FOR IMMEDIATE RELEASE

Telegration Signs 5-Year Distribution Agreement with XO Communications®

Telegration to Sell Award-Winning VoIP Bundle and Other Integrated XO Services Nationwide

Troy, MI –March 31, 2006 – Telegration, a leading provider and reseller of telecommunications services for businesses, announced today that it has entered into a new five-year distribution agreement with XO Communications, a leading telecommunications provider offering nationwide communication solutions exclusively for businesses, agents and carriers. As an Authorized Agent for XO Communications, Telegration will sell XOptions Flex, the award-winning VoIP bundle, as well as other integrated access service, nationwide.

“This significant partnership with XO Communications empowers Telegration to further expand our agent business nationwide,” said Denis Raue, president and CEO, Telegration. “Most of all, our customers will benefit from the opportunity to have yet another excellent choice of telecommunications provider directly through Telegration.”

XO Communications is known for XOptions Flex, an industry-leading voice over Internet Protocol (VoIP) services bundle that enables small and medium-sized businesses with larger offices to take advantage of the cost-savings and flexibility of VoIP. XOptions Flex is the industry’s first VoIP services bundle for businesses that combines unlimited local and long distance calling, dedicated Internet access and web hosting for a flat monthly price.

In addition to XOptions Flex, Telegration will also be an Authorized Agent for the distribution of XO services, ranging from local to long distance phone service, DSL to dedicated Internet access (DIA), and advanced network security solutions. XO also has an award-winning Internet backbone network and serves 75 U.S. major metropolitan markets.

“We look forward to developing a strong relationship with Telegration,” said Jim Delis, president of the XO Business Partner Channel. “With its network of high-energy, knowledgeable agents and a solid reputation in the industry, Telegration will be an excellent channel for XO Communications to reach even more business customers.”

About XO Communications

XO Communications is a leading provider of national and local telecommunications services to businesses, large enterprises and telecommunications companies. XO offers a complete portfolio of services, including local and long distance voice, dedicated Internet access, private networking, data transport, and Web hosting services as well as bundled voice and Internet solutions. XO provides these services over an advanced, national facilities-based IP network and serves more than 70 metropolitan markets across the United States. For more information, visit www.xo.com.

About Telegration

Telegration reduces costs and improves efficiencies for over 27,000 businesses including Fortune 500 corporations, cities, government agencies, and other organizations while providing maximum flexibility, service guarantees and exceptional customer service. As one of the largest SBC® 5-Star Authorized Distributors and an Authorized AT&T® Solution Provider, Telegration offers a complete range of local, long distance, and Internet services from the industry's leading providers including XO Communications, Broadwing, Global Crossing, MCI, Sprint, TDS Metrocom and others. Telegration also provides its own private-branded long distance services for voice, video and data applications using the Verizon and Sprint networks.

Founded in 1990 and headquartered in Troy, Michigan, Telegration is one of the fastest growing providers in the Great Lakes region with branch offices in Chicago, Cleveland, Toledo, and Grand Rapids.

Telegration Media Contact
Gordon Barker
Barking Dog Communications
Phone: (847) 869-3355
Fax: (847) 492-9450
barkndog@interaccess.com