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TelePacific Communications Posts Positive EBIDTA in Second Quarter of 2004

TelePacific Communications, a leading provider of business telecommunications solutions providing local, long distance, data and Internet services to businesses in California and Nevada, today reported that it generated positive earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter of 2004. The company also highlighted the following other operational developments:

--  Exited April 2004 with more than 200,000 lines in service;
--  Received a $12 million equity investment in April from Investcorp, the
    company's largest shareholder;
--  Launched its new data product suite capitalizing on its MPLS IP
    backbone;
--  Added more than 57,700 new lines in service since January 2004; and
--  Grew revenue 66% and line count 72% in 2003.
    

"TelePacific achieved the positive milestone by remaining focused on the basics: serving customers, meeting the objectives of our business plan, driving revenue and containing costs," said Dick Jalkut, president and CEO of TelePacific Communications. "We are well positioned to build on our substantial client base."

TelePacific continues to add new customers at record rates and maintains a retention rate greater than 99%, a reflection of the company's commitment to provide an exceptional customer experience.

"While TelePacific already has established a strong competitive position, we will continue to seek ways to build on our success in serving customers better than any other provider in our markets," said Jalkut.

About TelePacific Communications

TelePacific Communications is a leading provider of business telecommunications network solutions providing local, long-distance, data and Internet services to small-to-medium sized businesses in Nevada and California. With thousands of customers, TelePacific is one of the largest telecommunications companies headquartered in California. With local consultants, service, support, and facilities, TelePacific offers solutions, provisions services and provides customer service where its customers do business. For more information, visit www.telepacific.com.