i2Telecom Secures $1.75M

VOIP company i2Telecom International raises $1.75M in financing from Capital Partners

January 13, 2006

2 Min Read

ATLANTA -- i2Telecom International, Inc. ("i2Telecom") (OTCBB: ITUI), a pioneer in ultra-portable high quality Voice-over Internet Protocol (VoIP) products and services, today announced that it has secured $1,750,000 in financing from Cornell Capital Partners, LP ("Cornell") to fund the Company's continued development and growth.

On January 9, 2006, the Company committed to sell to Cornell a total of $1,750,000 in Secured Convertible Debentures (the "Debentures"). These Debentures mature in three years (January 08, 2009). During the term of the Debentures, Cornell may convert all or part of the outstanding principal amount and interest of the Debentures into the Company's common stock at a share price that is the lower of (a) $0.10 per share, effectively a 20% premium to the current market price; or (b) at a 5% discount to the lowest daily Volume Weighted Average Pricing of the Common Stock during the 30 trading days prior to the conversion date. The conversion price is subject to certain floor pricing provisions. Further details of the transaction are available in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission.

The Company has already received an initial installment of $600,000 in accordance with the terms of the transaction. A second installment of $600,000 will be advanced prior to the Company filing a registration statement with the Securities and Exchange Commission in connection with this transaction, provided that the Company's shareholders have approved an increase in the authorized share capital. A third installment of $550,000 will be advanced once the registration statement becomes effective.

"We are delighted to have the financial backing of an investor like Cornell Capital Partners," said Paul Arena, CEO of i2Telecom International, Inc. " The Cornell financing will allow us to take advantage of numerous opportunities, and I am very excited about the prospects ahead."

"We believe i2Telecom has a unique technology in the exciting and growing Internet telephony sector. We are pleased to become one of i2Telecom's strategic financial partners," stated Antony Ghee, Senior Vice President, Corporate Finance at Cornell Capital.

i2Telecom International Inc. (OTC: ITUI)

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