USA Datanet Launches Hosted IP Service

USA DATANET LAUNCHES HOSTED IP COMMUNICATION SERVICE FOR SMALL AND MID-SIZED BUSINESS CUSTOMERS

VoIP Pioneer Leverages Proven IP Network and SIP-based Platform to Deliver Complete Business Communications Solution for SMB Customers

Syracuse, N.Y.- May 24, 2006 - USA Datanet, a leading provider of IP-enabled communications services for commercial, consumer and carrier customers, today announced the launch of the company’s Hosted IP Communication Service, an integrated package of hosted IP services that provides a complete, cost-effective business communications solution for small and mid-sized business (SMB) customers. Designed to meet the specific needs of the SMB market, USA Datanet’s Hosted IP Communication Service delivers all the features and functionality of traditional PBX and key systems at a lower cost, while adding a wealth of new IP-based services, enhanced flexibility and expanded user control.

USA Datanet’s Hosted IP Communications Service features a broad array of` communications services for a flat monthly price, including unlimited local, regional, domestic and Canadian long distance calling, toll free calling, audio conferencing and high-speed Internet access -- all carried over a secure, dedicated broadband connection. An intuitive, easy-to-use web-based interface provides complete control of all system features and functionality of the state of the art IP telephones at each user’s desktop. A complete list of all features and services can be found at www.usadatanet.com/business .

The system itself is hosted and maintained by USA Datanet at a centralized, secure facility, minimizing or eliminating capital expense and maintenance costs of on-premise equipment. Hardware and software upgrades are provided by USA Datanet, eliminating technology obsolescence concerns while ensuring access to ongoing technology developments, new feature enhancements as well as additional hosted IP services planned for future release.

According to USA Datanet Chairman and CEO David M. Montanaro, the company’s Hosted IP Communication Service delivers enhanced IP-enabled services previously available only to large enterprise users. “For the most part, the SMB market has yet to reap the benefits of VoIP and other IP-enabled services because the majority of these companies simply can’t justify the cost and internal resources required to build and operate their own network,” noted Montanaro. “Now they don’t have to -- USA Datanet’s Hosted IP Communication Service provides all the advantages of enterprise-level IP communications technology at a price point that small and mid-sized businesses can afford.”

The development and launch of USA Datanet’s Hosted IP Communication Service is a natural extension of the company’s commercial, consumer and carrier services business, and draws upon the strength of USA Datanet’s underlying VoIP network, management experience and engineering expertise. Over the years, the company has made ongoing improvements and upgrades to its network infrastructure and internal operations, aligning existing strengths and core competencies with the needs of expanding markets and new service offerings. The company recently opened a new Network Operations Center in its downtown Syracuse Data Center, adding improved remote monitoring and diagnostics capabilities in preparation for the launch of its Hosted IP Communications Service for SMB customers.

About USA Datanet
USA Datanet is a leading provider of IP-enabled voice, Internet access and enhanced communications services for commercial, consumer and carrier customers. Founded in 1998, the Syracuse, NY-based company is at the forefront of the development and commercial application of Voice over Internet Protocol (VoIP) and softswitch network technology, a powerful convergence of voice and data that is rapidly transforming the communications industry across the United States and around the world. USA Datanet operates its advanced SIP-based VoIP network in providing a full range of IP-enabled communications services to over 300,000 customers across the United States. For more information about the company, visit www.usadatanet.com .