Loop Telecom partners with TEK DigiTel to deliver Internet Telephony Solutions in Emerging Markets
Loop Will Manufacture and Resell TEK Convergence Platform to Service Providers

GERMANTOWN, MD, June 21, 1999—To advance deployment of Internet-based voice communications in Asian Pacific markets, Loop Telecommunications International, Inc. (Loop Telecom) and TEK DigiTel (OTC: TEKI) have entered a two-part agreement that will extend Internet Telephony to service providers in Southeast Asia, China, Japan, Russia, South Africa, South America and Western Europe. The deal includes an Original Equipment Manufacturer (OEM) agreement through which Loop will private-label TEK DigiTel’s newly announced V-Server iGATE voice gateways for resale to service providers.

Additionally, Loop will manufacture iGATE devices to be distributed through TEK DigiTel’s existing channels, which include relationships with leading manufacturers and service providers. TEK DigiTel expects to produce approximately 10,000 iGATE units by year end.

Based in Taiwan, Loop Telecommunications Intl. supplies telecom providers in emerging markets with a comprehensive line of transmission access equipment based on E1 and private line data/voice facilities. Loop’s decision to add TEK DigiTel’s Voice-over-IP (VOIP) component to its portfolio underscores growing market demand for alternative services. According to Loop Telecommunications President Mawlin Yeh, field trials will begin this year with significant deployment projected within three years. "As local competition opens up, aggressive companies are looking for ways to bypass traditional providers," says Yeh. "Both incumbents and alternative carriers see the Internet and IP telephony as pivotal to securing share of market going forward."

A strategic expansion tool for service providers, TEK DigiTel’s iGATE voice gateway for customer premises helps Internet Telephony Service Providers (ITSPs) easily offer cost-saving alternatives to traditional voice services. By equipping customer locations with an iGATE device, providers are positioned to capture incremental minutes and revenues from new and future features. As TEK DigiTel’s V-Server platform expands to combine Internet access, traditional voice PBX system features and IP data routing onto one device, carriers gain a plug-and-play mechanism for strengthening customer loyalty, rolling out flat-rate and managed services, and effecting seamless migration to voice/data convergence.

TEK DigiTel Chairman Thomas Yang says Loop’s distribution arm will help TEK secure an early foothold in hot growth markets for convergence. "Loop is one of the premier suppliers to carriers in newly deregulated telecom markets. Partnering with them gives us instant inroads and credibility in high-growth sectors."

About Loop Telecommunications
(http://www.looptelecom.com)

Loop Telecommunication International, Inc. (Loop Telecom) is focused on delivering telecommunications infrastructure solutions to service providers worldwide providing them with the technology to help them to reach their customers. The solutions range from conventional low speed copper access device right up to high speed Fiber, SONET/SDH (Synchronous Digital Hierarchy) and newer IP (Internet Protocol) Telephone Gateways. Loop Telecom is based in Hsinchu, Taiwan with offices around the world.

About TEK DigiTel Corporation
(http://www.tekdigitel.com)

Based in Germantown, Maryland, TEK DigiTel Corporation is focused on delivering integrated CPE (Customer Premise Equipment) communications solutions optimized for use in SOHO, small- and medium-sized businesses. Working with Service Providers and OEM partners, the Company is focused on integrating fax- and Voice-over-IP (VoIP) technologies with conventional PBX systems and data routing devices to create a low- cost, easy-to-use Internet communications hub.

Founded in 1998, TEK DigiTel is publicly traded (OTC BB: TEKI) and headed by a management team with extensive related experience gained at leading manufacturers and service providers including Motorola (NYSE: MOT), 3Com (Nasdaq: COMS), IBM (NYSE: IBM), Nortel Networks (NYSE: NT), Rockwell (NYSE: ROK) and Hughes (NYSE: GMH),MCI Worldcom (Nasdaq: WCOM), Bell Atlantic (NYSE: BEL), Bell Canada (NYSE: BCE), BellSouth (NYSE: BLS), and GTE (NYSE: GTE).

Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the development of the Internet as a commercial medium and carrier of telephony traffic, market acceptance risks, technological development risks, seasonality and other risk factors.

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