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[IPVOICE.COM, INC.(TM) LETTERHEAD]
PRESS RELEASE
IPVOICE.COM, INC. (OTC: BB--IPVC) FINALIZES $2.5 MILLION FUNDING LED BY
AUGUSTINE AND SCHAAR FUNDS
WEDNESDAY, MAY 24, 2000 -- (PHOENIX, AZ) IPVoice.com, Inc. announced today the
completion of a $2.5 million venture capital funding in equity financing from
the Augustine Fund, LP and the Schaar Fund, Ltd. IPVoice will use the new funds
to continue network sales for business, international and residential markets.
This financing follows the completion of May 19 of a tender offer which enabled
IPVoice.com to reduce the outstanding shares of its Senior Convertible
Preferred Stock by approximately 83%, reduce its outstanding debt by $753,450
and reduce the number of outstanding warrants to purchase common stock
by 571,875. Another $186,750 of debt was restructured. In connection with the
tender offer, IPVoice.com is issuing 543,876 shares of restricted common stock.
"This is an exciting time to be a part of IPVoice.com," said Barbara Will,
president and COO of IPVoice.com. "We will continue our facilities expansion
programs and are actively recruiting technical, customer support and sales
professionals. Together with the successful completion of the tender offer,
this put us financially on track and will enable us to deliver innovative
solutions for enhancing our IP Telephony network performance and efficiency to
our telecom customers."
"IPVoice.com is already generating excitement in the industry due to its
innovative IP Telephone service and products," said David Asplund from Delano
Group Securities. "We are confident that IPVoice's team, together with their
innovative technology and the resulting product offerings, will make a
significant impact on the telecomunication industry."
IPVoice.com's back office technology is the latest advance in
telecommunications management. Consumers can now apply for IP Telephony
service, choosing from a wide selection of telecommunication services. Unlike
other IP Telephony services currently available on the market, IPVoice solution
offers Phone-to-Phone calling with superb voice quality, as well as a
* FOR RELEASE MAY 24, 2000 more
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vast selection of calling products -- Flat5, 4+4, Flat25 -- along with prepaid
calling cards and other services today's customer is looking for in VoIP.
Along with its variety of services, IPVoice.com utilizes its TruePartner
Program to increase the range of its network. A True-Partner Master Distributor
(TPMD) is a separate and autonomous business entity, which undertakes to
represent IPVoice's network, products and services to customers in its home
market.
IPVoice.com is the developer and producer of unique proprietary
state-of-the-art software solution for use in IP Telephony. IPVoice.com's
premier products are two Internet Gateways named "TrueConnect(TM)" and
"SuperConnect", both fully Y2K compliant gateways that allows users to conduct
real-time full duplex, high quality two-way voice communication over the
Internet. To support TrueConnect and SuperConnect, IPVoice.com has developed
proprietary support products in the areas of order entry; billing, customer
service, agent management and a switching network management system.
IPVoice.com believes its system is poised to compete very successfully with
those of other manufacturers, such as VocalTec (NASDAQ:VOCL), and with other
Voice over the Internet services such as the one offered by NetSpeak
(NASDAQ:NSPK), in terms of functionality, efficiency and economy.
Note: This press release contains certain "forward-looking" statements as such
term is defined in the Private Securities Litigation Reform Act of 1995 and
information relating to the Company and its subsidiaries that are based on the
beliefs of the Company's management as well as assumptions made by and
information currently available to the Company's management. Such statements
reflect the current risks, uncertainties and assumptions related to certain
factors including, without limitations, competitive factors, general economic
conditions, customer relations, relationships with vendors, the interest rate
environment, governmental regulation and supervision, seasonality, distribution
networks, product introductions and acceptance, technological change, changes
in industry practices, and one-time events. Should any one or more of these
risks or uncertainties materialize, or should any underlying assumptions prove
incorrect, actual results may vary materially from those described herein.
