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GTC Telecom Set to Expand Local Telephone Service in the South Eastern US

GTC Telecom Corp. (OTCBB:GTCC) today announced it has signed a commercial agreement with Bellsouth Telecommunications, Inc. which allows GTC Telecom to utilize Bellsouth's network in the states of Alabama, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. GTC currently offers local services in Florida and Texas. With the signing of this agreement, GTC intends over the next several months to launch services in the states of Georgia, Kentucky and North Carolina, with other states to follow.

S. Paul Sandhu, GTC's CEO, stated: "The new agreement with Bell South allows GTC to further expand its successful roll-out of local telecommunications services, as we have already accomplished in Florida and Texas. We intend to aggressively market service in these new states by leveraging the low cost telemarketing power of our offshore subsidiary, Perfexa Solutions."

About GTC Telecom

Founded in 1997, GTC Telecom and its subsidiaries provide local, long-distance, conference calling and toll-free services; dial-up and DSL Internet access to residential customers throughout the United States; as well as Business Process Outsourcing services. GTC provides its services directly to consumers, as well as through affiliate marketing programs. For more information, visit www.gtctelecom.com.

This release may contain forward-looking statements such as the Company's ability to successfully market its products as discussed which are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. This report should be read in conjunction with the Company's annual report on Form 10-KSB and it's quarterly reports on Form 10-QSB. The Company's results may vary significantly from quarter to quarter and will depend, among other factors, on product launches and market acceptance, service contracts and distribution agreements.

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