Elephant Talk (OTC:ETAK) Gets $10.1M from Warrant Exercise

Shawshank, VA 9/6/2011 (PennyPayDay) – Elephant Talk Communications, Inc., (OTC:ETAK) (www.elephanttalk.com) announced today, in a press release, that it has received gross proceeds of approximately $10.1 million from the exercise of the warrants issued to investors in 2010. All of the warrants issued with respect to the 2010 Equity Offering have now been exercised. As I write, shares of ETAK were down slightly at $3.05 per share on light volume of nearly 50,000 shares.

Elephant Talk Communications called for redemption of the warrants on August 29, 2011 unless they were exercised prior to that date. The Company paid a 5% solicitation fee to the warrant solicitation agent. The net proceeds will be used for the continued expansion of Elephant Talk's high margin mobile service platform and the commercialization of ValidSoft's anti-fraud solution.

"We believe that this capital infusion combined with our recent operational achievements will be helpful to secure a listing on a senior U.S. exchange," stated Steven van der Velden, CEO of Elephant Talk Communications. "The new capital raised from the warrant exercise is extremely positive as our auditors did not include a 'going concern' qualification in our financial statement for the fiscal quarter ended June 30, 2011. Now that we have a board with a majority of independent directors and an improved balance sheet, we will file an application to achieve a listing on a senior exchange."

Elephant Talk Communications is an international provider of business software and services to the telecommunications and financial services industry. The company enables both mobile carriers and virtual operators to offer a full suite of products, delivery platforms, support services, superior industry expertise and high quality customer service without substantial upfront investments from clients.

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