Phonetime's YTD Revenue Over $50 Million

Phonetime Inc. (TSX VENTURE: PHD)(OTCBB: PHOEF), one of Canada's leading suppliers of long distance telecommunication services, today announced that as of the end of July its revenue has exceeded $50 million for the year-to-date, more than doubling last years total revenues. In addition it has processed over 1.5 billion minutes of long distance traffic so far in 2007.

Phonetime attributes its surge in revenue in 2007 to the Company's decision to expand into wholesale markets world-wide. In addition to the dynamic growth of its wholesale operation, Phonetime's retail operation Call Select has also achieved record sales, contributing consistent monthly revenues of over $1 million with higher margins. Completing Phonetime's vertically integrated sales strategy, the Company has also seen improved sales growth of its legacy phone card business.

Wayne Silver, Phonetime's President and CEO, stated that, "it's clear we are offering exceptional value to both our wholesale and retail clients. Our annual sales volume of long distance traffic is very significant and gives us buying power equalled by only the incumbent Canadian telephone companies. Moreover, we believe these results are a testament not only to the size of our world-wide network, but also to the quality of our services and the superior efforts of our staff. As a result, we look forward to continued revenue growth."

Rodney Franklin, Phonetime's Chairman and CFO, commented, "The fact that significant revenue is derived from both our retail and wholesale services validates our earlier strategic decision to diversify our service offerings and expand our network facilities into Europe and develop a presence in the United States. We are confident that as we trend towards $100 million in revenue, our position as an important supplier of international telecommunications services will be recognized by the financial markets."

About Phonetime

Established in 1994, Phonetime is a leading Canadian supplier of International Long Distance telecommunication services for individual consumers and businesses as well as wholesale long distance call delivery to large and small domestic and international carriers. Phonetime Inc. is publicly traded, listed on the Toronto Venture Exchange (TSX V: PHD). Licensed in Canada as a Class A International Carrier by the CRTC, Phonetime operates one of the largest and most advanced private telecommunications networks in Canada. In Canada, Phonetime has 40 Points-of-Presence covering most metropolitan areas, effectively offering on-net service to approximately 85% of Canada's population. Phonetime also has connections in 140 countries around the world, facilities in London, England and Frankfurt, Germany and administrative offices in Miami, Florida.

Caution Regarding Forward Looking Information:

This press release contains forward-looking statements within the meaning of securities laws, including the "safe harbour" provisions of the Ontario Securities Act and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook.

Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to Phonetime concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: incorrect assessments of value when making acquisitions; increases in debt service charges; fluctuations in foreign currency and exchange rates; inadequate insurance coverage; changes in tax laws; and Phonetime's ability to access external sources of debt and equity capital.

The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release, and Phonetime does not undertake any obligation to up-date publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.