Company is from time to time  required to make pursuant
          to law,  government  regulations,  or order,  or by agreement  with or
          consent of Employee.

6. Employee  shall be entitled to  reimbursement  by the Company for  reasonable
expenses  actually incurred by him on its behalf in the course of his employment
by the Company, upon presentation by Employee,  from time to time of an itemized
account of such  expenditure,  together with said vouchers and other receipts as
the Company may require.

7.  Employee  shall be entitled to vacations in  accordance  with the  company's
prevailing policy for its operating executives,  provided that such vacations do
not interfere with the business operations of the Company.

8. During the Term of Employment,  if Employee shall be unable,  for a period of
more than two (2)  consecutive  months or for periods of  aggregating  more than
eight (8) weeks in any fifty-two (52) consecutive weeks, to perform the services
provided for herein as a result of illness or incapacity or a physical,  mental,
or other disability of any nature, the Company, upon not less than ten (10) days
notice,  may  terminate  Employee's  employment  hereunder.  Employee  shall  be
considered unable to perform the services provided for herein if he is unable to
attend to the normal duties  required of him. The Company shall pay to Employee,
or to his legal representatives, compensation as specified in Paragraph 5 hereof
to the end of the month in which  termination  occurs.  Upon  completion  of the
termination  payments  provided  for in  this  paragraph,  all of the  Company's
obligations to pay compensation under this Agreement shall cease.

9. Employee shall be entitled to participate in all group insurance, medical and
hospitalization  plans and pension  and profit  sharing  plans as are  presently
offered by the Company or which may  hereafter  during the Term of Employment be
offered by the Company generally to its operating Executives.

10.  Employee  will not,  at any time  during  or after the Term of  Employment,
directly  or  indirectly  disclose  or  furnish  to any  other  person,  firm or
corporation any information relating to the Company or its parent, subsidiaries,
or affiliates with respect to technology of the Company's  products,  methods of
obtaining business,  advertising products,  obtaining customers or suppliers, or
any  confidential  or proprietary  information  acquired by employee  during the
course  of  his  employment  by the  Company  or its  parent,  subsidiaries,  or
affiliates.

11. As between Employee and the Company, all products,  processes,  discoveries,
materials,  ideas,  creations,   inventions,  and  properties,  whether  or  not
furnished by employee or created,  developed,  invented,  or used in  connection
with Employees employment  hereunder,  or prior to this Agreement while employed
by the Company,  which  relate to the business of the Company,  will be the sole
and  absolute  property of the Company for any and all purposes  whatsoever,  in
perpetuity,  whether or not  conceived,  discovered,  and / or developed  during
regular working hours. Employee will not have, under the Agreement or otherwise,
any right,  title or interest of any kind or nature whatsoever in or to any such
products;  process,  discoveries,  materials,  ideas,  creations,  inventions or
properties.

12. The Employee represents and warrants to the Company that he is not under any
obligation of a contractual or their nature to any other party which  obligation
is  inconsistent  or in conflict  with this  Agreement  or which would  prevent,
limit, or impair in any way the performance by Employee of his obligations  here
under.

13. The parties  hereto  recognize  that  irreparable  damage will result to the
Company and its business and  properties if Employee fails or refuses to perform
his  obligations  under this  Agreement  and that the remedy at law for any such
failure or refusal  will be  inadequate.  Accordingly,  in addition to any other
remedies  and damage  available,  the Company  shall be  entitled to  injunctive
relief, and Employee may be specifically restrained from violating the terms and
conditions of this Agreement.

14.  Employee  will execute and deliver all such other further  instruments  and
documents as may be necessary,  in the opinion of the Company,  to carry out the
intents and purposes of this Agreement and the transactions contemplated hereby,
and to  confirm,  assign,  or convey to the  Company  any  products,  processes,
discoveries,  materials, ideas, creations, inventions, or properties referred to
in  Paragraph 11 hereof,  including  the  execution of all patent and  copyright
applications.

<PAGE>

15. This Agreement  constitutes the entire agreement  between the parties hereto
relating to the subject  matter set forth herein and  supersedes  any prior oral
and / or written agreements, understandings, negotiations, or discussions of the
parties.  There are no  warranties,  representations  or agreements  between the
parties in connection  with the subject  matter  hereof,  except as set forth or
referred to herein.  No supplement,  modification,  waiver or termination of the
Agreement or any provisions  here shall be binding unless executed in writing by
the  parties  to be  bound  thereby.  Waiver  of any of  the  provisions  of the
Agreement shall not constitute a waiver of any other  provision  (whether or not
similar),  nor shall such waiver constitute a continuing waiver unless otherwise
specifically provided.

16. The failure of either party at any time to require  performance by the other
of any  provision  hereof  shall not affect in any way the full right to require
such performance at any time thereafter, nor shall the waiver by either party of
the  breach  of any  provision  hereof be taken or be held to be a waiver of the
provision itself.

17. Any notice or other communication required or permitted to be given under or
in connection with this Agreement shall be in writing, delivered in person or by
public  telegram,  or by mailing  same,  certified or registered  mail,  postage
prepaid, in an envelope addressed to the party to whom notice is to be given, at
the address  given at the  beginning of this  Agreement,  and shall be effective
upon  receipt  thereof.  Each party  shall be  entitled  to specify a  different
address by giving notice as aforesaid to the other party.

18. The  invalidity or  unenforceability  of any  paragraph,  term, or provision
hereof shall in no way affect the validity or  enforceability  of the  remaining
paragraphs,  terms or provisions  hereof.  In addition,  in any such event,  the
parties agree that it is their  intention and agreement that any such paragraph,
term or provision  which is held or  determined to be  unenforceable  as written
shall nonetheless be in force and binding to the fullest extent permitted by law
as though such  paragraph,  term or prevision  had been written in such a manner
and to such an  exact  as to be  enforceable  under  the  circumstance.  Without
limiting the  foregoing,  with  respect to any  restrictive  covenant  contained
herein,  if it is determined that any such provision is excessive as to duration
or scope, it is intended that it nevertheless  shall be enforce for such shorter
duration, or with such narrower scope, as will render it enforceable.

19. All of the terms and provisions of this Agreement  shall be binding upon and
shall  inure to the benefit of the parties  hereto and their  respective  heirs,
executors,  administrators,  transferees,  successors,  and assigns, except that
Employee  shall have not right to assign any of his rights or obligations to any
other party.

20. This Agreement  shall be governed and construed  under the laws of the State
of New York.  Each of the parties  hereto  consents to the  jurisdiction  of the
appropriate  state and federal courts of New York for all purposes in connection
with this  Agreement.  Each of the  parties  hereto  further  consents  that any
process or notice of motion or other  application  of either of said Courts or a
judge thereof, or any notice in connection with any proceedings  hereunder,  may
be served  inside or outside the State of New York by  registered  or  certified
mail, return receipt  requested,  or by personal service,  provided a reasonable
time for  appearance is allowed,  or in such other manner as may be  permissible
under the rules of said Courts.

21. This  Agreement may be executed in one or more  counterparts,  each of which
shall be deemed an original and all of which,  taken together,  shall constitute
one and the same instrument.

IN WITNESS WHEREOF,  the parties hereto have caused this Agreement to be entered
into as of the date and year hereinabove first set forth.

                                          CALLFREE TELECOM COMMUNICATIONS, CORP.

                                          By: /s/ Stuart Radin
                                              ----------------------------------
                                              Stuart Radin, President & CEO

                                          By: /s/
                                              ----------------------------------
                                              Eric Popkoff, Employee







                     CALLFREE TELECOM COMMUNICATIONS, CORP.
                               1116 NEILSON STREET
                           FAR ROCKAWAY, NY 11691-4720
                                 (718) 868-0383

                              EMPLOYMENT AGREEMENT

         AGREEMENT made as of the 27th day of May, 1999 by and between  Callfree
Telecom Communications,  Corp. a New York corporation with its principal offices
at 1116 Neilson Street,  Far Rockaway,  New York 11691 (the "Company"),  and Jay
Radin  whose  address is 1239 East 34th  Street,  Brooklyn,  New York 11210 (the
"Employee").

                                   WITNESSETH:

         WHEREAS,  the Company  desires to obtain the benefit of the services of
Employee,  and  Employee  desires  to  render  such  services,  on the terms and
conditions hereinafter set forth;

NOW THEREFORE,  the parties hereto,  in consideration of the premises and mutual
covenants herein contained, hereby agree as follows:

1.  Upon the  execution  of this  Agreement,  all prior  employment  agreements,
whether  written  or  oral,  between  Employee  and the  Company,  or any of its
parents, subsidiaries,  affiliates, or predecessor constituent corporations, are
terminated and are of no further force and effect.

2. Subject to the terms and conditions hereinafter set forth, the Company hereby
employs  Employee,  and Employee hereby enters into the Employ of the Company as
the Company shall from time to time select, for an employment term commencing on
the Effective Date of this Agreement as hereinafter  provided,  and  terminating
two (2) years thereafter (the "Term of Employment").

3. This  Agreement  shall  become  effective  on the date of the  closing of the
minimum public offering of shares of the Company's  Common Stock ("the Effective
Date),  and shall  continue  for a period of two (2) years  from such  Effective
Date.

4.  During  the Term of  Employment,  Employee  shall  render and  perform  such
executive  and  managerial  services as Chief  Financial  Officer  (CFO) for the
Company  as may be  assigned  to him by or under the  authority  of the Board of
Directors of the Company.  During the Term of  Employment,  Employee  shall hold
such  other  offices  of the  Company  or its  subsidiaries  to  which he may be
appointed  by the board of  Directors  subject to the by-laws of the Company and
the  direction  and action of the Board of Directors;  it being  understood  and
agreed  that all policy in  connection  with the  operations  and conduct of the
business  of  the  Company  shall  be  set  by the  Board  of  Directors,  whose
instructions  in connection  therewith  shall be followed by Employee.  Employee
shall devote such time as shall be reasonably  required to perform his duties as
such CFO & Director for the Company,  and the Company acknowledges that Employee
has other business and employment  agreements.  Employee shall serve the Company
faithfully  and shall use his best  efforts  to  promote  the  interests  of the
Company. During the Term of Employment,  Employee agrees not to engage, directly
or indirectly,  in any business  which is  competitive  with the business now or
hereafter conducted by the Company, or by the parent,  subsidiary,  or affiliate
of  the  company,  in the  capacity  of  proprietor,  partner,  joint  venturer,
stockholder,  director, officer, lender, manager, employee, consultant, advisor,
or agent, or as a person  controlling  such business;  provided,  however,  that
Employee may buy or sell stock in any  corporation  which is traded on any stock
exchange or over the counter,  except that  Employee  shall not purchase or sell
more than one (1%) percent of the outstanding  stock of any corporation  engaged
in the  same  or  similar  business  to  that  of  the  Company  or any  parent,
subsidiary, or affiliate of the Company.

5. As full  compensation  for all  services  of  employee  provided  for herein,
including,  without limiting the generality of the forgoing,  all services to be
rendered by Employee as an officer or director of the company, or of any parent,
subsidiary,  or affiliate  of the Company,  the Company will pay, or cause to be
paid to Employee, during the Term of Employment, and Employee will accept,

     A.   (i) for the first year of the Term of Employment, a salary at the rate
          of $59,800.00 and:

          (ii) for the second  year of the Term of  Employment,  a salary at the
               rate of $65,780.00.
<PAGE>

     B.   Such salary will be paid in regular  installments  in accordance  with
          the Company's  usual paying  practices,  but not less  frequently than
          monthly.  Such  payments  will be subject to such  deductions  by ,the
          Company as the Company is from time to time  required to make pursuant
          to law,  government  regulations,  or order,  or by agreement  with or
          consent of Employee.

6. Employee  shall be entitled to  reimbursement  by the Company for  reasonable
expenses  actually incurred by him on its behalf in the course of his employment
by the Company, upon presentation by Employee,  from time to time of an itemized
account of such  expenditure,  together with said vouchers and other receipts as
the Company may require.

7.  Employee  shall be entitled to vacations in  accordance  with the  company's
prevailing policy for its operating executives,  provided that such vacations do
not interfere with the business operations of the Company.

8. During the Term of Employment,  if Employee shall be unable,  for a period of
more than two (2)  consecutive  months or for periods of  aggregating  more than
eight (8) weeks in any fifty-two (52) consecutive weeks, to perform the services
provided for herein as a result of illness or incapacity or a physical,  mental,
or other disability of any nature, the Company, upon not less than ten (10) days
notice,  may  terminate  Employee's  employment  hereunder.  Employee  shall  be
considered unable to perform the services provided for herein if he is unable to
attend to the normal duties  required of him. The Company shall pay to Employee,
or to his legal representatives, compensation as specified in Paragraph 5 hereof
to the end of the month in which  termination  occurs.  Upon  completion  of the
termination  payments  provided  for in  this  paragraph,  all of the  Company's
obligations to pay compensation under this Agreement shall cease.

9. Employee shall be entitled to participate in all group insurance, medical and
hospitalization  plans and pension  and profit  sharing  plans as are  presently
offered by the Company or which may  hereafter  during the Term of Employment be
offered by the Company generally to its operating Executives.

10.  Employee  will not,  at any time  during  or after the Term of  Employment,
directly  or  indirectly  disclose  or  furnish  to any  other  person,  firm or
corporation any information relating to the Company or its parent, subsidiaries,
or affiliates with respect to technology of the Company's  products,  methods of
obtaining business,  advertising products,  obtaining customers or suppliers, or
any  confidential  or proprietary  information  acquired by employee  during the
course  of  his  employment  by the  Company  or its  parent,  subsidiaries,  or
affiliates.

11. As between Employee and the Company, all products,  processes,  discoveries,
materials,  ideas,  creations,   inventions,  and  properties,  whether  or  not
furnished by employee or created,  developed,  invented,  or used in  connection
with Employees employment  hereunder,  or prior to this Agreement while employed
by the Company,  which  relate to the business of the Company,  will be the sole
and  absolute  property of the Company for any and all purposes  whatsoever,  in
perpetuity,  whether or not  conceived,  discovered,  and / or developed  during
regular working hours. Employee will not have, under the Agreement or otherwise,
any right,  title or interest of any kind or nature whatsoever in or to any such
products;  process,  discoveries,  materials,  ideas,  creations,  inventions or
properties.

12. The Employee represents and warrants to the Company that he is not under any
obligation of a contractual or their nature to any other party which  obligation
is  inconsistent  or in conflict  with this  Agreement  or which would  prevent,
limit, or impair in any way the performance by Employee of his obligations  here
under.

13. The parties  hereto  recognize  that  irreparable  damage will result to the
Company and its business and  properties if Employee fails or refuses to perform
his  obligations  under this  Agreement  and that the remedy at law for any such
failure or refusal  will be  inadequate.  Accordingly,  in addition to any other
remedies  and damage  available,  the Company  shall be  entitled to  injunctive
relief, and Employee may be specifically restrained from violating the terms and
conditions of this Agreement.

14.  Employee  will execute and deliver all such other further  instruments  and
documents as may be necessary,  in the opinion of the Company,  to carry out the
intents and purposes of this Agreement and the transactions contemplated hereby,
and to  confirm,  assign,  or convey to the  Company  any  products,  processes,
discoveries,  materials, ideas, creations, inventions, or properties referred to
in  Paragraph 11 hereof,  including  the  execution of all patent and  copyright
applications.

<PAGE>

15. This Agreement  constitutes the entire agreement  between the parties hereto
relating to the subject  matter set forth herein and  supersedes  any prior oral
and / or written agreements, understandings, negotiations, or discussions of the
parties.  There are no  warranties,  representations  or agreements  between the
parties in connection  with the subject  matter  hereof,  except as set forth or
referred to herein.  No supplement,  modification,  waiver or termination of the
Agreement or any provisions  here shall be binding unless executed in writing by
the  parties  to be  bound  thereby.  Waiver  of any of  the  provisions  of the
Agreement shall not constitute a waiver of any other  provision  (whether or not
similar),  nor shall such waiver constitute a continuing waiver unless otherwise
specifically provided.

16. The failure of either party at any time to require  performance by the other
of any  provision  hereof  shall not affect in any way the full right to require
such performance at any time thereafter, nor shall the waiver by either party of
the  breach  of any  provision  hereof be taken or be held to be a waiver of the
provision itself.

17. Any notice or other communication required or permitted to be given under or
in connection with this Agreement shall be in writing, delivered in person or by
public  telegram,  or by mailing  same,  certified or registered  mail,  postage
prepaid, in an envelope addressed to the party to whom notice is to be given, at
the address  given at the  beginning of this  Agreement,  and shall be effective
upon  receipt  thereof.  Each party  shall be  entitled  to specify a  different
address by giving notice as aforesaid to the other party.

18. The  invalidity or  unenforceability  of any  paragraph,  term, or provision
hereof shall in no way affect the validity or  enforceability  of the  remaining
paragraphs,  terms or provisions  hereof.  In addition,  in any such event,  the
parties agree that it is their  intention and agreement that any such paragraph,
term or provision  which is held or  determined to be  unenforceable  as written
shall nonetheless be in force and binding to the fullest extent permitted by law
as though such  paragraph,  term or prevision  had been written in such a manner
and to such an  exact  as to be  enforceable  under  the  circumstance.  Without
limiting the  foregoing,  with  respect to any  restrictive  covenant  contained
herein,  if it is determined that any such provision is excessive as to duration
or scope, it is intended that it nevertheless  shall be enforce for such shorter
duration, or with such narrower scope, as will render it enforceable.

19. All of the terms and provisions of this Agreement  shall be binding upon and
shall  inure to the benefit of the parties  hereto and their  respective  heirs,
executors,  administrators,  transferees,  successors,  and assigns, except that
Employee  shall have not right to assign any of his rights or obligations to any
other party.

20. This Agreement  shall be governed and construed  under the laws of the State
of New York.  Each of the parties  hereto  consents to the  jurisdiction  of the
appropriate  state and federal courts of New York for all purposes in connection
with this  Agreement.  Each of the  parties  hereto  further  consents  that any
process or notice of motion or other  application  of either of said Courts or a
judge thereof, or any notice in connection with any proceedings  hereunder,  may
be served  inside or outside the State of New York by  registered  or  certified
mail, return receipt  requested,  or by personal service,  provided a reasonable
time for  appearance is allowed,  or in such other manner as may be  permissible
under the rules of said Courts.

21. This  Agreement may be executed in one or more  counterparts,  each of which
shall be deemed an original and all of which,  taken together,  shall constitute
one and the same instrument.

IN WITNESS WHEREOF,  the parties hereto have caused this Agreement to be entered
into as of the date and year hereinabove first set forth.

                                          CALLFREE TELECOM COMMUNICATIONS, CORP.

                                          By: /s/ Stuart Radin
                                              ----------------------------------
                                              Stuart Radin, President & CEO


                                          By: /s/ Jay Radin
                                              ----------------------------------
                                              Jay Radin, Employee






                            RONALD R. CHADWICK, P.C.
                          CERTIFIED PUBLIC ACCOUNTANT
                              6025 S. PARKER ROAD
                                   SUITE 109
                             AURORA, COLORADO 80014
                               -----------------
                           TELEPHONE: (303) 306-1967
                           TELECOPIER: (303) 306-1944





               CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT


I hereby  consent  to the use in this  Form  SB-2  filing  by  Callfree  Telecom
Communications  Corp.,  of my  report  dated  March  23,  1999  relating  to the
financial  statements of Callfree Telecom  Communications  Corp. which appear in
said  filing.  I also  consent to the  reference  of my firm  under the  heading
"Experts" in said filing.

                                        /s/ Ronald R. Chadwick, P.C.
                                        -------------------------------
                                        RONALD R.CHADWICK. P.C.
Aurora, Colorado
July 7, 1999





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