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Payless Communication Holdings, Inc. Completes Acquisitions of Integrated Telecom Services, Inc. and Advance Technology Solutions, Inc.

6 October 2005

Payless Communication Holdings, Inc. ("PCH") (Pink Sheets:PCNH) today announces to its shareholders that PCH has completed the acquisition of Integrated Telecom Services, Inc. and Advance Technology Solutions, Inc. The company anticipates revenues of $11 million to $15 million in 2006 from these acquisitions. Both transactions were for restricted shares and the acquisitions will not dilute the company's per share earnings.

Advance Technology Solutions, Inc. ("ATS") will manufacture and distribute innovative technologies such as Softswitches, VoIP, WiFi/WiMax, and IPTV devices for residential and commercial use. Estimated revenues for 2006 for ATS will be approximately $8 million to $10 million. Integrated Telecom Services, Inc. ("ITS") will file for its CLEC license so it can offer local, long distance, dial-up Internet, and DSL services to both residential and commercial customers in the West Coast of the United States. ITS will also offer VoIP services in the West Coast and offer ATS's product line. The company estimates approximate revenues to be $3 million to $5 million for 2006.

"Payless's goal is to achieve a presence coast to coast in the U.S. along with targeted international markets so we can maximize the potential of our Triple Play Technology and Services," said Ricardo J. Canal, president and CEO of Payless Communication Holdings, Inc. "The acquisition of both ITS and ATS gives us some key components to implement our overall strategy giving us the opportunity to accelerate revenues."

In addition, Canal said ITS will solicit VoIP services and offer WiFi and WiMax technologies by providing the consumer with a WiFi/WiMax phone over VoIP and also offer wireless broadband services. ITS will also deploy IPTV in the near future with various partners in the telecom and entertainment industry.

About Payless Communication Holdings, Inc.:

Payless Communication Holdings, Inc., and through its subsidiaries and acquisitions, offers services such as local and long distance phone service, Voice Over Internet Protocol (VOiP), WiFi/WiMAX technology, and Internet Protocol Television (IPTV).

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Securities Act of 1933, as amended. Those statements include statements regarding the intent, belief, or current expectations of the company and its management. Such statements reflect management's current views, are based on certain assumptions, and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors and will be dependent upon a variety of factors, including, but not limited to, our ability to obtain additional financing and access funds from our existing financing arrangements that will allow us to continue our current and future operations and whether demand for our products and services in domestic and international markets will continue to expand. The company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in the company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events.

CONTACT:
Cervelle Group
David Donlin
(407) 475-996

Source: PrimeZone


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