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Prominent Kuwaiti Businessman To Fund $9 Million Joint Venture For International Launch of i2Telecom's MyGlobalTalk™
Company to Expand Global Operations into Additional International Countries
ATLANTA, GEORGIA – July 21, 2008 -- i2Telecom International, Inc. ("i2Telecom®") (the "Company") (OTCBB: ITUI), a developer of award-winning patented and innovative high-quality Voice-over-Internet Protocol ("VoIP") products and services, today announced that it has executed a Memorandum of Understanding ("MOU") for a strategic joint venture with Raed A.H. Rajab (the "Investor"), a prominent businessman in Kuwait, to expand the Company's operations into a number of international markets by the end of this year. Through established sales channels, the Investor will provide $9 million in funding for operating and marketing expenses (the "Capital Commitment") incurred by the joint venture during the next twelve months involving the launch of i2Telecom's award-winning MyGlobalTalk™ and other telecom offerings into these markets.

The joint venture will establish wholly-owned subsidiaries in each country and transfer exclusive rights to the Company's technology to that country in exchange for the Capital Commitment. The Company will consolidate the operating results of the joint venture in its financial results beginning with the third quarter. Revenue from the joint venture is not included in i2Telecom's previously announced guidance.

Upon execution of a definitive agreement subject to customary closing conditions and receipt of a $1 million initial capital contribution, the Company will issue to Mr. Rajab one million restricted shares of i2Telecom common stock as an equity incentive. The Company may, at its discretion, issue additional shares of i2Telecom restricted stock in lieu of distribution of 20% of the joint venture's profit. Such shares will be issued at 95% of market value of the Company's shares on a quarterly basis as profits are earned. i2Telecom will retain 100% equity ownership and an 80% profit participation in each wholly-owned subsidiary that is established by the joint venture.

MyGlobalTalk™, which recently won Internet Telephony Magazine's and Unified Communications Magazine's "Product of the Year 2007" awards, places Internet telephony in the hands of every cell phone user, independent of wireless carrier technology, handset manufacturer or the type of wireless carrier voice/data plan involved.

"We are very pleased to have been selected by Raed A.H. Rajab as his telecommunications partner in this rapidly developing region of the world," stated Paul Arena, Chief Executive Officer of i2Telecom International, Inc. "We believe that our ongoing success in the international marketplace reflects not only the fundamental economic benefits of mobile VoIP, but also the added value of our intellectual property. Working with such successful businessmen as Mr. Rajab in these growing markets, we will provide significant cost savings and improved communications capabilities to the customers and employees of organizations around the world."

The joint venture benefits i2Telecom shareholders by providing $9 million to finance operating and marketing expenses that will enable the Company to expand its international infrastructure and establish scale in these growing foreign markets.
i2Telecom's proprietary platform can easily be integrated within a combination of hardware, software and cellular phones for next-generation global telecommunications solutions. The platform consists of a new architecture for the Company's VoiceStick®, MyGlobalTalk™, Digital Portal communications and microgateway products, innovative applications built to Session Initiation Protocol ("SIP") standards, global VoIP network, global Public Switched Telephone Network ("PSTN") interconnect network, and geographically dispersed Network Operation Centers ("NOCs").
"We selected i2Telecom because of its advanced features and technology, the Company's ability to provide unparalleled service in remote areas of the countries we are targeting, and its excellent reputation for supporting global partners," stated Raed A.H. Rajab. "We see this as an opportunity to make an investment in mobile VoIP technology that can provide an above average return on our capital. i2Telecom's products are very easy to deploy and an ideal complement to SMEs, Internet Cafés and Hotels in numerous countries in the Middle East, Asia and elsewhere. We believe i2Telecom is positioned to emerge as one of the leaders in this region of the world, and we intend to put our full effort behind the joint venture with i2Telecom to make this happen."

Businesses and consumers can substantially reduce long-distance and international telecommunications costs by utilizing i2Telecom's easy-to-deploy VoIP solutions that seamlessly interface with existing mobile phone connections without having to change wireless carriers or voice/data plans currently in place.

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