FTG Farmstead Telephone Grp.

EAST HARTFORD, Conn., Oct. 20 /PRNewswire-FirstCall/ -- Farmstead Telephone Group, Inc. (AMEX:FTG) announced today that One IP Voice, its wholly owned subsidiary, has deployed its One IP Voice network service in Raleigh, North Carolina as part of its scheduled test process in preparation for the Company's January 2006 launch of its Hosted IP service offering on a national basis. According to Market Wire, "The global VoIP market will grow from a seedling market of $46 million in 2001 to $36.5 billion by 2008." Poised to capitalize on this growing market opportunity, the Company's full-service VoIP hosted solution, when deployed nationally, will provide local, long distance and internet service along with fully bundled hosted solutions to small and medium sized businesses. In addition, according to Information Week, "23% of small- to mid-sized enterprises (SMEs) are already using VoIP technology and it is expected their share will grow to 50% by 2008." Jean-Marc Stiegemeier, Farmstead's Chairman and CEO, noted: "The ability to offer last mile connectivity via our Voice over Intelligent Protocol(TM) allows us to offer our customers a higher QoS (Quality of Service) and increased security and reliability than using traditional internet transport." About One IP Voice One IP Voice, a wholly owned subsidiary of Farmstead Telephone Group, provides carrier-based Hosted IP Telephony solutions along with Network Services. The primary target of the One IP Voice offering will be to the Small to Medium Businesses (SMB) market for the under 200-employee businesses. The facilities-based One IP Voice offering will include Hosted IP Centrex and IP Trunking services, bundled with private One IP Voice "Last Mile" connectivity on a national basis, long distance calling, On Net calling, local area calling, 911 capabilities and Wide Area Network (WAN) voice and data connectivity. One IP Voice will also offer a consumer VoIP product. About Farmstead Farmstead Telephone Group, Inc. is an Avaya Inc. Gold Business Partner, selling, installing and maintaining both new and refurbished Avaya business communications products nationwide. Further information about Farmstead Telephone may be found at http://www.farmstead.com/. We are interested in your feedback and comments. To respond to questions from our management team, click here: http://www.b2i.us/sendFeedBack.asp?B=1042&RL=7853&S=12204. To add yourself to our email distribution list, click here: http://www.b2i.us/frame.asp?BzID=1042&to=ea&Nav=1&S=0&L=1. This release contains forward-looking statements that involve risks and uncertainties. In addition to historical information, investors should consider carefully the risks associated with an investment in the Company's securities as previously outlined by the Company in its prior filings with the Securities and Exchange Commission. Investor Contact: Alex Lewis or Dave Gentry Aurelius Consulting Group 407-644-4256 http://www.runonideas.com/ Contact: Mel Lipes Farmstead Telephone Group, Inc. Voice: 860-610-6005 Fax: 860-282-5737 DATASOURCE: Farmstead Telephone Group, Inc. CONTACT: Investor Contact: Alex Lewis or Dave Gentry, both of Aurelius Consulting Group, +1-407-644-4256, ; or Mel Lipes of Farmstead Telephone Group, Inc., +1-860-610-6005 Web site: http://www.farmstead.com/

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