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GTC Telecom Launches Beta Version of Its VoIP Product

23 June 2005

GTC Telecom Corp. (OTCBB:GTCC - News) today announced that it has launched the beta version of its new Voice Over Internet Protocol (VoIP) calling service under the marketing name "Zanvo." Zanvo will allow users to place free in-network phone calls to other Zanvo users over a broadband connection. To use Zanvo, customers need to simply install the software and plug in a headset or standard telephone with a VoIP adaptor.

The Company's goal is to initially build its customer base through free in-network calling. The next phase of the project will provide customers with the ability to place a call to any telephone number, including local, long distance, mobile and international numbers. Zanvo will initially target customers who might otherwise use Skype Technologies S.A.'s service (or other low cost VoIP carriers).

S. Paul Sandhu, GTC's CEO stated, "We are very excited about Zanvo. GTC is focused on delivering on our ongoing promise to offer high-quality telecommunication services at the lowest possible price. When fully complete, GTC expects to offer a broad suite of VoIP features and call routing options to residential, business and wholesale customers."

More information about the Zanvo can be found at www.zanvo.com.

About GTC Telecom

Founded in 1997, GTC Telecom provide local, long-distance, conference calling and toll-free services; dial-up and DSL Internet access to residential customers throughout the United States; as well as Business Process Outsourcing services through its Perfexa Solutions, Inc. subsidiary. GTC provides its services directly to consumers, as well as through affiliate marketing programs. For more information, visit www.gtctelecom.com / www.perfexa.com

This release may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. This report should be read in conjunction with the Company's annual report on Form 10-KSB and it's quarterly reports on Form 10-QSB. The Company's results may vary significantly from quarter to quarter and will depend, among other factors, on product launches and market acceptance, manufacturing contracts, and distribution agreements.



--------------------------------------------------------------------------------
Contact:
GTC Telecom Corp.
Gerald DeCiccio, 714-549-7700
investorrelations@teamgtc.com



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Source: GTC Telecom Corp.

Source: Business Wire


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