i2Telecom Announces Distribution Agreement with Digital and Wireless Group Inc

i2Telecom International, Inc. (OTCBB:ITUI), an emerging leader in voice/data communications technology for the Internet, including Voice over Internet Protocol (VoIP) services, has signed an exclusive distribution agreement with Digital & Wireless Group, Inc., for the travel-retail market. Digital & Wireless is a leading specialist in laptop computer and mobile communication accessories with more than 2,000 business and retail customers worldwide. Under the terms of the agreement, Digital & Wireless will begin offering i2Telecom's VoiceStick(TM) to travelers worldwide through airport retailers, duty-free shops, airlines, cruise lines, etc. Digital & Wireless has agreed to an initial order for 15,000 VoiceStick(TM) devices.

"Our distribution agreement with Digital & Wireless, along with our recent agreement with WLG, demonstrate the traction we are gaining with the VoiceStick(TM) device through multiple marketing channels," stated Paul Arena, chief executive officer of i2 Telecom International, Inc. "We are encouraged by the immediate and growing interest in our patent-pending VoiceStick(TM) technology."

Mario Lavadinhno, director of marketing for Digital & Wireless, stated, "We recently demonstrated the VoiceStick(TM) device at the Hudson Group's Vendor Conference in Las Vegas. The device has already generated significant interest from our customers, and we look forward to aggressively marketing this convenient and cost-effective solution to travelers worldwide."

"In light of the recent ruling by the Federal Communications Commission (FCC) that will allow Wi-Fi broadband internet service on commercial airliners and cruise ships, we believe the VoiceStick(TM) device will have broad appeal by allowing business and vacation travelers to make long distance calls using VoIP technology," continued Arena. "The FCC also announced plans to consider allowing travelers to make cellphone calls from airliners, which should further expand the demand for our cellular bridge VoIP services. We will be actively pursuing the travel market in coming months."

The VoiceStick(TM) is a plug-and-play, portable key chain-sized device that inserts directly into the USB port of almost any desktop or notebook computer (including some PDAs). The VoiceStick(TM) instantly allows the user to make domestic and international long distance calls via the Internet, with the use of an included headset. Once the VoiceStick(TM) is installed in the USB port, a dial pad display enables the user to call any telephone in the world directly from the computer, using VoIP technology, at a fraction of normal long-distance rates.

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.

Lippert/Heilshorn & Associates
David K. Waldman/ Jody Burfening
212-838-3777
dwaldman@lhai.com

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