INVESTMENT OPPORTUNITY : expect strong growth and upside shareholder value potential from a well-seasoned and professional management  team with proven credentials, uniquely positioned in global telecommunications - a growing global market.

COMPANY OVERVIEW

Elephant Talk Communications, Inc. (NASDAQ: ETAK.OB), formed in 2001, was taken over by current management who had made an investment in the Company in 2005  but became dissatisfied in 2006. As a result it assumed control of the Company when  annual revenues were less than $200,000. In 2007, its revenues were $47 million and in 2008,  they are expected to exceed $60 million, excluding any contribution from potential acquisitions which are currently in negotiation.

Today, Elephant Talk has uniquely positioned itself, with its proprietary technology, to become one of the world’s best telecom and enabler/ system operators to the multimedia industry by facilitating of the distribution of all forms of content, as well as mobile and fixed-line telecom services, in the business-to-business global telecommunications’ industry. Its multi-national customers include such  global companies as: T-Mobile (part of Deutsche Telecom), Dutch Telecom, Vodafone (the largest shareholder in Verizon U.S.A. ),  British Telecom, to name just a few. 

Elephant Talk is unique in the fact that they are the first entity to create and offer a streamlined network with “smart” switches on a global scale, with significant focus  on systems integration, and a turnkey global network. The company has developed a business with low operating costs that focuses on one network and a single layer of experienced and professional management, both from the telecom and non-related industries.  It is set up as one global system that offers prime advantage because it eliminates many of the problems that are associated with international and cross-border telecommunications.

INVESTMENT HIGHLIGHTS

• High anticipated annual revenue growth. Existing contractual partners include international heavy-weights like: BT, KPN, T-Mobile, Telecom Italia and Telefonica.
• Given two recently signed key contracts, this company will emerge in 2009 out of development stage revenue and losses to high growth and significant earnings.
• Management/ Insider investment of $35 million, including recent $7.3M investment, with high motivation and commitment to succeed.
• Adequate cash resources, with a debt/ equity ratio of less than 1:2 and thus, not be dependent of outside capital to cause shareholder value appreciation.
• Estimated Intangible Assets: $55 Million
• An industry whose capital values are 1-2.5 times annual revenues.

BOX: LEFT HAND SIDE:

Financial Info: October, 2008
Current Price: $.75
Market Cap:   $31.8M
Shares O/S:    43.6M
Float: 7.4M
52-week Range: $.59-1.00
Revenue (2207): $47.4M
Cash: $7.3M
Insider ownership: 78%
Fiscal Year End: 31-Dec.

Source: SEC filings

Elephant Talk Communications, Inc.
Schophol Boulevard 249
1118 BH Schiphol
Phone: 011-31-20-6541015
Fax: 011-31-20-6535916
Contact: Steven van der Velden, CEO
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Website: www.elephanttalk.com