Phonetime Announces Normal Course Issuer Bid

AJAX, ONTARIO--(Marketwire - Feb. 28, 2012) - Phonetime Inc. (TSX:PHD) announced today that the Toronto Stock Exchange has accepted a notice filed by Phonetime of its intention to make a normal course issuer bid.

Pursuant to the terms of the bid, Phonetime may purchase its own common shares (the "Shares") for cancellation through the facilities of the TSX at the prevailing market price of the Shares. Phonetime will effect purchases at varying times commencing on or after March 1, 2012 and continuing until no later than February 28, 2013. Phonetime has not acquired any of its common shares during the past twelve months.

The number of Shares purchased by Phonetime will in no event be in excess of 8,007,717 Shares, being approximately 10% of its "public float" of 80,077,179 Shares. Purchases will be subject to a daily maximum of 17,794 Shares, being approximately 25% of Phonetime's Average Daily Trading Volume of 71,179 Shares for the six-month period of August 1, 2011 thru January 31, 2012, except where such purchases are made in accordance with the "block purchase" exemptions under applicable TSX policy. The actual number of common shares that may be purchased and the timing of any such purchases will be determined by Phonetime. Phonetime intends to cancel the common shares purchased pursuant to the normal course issuer bid.

In addition to providing shareholders liquidity, Phonetime believes that its Shares have been trading in a price range which does not adequately reflect the value of such shares in relation to the company's business and its future prospects. As a result, Phonetime believes that its outstanding Shares may represent an attractive investment.

As at the close of business on February 15, 2012, Phonetime had 158,731,492 Shares issued and outstanding.

About Phonetime Inc.

Phonetime handles the completion of long distance telecommunications around the world. In 2010, Phonetime completed 720 million phone calls with duration of over 4 billion minutes in 2010. Phonetime is a best in class provider of outsourced telecommunication services. Phonetime's common shares are traded on the Toronto Stock Exchange under the symbol PHD. More information can be found at the Company's website, www.phonetime.com.

Caution Regarding Forward Looking Information

This press release contains forward-looking statements, which may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. These statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. Phonetime's actual results could differ materially from those currently anticipated due to a number of factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. See www.sedar.com which contains all securities files.