TUCSON, Ariz., Nov. 29 /PRNewswire/ -- Wavetech International, Inc.
(OTC Bulletin Board: ITEL) announced today that its wholly owned Canadian
subsidiary, Interpretel (Canada), Inc., entered into an agreement with
Softalk, Inc. ("Softalk"), a private Internet telephony company in Toronto,
Canada, to acquire systems to deploy a worldwide Internet-enabled long
distance network.
    Under the agreement, Wavetech acquired central office hardware and
software systems from Softalk, an established telecommunications and web-based
software development company.  Wavetech previously announced a licensing
agreement with Softalk (PRNewswire May 4, 1999) which has now been amended to
give Wavetech exclusive worldwide rights to distribute, market, service, sell
and sublicense any and all of Softalk's Internet related telephone products
for commercial applications.  In addition, Wavetech has acquired a right of
first refusal with respect to the sale of Softalk, its intellectual property,
proprietary software codes, patents, pending patents and any future patents to
be issued.
    In exchange, Softalk receives 4,329,004  million Class A  Preferred, non-
voting shares of Interpretel (Canada), Inc. stock. These shares are
exchangeable for Wavetech Common Shares on a one-for-one basis at the option
of Softalk. Valued at $10 million (U.S.), the Interpretel shares upon
conversion will represent approximately 58% of the issued and outstanding
shares of Wavetech Common Stock.  In addition, Softalk receives five-year
warrants including: 3.2  million warrants at a $3.25 strike price, 1.0 million
warrants at a $5.00 strike price and 1.0 million warrants at a $10 strike
price.
    Gerald Quinn, Wavetech's President & CEO, stated, "We look forward to
moving ahead with Softalk.  These two companies, with their distinct strengths
and capabilities, share mutual goals and vision for the future.  Softalk's
expertise in product development and network operations combines well with
Wavetech's strength in marketing, sales, customer service and strategic
distribution relationships.  By joining forces, we will be positioned to take
advantage of one of the fastest growing segments in the telephone industry."
    Chris Lang, President and founder of Softalk, stated, "The number one
priority of our combined efforts is to introduce a commercial quality Internet
based telecommunication product for worldwide markets.  This service is
targeted specifically to multinational corporations, large and small
businesses as well as other organizations engaged in international long
distance.  Over the last year, field trials with a number of multinational
companies have been very positive.  Now with Wavetech's participation, our
time-to-market will be greatly accelerated."
    Wavetech International, Inc., founded in 1993, is a facilities-based
communications company. Wavetech is one of the first companies to focus
exclusively on IP (Internet Protocol) based long distance services.
    This press release contains certain forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.  This information may involve risks and uncertainties that
could cause actual results to differ materially from such forward-looking
statements.  Factors that would cause or contribute to such differences
include, but are not limited to, those factors detailed by Wavetech in its
filings with the Securities and Exchange Commission.

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