Talk America and SBC Telephone Companies Sign New Commercial Agreement

This new agreement enables us to continue our relationship withSBC and presents the opportunity to serve customers, such asmulti-location business customers, that are outside our local networkfootprint. In addition, the agreement gives us flexibility to continueto move customers onto our own local network. Entering into thisagreement now removes any uncertainty regarding the cost of providingservices to our off-net customers after March 11, 2006. The economicsof the agreement are better than expected resale pricing and morefavorable than our previously announced expectations. For linesoutside our networking footprint, we are expecting an increase inmonthly costs of a range of $4 to $6 per line. As a result, we are notadjusting our previously announced guidance for the end of the year,despite entering into this agreement earlier than forecasted.

About Talk America

Talk America is a leading competitive communications provider thatoffers phone services and high speed internet access to bothresidential and business customers. Talk America delivers value in theform of savings, simplicity and quality service to its customersthrough its leading edge network and award-winning back office. Forfurther information, visit us online at: http://www.talkamerica.com.