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| FORM 3 | UNITED STATES SECURITIES AND EXCHANGE COMMISSION
+--------+ Washington, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
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1. Name and Address of Reporting Person*
Gramercy Z-Tel L.P.
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(Last) (First) (Middle)
712 Fifth Avenue
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(Street)
New York New York 10019
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(City) (State) (Zip)
2. Date of Event Requiring Statement (Month/Day/Year) 8/28/00
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3. I.R.S. Identification Number of Reporting Person, if an entity
(voluntary)
4. Issuer Name and Ticker or Trading Symbol Z-Tel Technologies, Inc., ZTEL
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5. Relationship of Reporting Person(s) to Issuer (Check all applicable)
___ Director ___ Officer X 10% Owner ___ Other
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(give title below) (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
7. Individual or Joint/Group Filing (check Applicable Line)
X Form Filed by One Reporting Person
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____ Form filed by More than One Reporting Person
Table I--Non-Derivative Securities Beneficially Owned
<TABLE>
<CAPTION>
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1. Title 2. Amount of 3. Ownership Form: 4. Nature of
of Securities Bene- Direct (D) or Indirect Bene-
Security ficially Owned Indirect (I) ficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr. 5)
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<S> <C> <C> <C>
Common Stock 3,074,280 D
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction
5(b)(v).
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMR control number.
(Over)
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FORM 3 (continued) Table II -- Derivative Securities Beneficially Owned (e.g.,
puts, calls, warrants, options, convertible securities)
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<CAPTION>
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1. Title of Derivative 2. Date Exer- 3. Title and Amount of Securities 4. Conversion 5. Ownership 6. Nature of In-
Security cisable and Underlying Derivative Security or Deriv- direct Bene-
Expiration (Instr. 4) Exercise ative ficial
Date Price Security: Ownership
(Month/Day/ of Direct (D) (Instr. 5)
Year) Derivative or In-
---------------------------------------------------- Security direct (I)
Date Expira- Amount or (Instr. 5)
Exer- tion Title Number of
cisable Date Shares
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<S> <C> <C> <C> <C> <C> <C> <C>
Series D Convertible Preferred Common Stock 1,041,666 $12.00 D
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Warrants Common Stock 520,833 $13.80 D
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</TABLE>
Explanation of Responses: GRAMERCY Z-TEL L.P.
/s/ Laurence Graftstein September 8, 2000
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Name: Laurence Graftstein Date
Title: Managing Director
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space is insufficient, See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
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