FTG Farmstead Telephone Grp.

Farmstead Forms Subsidiary 'One IP Voice' for Buildout of Carrier Based IP Telephony Platform EAST HARTFORD, Conn., May 12 /PRNewswire-FirstCall/ -- Farmstead Telephone Group, Inc. (AMEX:FTG) today announced the formation of a wholly owned subsidiary named One IP Voice. One IP Voice will provide carrier-based Hosted IP Telephony solutions along with Network Services. The primary target of the One IP Voice offering will be to the Small to Medium Businesses (SMB) market for the under 200-employee businesses. The facilities-based One IP Voice offering will include Hosted IP Centrex and IP Trunking services, bundled with private One IP Voice "Last Mile" connectivity on a national basis, long distance calling, On Net calling, local area calling, 911 capabilities and Wide Area Network (WAN) voice and data connectivity. One IP Voice will also offer a consumer VOIP product. Jean-Marc Stiegemeier, Farmstead's President and CEO, said, "The traditional offering of telephone systems and services to businesses has begun to change. This paradigm shift of traditional voice to VOIP (voice over Internet protocol) will have a significant effect on traditional providers of voice communications systems as the business users' needs change. Farmstead's Voice over Intelligent Protocol(TM) (VOIP) offerings will provide business users substantial reductions in their overall communications costs, by eliminating the bulk of traditional hardware costs. The bundled One IP Voice offering will also eliminate long distance and local calling costs, while providing the user with improved system features and functionality. Our ability to provide proprietary last mile connectivity, long distance and local calling nationwide will set us apart from traditional (early market) providers. We believe that the under 200-employee businesses market represents the fastest growth segment for those new VOIP offering. "Our One IP Voice offering will include a full array of "bundled solutions", delivered via a unique and proprietary One IP Voice Network offering and coupled with the deployment of an industry-leading hosted IP telephony facilities based infrastructure. These offerings will be provided nationwide through Farmstead's direct selling organization, and the One IP Voice channel program. "To become the national leader in this growth market, you must provide your customer a unique, "fully bundled" platform that serves their needs. We at Farmstead Telephone Group see the One IP Voice offering as that platform." About Farmstead Farmstead Telephone Group, Inc. is an Avaya Inc. Gold Business Partner, selling, installing and maintaining both new and refurbished Avaya business communications products nationwide. Further information about Farmstead Telephone may be found at http://www.farmstead.com/. We are interested in your feedback and comments. To respond to questions from our management team, click here: http://www.b2i.us/sendFeedBack.asp?B=1042&RL=7853&S=12204 To add yourself to our email distribution list, click here: http://www.b2i.us/frame.asp?BzID=1042&to=ea&Nav=1&S=0&L=1 This release contains forward-looking statements that involve risks and uncertainties. In addition to historical information, investors should consider carefully the risks associated with an investment in the Company's securities as previously outlined by the Company in its prior filings with the Securities and Exchange Commission. CONTACT: Mel Lipes Farmstead Telephone Group, Inc. Voice: 860-610-6005 Fax: 860-282-5737 DATASOURCE: Farmstead Telephone Group, Inc. CONTACT: Mel Lipes of Farmstead Telephone Group, Inc., +1-860-610-6005 Web site: http://www.farmstead.com/

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