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Ecuity and Ottawa Wireless to Offer Innovative Wireless VoIP Service

15 December 2004

Ecuity, Inc., (OTC BB: ECUI.OB), an end-to-end unified communications and technologies company serving the small-to-medium business and residential markets, has teamed with
Azulstar Networks, a division of Ottawa Wireless, a world leader in city-wide Wi-Fi network deployments, to offer wireless Voice over Internet phone services.

Under the agreement, Ecuity will be the exclusive provider of private label mobile VoIP services to Azulstar's wireless broadband customers, both business and residential. Initial markets will include Rio Rancho, New Mexico and Grand Haven, Michigan. Azulstar expects to launch the Rio Rancho Wi-Fi based VoIP services at the beginning of 2005 and will include multiple package offerings of Ecuity's services. Grand Haven customers, who have been enjoying
the city-wide Wi-Fi network since fall 2003, will be offered Ecuity's VoIP services later in the year.

Often referred to as the Silicon Mesa, forward-thinking Rio Rancho, NM is home to 64,000 residents and a large number of small, medium and large sized high tech companies. This will be the nation's largest and most advanced city-wide Wi-Fi network and the combination of Azulstar's innovative Wi-Fi technology and Ecuity's leading VoIP services will make Rio Rancho a model for city-wide Wi-Fi communications networks, stated Tyler van Houwelingen,
Azulstar CEO.

"We are excited to lead the way in offering these valuable services to the businesses and residents in our community," said Rio Rancho City Administrator James Palenick. "Rio Rancho is a vibrant, high-tech haven, and city-wide Wi-Fi and innovative mobile Voice over Internet services will enhance the way people work, play and live in our rapidly growing city."

Azulstar currently has over 1,000 business and residential customers in Grand Haven, MI, the first city in the United States to establish a city-wide Wi-Fi network. Azulstar plans to offer the private-label Ecuity VoIP services to their existing customers, which include ReMax, Best Western, Holiday Inn and Grand Haven's City Administration, later in 2005.

King Cole, Ecuity's president, "Azulstar has led the way in developing and deploying city-wide Wi-Fi networks and we see a perfect match between Azulstar's services and our ability to provide the most powerful, secure and easy-to-use VoIP services available today. This relationship teams two industry leaders in an effort to offer easy-to-use voice over Wi-Fi services. Users will be able to receive and make calls from any laptop, portable pc or
handheld pc from anywhere in the two cities, and businesses will be able to take advantage of our V-Tone Office for business class IP PBX over a wireless network. This continues to represent our ability to offer communications over any network."

Ecuity is the first facilities-based carrier to offer complete business- class VoIP services, including a "soft phone" and VoWiFi (voice over Wi-Fi), both nationwide and internationally - with quality equal to or better than traditional phone service at significant cost savings. Ecuity provides residential and business class VoIP, broadband services, technical support,
centralized billing and superior customer service. It offers both Centrex call features and traditional equipment based PBX call services.

As a result of its success in delivering cutting edge Voice Over Internet Protocol (VoIP) services to customers nationwide, Ecuity's subsidiary Ecuity Advanced Communications was named to the 2004 "pulver 100" - which is the VoIP industry's premiere listing of companies that represent the future of the communications industry.

Businesses, communities and residents interested in Ecuity's innovative Voice over Internet services can visit http://www.ecuity.net or call 1 866-41 VTONE (1 866-418-8663).

This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of
the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development
acceptance, and the impact of competitive services and pricing and general economic risks and uncertainties.

For more information, please contact:

For Ecuity:
Jennifer Stephens
Telephone: (206) 210-5033
jennifer.stephens@ecuityinc.com

Investor Relations
Truc Nguyen
VP, Investor Relations
Stern & Co.
Telephone: (212) 888-0044
tnguyen@sternco.com

Media Relations
Stan Froelich
VP, Media Relations
Stern & Co.
Telephone: (212) 888-0044
sfroelich@sternco.com

Source: PR Newswire


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