DALLAS, Texas— 31, 2002— Gap Communications, today announced the official launch of its VoIP services platform.

The Red Gap service simplifies and reduces the costs of the five core communications needs of small and medium size businesses: local and long distance, fax, acquire and maintain a phone system (PBX), voice mail, and Internet services.

Red Gap's service delivers all of the features and benefits of a large phone system (generally known as a PBX) without having to buy a PBX at all. In addition, Red Gap eliminates the need to deal with phone equipment, the local phone company, a long distance company, and an Internet service provider.

With Red Gap's service, a business does not need to spend money on a phone system and does not need local phone lines from the Regional Bell Operating Company. Using a single high-speed Internet connection, Red Gap delivers on the five core communications needs of a business and provides numerous advanced voice and data services.

The Red Gap service allows companies to focus on growth— of spending time and money on buying, managing, and maintaining their telecommunications infrastructure. For small to medium businesses (typically under 300 employees per location) this can mean saving thousands of dollars per year in communications costs.

"For sales teams and executives on the go, there is no better way to deliver advanced voice and data services to multiple locations than with the Red Gap service. Historically it was just not feasible to have 10 remote offices or 20 employees working from home and have them all tied into your phone system. Red Gap's flexible solution was designed to meet these needs," said Brandon Cotter, chief executive of Red Gap.

Brett Sample, chief executive of SpacePlan, an early Red Gap customer, comments, "We wanted the benefits of an IP phone solution but couldn't make the investment for the whole system. With Red Gap's service, we get high-end Cisco phones, and all of the features of the big system without the big investment."

Red Gap received an undisclosed amount of seed capital from Texas Ideagroup, a local incubator that focuses on telecommunications and internet investments.

About Red Gap Communications
The Red Gap service simplifies and reduces the costs of the five core communications needs of small and medium size businesses: local and long distance, fax, acquire and maintain a phone system (PBX), voice mail, and Internet services. Red Gap's service delivers all of the features and benefits of a large PBX without having to buy a PBX at all. In addition, Red Gap eliminates the need to deal with phone equipment, the local phone company, a long distance company, and an Internet service provider. Red Gap was founded by several industry leaders with backgrounds in telecommunications, finance, and Internet services. Brandon Cotter, Red Gap's chief executive was formerly chief executive at Stick Networks, president of musicforce.com, and a vice president at broadcast.com. Don Preston, vice president of operations held senior level positions at MCI/WorldCom, Allied Riser Corporation, and other telecommunications companies. Michael Tedder, CFO previously served as CFO of Stick Networks, CFO of Energy Associates, and controller at TriStar Gas. The company received seed funding from Texas Ideagroup in late 2001 and is privately held.

Contact:
Brandon Cotter Red Gap Communications, Inc. (214) 550-1010 press@redgap.com
Red Gap Communications 2211 Commerce Street Dallas, TX 75201 press@redgap.com (214) 550-1000