FTG Farmstead Telephone Grp.

EAST HARTFORD, Conn., Nov. 14 /PRNewswire-FirstCall/ -- Farmstead Telephone Group, Inc. (AMEX:FTG) announced operating results for the third quarter ended September 30, 2005. For the quarter ended September 30, 2005, revenues were $4,807,000, a 44 percent increase over reported revenues of $3,338,000 for Q3 2004. The Company reported a net loss for the quarter of $704,000, or $(0.20) per share, compared with a net loss of $175,000 or $(0.05) per share, in 2004. The net loss for the 2005 quarter included $243,000 of expenses incurred in the continuing build out of the Company's IP telephony business through its wholly-owned subsidiary, One IP Voice. The Company attributed its Q3 2005 improved revenue results to increased market penetration for its systems- related products and services, and a larger sales force as a result of its first quarter national launch of its Small to Medium Business (SMB) group, which is targeting businesses with under 200 employees. Jean-Marc Stiegemeier, Farmstead's Chairman and CEO commented, "The third quarter represented a period of significant progress for Farmstead Telephone Group. The continued growth in Farmstead's core business, evidenced by its 44% quarter over quarter revenue growth, and the achievement of Platinum status with Avaya, has set our expectations for a near-term return to profitability in our core business telecommunications equipment segment. The build out of One IP Voice's (OIPV) infrastructure and products is progressing as planned, and we are on target for a full national deployment of its IP telephony solutions to the Small to Medium Business (SMB) customer in January. As we continue to deploy the OIPV platform across the country, we will continue to invest both in physical and intellectual assets to meet our 2006 plan. It continues to be OIPV's goal to become the most recognized Hosted IP telephony solutions provider to the SMB marketplace. I am grateful to all of our employees, and strategic partners, for their contributions to this effort. I also wish to thank all of our stockholders for their continued support, as we transition Farmstead into the future." 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 Telephone Group, Inc. Farmstead Telephone Group, Inc. is an Avaya Inc. Platinum Business Partner, selling, installing and maintaining Avaya business communications products nationwide. Further information about Farmstead Telephone may be found at http://www.farmstead.com/. Farmstead Telephone Group Financial Highlights Quarter ended Nine months ended September 30, September 30, 2005 2004 2005 2004 Revenues $ 4,807,000 $ 3,338,000 $ 11,699,000 $ 9,633,000 Net Loss $(704,000) $(175,000) $(1,816,000) $(930,000) Basic and Diluted Net Loss Per Share $(0.20) $(0.05) $(0.53) $(0.28) Weighted Average Shares Outstanding 3,511,000 3,317,000 3,398,000 3,315,000 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 Investor Contact: Alex Lewis or Dave Gentry Aurelius Consulting Group 407-644-4256 http://www.runonideas.com/ Robert G. LaVigne, CFO Farmstead Telephone Group, Inc. Voice: 860-610-6002 Fax: 860-610-6001 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. DATASOURCE: Farmstead Telephone Group, Inc. CONTACT: Alex Lewis or Dave Gentry both of Aurelius Consulting Group, +1-407-644-4256, ; or Robert G. LaVigne, CFO of Farmstead Telephone Group, Inc., +1-860-610-6002 Web site: http://www.farmstead.com/

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