DTI Initiates Service in Argentina


Los Angeles, California -Dial-Thru International Corporation (OTC BB: DTIX) today announced that its network and switching facilities in Buenos, Aires, the capital city of Argentina, are now operational and passing international telecommunications traffic. The U.S. Department of Commerce has reported that the telecommunications sector in Argentina became a $10 billion-a-year industry by the end of 1999, and is expected to gross $15 billion annually by 2001.

Juan Carlos Cardone, President of DTI Argentina, stated, "We have a large customer base that has been anxiously waiting for DTI services. I am pleased that we have reached this milestone within sixty days of opening our office, and I am very excited about now being able to provide our customers with communications tools like VoIP, ISP, ASP, Unified Messaging, and other enhanced Internet telephony services."

Larry Vierra, Executive Vice President of DTIX, added, "Argentina's relatively low rate of tele-density, which is less than half that of Europe and the U.S., still leaves plenty of room for expansion. With this kind of rapidly growing market, it's easy to see how even a small penetration can be significant to our company. Argentina is very important to our marketing strategy for Latin America and I am very proud of our people for reaching this objective in such a condensed time frame. Latin America will become a significant part of our international portfolio and is expected to contribute greatly toward achieving our growth objectives."

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.