Ecuity Reports 60% Increase in Quarterly VoIP Revenue Company Ascribes Rise to Accelerating Adoption of Business-Class VoIP Offerings BELLEVUE, WA, April 7 /PRNewswire-FirstCall/ -- Ecuity, Inc., (OTCBB: ECUI.OB), a leading enhanced Voice over Internet communications company serving the small-to-medium business and residential markets, reported that revenues generated from its V-Tone(TM) VoIP telephone service offerings rose 60.4% comparing quarterly revenues from calendar Q4 2004 to Q1 2005. The company has been experiencing a steady increase in revenues and sales of its innovative offering of VoIP and VoWiFi since the launch of the V-Tone suite in July of 2004. The company also reported an increase of installed lines of VoIP service during the first quarter of 57.1%. The company said that the overwhelming majority of the increase resulted from an expanding base of business customers choosing Ecuity's hosted-IP PBX solution over traditional premises-based PBX and alternative next-generation service providers. King Cole, Ecuity's president, "Our V-Tone offering of VoIP services to small and medium size businesses has proven itself a strong offering for a broad range of business customers in a variety of industries. The consistent story in feedback from our small and medium size businesses is a high degree of satisfaction with the ease of switching to Ecuity VoIP services, combined with exceptional voice quality, features that equal those previously available only to large businesses, and incredible cost savings over traditional alternatives. The rise in our new business revenue from sales of our V-Tone VoIP services is one of our key indicators of growth and customer acceptance within this innovative communications market. We continue to see strong growth in this category while our legacy business remains steady. It is gratifying to witness the successful transition from our legacy services to becoming a leader in the VoIP industry." Ecuity is the first facilities-based carrier to offer complete business-class VoIP services, including a "soft phone," both nationwide and internationally - with voice quality equal to or better than traditional phone service at significant cost savings. Ecuity provides 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. Ecuity's innovative VoIP services, V-Tone Office, V-Tone Small Office and Smart Call, are available virtually anywhere in the country and in international markets today. It takes only a phone call to 1 866-41 VTONE (1 866-418-8663) or a visit to http://www.ecuity.net/ to arrange to install service or secure a custom solution quotation. About Ecuity, Inc. (http://www.ecuityinc.com/) Ecuity is a provider of secure end-to-end unified communication technologies for the small- to medium-business market. Ecuity uses secure next-generation voice services, instant messaging, data transfer, internet, conference calling and enterprise software to create solutions that meet the communication needs of today's business world. As a facilities-based carrier, Ecuity has operated as a traditional telephone company for 17 years, providing service to thousands of customers across the country. Through the integration of web-based telecommunications and cutting-edge software technology, Ecuity economically delivers secure unified communication solutions that break down distance, time and media barriers to allow people to communicate anywhere, anytime and across multiple mediums. Ecuity has offices in Bellevue and Seattle, Washington. Available virtually anywhere in the country and in international markets, it takes only a phone call to 1 877-4-ECUITY (1 877-432-8489) or visit http://www.ecuity.net/ to order service. 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: ----------- Laina Cole Telephone: (206) 210-5030 Investor Relations ------------------ Truc Nguyen VP, Investor Relations Stern & Co. Telephone: (212) 888-0044 Media Relations --------------- Stan Froelich VP, Media Relations Stern & Co. Telephone: (212) 888-0044 DATASOURCE: Ecuity, Inc. CONTACT: For Ecuity: Laina Cole, Telephone: (206) 210-5030, ; Investor Relations: Truc Nguyen, VP, Investor Relations, Stern & Co., Telephone: (212) 888-0044, ; Media Relations: Stan Froelich, VP, Media Relations, Stern & Co., Telephone: (212) 888-0044, x

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