News Release

Z-TEL to Launch Voice over IP Services Delivering Enhanced Voice and Data Bundles To Small and Medium Businesses and Multiple Housing Units

Z-Tel Service Earns Cisco Powered Network Designation
Feb 09, 2004

TAMPA, Fla., February 9, 2004 - Z-Tel Communications, Inc., a wholly owned subsidiary of Z-Tel Technologies, Inc. (Nasdaq/SC: ZTEL) and leading provider of local, long distance and enhanced telecommunications services, today announced its plans to launch broadband voice and data services based on Cisco Systems, Inc. equipment. These planned Voice over Internet Protocol ("VoIP") services have received the Cisco Powered Network designation.

Z-Tel will initially focus on the small-to-medium business market and multiple dwelling units (MDUs) such as condominiums, apartment buildings and hotels in Georgia and Florida. In addition to increased bandwidth and service flexibility, Z-Tel's VoIP solutions will offer businesses money-saving, productivity-enhancing features not available from any other provider, such as its award-winning Personal Voice AssistantTM (PVA), a voice-activated virtual address book. MDU building owners will be able to attract new tenants with Z-Tel's flat-rate bundle of enhanced yet affordable broadband voice and data services.

"By deploying Cisco's industry-leading technology, we are able to offer these customers reliable, personalized and affordable broadband services," said Gregg Smith, president and chief executive officer of Z-Tel. "Cisco shares our vision that the IP network is the foundation for delivering business solutions. We look forward to providing our customers the benefits of cutting-edge features and cost savings that these new services will enable."

Z-Tel's VoIP solution is powered by Cisco's Broadband Local Integrated Services Solutions (BLISS), including PIX 525 Firewall, Catalyst 4506 Switch, and IAD 2430. Z-Tel also relies on Cisco Info Center, Cisco Works RWAN, Cisco Works LMS, Cisco Media Gateway Manager, and CNS Configuration Engine.

"Z-Tel understands the business benefits associated with building a converged IP network infrastructure, as well as acknowledges the unique demands of small- and medium-sized businesses with a VoIP solution tailored to meet their specific needs," said Sameer Padhye, vice president, service provider marketing at Cisco Systems. "Z-Tel has achieved the Cisco Powered Network designation for this new service, enabling customers to more easily identify carriers committed to offering integrated voice, video and data services."

Z-Tel's participation in the Cisco Powered Network program demonstrates to individuals and businesses its commitment to providing industry-leading services that are based on Cisco solutions. Z-Tel also benefits from its Cisco Powered Network designation through joint marketing and technology sharing with Cisco.

Mr. Smith added, "Our powerful enhanced feature set, combined with our successful history of delivering quality local voice services nationwide position us well to offer high quality, value-added broadband data and voice solutions to our customers. We look forward to giving customers an integrated, customizable solution that will contribute to their revenue streams."

About Z-Tel

Founded in 1998, Z-Tel offers consumers and businesses nationwide traditional and enhanced telecommunications services. Z-Tel's proprietary services, such as Web-accessible, voice-activated calling and messaging features, are designed to meet customers' communications needs intelligently and intuitively. Z-Tel also makes its services available on a wholesale basis to other communications and utility companies, including Sprint. Z-Tel is a member of the Cisco Powered Network program. For more information about Z-Tel and its innovative services, please visit

This press release contains forward-looking statements. These forward-looking statements are based on the belief of our management, as well as assumptions made by and information currently available to our management. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. The words "believe," "anticipate," "intend," "expect," "estimate," "project" and similar expressions are intended to identify forward-looking statements. Forward-looking statements describe our expectations today of what we believe is most likely to occur or may be reasonably achievable in the future, but they do not predict or assure any future occurrence and may turn out to be wrong. Forward-looking statements are subject to both known and unknown risks and uncertainties and can be affected by inaccurate assumptions we might make. Consequently, no forward-looking statement can be guaranteed. Actual future results may vary materially. We do not undertake any obligation to publicly update any forward-looking statements to reflect new information or future events or occurrences. These statements reflect our current views with respect to future events and are subject to risks and uncertainties about us, including risk factors that are described in detail in Z-Tel's 2002 Annual Report on Form 10-K filed on March 31, 2003; and in Z-Tel's other filings with the Securities and Exchange Commission.

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