No AT&T, A Nickel is Still Less Than 7 Cents When It's GTC Telecom's Nickel.

COSTA MESA, Calif.--(BUSINESS WIRE)--Sept. 23, 1999--

Company Challenges AT&T Marketing Campaign By Comparing Rates Again;

GTC Telecom's 5 Cents a Minute and No Monthly Fee Vs.

AT&T's 7 Cents Per Minute and a $4.95 Monthly Fee

GTC Telecom (OTC BB:GTCC) Thursday announced that in response to AT&T's recent marketing campaign, the company wants to remind consumers that throughout all of the confusing plans and rate changes, GTC has the simplest, most affordable rates available today.

AT&T (NYSE:T) has a marketing plan that touts their rate plan at 7 cents per minute as less expensive than other nickel rates that end up costing consumers more like 25 cents per minute.

This marketing campaign is geared toward Sprint (NYSE:FON), MCI/Worldcom (Nasdaq:WCOM), Qwest (Nasdaq:QWST) and other nickel rate plans that are confusing and have monthly fees, and time of day call restrictions, etc.

"We are once again placing our simple, low-cost long-distance rate plan against a large telco and coming out the leader in price. AT&T has shown that its rate plan is simpler than many of the existing nickel plans in the long-distance marketplace.

"However, if the consumer has the choice to pay 7 cents per minute and $4.95 per month or pay 5 cents per minute with no monthly fee, which do you think is picked? It is really simple, just compare the plans, item to item and the math will come out to illustrate that GTC really does have a nickel plan," commented Paul Sandhu, president & CEO of GTC Telecom.

About GTC Telecom

Founded in 1997, GTC Telecom is a telecom/Internet company, providing long-distance service to small- and medium-sized businesses, as well as residential customers throughout the United States. GTC Telecom has some of the lowest long-distance rates in the industry today to compete with AT&T (NYSE:T), Sprint (NYSE:FON), Qwest Communications (Nasdaq:QWST) and IDT Corp. (Nasdaq:IDTC) among others.

GTC Telecom offers a 5-cent per minute anytime, any day long- distance rate plan with no monthly fee. Consumers that choose not to be billed on a credit card and choose to billed on their regular phone bill, will be charged a $1.95 per month processing fee.

GTC Telecom offers basic Internet and long-distance bundled and non-bundled plans. For basic unlimited 56K dial-up Internet access, GTC offers a plan for $9.95 per month.

In addition, GTC offers an array of other Internet services, including wireless T1 access, Web hosting at www.gtcinternet.com and a portal site, www.gtczone.com. The company also offers long-distance calling cards via the Internet on its site, www.ecallingcards.com. For further information or to sign up as a GTC long-distance customer visit GTC's Web site at www.gtctelecom.com.

Included in this release are "forward-looking statements" that the company believes falls within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain factors including sales levels, distribution and competition trends and other market factors.