VoIP announces that it has recently added new customers to its network and experienced an increase in usage from existing customers resulting in a 40 percent increase in overall network minutes per day being carried over the Company’s network during the period from September 15, 2007 to October 15, 2007. This represents the largest increase in network traffic since its inception. VoIP receives payments from its customers based upon their utilization. VoIP expects a significant increase in October revenue compared to the previous month due to substantially higher usage of its network. In addition to increased utilization of the network, the Company announced that variable gross margins on the minutes carried over the network continue to improve, from approximately 33 percent in the 30-day period prior to September 15th, to 45 percent in the subsequent 30 days.

The increase is a result of continued network expansion, as VoIP has established direct facilities for the origination and termination of minutes/calls on its own network instead of utilizing third party carriers to handle those minutes. 44 percent of all minutes that VoIP bills its customers are carried over its network today, compared to just 17 percent just 30 days ago. The increased utilization of the Company’s own interconnected facilities provides significant reductions in cost, increased quality for customers, and improved profitability as VoIP builds a facilities-based communications network comparable in geographic size to other carriers, such as XO Communications, Level 3 Communications, and others.

“The investments we made in expanding our network have made us a more important partner with our customers,” said Shawn Lewis, Chief Operating Officer of VoIP, Inc. "The increased traffic and improved margins, resulting from a more favorable mix of customers, positions the Company for strong growth during the fourth quarter. We believe the progress we have made in attracting new customers and in developing our network will be reflected in our fourth quarter results."