ATLANTA –Nov. 22, 2005–i2Telecom International, Inc. (”i2Telecom”) (OTCBB: ITUI), a pioneer in ultra-portable Voice-over Internet Protocol (VoIP) products and services, today announced operating results for the third quarter and first nine months of 2005.

Revenues decreased from $215,172 in the third quarter of 2004 to $49,851 in the quarter ended September 30, 2005. The decrease in revenues during the quarter was driven by the Company’s management and marketing focus on the launch of its VoIP service in the United Kingdom, which was delayed past the initially targeted third quarter launch date. Also, the product offering that was to be launched in the U.K. changed, and consequently, orders originally received for approximately 25,000 VoiceSticks(TM) were unable to materialize. Third quarter revenues were also penalized by the Company’s inability to devote adequate funds to marketing activities, due to the failure of certain management-led capital raising initiatives to materialize. Subsequent to quarter-end, management implemented changes in the Company’s operations that have reduced the monthly cash “burn rate” to a level that is consistent with current and anticipated revenues.

“Our product suite, including the Cellular Bridge, Instant 8-Way Conference Calls, Global Low-Cost Call plans and patent pending USB-delivered Voicestick(TM), offers customers significant and differentiating advantages relative to the competition,” stated Paul Arena, Chief Executive Officer. “The new operational plan is working. As our subscriber base continues to build, and with our lower monthly cash burn rate, we anticipate achieving break-even in the not too distant future.”

Net loss for the third quarter of 2005 totaled ($2,332,018), compared with a net loss of ($1,793,482) in the quarter ended September 30, 2004. The increase in net loss for the third quarter 2005, when compared with the prior-year quarter, primarily reflects the costs associated with the Company’s continued transition of its product line from the MG-2 and MG-3 microgateway devices to the VoiceStick(TM). This transition involved increased spending on the Company’s network, enhanced product functionality, and higher customer service, sales and marketing expenditures. Subsequent to quarter-end, management launched the Macintosh computer operating system-compatible version of the Voicestick(TM), which is already making a notable contribution to sales.

About i2Telecom International

i2Telecom International, Inc. (OTCBB: ITUI - News) is a low-cost telecommunications service provider employing best of breed Voice over Internet Protocol (”VoIP”) technology. We have operations in Atlanta, Georgia and Redwood City, California. The Company controls its own proprietary technology and uses a combination of its own network and the Internet to deliver high-quality phone calls. i2Telecom International provides VoiceStick(TM), InternetTalker(TM), and microgateway adapters for VoIP long distance and other enhanced communication services to subscribers. Its proprietary technology platform is compliant with the Session Initiation Protocol (”SIP”) telecommunications industry standard. i2Telecom International’s revenue model includes recurring monthly subscriptions and prepaid services as well as revenue from the sale of its integrated access devices, call minute termination fees and original equipment manufacturer royalties. For additional information visit www.i2telecom.com or call 877-731-6800.

SAFE HARBOR Statement Under the Private Securities Litigation Reform Act. With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including, but not limited to, product acceptance, economic, competitive, governmental, results of litigation, technological and/or other factors which are outside the control of the company. Actual results and developments may differ materially from those contemplated by these statements depending on such factors as changes in general economic conditions and financial or equity markets, technological changes, and other business risk factors. i2Telecom does not assume, and expressly disclaims, any obligation to update these forward-looking statements.

i2 TELECOM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

ASSETS

September 30, 2005 December 31, 2004
————————————-
Current Assets
Cash $ 177,327 $ 231,127
Accounts Receivable, net of
Allowance for Doubtful Accounts of
$400,000 and $75,000, respectively 51,677 232,371
Inventories 815,785 961,056
Prepaid Expenses and Other Current
Assets 407,428 231,966
———————————————————————-
Total Current Assets 1,452,217 1,656,520
———————————————————————-

Property and Equipment, Net 1,299,051 1,267,763

Other Assets
Intangible Assets, Net of
Accumulated Amortization of
$599,085 and $435,507,
respectively 2,748,000 2,880,579
Deposits 67,549 78,164
———————————————————————-
Total Other Assets 2,815,549 2,958,743
———————————————————————-

Total Assets $ 5,566,817 $ 5,883,026
———————————————————————-

i2 TELECOM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)

September 30, 2005 December 31, 2004
————————————
Current Liabilities
Accounts Payable and Accrued
Expenses $ 2,629,038 $ 1,303,656
Deferred Revenue 99,776 99,901
Notes Payable-Current 2,506,501 100,000
———————————————————————-
Total Current Liabilities 5,316,275 1,503,557

Long-Term Debt - Notes Payable -0- -0-
———————————————————————-
Total Liabilities 5,235,315 1,503,557
———————————————————————-

Shareholders’ Equity (Deficit)
Preferred Stock, No Par Value,
5,000,000 Shares Authorized, 4,085
Shares and 4,075 Shares Issued and
Outstanding, respectively 4,860,000 4,175,000
Common Stock, No Par Value,
100,000,000 Shares Authorized,
37,337,738 Shares and 34,491,402
Shares Issued and Outstanding,
respectively 14,537,041 13,035,158
Restricted Common Stock (related
to No Par Value above), 661,239
Shares and 991,858 Shares Issued
and Outstanding, respectively 331,764 497,646
Additional Paid-In Capital 900,396 404,100
Accumulated Deficit During The
Development Stage (20,297,699) (13,732,435)
———————————————————————-
Total Shareholders’ Equity (Deficit) 331,502 4,379,469
———————————————————————-

Total Liabilities and Shareholders’
Equity (Deficit) $ 5,566,817 $ 5,883,026
———————————————————————-

i2 TELECOM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the For the For the For the
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2005 2004 2005 2004
——————————————————-
Revenue $ 49,851 $ 215,172 $ 502,389 $ 481,560

Cost of Revenue 369,492 199,975 775,589 488,627
———————————————————————-

Gross Profit (Loss) (319,641) 15,197 (273,200) (7,067)

General and
Administrative
Expenses 2,351,050 1,827,845 6,056,368 4,872,017
———————————————————————-

Loss From
Operations (2,670,691) (1,812,648) (6,329,568) (4,789,084)
———————————————————————-

Other Income (Expense)
Interest Income 1,462 1,628 2,153 1,743
Interest Expense (13,749) (10,105) (26,454) (27,327)
Gain on
Forbearance of
Debt 350,960 27,643 350,960 27,643
Loss on Disposal
of Assets 0 0 0 0
Loss on
Subscription List 0 0 0 0
———————————————————————-
Total Other
Income (Expense) 338,673 19,166 326,659 2,059
———————————————————————-
Loss Before
Cumulative Effect
of Accounting
Change (2,332,018) (1,793,482) (6,002,909) $(4,787,025)
———————————————————————-
Cumulative Effect
of Accounting
Change on Years
Prior to 2005, Net
of Income Tax of
$-0- 0 0 (340,117) 0
———————————————————————-

Net Income (Loss) $(2,332,018) $(1,793,482) $(6,343,026) $(4,787,025)
———————————————————————-

Weighted Average
Common Shares:
Basic 37,337,737 34,238,549 36,609,532 19,069,547
Diluted 59,579,681 46,981,359 48,075,234 39,217,702
———————————————————————-
Basic Earnings Per
Common Share:
Loss Before
Cumulative Effect
of Accounting
Change $ (.07) $ (.05) $ (.17) $ (.25)
Cumulative Effect
of Accounting
Change (.00) (.00) $ (.01) (.00)
———————————————————————-
Net Loss $ (.07) $ (.05) $ (.18) $ (.25)
———————————————————————-
Diluted Earnings
Per Common Share:
Loss Before
Cumulative Effect
of Accounting
Change $ (.05) $ (.04) $ (.13) $ (.12)
Cumulative Effect
of Accounting
Change (.00) (.00) (.01) (.00)
———————————————————————-
Net Loss $ (.05) $ (.04) $ (.14) $ (.12)
———————————————————————-