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Flint Telecom Increases Gross Margins by Over 200% on $34 Million Revenues for Financial Year Ended June 30, 2010

Reduces Total Debt by $8.8 Million

OVERLAND PARK, KS, Oct 26, 2010 (MARKETWIRE via COMTEX) -- Flint Telecom Group, Inc. (OTCBB: FLTT), an international telecoms technology and services organization, announces that in its recently filed SEC Form 10K for its financial year ended June 30, 2010, the Company showed an increase in gross margins year over year of 237%. Flint Telecom also reduced total debt by $8.8 million through debt reduction and conversion to equity, while also reducing operating expenses by $1.85 million year-on-year. The key highlights of the full fiscal 2010 year results are:

-- Revenues for the year ended June 30, 2010 decreased slightly by 0.8%
to $34.1 million from $34.3 in 2009. The Company continues to focus on
adding new customers and new partners to drive revenues in the core
higher margin businesses.
-- Overall gross margins improved 237% to a gross profit of $1.6 million
at June 30, 2010 from a gross loss of $0.7 million in 2009. This
change is primarily due to management's ongoing focus on improving
margins generated from existing revenues and substituting higher
margin products.
-- Operating costs reduced 18% year-on-year and when coupled with the
increased gross margins resulted in a 38% reduction in operating
losses for the full year to $6.7 million. Net cash used in operations
reduced 53% to $2.2 million.


Whereas net losses increased to $28.9 million from $14.6 million in 2009, the increase was primarily as a result of one-time costs associated with completion of the corporate and debt restructuring carried out during the year, totaling $19.9 million. The restructuring activities resulted in a reduction of $8.8 million in overall debt and an increase in equity of $15.7 million.

Vincent Browne, Chairman and CEO of Flint Telecom Group, commented "Although painful at the time, our decision to streamline the Company to allow us to weather the economic storm has proven very beneficial in creating an organization that is now leaner and more cost efficient. We have taken substantial costs to our P&L in 2010 as part of this restructuring and we believe we have reached bottom in terms of our asset base. Although we still have some challenges with our debt we have supportive debt holders who continue to work with us. We are evolving Flint Telecom into a truly international company operating in the most exciting and high growth technology and telecom areas across the globe. Our recent acquisitions are the first steps on this journey and I look forward to working with our new colleagues in creating a truly great company as we move forward."

A full copy of the SEC Form 10K for Flint Telecom Group Inc. can be found on our website at http://www.flinttelecomgroup.com/index.php?page=regulatory_filings and on the U.S. Securities & Exchange Commission EDGAR filings website at http://www.sec.gov/Archives/edgar/data/832370/000083237010000036/form10_k.htm

About Flint Telecom Group, Inc. Flint Telecom Group Inc. is a fast growing Telecoms Technology Organization with a portfolio of companies that deliver next-generation IP communications Products and Services. The Company was founded by telecom and technology entrepreneurs with a proven track record in building global technology companies. Flint Telecom has grown both organically and through corporate activity and is traded on the OTC Bulletin Board(R) (OTCBB) under the ticker FLTT.OB. Additional information may be found at www.flinttelecomgroup.com

This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends,'' "believes,'' and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, risks associated with the integration of businesses following an acquisition and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

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SOURCE: Flint Telecom Group, Inc.