US Starcom, Inc. Completes Merger With Bestel Communications, Inc.

Trading Begins Under Symbol USTA


PERTH AMBOY, N.J., April 26, 2005 (PRIMEZONE) -- U.S. Starcom, Inc. (Pink Sheets:USTA) announces that it has completed a merger with Bestel Communications, Inc. The newly combined entities will retain the name U.S. Starcom, Inc.

U.S. Starcom, Inc. is a rapidly growing supplier of long distance dial tone, VoIP gateways, pre-paid phone cards and related services. In 2004, capitalizing on the rapidly expanding market for these services in urban neighborhoods, especially within Latino communities, the company had revenues of more than $9 million and owns equipment valued at over $4 million.

"This merger will greatly accelerate our expansion into the $22 billion market in Latin American countries," said Joseph Macaluso, President of U.S. Starcom, speaking about the company's international dial tone services. "Our offices in Reno, Los Angeles, Atlanta, and Perth Amboy, N.J., are already experiencing a surge in contract activity, which should translate into a dramatic increase in pre-paid phone card sales and VoIP traffic this year," said Mr. Macaluso.

"Even more strategic to our growth is our equipment and knowledge in VoIP communications. With long distance traffic shifting rapidly to this Internet-based method of long distance calling, we are already entrenched within the infrastructure to serve this burgeoning market," said Mr. Macaluso. "Because we have no debt and because our equipment is in place and producing revenue, we expect 2005 revenues to at least double what we experienced in 2004."

While the company's business of prepaid phone cards and VoIP gateways is growing and will provide a steady revenue stream, the most exciting part of U.S. Starcom's potential is its plans to use its extensive distribution network as a captive network to sell other services within urban neighborhoods. Further announcements will be forthcoming in the immediate future.

About U.S. Starcom: A leader in providing value-added prepaid services and solutions to urban neighborhoods to enhance communications and entertainment. With a sales distribution network extending to thousands of urban locations, more than 50 VoIP gateways and with no long term-debt, US Starcom will continue its rapid expansion into the distribution of alternative communication products and services, including international long distance, prepaid phone cards, wireless dial around applications, stored value services and internet service enhancements. U.S. Starcom's wider goal is to use its distribution network in urban neighborhoods to sell other services through strategic alliances and joint distribution campaigns, in effect becoming a massively specialized distribution enterprise. Regional offices are located in Reno, Los Angeles, Atlanta and Perth Amboy, N.J.

Safe Harbor Statement

This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements appear in a number of places and include all statements that are not of historical fact regarding the intent, belief or expectations of the Company among other things: trends affecting the Company's financial condition or results of operations and the Company's growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend," and similar expressions are intended to identify forward-looking statements. Investors are cautioned that any such statements are not guarantees of future performance and involve risks, many of which are beyond the Company's control, and that results may differ materially from those projected in the forward-looking statements.



            

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