FUENGIROLA, Spain, /PRNewswire-FirstCall/ Spantel
Communications, Inc. (OTC Bulletin Board: SPAL), a provider of telecom
services within Spain, announced today that it has expanded its network
capabilities and will begin operations into the lucrative sector of pre-paid
calling cards on February 2, 2004. The company recently installed the
equipment to route the calls for this division and have made the necessary
adjustments so it would be compatible with Spantel’s proprietary billing
system. With the pre-paid calling card market in Spain is estimated to be in
Euro 250,000,000 ($300,000,000), it is projected that this division will
become an integral component in Spantel’s growth strategy.

Spantel’s president, Jose Ramon Basterra, said, «Our entry into this
sector is pivotal in our overall business strategy. As Spain is one of the
most frequented travel destinations within Europe, the pre-paid calling card
will be welcomed by both the business and leisure traveler in meeting their
telecommunications needs. The pre-paid calling card will also appeal to the
general population as a way of saving money through a lower rate structure and
as compared to the long distance rates currently charged to their mobile
phone.» He went on to say, «We expect the revenues generated by calling cards
will greatly enhance our current financial position and quite possibly surpass
land line revenues in a short period of time.»

Spantel Communications, Inc. is a provider of telecommunications services
throughout Spain. To learn more about Spantel, visit the Company’s website at
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Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties, which may cause
the Company’s actual results in future periods to differ materially from
forecasted results. Those risks include, among other things, the competitive
environment in the telecommunications industry in general and in the Company’s
specific market areas, inflation, changes in costs of goods and services and
economic conditions in general. Those and other risks are more fully described
in the Company’s filings with the Securities and Exchange Commission.