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GTC Telecom to Launch Cellular Phone Service

GTC Telecom Corp. (OTCBB:GTCC) today announced that it plans to enter the cellular phone market by the end of this year. Expanding its communications product line to include cellular will complement GTC's existing services as well as enhance revenue opportunities. GTC intends to market this product to both its existing customer base as well as appealing to new customers through its affiliate and direct marketing channels. Pricing, service plans and handset equipment details will be announced in the near future.

S. Paul Sandhu, GTC's CEO, stated: "GTC has always focused on offering our customers the products and services they want at very competitive prices. We have taken note that many of our customers have requested cellular services. Offering this new service will not only allow us to increase our average revenue per customer, but it will help us appeal to new target markets. We strive to provide every customer a telecommunications solution that fits their lifestyle and budget."

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 that 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, manufacturing contracts, and distribution agreements.

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