Los Angeles, California -Dial-Thru International Corporation (OTC BB: DTIX) today announced that it has reached a settlement agreement with STAR Telecommunications, Inc., a publicly held company whose securities are traded on the Nasdaq Stock Market, regarding a dispute over carrier services. Under the terms of the settlement agreement, DTIX will receive carrier services and other consideration valued at approximately $2 million.

"This settlement has significant positive impact on both our Balance Sheet and Income Statement, including the reduction of approximately $800,000 in payables, and gives us added encouragement for our expectations of this new year," stated Roger Bryant, Chairman and CEO of DTIX. "We value the relationship with STAR and believe this agreement represents a win for both companies."

"I am very pleased that we were able to reach a favorable settlement with the new management of STAR," stated John Jenkins, President and COO of DTIX. "I would like to compliment the new team for dealing with this issue promptly after coming onboard, making it possible for our companies to re-establish our business relationship, which is in the best interest of both sets of shareholders."

Brett Messing, Chairman and CEO of STAR, added, "We are pleased to resolve STAR's dispute with DTIX. STAR's new management team is focused on returning the Company to profitability and will not let existing litigation or conflicts with our customers or partners distract us from that goal. We look forward to a mutually beneficial business relationship with DTIX in the future."

About DTIX:

Dial-Thru International Corporation is a facilities-based provider of telecommunications products and services, including international dial-thru, re-origination, Internet fax, e-Commerce, ISP, ASP, Unified Messaging, and other enhanced Internet telephony services. The Company is developing a private IP Telephony network and utilizes Voice over Internet Protocol (VoIP) other compression techniques to improve both cost and efficiencies of telecommunications transmissions. DTIX selectively targets emerging international markets with demand for services that can be derived from IP technologies.

About STAR Telecommunications:

STAR Telecommunications provides global telecommunications services to consumers, long distance carriers, multinational corporations and Internet service providers worldwide. STAR provides international and national long distance services, international private line, prepaid calling cards, calling cards, dial around services and international toll-free services.

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, 2000, which was filed on January 29, 2001 with the SEC.