Telephone Magic Nortel Meridian Norstar revenue up 107.5% in first half of 2003

Web sales of Meridian 1 Option M3900 series phones, Nortel M2000 PBX telephones, Norstar phones, Meridian Centrex & Home Office telephones skyrocket in 2003

Telephone Magic Inc. continues to experience a dramatic rise in its web based telecom business. While all components of the company continue to perform well, web sales at www.telephonemagic.com have driven revenue up an amazing 107.5% in the first 6 months of fiscal 2003-2004.

Jeff Jackson, president of Telephone Magic, states, Our team is busier than ever dealing with the incredible influx of new Internet clients. We continue to specialize in Nortel telephone equipment - Norstar phone and voice mail systems, Norstar telephones, Meridian 1 Option 11C PBX phones and cards, Norstar audio conferencing units, Norstar Plantronics headsets, T7406 Norstar cordless phones, and other specialty items. The M3904 and M3903 M1 sets are particularly hot now, and the new version T7316 phone, the T7316e is selling fast, as it accepts the new T24 KIM CAP modules, that allow Norstar and BCM users to view the status of up to 24 other extensions at a glance."

Mr. Jackson continues, The US and Canadian governments are purchasing from us now, as we are considered the premier wholesale supplier of Nortel Norstar and Meridian hardware on the web. We have been serving our clients for 15 years now and our quick service is earning us new business from the likes of the FAA, FEMA, the US Coast Guard, numerous branches of the US Military, General Dynamics, and even the Chicago Cubs Baseball Team. Our new location in Niagara Falls has been a perfect fit with our increased sales growth."

Telephone Magic Inc. sells both new and refurbished telephone equipment, which adds to the flexible telecom options offered. Many clients state they cannot tell the difference between new and remanufactured phones, hardware, parts and cards, as the Telephone Magic refurbishing process is second to none. As a result, revenue is expected to continue to rise through the balance of the fiscal year.

Also adding to the overall success of the company is its hospitality division, HOTELtelecom, and its highly regarded web site, http://www.HOTELtele.com, which has produced sales internationally as a world class distributor of hotel room phones and PBX equipment.