eLEC Deploys First-Known Commercial Linux VoIP-Server Clustering Technology

Open systems-based and massively scaleable VoIP Architecture unlocks 'the Power of the Cloud (the Internet)' - supporting wholesale and retail services at breakthrough per-user costs

Celebration, Fla., June 1, 2005 – eLEC Communications Corp.’s (OTCBB:ELEC) wholly owned subsidiary VoX Communications, a wholesale and retail provider of residential and business Voice-over-Internet Protocol (VoIP) services, today announced it has deployed a highly scalable VoIP application server cluster technology based on the Linux operating system. The relatively low-cost, highly scalable and feature-rich, customizable retail and wholesale services powered by this technology are now available.

VoX’s President Mark Richards commented, “Our initial single-cluster deployment in Orlando, Fla. can support 10,000 subscribers, but the technology is now scalable to millions of subscribers. Based on expressions of interest from dozens of U.S. and international carriers, we should be operating at capacity very soon. Beginning in July, we expect to deploy a number of additional server clusters in consideration of client demand and financial and managerial resources. We believe that we have the lowest cost-per-port, industrial-strength technology for IP soft-switching available. The service proposition made possible by our technology’s cost-efficiency should be compelling to wholesale and retail customers and invasive to our industry.”

Paul Riss, CEO of eLEC Communications, added, “The equipment cost in this initial deployment was less than $100,000, and we expect the equipment required to support each incremental 10,000 subscribers to be less than $100,000. At capacity, supporting only wholesale services, each server cluster should generate at least $50,000 in gross profit per month.”

Riss continued, “If economics are a measure of technological power, then Mark Richards and his development team have created some very powerful technology. We are extremely excited about the prospect of each incremental $100,000 investment generating more than $600,000 in annual gross profit – discounted at 20 percent, that adds $3 million in enterprise value for every server cluster we fill with wholesale traffic. The economics are significantly better for retail, albeit with a higher per-subscriber, up-front cost. Our agent channels are eager to hit the market with retail services underpinned by this technology.”

To build a scalable VoIP product, VoX did not imitate a “Legacy” approach, where one very expensive machine does everything. VoX’s distributed architecture allows for an array of independent servers. VoX’s software runs on application server clusters, which greatly minimizes the up-front equipment expenditures required to support VoIP services.

“The prospective financial rewards are significant, but from a risk-management viewpoint, I am as excited about the uniquely low financial risk associated with scaling this technology. Unlike many competitors whose technologies scale in multi-million dollar increments, VoX’s can scale in $100,000 increments, and possibly recoup its capital costs in less than three months. VoX does not need to own a lot of underutilized expensive plant and equipment or pay for a lot of unutilized bandwidth or personnel. The spending model our technology affords permits us to commit to capital expenditures and human resources after we have visibility on the capacity utilization of deployed resources. We can prospectively recoup the capital costs associated with a new server cluster in a relatively short time-frame and closely plan our capital expenditures in consideration of highly visible cash flow,” Riss said.

According to Richards, VoX has developed and deployed its own advanced SIP Voice and Transactional application “server cluster” architecture, running on a Linux Operating System. The VoX platform is stable and scalable with no single-point-of-failure. It has the potential to scale to hundreds of SIP Proxy servers and Media servers, each within a load-balanced environment that supports hundreds of calls per second. ;VoX’s design principals and engineering adapts the “Google farm” mindset to VoIP and transactional data processing. The platform, together with the latest VoIP signaling protocol (SIP) and enhanced compression voice codec (G.729) processes the smallest possible packets of information quickly and efficiently.

“Our wholesale architecture is also flexible – which permits us to groom services to the specific requirements of hundreds of different potential wholesale clients. We are able to deploy multiple “personalities,” remotely or from a central location, that consider such things, among others, as: SIP, RTP, CDR, features and other network elements. We can deploy a North American IP infrastructure or even a Global infrastructure quickly and at low cost. We believe that our network unlocks “The power of the Cloud,” (the Internet) and as such, benefits from stability in the core network from our Tier I carrier partners – our technology moves control and intelligence to the edge – by deploying our VoIP SuperPoPs we need to control only on and off-ramp QoS,” Richards stated.

About VoX Communications

VoX Communications is a wholly owned subsidiary of eLEC Communications Corp. Using its advanced, nationwide Voice over IP (VoIP) network, VoX offers wholesale broadband voice, origination and termination services for cable, wireless and wireline operators, and enhanced VoIP telephone service to the small business and residential marketplace. VoX’s VoIP service is a feature-rich, low-cost and high-quality alternative to traditional landline phone service. For more information, visit http://www.voxcorp.net.

About eLEC Communications

eLEC Communications Corp., headquartered in White Plains, NY, is a publicly traded local telecommunications company that is taking advantage of the convergence of the technological and regulatory developments in the Internet and telecommunications markets. eLEC provides an integrated suite of communications services to business and residential customers, including local, long distance, dedicated access, and VoIP. For more information, visit www.elec.net.

Forward-Looking Statements

This release contains forward-looking statements that involve risks and uncertainties. eLEC’s actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, certain risks and uncertainties over which the company may have no control. For further discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the discussions contained in eLEC’s Annual Report on Form 10-KSB for the year ended November 30, 2004 and Quarterly Report on Form 10-QSB for the period ending February 28, 2005, and any subsequent SEC filings.

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For more information, please contact:

Terry May
HighTech PR, Inc.
904-387-3899
terrymay@hightechpr.net