CANQUEST COMMUNICATIONS (CANADA) INC. ANNOUNCES PREPAID SERVICE AGREEMENT WITH ATLANTIC FONECARD MARKETING INC.


CHATHAM ON, November 2002 - Canquest Communications (Canada) Inc., has recently reached a prepaid service and technology agreement with Halifax-based Atlantic Fonecard Marketing Inc. for the distribution of prepaid phonecard and prepaid Internet products.

Atlantic Fonecard will retail the Canquest products under various private labels throughout their Atlantic Canada distribution network. Products are distributed at Irving Oil Ltd., Sobeys (Needs), Petro Canada, Halifax International Airport, Moncton Airport, all major universities including Dalhousie University, Saint Mary’s, Acadia, UNB and UPEI, major malls, Tourism Nova Scotia Centres, Ferries and Marine Terminals.

“Prepaid phonecards and prepaid Internet are ideal products for students and tourists as well as those simply looking for an economical way to make long distance phone calls and use the Internet,” said Frank MacIntosh president, Atlantic Fonecard. “We chose Canquest because of their long term commitment to the telecommunications industry and expertise in the prepaid market segments. Their proven track record providing services to other Tier 1 companies gave us the confidence we needed to move forward.”

“We are extremely pleased that Atlantic Fonecard has chosen our technology to support their prepaid products in Atlantic Canada,” states Mike Pugh, Senior Vice President Corporate Planning & Development, Canquest. “Atlantic Fonecard is a first class organization with a long term commitment to providing strong value to the prepaid consumers. We’re looking forward to growing their already extensive market share with new and innovative products.”

Atlantic Fonecard Marketing Inc. (“AFM”), having initiated the first prepaid vending program in Atlantic Canada is entering its seventh year of operation. AFM attributes its success to being a “hands-on”, 24/7 customer-oriented service provider. AFM started with five vending locations and currently services over one hundred vending locations as well as several hundred OTC locations. AFM now has the largest distribution network for prepaid products in Atlantic Canada.

Canquest is Canada’s only licensed full service card platform provider offering a range of electronic transaction solutions including prepaid and postpaid phonecards, prepaid Internet and prepaid cellular services with a proven track record in excellent customer service. Canquest provides prepaid technology for 6 of the 9 Canadian Incumbent Telephone Companies, an international Telephone Company and a large share of the corporate Canada retail locations.