i2Telecom International Announces Second Quarter Results

Company Earns 2 Cents Per Share, First Quarterly Profit in its History

i2Telecom International, Inc. (”i2Telecom®”) (the “Company”) (OTCBB: ITUI), a developer of award-winning patented and innovative high-quality Voice-over-Internet Protocol (”VoIP”) products and services, announced today record second quarter results for the period ended June 30, 2008. The Company reported net income of $2,927,123, or $0.02 per share, compared to a loss of $(2,130,331) or a loss of $(0.02) per share for the same period in fiscal 2007.

Some of the recent highlights include:
Completed Sale of patent. The Company sold a patent related to its Voice Service Access Module, which is marketed under the VoiceStick® label, for $6.5 million. i2Telecom retained a non-exclusive license without geographic limitations.
Signed Memorandum of Understanding for International joint venture. The Company executed a Memorandum of Understanding for a strategic joint venture with Raed A.H. Rajab, a prominent businessman in Kuwait, to expand the Company’s operations into a number of international markets by the end of this year. Through established sales channels, the Investor will provide $9 million in funding for operating and marketing expenses incurred by the joint venture during the next twelve months involving the launch of i2Telecom’s award-winning MyGlobalTalk™ and other telecom offerings into these markets.
Entered into Key distribution agreement. The Company entered into a distribution agreement with Green Sky Solutions, Inc. (“Green Sky”), a leading relationship management and retail product sales organization, under which Green Sky will distribute i2Telecom’s award-winning MyGlobalTalk™ offering. MyGlobalTalk™, which recently won Internet Telephony Magazine’s “Product of the Year 2007″, places Internet telephony in the hands of every cell phone user, independent of wireless carrier technology, handset manufacturer or the type of wireless carrier voice/data plan involved.
Released Next-generation Version of MyGlobalTalk™. The Company released Beta Version 2.0 of its MyGlobalTalk™ service.
Expanded Management Team. Appointed Chris Miltenberger as the Company’s interim President and Chief Operating Officer. Mr. Miltenberger will assume responsibility for managing all operational aspects of the Company and will assist Paul Arena, the Company’s Chairman and Chief Executive Officer, in the development and execution of the Company’s aggressive growth strategy.

“I am pleased to report the first profitable quarter in the Company’s history,” said Mr. Arena. “We believe there is considerable interest in our technology both domestically and internationally, and feel i2Telecom has reached an inflection point where the people, distribution network and technology are now in place to drive rapid revenue growth. We are excited about our prospects for future growth, which is why the Company expects revenue from the sale of VOIP products and related services to increase by more than 400% this year.”

About i2Telecom International, Inc.

i2Telecom International, Inc. is a developer of award-winning patented and innovative high-quality Voice-over-Internet Protocol (”VoIP”) products and services that employ best-of-breed VoIP technology and use a combination of the Company’s own services network and the Internet to deliver high-quality phone calls, streaming video and text chat to customers on a global scale. i2Telecom International provides its VoiceStick®, MyGlobalTalk™, Digital Portal communications and microgateway adapters for VoIP long-distance and other enhanced communication services to its subscribers. Its patent pending services technology platform is compliant with the Session Initiation Protocol (”SIP”) telecommunications industry standard. For additional information visit www.i2telecom.com or www.voicestick.com or www.myglobaltalk.com or call 404-567-4750.

SAFE HARBOR Statement under the Private Securities Litigation Reform Act. With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including, but not limited to, product acceptance, economic, competitive, governmental, results of litigation, technological and/or other factors which are outside the control of the company. Actual results and developments may differ materially from those contemplated by these statements depending on such factors as changes in general economic conditions and financial or equity markets, technological changes, and other business risk factors. i2Telecom® does not assume, and expressly disclaims, any obligation to update these forward-looking statements.

Contacts

Investor Relations:
CEOcast
Gary Nash, 212-732-4300
gnash {at} ceocast(.)com
or
Public Relations:
Dan Klores Communications
Rachel Carr, SVP
Scott Miranda, Managing Director
212-981-5208
media {at} i2telecom(.)com