UTGC to Offer Internet Services and e-Commerce

New York (PROTEXT) - UTG Communications International Inc.(OTC Bulletin Board: UTGC) announced today that the Company hasdecided to add various new services to the Company's presentactivities. The Company considers these new services to actsynergystically with its existing activities. UTG will then offeradditional services in the profitable areas of the Internet. The Internet will grow at a much more rapid pace than telecomservices. The facts about the Internet and Internet Commerce areas follows: -- Internet traffic is doubling every 100 days. (about 400%per

year) -- Volume of online securities trading has increased by morethan

100% over the last 2 years. -- Domains were increased from 625,000 in 1996 by 544% to 3.4

million. -- Online advertising has increased in excess of 200% over the

last 6 quarters. -- Internet commerce has increased 225% in 1998 to US$ 7.8

billion. Therefore, the Company has developed its strategy: -- to become an Internet provider with a switched-based backbone -- to offer these services to retail and other Internetproviders

in Europe -- to offer full Internet services, consultancy and support, -- to sell and operate e-commerce shops and invest in thisarea, -- to operate e-commerce shopping platforms in various retail

oriented industries, in the most successful areas of the

Internet, such as music, media, software distribution, etc. This investment strategy will be achieved by internalinvestment as well as mergers and acquisitions of companies ofinterest. The board has already evaluated several interestingpossibilities and is presently carrying them out in duediligence. The future investments are focused on the vertical aswell as the horizontal group of Internet activities. UTG Communication International Inc. is a European provider ofInternet and Telecommunications services, including long distanceand prepaid/postpaid phone cards. It has a extensive distributionnetwork in Europe. The Company owns and operates switchingfacilities in various European countries. This release contains certain forward-looking statements whichinvolve known and unknown risks, uncertainties and other factorsnot under the Company's control which may cause actual results,performance, achievements of the Company to be materiallydifferent from the results, performance of expectations impliedby these forward-looking statements. These factors include, butare not limited to, the limited liquidity of the Company, thelimited operating history of the Company under its reorganisedmanagement team, as well as other risks detailed in the Company'speriodic filings with the Security and Exchange Commission. otsOriginal Text Service: UTG Communications International Inc.Internet: http://www.newsaktuell.de Contact: UTG CommunicationsInternational, Investor Relation Department, +41-1-749-31-03, orfax, +41-1-749-31-09/

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