ePHONE Telecom, Inc.

Address:	1145 Herndon Parkway Herndon, Virginia 20170 U.S.A.
Tel No.:	(703) 787-7000
Toll Free No.:	1-866-825-3405
Web Site:	www.ephonetelecom.com
Corporate Email:	invest@ephonetelecom.com
Contact Person:	Flora Wood Phil Williams
Position:	Investor Relations

COMPANY DATA

Traded Market:	OTC:BB
Traded Symbol:	EPHO.OB
Outstanding Shares:	36,967,794
Fully Diluted Shares:	25,833,052
52 Week High:	0.48
52 Week Low:	$ 0.08
Present Price:	Click here

INTRODUCTION

ePHONE Telecom, Inc., is the next-generation, facilities-based, marketing and sales-oriented telecommunications company. They provide businesses and individuals with a growing suite of innovative retail domestic and international voice and data products and services using Voice Over Internet Protocol (VoIP). They also offer wholesale (carrier-to-carrier) solutions.

Their objective is to help small-to-medium sized business and residential customers alike gain more control over the cost of their domestic and international long-distance calls. ePHONE delivers long distance calling services at substantially reduced rates over its own network, built on open standards-based Internet Protocol (IP) gateway technology.

ePHONE's world headquarters is based in Herndon, Virginia, USA, where its 24-hour global Network Operations Center (eNOC), engineering, corporate marketing, and sales divisions are located.

From its headquarters, ePHONE manages the network procurement, deployment, and the monitoring of its international and domestic gateways. All back-office processes including billing and settlement of customers' accounts are also handled here.

ePHONE is a profitable company, whose current and future success can be attributed in part of its focus on VoIP, or Internet telephony. The introduction of broadband, cable telephony, wireless, and VoIP are accelerating the migration of voice traffic and now represent the fastest-growing segments within the telecom industry.

ePHONE began its operations in 2000 as a technological research and development company focused on the build-out of switching hardware and software systems. With rapid changes in the telecommunications marketplace, and the strong need for a competitive edge, ePHONE set out on a new course in 2001 to provide VoIP solutions.

Their market focus spans North America, Europe, Asia, Latin America, Africa, and the Middle East. They have achieved profitability in less than eight months and they have exceeded their goals of revenue, growth, and high margins.

The Company holds an FCC 214 carrier-to-carrier and retail services license, and has been granted or is awaiting requisite authorization in various states.

EPHONE PRODUCTS & SERVICES

ePHONE Telecom provides a full range of cost-effective data and voice product and service solutions over a fully-integrated global IP-based network. These include long distance services, pre-paid calling card services, and enhanced services. In fact, their retail products can provide consumers dramatic savings of 50% to 70% over traditional carriers.

1. E-TRANS-PORTO

This revolutionary device delivers the portability and cost-savings of a calling card, while providing the convenience of direct dialing. E-TRANS-PORT allows customers to connect to ePHONE's Network for domestic and international long-distance calls from almost any touch-tone phone in the United States. There's no need to dial an access number, or enter a Pin number. Just plug E-TRANS-PORT into the phone, dial the destination number, and enjoy the dramatic savings.

2. Unlimited Long Distance Plan

Presenting a pre-paid service which enables individual residential subscribers to budget all of their long-distance calls make from any touch-tone phone in the United States - to anywhere in the United States, 24 hours a day, 7 days a week. There are never any set-up fees, connection charges, time limits, or restrictions - whenever or wherever they call.

3. Pre-paid Calling Cards

ePHONE offers a range of branded and private label pre-paid calling cards, for both domestic and international long-distance calling.

4. Carrier-to-Carrier Wholesale Solutions

ePHONE offers domestic and international voice termination services to various multi-tiered traditional carriers, calling card providers, alternative access providers, and next-generation IP based carriers. ePHONE has termination partners in various parts of the world, allowing them to aggressively compete with rates while providing top voice quality.

ePHONE NETWORK

ePHONE's network expansion, scalable billing solution, and support for standard telecommunications signaling protocols around the world ensure their position as a continuously evolving carrier that delivers innovative telecommunications services demanded by today's customers at highly competitive rates.

ePHONE's cost-effective, self-healing, and scalable network is monitored by their Global Network Operations Center (GNOC).

ePHONE STRATEGY

ePHONE strategy is to utilize ePHONE management's breadth of experience in information technology, telecommunications, and marketing to integrate the latest in data (IP) and Cisco-based VoIP technologies for their customers. This expertise enables them to deploy a robust, scalable tier-1 grade international telecommunications network capable of supporting virtually every telephony protocol and existing or emerging IP global standard - all at a fraction of the cost of a traditional network.

ePHONE's marketing and sales strategy is based on its innovative partnership program aimed at seeking partners who implement the regional marketing, sales, and frontline customer service support. Partners sell ePHONE services and ePHONE provisions these services through ePHONE's global network and customer service systems.

ePHONE differentiates itself from its competitors with its use of customer premises equipment (CPE) placed at customers' sites to connect to regional ePHONE switches via Internet connection or local dialing, thereby accessing the ePHONE global network. This method allows end-users to easily access Internet telephony services and to dial long distance calls exactly the same way as they did before with the same phone equipment.

MANAGEMENT

Carmine Taglialatela, Jr. On April 1, 2001 Mr. Taglialatela was appointed President and Chief Operating Officer of ePHONE and elected to the Board of Directors. Effective July 1, 2001, Mr. Taglialatela was appointed Chief Executive Officer of ePHONE. Prior to joining ePHONE Mr. Taglialatela was President and Chief Operating Officer of TELRON Communications, responsible for the day-to-day operations of the Company and the development of service offerings and expansion of services into new markets. Mr. Taglialatela has also held executive Vice President positions at TELRON and CompassRose International Inc.

Charlie Rodriguez. On December 1, 2000, Mr. Rodriguez was elected as a Director and appointed as Chief Financial Officer and Vice President - Corporate Affairs. Mr. Rodriguez previously served as Vice-President of Corporate Affairs and Corporate Secretary from June 1999 to April 2000. Mr. Rodriguez is also the President of Management Services of Arizona, a business consulting company specializing in mergers, acquisitions and financing. Prior to joining ePHONE, Mr. Rodriguez served as the Chief Financial Officer for Zephyr Technologies, Inc., biometrics and smartcard software integration companies.

Steve Heap. On August 1, 2002, Mr. Heap was appointed Chief Network Officer. Mr. Heap's career spans over 25 years in telecom network planning, engineering and operations. His most recent role was as Chief Network Officer in Aleron, the next-generation IP backbone operator, where he designed, implemented and operated a high end IP backbone serving over 3M dial customers.

Sonny Souvannavong. Mr. Souvannavong was appointed to Chief Technology Officer in April 2001. Prior to joining ePHONE, Mr. Souvannavong was Vice-President of Technology at Ecocom Telecommunication.

Cheryl Schneider - General Counsel. Ms. Schneider is responsible for legal and regulatory affairs at ePHONE. Prior to joining ePHONE, Ms. Schneider served as Senior Vice President and Chief Legal Counsel at TELRON Communications where she was responsible for providing comprehensive in-house legal services related to regulatory, corporate structure and corporate transactional matters.

BOARD OF DIRECTORS

Lawrence M. Codacovi, Eugene A. Sekulow, Robert G. Clarke, Sheldon B. Kamins, Charlie Rodriguez, Robert W. Stuart and Carmine Taglialatela, Jr.

NEWS UPDATE

On September 09, 2002, ePHONE Telecom, Inc. announced that the American Arbitration Association ("AAA") rejected the Company's claim against Comdial Corporation (and its subsidiary Array Telecom Corporation) for rescission relation to a license agreement between the Company, Array and Comdial.

On September 06, 2002, ePHONE Telecom, Inc. announced that on August 27, 2002 (received by the Company September 3), the American Arbitration Association ("AAA") issued an award in a proceeding brought by ePHONE against Comdial Corporation and its subsidiary, Array Telecom Corporation. The arbitration relates to a license agreement between ePHONE, Comdial, and Array. The award denied ePHONE's claim requesting that the agreement be rescinded. Before the arbitration began, Comdial and Array terminated the license agreement and ePHONE returned all of Array's products. ePHONE intends to seek a clarification of the ruling and request reconsideration and modification of this decision. These requests will be filed promptly.

On August 14, 2002, ePHONE Telecom, Inc. announced that Steve Heap has been appointed to the position of Chief Network Officer effective August 1, 2002. Mr. Heap's responsibilities as Chief Network Officer are to design, develop, implement and operate ePHONE network and systems infrastructure as the Company rapidly grows its products and services.

On August 14, 2002, ePHONE Telecom, Inc. reported its financial results for the second quarter ended June 30, 2002. The quarter produced record revenues of $5,081,429, an increase of 25% compared to revenues of $4,061,823 for the first quarter of 2002.

The Company also reported net income of $404,907 versus a net income of $213,094 for the first quarter 2002. For the quarter the Company reported gross margins of 45% and increased its cash and cash equivalents to $1,508,086.