ElephantTalk Acquires Billion Online Limited Acquisition to Fuel Growth in China's VoIP and Softswitching Market HONG KONG, Nov. 10 /PRNewswire-FirstCall/ -- Elephant Talk Communications, Inc. (BULLETIN BOARD: ETLK) http://www.elephanttalk.com/, today announced that it has agreed to purchase a majority stake in Billion Online Limited (BOL), an integrated IP-based telecom solutions developer in China. This acquisition provides the Company an immediate entry into the worldwide Voice Over Internet Protocol (VoIP) market on PC-to-phone, packet telephony and other Internet- related services while increasing its presence and telecom service offerings throughout China and the Fareast Billion Online is a popular China-based system integrator serving major sectors of the Internet industry in China. It's top selling PC-to-phone system, "iTalk", is branded as "eTalk" by ElephantTalk. "eTalk" users can download software and purchase an access PIN through the web and start talking to their friends over the phone in minutes. Quality is comparable to regular toll quality while significantly reducing the cost for the user. Since ElephantTalk began marketing the service in September 2002 it has become one of the hottest PC-to-phone services in the Fareast. China Unicom is also co- branding the service to its customers throughout China. In addition, BOL's newest product, the Next Generation SoftsWitch (NGSW), has been launched in Shanghai to serve the broadband telephony subscribers of China Railcom and its strategic partner, China-on-line Inc. BOL also provides an Enterprise Instant Message (EIM) service, a communication tool utilized in Virtual Private Networks within organizations to increase productivity. These services provide ElephantTalk with increasing access to China's rapidly growing telecom market while keeping the Company on the cutting edge technologically. In combination with "eTalk" they give the Company additional high margin services to compliment their existing telecom offerings. "Our investment in BOL will allow us the latitude to move beyond the traditional wholesale voice industry into the extended service provider's business. We will co-brand or OEM our existing iTalk and eTalk PC-to-phone products and work with our ISP partners not only in the Asian regions but worldwide," said Mr. Russelle Choi, Chairman & CEO of ElephantTalk. "With BOL's Next Generation SoftsWitch, it will also help us to serve the new operators, especially the cable operators, to provide the next generation broadband telephony and other IP related services to their subscribers in a timely manner" "We are thrilled to be part of ElephantTalk's vision," said Yu Xin, Managing Director of BOL. "I'm especially proud to see my team acknowledged for their expertise in their IP-based application development and to see their talent leveraged in the emerging VoIP and Softswitching market. This is truly an exiting time for us." About Billion Online Limited Billion Online Limited is an integrated IP-based solutions developer. iTalk is BOL's most successful product which is branded as HuaXia Card and Global Card by China Unicom in China, and eTalk by ElephantTalk in the Far East. It's Enterprise Instant Message (EIM) is an ICQ-workalike product utilizied in Virtual Private Networks. The company's newest product, the Next Generation SoftsWitch(NGSW), combines all the Class 4 and 5 switch's features including 3-way calling, call forwarding, call blocking, caller ID, speed dial, and others. More information on Billion Online Limited can be found at http://www.bol2000.com/ About ElephantTalk Elephant Talk Communications, Inc. is a leading telecommunications company established in 1994. Located and operated in Hong Kong with offices in California, Hong Kong and Singapore, the Company owns switching facilities in China, Hong Kong, US, and Singapore. ElephantTalk operates international long distance services on both sides of the Pacific to over 220 foreign destinations. They enable telecommunications carriers and other service providers the ability to offer long distance voice, fax, data and VoIP services to their end-customers, through an advanced and scaleable network. More information on ElephantTalk can be found at http://www.elephanttalk.com/. The statements made in this press release, which are not historical facts, contains forward-looking statements concerning potential developments affecting the business, prospects, financial conditions and other aspects of the company to which this release pertains. The actual results of the specific items described in the release, and the company's operations generally, may differ materially from what is projected in such forward- looking statements. Although such statements are based upon the best judgments of management of the company as of the date of the release, significant deviations on magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward- looking statement. For more information ... please contact Elephant Talk Communications, Inc. Pius Lam Tel: (852) 2 707070 3 Fax: (852) 2 707070 7 Email: Or Billion Online Limited Yu Xin Tel: (86) 755-2589-0232 Fax: (86) 755-2589-0233 Email: Or DATASOURCE: Elephant Talk Communications, Inc. CONTACT: Pius Lam of Elephant Talk Communications, Inc., +1-852-2 707070 3, or +1-852-2 707070 7, , or ; or Yu Xin of Billion Online Limited, +1-86-755-2589-0232, or Fax, +1-86-755-2589-0233, , Web site: http://www.elephanttalk.com/

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