Official Telarus Press Release

Screenshot of Fonality's HUD (Head's Up Display) which allows users to manage their calls using their PCs.

DRAPER, Utah - September 26, 2007 - Telarus, Inc., premier telecom master agent and creator of ShopforT1.com, ShopforEthernet.com, and VARNetwork.com, today announced it has entered into a strategic partnership with Fonality, a leader in open source, Asterisk®-based IP telephony systems. Under the terms of the deal, Fonality will become a premiere PBX equipment vendor within Telarus' "VAR Network" and receive leads from Telarus' public marketing efforts as well as from telecom sales agents nationwide. Conversely, Fonality will leverage Telarus' telecom contracts when its equipment customers need broadband and voice service.

"We are excited to do business with Fonality" explained Adam Edwards, president of Telarus. "The essence of a successful and profitable relationship is the ability to tap into each organization's strengths. Our VAR Network attracts businesses looking for IP telephony solutions, and Fonality attracts customers in need of telecommunication services. Both companies help the other be successful in their area of expertise."

"Together, we're putting affordable and easy-to-use phone systems into growing businesses, making them more competitive and allowing them to take advantage of cost savings that IP communications can deliver," said David Eads, Fonality's Senior Director of Sales. "We are pleased to be part of the network that matches customers with the right resources at the right time."

Telarus created the VAR Network in 2003 as a way to connect its agents to the thousands of telecom equipment manufactures and dealers throughout the country. Since then over 2,000 VARs have been receiving equipment leads from Telarus marketing agents and consultants in return for telecom service leads.

"Fonality is a great company who does an excellent job bringing high-end capability to small businesses on a budget" added Robert Butler, director of the Telarus VAR Network. "We look forward to finding new opportunities for Fonality to grow their business as well as providing top notch service for their clients looking for telecommunication services. Likewise, kudos to our respective IT departments for being able to synchronize our customer and pricing databases. Having the capability to send new leads directly into Fonality's CRM will further increase the likelihood of customer wins."

In August 2007 Fonality's PBXtra™ IP-PBX was named Editors' Choice by PC Magazine in a roundup against competing open and closed source phone systems of similar price. More than 2,500 companies with 53,000 phones in 50 countries have adopted PBXtra and placed more than 130 million VoIP and traditional calls.

"As Fonality and Telarus continue to grow in our respective areas of expertise, our strategic partnership will allow us to make inroads and capture market share much faster than we would alone." continued Edwards. "We look forward to many prosperous years with Fonality as our partner."

About Fonality

Fonality, www.fonality.com, is a leader in open source, Asterisk-based IP telephony systems. PBXtra, Fonality's award winning IP-PBX product line for small and medium-sized businesses, is widely recognized as the world's largest commercial Asterisk-based deployment with over 2,500 systems in 50 countries making over 130 million calls. PBXtra includes a hardened and improved version of the popular open source Asterisk code base which has been modified to add reliability, stability and enterprise-class features. PBXtra uses Fonality's patent-pending architecture to deliver all the advanced features of an enterprise-class phone system and call center at 40 to 80 percent less than traditional offerings. Fonality's trixbox, www.trixbox.org, is home to trixbox CE, trixbox Pro and one of the world's largest and fastest growing communities of users of Asterisk-based software with an average of 65,000 downloads a month.

Fonality, PBXtra, HUD, trixbox and trixNet are registered trademarks of Fonality. Asterisk is a registered trademark of Digium, Inc. Fonality, trixbox, PBXtra and trixNet are not affiliated with, nor endorsed by, Digium Inc. Other trademarks are the property of their respective holders.

About Telarus

Telarus is a premier master agency who's goal is to make agents more successful than they can be on their own or with any other master agency. Telarus provides is agents tools, automation, superior support, all in an atmosphere of cooperation and ethical community. Telarus drives warm leads to its agents and VARs through its web marketing portals which include: ShopforT1.com, ShopforEthernet.com, VARNetwork.com, and VARPartner.com.

Telarus provides its agents a back office outfitted with full CRM capabilities and real-time T1, DS3, and Ethernet broadband price quoting through it's patent-pending GeoQuote technology. GeoQuote makes it possible for business shoppers and agents to access instant pricing and availability information for over 30 broadband data and voice service providers which include ACC Business, Accel Networks, AireSpring, American Fiber Systems, AT&T, Cavalier, Covad, Level3, MegaPath, Network Innovations, NewEdge Networks, Nuvox, PAETEC, One Communications, PowerNet Global, Qwest, TelePacific, Telnes, Time Warner Telecom, UCN, and XO Communications.

Interested agents should call Dan Watson at (877) 346-3232 for further information. All press inquiries should be directed to Patrick Oborn at (801) 938-3701.