Teliphone Corp. Announces the Execution of a Non-Binding Letter of Intent for the Acquisition of Next Layer

Next Layer Currently Operates Four Data Centers in Canada, With a Fifth Under Construction

VANCOUVER, British Columbia, April 17, 2013. --Vancouver-based Teliphone Corp. (OTCQB:TLPH), one of the world's local digital telecommunications companies, announced today that it has executed a non-binding Letter of Intent with Cascade Divide Enterprises Inc. to acquire Next Layer Inc.

The acquisition of Next Layer would substantially increase the Company's colocation service by adding to its existing data center, four new data centers in Canada. As part of the transaction, Teliphone will complete the development and operation of a sixth Data Centre in Kamloops, British Columbia which is expected to become Teliphone's National Disaster Recovery Center owing to its geographically-stable, strategic location. All Teliphone data centers are interconnected through its Canada/US national SONET fibre optic network. This center is expected to be highly attractive for both Canadian and non-Canadian clients.

The result of this acquisition would be one of the largest colocation services offered by any CLEC in Canada and is in line with Teliphone's strategic plan to be the backup data center to other data centers. Furthermore it will provide its clients with evolved cloud computing services with multi-site national redundancy, unequalled disaster recovery and ultra-wide Internet IP transit bandwidth.

Benoit Laliberté, President of Teliphone, stated, "This is an exciting development for our Company and is fully in line with our Cloud Deployment Strategy."

The transaction is subject to completion of due diligence, and the negotiation and drafting of a final Share Purchase Agreement, as well as the satisfaction of additional closing conditions. Subject to the above, the transaction is expected to close on or about April 30, 2013 Teliphone will file all required disclosures with the US Securities and Exchange Commission within the prescribed period.

About Teliphone Corp. / Teliphone Navigata-Westel Inc.

From its origin in 1957 as BC Rail Telecom, to its evolution into Teliphone Navigata-Westel, the company, with over 100 employees and over $40 million in annualized sales, it is now one of the largest independent facilities-based Competitive Local Exchange Carriers (CLEC) in Canada. The company provides voice, data, broadband Internet, IT support, Cloud computing, Co-location data centres and IPTV service across Canada. Teliphone services carriers, business, government and residential customers on a national network which includes a wireless backhaul network, a trans-Canada SONET fibre optic network and multiple CLEC/ILEC mutual CO facilities. Teliphone also operates a US network and its voice and IPTV services are available in 47 countries.

Forward-Looking Statements

This press release includes "forward-looking statements" as defined by the SEC. All statements, other than statements of historical fact, included herein that address activities, events or developments that Teliphone Corp expects, believes or anticipates will or may occur in the future, including anticipated benefits and other aspects of the proposed acquisition, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of their dates. Except as required by law, Teliphone Corp. does not intend to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.


For more information:  
Lawry Trevor-Deutsch
Senior Vice President, Corporate Affairs
Teliphone Corp.  
Tel: +1 604 990-2000