Elephant Talk (OTCBB:ETAK):

Elephant Talk Communications (OTCBB:ETAK), an international provider of business software and services to the telecommunications and financial services industries, announced today a framework agreement with Iskratel (www.iskratel.com). Under the agreement Iskratel will expand Elephant Talk's enhanced convergent global network. Iskratel will supply a minimum of 10 multimedia control nodes to Elephant Talk over the next couple of years. The first stage of the agreement, expected to be completed by April 2011, includes the delivery and installation of two telecommunications nodes in Barcelona and Madrid, Spain, worth a total value of EUR 1.2 million. The project will consist of four additional phases in various other Western Europe locations that have high demand telecommunications markets.

Steven van der Velden, Elephant Talk Chairman and CEO, said, "The importance of our partnership with Iskratel for the installation of two new switches extends beyond this deal. The first two switches from Iskratel, in combination with our fully integrated mobile delivery platform, will provide Elephant Talk with a sophisticated capacity to finalize our planned subscriber module migrations in Spain. Elephant Talk expects this migration to have a positive impact on the company's ability to become a cash flow break even operation. This agreement demonstrates Elephant Talk's commitment to expand our server capacity for our existing customers while increasing our capacity for future growth."

Andrej Polenec, Iskratel CEO, said, "Our partnership with Elephant Talk provides proof that our strategic decisions in the field of convergent service delivery platforms are correct. We have managed to design and implement a highly capable and reasonably priced platform for the most demanding markets. Our rich experience in mobile and fixed networking guarantee quality and rapid deployment."

Iskratel, based in Kranj, Slovenia, is a leading developer of adapted and highly integrated solutions in the field of communications for fast-growing convergent networks. The high quality of its advanced high-technology networking elements and infrastructure configurations makes the company one of the key innovators of such technologies. By integrating its experience and know-how with creativity and innovations, Iskratel meets the demands of existing network support and develops convergent IP-architectures that can be adapted to the particular regional needs and to subscribers' preferences. The company has about 1,100 employees, with about 300 of them working in affiliated companies in 20 countries around the world. Iskratel offers integrated solutions in telecommunications for fixed telephone communications, mobile telephony, convergent IP networks and network management.

Martin Zuurbier, CTO of Elephant Talk said, "Based on our agreement with Iskratel, we are able to stay ahead of the competition by shaping our network to the latest IMS / All IP and convergent technology. We intend to implement at least 10 MSCN's (Multi Service Control Nodes) class 4 and class 5 from Iskratel to expand our current switches. Our leading-edge, full-convergent mobile platform with all mobile systems required, such as HLR, SMSC, MMSC, GMSC, STP, GGSN, SGSN and more, will be fully integrated. By doing this, we will increase our scalability and reliability and can perform more cost effectively, regardless of telecom services or verticals. The total conglomerate of network and systems will support various industries like banks and financial institutions, telcos, retail chains, and media companies all over the world. We will begin deployment this month."

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