New Global Telecom Announces Sale Of General Telecom Division

General Telecom to continue providing switch partitioning and network management services to carriers

GOLDEN, Colo. - October 28, 2006 - New Global Telecom (www.ngt.com), the leading provider of wholesale hosted VoIP solutions, has announced an agreement to sell its General Telecom division (www.GenTel.net) to GT3. Led by telecom industry veteran Kevin Alward, GT3 will own and operate the General Telecom suite of telecom switch partitioning services. Effective today, General Telecom will become part of GT3 and operate as a stand-alone entity, unaffiliated with New Global Telecom (NGT).

"We are very excited to build on General Telecom's long history as the leading provider of outsourced, carrier neutral, switch management," said Kevin Alward CEO of GT3. "We plan on investing in and expanding our products and services that cater to the VoIP, TDM and Wireless industries." "NGT is focusing our resources on developing channels and stimulating growth to support our wholesale hosted and trunking VoIP services," said Mike Donnell, president and CEO of NGT. "This move enables us to expedite our NGT initiatives."

Regarding General Telecom, Alward said that other than the direct ownership change, everything else will remain the same. All corporate Web interfaces will remain the same, including access to the MyGenTel portal (www.gentel.net/mygentel) to post routes in General Telecom's Global Village.

"General Telecom customers will continue to be provided with the services and generally the same experienced customer support teams they already know," explained Alward. "Furthermore, General Telecom will benefit from a focus on its network management services, including IPartition and VoIP Direct." Prior to the formation of GT3, Alward was chief operating officer and director of Covista Communications Inc., a publicly traded communications carrier.

Blue Beacon Capital, LLC acted as advisor to New Global Telecom in connection with this transaction.