July 29, 2008

TeliPhone Corp. Completes Acquisition of Customers of Dialek Telecom

MONTREAL, July 29 /PRNewswire-FirstCall/ -- TeliPhone Corp. (NASD : TLPH). TeliPhone Corp. announces that it has completed its acquisition of 2,000 clients of Dialek Telecom. The company arranged a levered buy-out financing, acquiring the company at 3 times earnings less current debt, a total sale valued at $380,000. Teliphone likewise has solidified a $150,000 operating line of credit in order to support the current debt owed primarily to Dialek Telecom's suppliers.

The acquisition of the customers, of which 25% are Small to Medium Sized businesses generating over 50% of the revenues, permits TeliPhone to provide its Internet-based digital telephony services to customers currently utilizing analog services, providing additional value added services to the client while increasing the gross profit on the same level of revenues.

"The acquisition not only allows us to increase our revenue base, but to likewise demonstrate our model of acquiring customers utilizing analog technology and converting them to our TeliPhone internet-based digital services", adds TeliPhone's President & CEO George Metrakos. The Company also acquired the right to re-sell various data services from Tier 1 and Tier 2 suppliers, providing the ability to provide full, turn-key data and voice solutions to its growing customer base of small and medium-sized business customers.

About TeliPhone Corp.

TeliPhone Corp. is an Internet-based digital telecommunications company employing its own technology. Customers of TeliPhone, primarily small and medium sized businesses, receive more value added services for lower cost when using TeliPhone. TeliPhone specializes in hosted business telephony systems that reduce customer capital equipment costs while offering global incoming and outgoing call services with best-of-breed call quality. For more information, visit the company website at http://www.teliphone.us/.

This news release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors that may be beyond the Company's control. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made, and the Company assumes no obligation to update forward-looking statements should circumstances in management's expectations or opinions change.

TeliPhone Corp.

CONTACT: George Metrakos, TeliPhone Corp., (212) 738-0008,[email protected]; http://www.teliphone.ca/investors; Source: TeliPhoneCorp.