eLEC Communications Reports 59% Local Line Growth

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eLEC Communications reports an increase of 59% in local access lines at the end of the third fiscal quarter ended August 31, 2004 over the number of lines at the end of the second quarter. Billing has reached almost $1 million per month, indicative of the revenue growth expected when quarterly results are announced.

eLEC Communications Corp. (OTCBB:ELEC) today announced that it experienced an increase of 59% in local access lines at the end of the third fiscal quarter ended August 31, 2004 over the number of lines at the end of the second quarter. This increase resulted in total billings to customers for the month of August 2004 of approximately $990,000, as compared to total billings for the month of May 2004 of approximately $587,000, or an increase in monthly billings of $403,000, or 69%. Although billings to customers deviates somewhat from revenues because certain telephone services are billed in advance, the growth in the number of lines and the growth in the total billings are indicative of the revenue growth that is expected. Revenue numbers will be available when the quarterly results are announced.

eLEC CEO Paul Riss stated, “We are pleased that we have reached the billing level of almost $1 million a month. With AT&T (NYSE:T) and MCI (NASDAQ:MCIP) announcing cutbacks in the marketing of their residential phone service, we find customers very receptive to our telephone service offerings. In addition to our growth in revenues, we have been able to maintain strong gross profit margins because we continue to focus our marketing efforts on geographical areas in which our costs of services are less than they are in other areas. Our size and flexibility gives us an advantage over the larger competitive carriers with regard to maintaining overall gross margins.”

eLEC Communications Corp. is a Competitive Local Exchange Carrier that offers local and long distance calling plans to small business and residential customers. We sell under the names of New Rochelle Telephone and eLEC Communications, delivering telephone services at a price savings and with quality customer service. For more information on our products and offerings, visit our web site at http://www.myelec.com.

This release contains forward-looking statements that involve risks and uncertainties. eLEC’s actual results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, among others, certain risks and uncertainties over which the company may have no control. For further discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see the discussions contained in eLEC’s Annual Report on Form 10-KSB for the year ended November 30, 2003, eLEC’s Quarterly Report on Form 10-QSB for the quarters ended February 29, 2004 and May 31, 2004 and any subsequent SEC filings.

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