Vartec Telecom Selects PriceInteractive for Customer Service Voice Portal Initiative

RESTON, Va., February 26, 2001 - PriceInteractive, a leading Speech Application Service Provider (ASP), announced today that it has been chosen by VarTec Telecom, Inc., a pioneer and leader in the "dial around" long-distance service, to analyze how VarTec Telecom can best implement advanced speech recognition to streamline customer service operations. This effort will allow VarTec Telecom to provide better value to their customers.

PriceInteractive, which recently announced an agreement to be acquired by Internet-based voice communications provider iBasis, (Nasdaq:IBAS), has a proven track record in transforming and upgrading call centers. PriceInteractive will evaluate VarTec Telecom's current support system, analyze any gaps with customer relationship management (CRM) best practices, and provide recommendations regarding how speech technology can be utilized within their customer service operations. PriceInteractive will look specifically at the possibility of creating a self-service voice portal. This portal will allow VarTec Telecom customers to obtain responses to their questions or order new services by simply speaking into any wireless or wireline phone using natural language cues, and without involving a live operator.

"This project with PriceInteractive is a critical initiative for VarTec," said A. Joe Mitchell, Jr., founder and president of VarTec Telecom. "The competitive nature of the long-distance business necessitates a continual focus on enhancing efficiency and customer satisfaction. We have selected PriceInteractive as our partner on this project because of their demonstrated expertise in developing and deploying mission critical applications for other major international telecommunications companies."

"Once this review is complete, we will look first to the PriceInteractive platform and infrastructure to serve as the customer support foundation on which to grow our business globally," adds Mitchell. "We are confident that, by the end of the year, PriceInteractive will be helping us with our European operations."

PriceInteractive's SpeechPort service is a hosted offering that allows e-businesses, content providers, carriers and portals to provide speech-activated enterprise and Web content to end users through a natural speech interface. SpeechPort is delivered through a state-of-the-art, multi-tier service infrastructure that pairs a speech recognition engine from SpeechWorks International (Nasdaq:SPWX) with PriceInteractive's carrier-grade telecom and wireless hosting facility. The service is built upon a Java enterprise environment that allows rapid insertion of new technologies and expansion of additional capacity.

"The long distance telecommunications market gets more competitive every week, and operators of all types need to improve customer service," observed Mark Plakias, Vice President of Communications & Infrastructure at The Kelsey Group (Princeton, NJ). "While others talk about the potential, PriceInteractive and VarTec are putting the power of speech inside the carrier-class call center today."

"With this announcement, VarTec Telecom has demonstrated a commitment to transforming its current operations into a next generation, state-of-the-art customer service facility," said Dan Price, President and CEO of PriceInteractive. "This telecommunications leader chose to work with PriceInteractive because of our proven track record and expertise in developing and hosting speech-enabled CRM applications, which obviously translates into reduced customer service costs, efficient systems, and an enhanced customer experience for the major international telecommunications carriers."

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About VarTec Telecom, Inc.
VarTec Telecom, Inc., a leading provider of local and long-distance service, is considered a pioneer in "dial-around" long-distance service. The company offers services to both consumers and small business customers. The flagship residential product, FiveLine®, offers one of the most competitive rates in the industry. VarTec Telecom has two subsidiaries to address its international and local services interests: VarTec Telecom Europe, which has multiple customer service centers and switch sites; and Choctaw Communications, Inc. (d.b.a. Smoke Signal Communications®), one of the fastest-growing providers of local dialtone in the United States. VarTec Telecom was recently named one of the Top 500 privately held companies by Forbes Magazine. To learn more about VarTec Telecom, visit the company website at www.vartec.com.

About PriceInteractive
PriceInteractive is a leading Speech Application Service Provider (ASP) that delivers a comprehensive, speech-enabling solution for accessing Web content and applications via any phone or wireless device. Founded in 1997 and located in Reston, Virginia, PriceInteractive develops and hosts speech applications for Fortune 500 and dot.com market leaders such as Commerce One/AppNet, AT&T, Audiopoint, ExpertPlan, ExxonMobil, H&R Block, Home Shopping Network, MapQuest.com, MicroStrategy, Sprint, Vicinity, Western Union and WorldCom. SpeechPort technology partners include SpeechWorks, BEA, Oracle, Sun Microsystems, Cisco, and Intel/Dialogic. PriceInteractive recently announced that it has agreed to be acquired by iBasis, Inc., (Nasdaq:IBAS), the leader in Internet-based voice communications. For more information about iBasis visit www.ibasis.net . For more information about PriceInteractive visit www.priceinteractive.com.