EAST HARTFORD, Conn., Jan. 3 -- Farmstead Telephone Group, Inc. (OTC Bulletin Board: FTGP) announced today that One IP Voice, Inc., its wholly owned subsidiary, has signed a significant Hosted VoIP services contract with a national chain of total body aesthetic centers. This agreement was signed through its Business Partner TIE National Accounts, Inc of Chicago ("TNA").


"Our business partner TNA brought us a challenging application," stated Michael Dozier, Vice President of Sales for One IP Voice, "involving a rapidly expanding multiple location luxury spa, whose needs included a communications solution that would provide their retail and combination surgical centers with a centralized reservations center, corporate IP PBX, as well as a Wide Area network (WAN) deployment to meet their voice needs. One IP Voice was able to provide a full voice hosted VoIP solution to the customer, meeting their time lines. Working with the customer's independent consultant, we were able to design a robust hosted and network solution that met the customer's needs. The One IP Voice solution also provides the customer with significant Cap Ex avoidance while providing enhanced features to its many US locations."


In the consultants executive summary to the client he stated that, "this new application design lowers the ongoing monthly expenses ... provides even further upgraded WAN bandwidth and more beneficial features for ... application requirements... Overall, this application offers a lower monthly cost, lower cash payment, higher bandwidth WAN service and excellent disaster recovery function ... "


Jean Marc Stiegemeier, Chairman and CEO of Farmstead stated, "We are very pleased with the team's effort, and welcome this very prominent customer to One IP Voice. One IP Voice's market strategy continues to be to team with voice application centric business partners. They understand the customer's business and the impact of providing a telecommunications solution that improves the quality of service to the customer and improves personnel efficiency within the organization while reducing overall communications expense. In this customer's case, the One IP Voice solution provides them with a fully bundled VoIP solution that includes local and long distance calling, free calling between all of their nationwide facilities and an excellent disaster recovery platform."


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 is to the Small to Medium Businesses (SMB) market for the under 200-employee businesses. The facilities-based One IP Voice offering includes 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. Further information about One IP Voice may be found at http://www.oneipvoice.com


About Farmstead


Farmstead Telephone Group, Inc. is an Avaya Inc. Platinum Business Partner, selling, installing and maintaining both new and refurbished Avaya business communications products nationwide. Further information about Farmstead Telephone may be found at http://www.farmstead.com.


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.


Contact:


Mel Lipes


Farmstead Telephone Group, Inc.


Voice: 860-610-6005


Fax: 860-282-5737


OR


Investor Contact:


Alex Lewis or Dave Gentry


Aurelius Consulting Group


407-644-4256


info@aurcg.com


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