Los Angeles, California -Dial-Thru International Corporation (OTC BB: DTIX) today announced financial results for the fiscal year ended October 31, 2000.

The Company reported $8.6 million of revenues from continuing operations in fiscal 2000, an increase of $5.5 million or 176% over fiscal 1999. Anticipated losses for the year occurred as the Company focused on building its new business. These losses from operations totaled $8.7 million, or $1.02 per share.

John Jenkins, President and COO, said, "We have just completed the difficult process of merging two businesses and developing one strategy that we are very committed to. This effort included a consolidation and reduction in staff that, although painful, has allowed us to significantly reduce our overhead costs without losing our focus, and has positioned us to reach our goal of positive cash flow and profitability in the near term. Many exciting developments are taking place within our global marketing programs. We will attempt to keep our shareholders better informed in this area in 2001, and expect to share some of our successes with you very soon."

Roger Bryant, Chairman and CEO, said, "In the first quarter of FY 2000, we completed the acquisition of Dial-Thru International, the California company, and changed our name accordingly. In the second quarter, we shifted direction toward our global IP telephony strategy and away from the domestic prepaid long distance market, which was experiencing significant margin deterioration. In the third quarter, we further concentrated our efforts by consolidating our Dallas, Texas and Los Angeles, California operations into a single facility in Los Angeles. We incurred significant costs in accomplishing this restructuring, and even experienced a reduction in revenue as we withdrew from certain market segments, but we now have a much more efficient operation and greatly reduced overhead costs. Going forward, we can focus all our resources on our "Bookend" strategy, which we believe in strongly."


Dial-Thru International Corporation, DTIX, is a facilities-based provider of telecommunications products and services. The Company provides a variety of international telecommunications services including international dial-thru, re-origination, Internet fax services, e-Commerce services, wholesale carrier services, and prepaid phone cards. The Company is developing a private IP Telephony network and utilizes Voice over Internet Protocol (VoIP) packetized voice technology and other compression techniques to improve both cost and efficiencies of telecommunications transmissions. The Company utilizes state-of-the-art digital fiber optic cable, oceanic cable transmission facilities, international satellites and the Internet to transport its communications.

DTIX selectively targets emerging international markets with demand for services that can be derived from IP technologies. DTIX is establishing partnerships in emerging Asian, African and South American markets to build super-regional networks that link customers and provide high margin, value-added services within these areas that will uniquely position the Company for long-term growth.

DTIX is aggressively pursuing international partnerships and targeting the corresponding segment that resides and transacts business in the U.S. DTIX calls this approach the "Bookend" strategy, and is successfully executing this strategy, giving it better access to higher margin business segments and further improving margins through cooperative cost-sharing with international partners. Finally, DTIX focuses on "owning" the customer relationship through its direct billing and sales capabilities, giving the Company better access and the ability to market a portfolio of enhanced voice and data services to small and medium sized businesses.

This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, which represents the Company's expectations or beliefs concerning, among other things, future operating results and various components thereof and the adequacy of future operations to provide sufficient liquidity. The Company cautions that such matters necessarily involve significant risks and uncertainties that could cause actual operating results and liquidity needs to differ materially from such statements, including, without limitation: (i) increased competition in the telecommunications business, (ii) the price-sensitive nature of consumer demand, (iii) the Company's dependence upon favorable pricing from its carriers and suppliers and (iv) other risks indicated herein and in filings with the Commission, including the Form 10-K for the fiscal year ended October 31, 1999, which was filed on January 31, 2000 with the SEC.